3 Portfolio Pivots to Move from Reactive to Proactive and add Profit
Financial headlines show Wall Street’s concern about the quality of banking loans, creating questions about what banks can do to head off these challenges. Incomplete information, delayed private business reporting and a constantly changing landscape puts banks at a disadvantage in staying up to speed on their borrowers.
The challenge has been exacerbated by the industry standard – managing by looking back in the hopes of readying for the future. That just doesn’t work.
We built Cenerus to handle this exact industry problem – for banks of all sizes. Banks need proactive and predictive data about borrowers and the markets that they work in for two important reasons. First – so they can limit risks and head off concerns when conditions deteriorate. Second – and equally important – so they can proactively bring new offerings and services to clients that not only help prevent issues but help their customers thrive (while helping the bank win as well).
Moving from Reactive to Proactive with 3 Pivots
So, what can Banks and Financial Institutions do to head off this challenge and move from a reactive position to a proactive engagement with concerned clients, investors and regulators?
The Cenerus approach is a tested and proven process that is quick and easy to implement, cost-efficient and fast to deliver results. Here are 3 Quick Proactive Pivots to enable your financial institution to turn this industry concern into a distinct advantage:
- Step 1: Take Stock of Your Current Status
- Take a look at your bank’s general approach to engaging with your business and commercial customers. Some key questions:
- How often do relationship managers proactively reach out to borrowers with new offers?
- Are the relationship managers’ engagement with borrowers triggered by timely news or current market trends?
- Do borrowers think of your bank as adding value beyond the loan (or just pushing your product)?
- Do relationship managers have enough time or tools to bring new observations or relevant data to customers?
- If the answer is no to the above then you’re susceptible to the same concerns hitting other banks in the headlines today. That’s because your connection to your customers isn’t as proactive as it needs to be to survive and thrive in the current market conditions
- This doesn’t mean you need to add more relationship managers or make expensive personnel moves. It does mean they need the tools to streamline that alert, engagement and outreach and that’s where Cenerus can help.
- Take a look at your bank’s general approach to engaging with your business and commercial customers. Some key questions:
- Step 2: Get a Baseline for Your Loan Portfolio Businesses
- Take a snapshot of your current business and commercial customers with a look at a few of your borrowers. We recommend starting with about 10 files and a mix of loan types, across CRE and C&I.
- You should also have 2-3 of the files be ones assigned to or on their way to special assets and 2-3 loans that you aren’t sure about but would like to get some added insight on either because of risk or because there could be more opportunity on the horizon.
- This ~10 file approach is what Cenerus uses as a baseline to establish several important insights for the bank:
- Insight on the loan portfolio – though a small sample size it gives a view for how the information, intelligence and decision cycle for different types of loans and borrowers is performing and where there are strengths and risks.
- Insight on the approach to customer opportunity – reflecting how the bank is engaging with borrowers, if there is any existing proactive engagement and where there are moments to present new offerings and services, both internal and external, to the customer.
- Insight on the overall process – giving a picture on the overall approach to borrowers, the cadence of engagement, the way data is collected to look for ways to optimize and create efficiencies.
- Step 3: Pivot to Proactive with a Proven Process
- Armed with the baseline information, it’s time for the bank to step into a proactive engagement process across more of its business and commercial customer base.
- Using recommendations from each of the insights across the loan portfolio, the approach to customer opportunity and the approach to overall process, Cenerus will recommend a cadence of borrower review.
- This takes into account managing the greatest risks and the best opportunities for upselling of bank services.
- We also will recommend the monitoring and reporting cadence – from our Cenerus Pulse service which provides ongoing dashboard updates on a real-time basis, to quarterly snapshots giving banks better information and refreshed Cenerus Decision Briefs enabling fast executive level review and decisioning.
- Across the proactive pivot, Cenerus works in alignment with the bank to operate at its pace, implementing the right process and, if requested, technology, to meet needs and drive benefit but never delivering technology for technology’s sake.
Take Action!
Getting Started with Cenerus is as easy as reaching out and scheduling a quick intro to set up a Preview File or 10-file Pilot. There’s no technology requirement, no long implementation process and no waiting around to get your value. We get going right away and show an immediate impact of ways you can transform your engagement with your business and commercial customers to drive client stickiness and bank profit.
To find out more click the link below. We can’t wait to collaborate with you to help you realize your best year ever.
https://info.cenerus.com/cockroach_hunters