Higher Net Interest Margin With Less Risk – Fact or Fiction? [VIDEO]
Most banks chase NIM by matching rates. Top banks raise pricing by changing positioning. Here’s how they do it.
Welcome to the Top 5 Percenter™ Blog
Is this addiction killing your bank’s profit?
It creeps up on you…usually in a moment of desperation.
A prospect comes in and says “So and so bank down the street offered rate X. If you can get me a loan at a rate that is half a percent lower, then you have my business.”
Now you feel trapped. You want to close this deal, but you know if you lower your rate, the deal won’t be profitable…but you know if you don’t lower your rate, the prospect walk out the door and down the street to do business with your competitor—and then it happens…
You lower your rate to “buy the business.”
The temptation to rate match has become an epidemic in community banks across the country. It’s an addiction that’s eating away at your profits and if left untreated—will put some banks out of business.
So how do you kick this habit?
Well—the answer is simple…but not easy. You need to demonstrate to the customer that you are worth more than your competitors.
At this point you are probably thinking “Okay, but how do I do this, we’re offering basically the same thing they offer?”
To help you get started, I’ve created a short video where I reveal the key factors that you need to focus on in order to differentiate yourself from the competition.
Before you watch the video you’ll want to also grab a copy of the new white paper I just released on Creating Level 4 USPs, it will be helpful to refer to it while you watch the video.
In this new white paper I share:
- How to command Brand Insistence
- Why you MUST turn your current ‘Customers’ into Clients
- How to makeover your mindset
- How to bring extreme value to your clients using level 4 USPs
- Why you need to change the numbers you’ve been measuring
More From The Blog
Rate Risk is a Big Risk—Play Smart [VIDEO]
Guessing interest rates is not a strategy. Here’s how top community banks remove rate risk and stay profitable.
Why Community Banking Matters—Especially at Christmas [VIDEO]
A Christmas reflection on why community banking matters—and why your leadership impact extends far beyond transactions.
Life in the World of Over-Regulation [VIDEO]
Top banks don’t complain about regulation—they execute around it. Here’s how the elite outperform anyway.
Why Is It So Important to Hold On to Low Cost Deposits [VIDEO]
Low-cost deposits are the ultimate margin advantage. Discover how top 5% performers attract them consistently—and why most banks fail to compete.
Can Strategic Thinking Be Taught or Nurtured [VIDEO]
Banks don’t fail from a talent shortage—they fail from a thinking shortage. Discover how critical-thinking systems like the SIR Formula build your future executives now.
A State of Gratitude [VIDEO]
A powerful Thanksgiving message on how gratitude shifts leadership presence, reframes pressure, and strengthens your bank’s performance culture.
How to Tie Everyone to Profit [VIDEO]
Most employees believe they’re top performers but can’t show how they drive profit. This episode shows how to tie every role to the bottom line, boost profit per FTE, and build a high‑performance culture in your community bank.
The Dangers of False-Attempt Sales Training [VIDEO]
Traditional sales training fails because it focuses on tactics, not transformation. Discover how to shift from sales training to sales culture and achieve lasting growth.
Master the Four Levels of USPs [VIDEO]
Escape commodity pricing. This episode shows how Level-4 USPs—proprietary, client-valued processes—let community banks command +150–200 bps and keep deposits loyal.