For every incredible superhero, there’s usually a friend, a sidekick, or someone else serving as literal or metaphorical backup. Batman has Robin, Captain America has Bucky Barnes, and many others have a succession of sidekicks and apprentices. In comics and on screen, sidekicks and confidants aren’t just support acts; they’re often the difference between victory and defeat. They know when to jump in, provide critical advice, and keep things moving smoothly behind the scenes. As it turns out, small and medium-sized businesses (SMBs) want sidekicks, too. SMBs crave access to someone who can help guide them through their financial decisions, like their banker from their community financial institution (CFI). Indeed, when McKinsey surveyed businesses with $50MM or less in annual revenue about their most important criteria for selecting a bank, robust relationship management topped the list at 47%. Coming in second was online and mobile tools at 42%.Those results highlight how important it is for CFIs to maintain a solid relationship management team when courting and servicing small business clients. While a majority of SMBs express a need for relationship managers, some use them more than others.Which SMBs Need Relationship Services the MostThe demand for relationship bankers rises along with revenue and staffing. For SMBs with annual revenue under $1MM, 57% said in a recent poll that they had a relationship manager. The need jumps once the business grows and starts hiring additional employees. For SMBs earning from $1MM to $20MM in annual revenue, the number jumped to about 85%. In short, the bigger the business, the more it needs a relationship manager.One possible takeaway from that statistic is that if you establish an SMB relationship early in a business’ life, your importance to that company will likely increase as it grows, along with its need for additional financial services.While a solid relationship management team is essential for attracting SMBs, a financial institution also needs to have the right mix of services. Keep in mind that a relationship manager is only as good as the institution being represented.What types of things do SMBs need that relationship managers can help with? Here is a list from the McKinsey survey of some of the top needs of SMBs, which can help guide relationship managers:
- 35% integration of banking and business operations software
- 32% branch locations are nearby or convenient
- 27% lower fees
Growing your SMB relationshipsCFIs are known for their ability to form relationships, but how does a CFI take its relationship management to the next level? Here are some strategies:
- Hire the right people. Though it sounds simple, this axiom can be difficult to achieve. Relationship managers need to have solid financial knowledge and business familiarity, be effective communicators, know the bank and its products well, be able to analyze and solve business issues, and proactively suggest bank solutions. Plus, they need the people skills to accomplish all of the above effectively.
- Emphasize training on hard and soft skills. This involves not just continuously updating managers on the latest bank products and services but also offering training in soft skills like listening and empathy.
- Invest in helpful tools. Provide your team with the tools needed to effectively do their jobs, including effective customer relationship management systems.
- Understand client needs. Very small businesses often need the basics like card processing and checking accounts. Yet, as businesses hire more employees, they may need payroll help or the ability to integrate their business finances into their bank. Get a feel for the particulars of their business and what both short-term and long-term goals look like for them.
- Sell partnership, not just products. Solid client relationships are built on stable foundations. A sales culture that is laser-focused on numbers and goals only could turn off clients who see your relationship managers’ approaches as overzealous or untrustworthy. Focus on learning the people behind the businesses and what’s most important to them. From there, you can use that to build
- Assess client satisfaction. Measure the performance of your client relationship team, not simply by products sold but by how satisfied clients are with the service. Regularly ask clients for feedback and for areas that need improvement. This will help you assess how well your relationship managers represent your brand to clients.
Strong relationships are what set the best financial institutions apart — just like a superhero team-up, the right partner provides expertise, support, and confidence when it matters most. As SMBs grow and face new challenges, a dedicated relationship management team helps guide them every step of the way. By investing in the right people, tools, and training, CFIs can deliver the trusted guidance small business clients need to succeed. In doing so, they not only strengthen their communities but also forge long-lasting partnerships built on trust and understanding.
