I’ve been in banking for more than 30 years. Recently, I tried to estimate how often I’ve heard a community bank CEO say, “No matter what we do, we can’t get our NlM out of the 3s. It’s impossible.” It turns out that I can’t estimate it. The number’s so high I’ve lost count.
Whenever I hear a CEO, CLO, or CFO declare, in front of the team, that banking is a commodity, I am never surprised to look them up a few years later to see that the bank has lost its independence.
Everyone has patterns of disbelief.
Some people believe that in politics, there is one side or the other, and they’re unwilling to look at the alternative. Still others believe that the moon is made of cheese.
You may have a belief system that’s true. You may have a belief system that’s not true. And the question that we have to look at as executive is, “what has to be true for us to challenge what we believe to be true?”
You see, there are many beliefs within our industry right now,
The constant “need” to match rates to win a deal is a symptom, not the cause of the net interest margin crisis in banking today.
The cause is much more profound.
It’s inside each of your lenders, and it may be inside of you. Frankly, it’s not your fault (or theirs). It’s unconscious and has been a limiting belief in the banking industry for at least 100 years (probably longer).
And don’t worry, if you’re frustrated with your margin, but feel you have to fight any way you can to keep the customers you have and get new ones,
I believe you deserve to get paid what you are really worth and never worry again about matching the discounted rates from your competition. Watch this video if you are the kind of leader who:
- Feels strongly that you just can´t follow the herd anymore
- Has lenders who don´t believe in premium pricing
- Are about to give up, because it seems like you are swimming against the tide
Watch this video now…
You deserve to get paid more.
You deserve to get out of the crazy rate-matching game that can’t end well for anyone.
The truth is, you can get paid a premium—an above-market rate—by good, A+ quality clients, but you won’t get there doing the same thing you’ve been doing.
Watch this video to discover the three secrets to getting premium pricing and getting it soon—in the next few weeks—so that you can stop feeling stuck in rate competition with competitors willing to work for less than you deserve…
You’re in luck…
At conference, after conference, after conference, when I speak to audiences of bank executives the talk lately has been “culture, culture, culture.”
Much ado about culture…why?
There’s good reason. Culture is proven to be the leading predictor of YOUR future growth and profitability.
Read that again…
CULTURE is PROVEN to be the LEADING PREDICTOR of future growth and PROFITABILITY.
Take that in for a moment.
That’s a scary statement for most bankers, heck for most business leaders anywhere. Most think culture is this touchy-feely,
Have you seen the latest study showing that community bank customers rank rate and price as the #1 criteria for choosing their bank?
Me neither…because it doesn’t exist.
Yet, the “myth” that price is the paramount concern for your customers runs rampant inside community bank sales teams.
The real research shows that price is only 5th on the list of considerations for most customers…
So why then do they ask for your rate, before asking anything else…?
Simple. If they’re asking that question, your prospects know no other way to tell your bank from another.