Compressed NIM is more painful than a compressed spine, more excruciating than a pinched nerve in your back. Both physiologically as well as in the banking industry, it’s a sign that something isn’t working.
Matching rate to win a client is a reactive strategy.
You may as well tell the customer this: “You’re right, this is a commodity business and our bank just isn’t that special. We’re no different from Joe Schmo bank down the street. And since there’s no difference between us, we’re willing to throw profitability in the trash and race to the bottom to give you the lowest possible rate even if it means losing money on this and every other deal we bring you.”
The banks that really win don’t just win the business — that’s only what people see on the outside. Instead, they create a win-win-win all the way around.
How do they do that? They start by providing real value and being able to express that value in a way that closes new business at an 85% rate.
Too many bank CEOs chalk up their competitors’ wins to high risk. “Oh, they’re super successful because they gambled and won big. That’s not very sustainable. You can’t have high NIM without high risk.“
Isn’t that the typical long-held belief? It sure makes mediocre banks feel better about themselves. Meanwhile, their best customers are getting picked off year after year.
So, what do most banks do? They spend a lot of time and money hiring more lenders to make more calls. They figure a “surge” will work. They tell themselves they just need to work harder.
When that doesn’t work, they spend MORE time and money hiring a sales company. They just need to work smarter, they say. But that never works either … or if it does, by some miracle, it doesn’t work for very long because most if not all “training companies” focus on a symptom rather than the actual disease.
At the end of the day, what matters is what your people call an event after the event, right?
The “whispers” and consensus around the office once the sales training has ended, or even weeks later. Some consultants do their half-hearted, ineffective training and it doesn’t matter what they called it to begin with. These so-called “sales” gatherings are later given other titles by your staff, such as “not worth it in the end,” or “I’ll never get those 2 hours back,” or other more colorful names. You may as well ask them: “How was that ‘back to square one’ seminar yesterday?”
You’ve been down that road a million times, and how does it always end? The sales company will teach one half-baked concept as if that alone is the panacea to all your woes. It isn’t, never has been, and never will be.
Where can you lead your team to learn from the best and leverage the most from your time and their time? The Never Match Rate Again Masterclass is where your bankers will learn to:
- Identify their Top 100 most profitable customers and their Next 100 best prospects
- Develop differentiation to become a “Category of One”
- Create brand insistence with high-ROI marketing
- Transform the culture through organizational development principles and practices
- Implement stage-appropriate accountability
- Create a system that ties everyone to profit
- Follow a meticulous, step-by-step sales process and execution formula
Register now for the Never Match Rate Again Masterclass.
“We’ve taken hundreds of banks—and thousands of bankers—through these vital shifts in approach. And we’ve watched them achieve results they once believed impossible … while never again having to engage in a rate battle.”
– C. Floyd, President & CEO, First National Bank of Syracuse
Guiding your team through the livestream event is Roxanne Emmerich
Nobody has helped more banks effectively and strategically plan and get to top-of-peers status than Roxanne Emmerich.
Bestselling Author: Roxanne is the New York Times, WSJ, and International bestselling author of Thank God It’s Monday!® and author of Profit-Growth Banking, Net Interest Margin Solution, and her newest release, The Breakthrough Banking Blueprint.
She is also editor-in-chief of Extraordinary Banker® magazine, which has a readership of 15,000 board members and executives from the best banks in the country.
Banking’s Thought Leader: Roxanne is the founder and chair of the Institute for Extraordinary Banking™ and creator of the Banky™ Award—the highest designation for results-oriented elite community banks of America. Her Best Banks in America™ Super Conference consistently receives rave reviews as the best conference for elite, results-oriented, ambitious bank executives and board members.
Transformation Agent: Roxanne is CEO of the Emmerich Group®. For the last three decades, Roxanne and her team have helped hundreds of banks transform their performance to get to top 5% performance and, more importantly, stay there. Successful Meetings magazine listed her as one of the top three speakers in the country on organizational culture.
Awarded Contributor: Roxanne is a National Speaker Hall of Fame inductee, a distinguished alumna of the University of Wisconsin, and recipient of the prestigious Nido Qubein Philanthropist of the Year award for her ongoing work to build schools in Africa.
Share with your entire executive team so that you can get aligned on the right strategies you should be focusing on in 2022 and to get your team aligned right now.