Sam Isaacson, Assistant Vice President | Bridgewater Bank
There’s an app for that
Instagram has made everyone a “professional” photographer these days. Filters and unique settings provide the right tools to master this trade. Like Instagram, advancements in the business banking sector have allowed individuals to be their own business banker. You can deposit a rent check while enjoying a nice cocktail on Stella’s Fish Cafe rooftop or send a Bill Payment to a contractor while on Lake Minnetonka.
One might ask, why do banks have brick and mortar branches anymore? Business entrepreneurs and real estate professionals are able to handle their day-to-day banking all on one mobile device, but there is still a growing demand for genuine relationships with an actual human, not a hologram.
Don’t work bank hours
In a mutually beneficial business relationship, a partner should never hinder each other’s growth. Business owners are expected to answer over 100 plus emails a day, manage their teams and somehow stay on top of their strategic plan. An educated business banker can be a valued partner.
Let’s take a typical commercial real estate investor. He or she is looking for the next multi-family or commercial shopping center deal. While the investor is negotiating, establishing financing, and making sure their kids get to soccer practice on time, the business banker is there to quarterback the transaction. From establishing the appropriate deposit accounts with the correct individuals, to making sure the investor has state-of-the-art ACH rent collection capabilities, the banker works all hours behind the scenes to ensure the investor isn’t limited by banker hours.
Death of the “Gold Sapphire Ultra Platinum Checking Account”
Simplicity and accuracy are making its way back into banking. Unfortunately, with hundreds of banks both big and small in the State of Minnesota, some institutions offer an extensive amount of business checking, savings, and money market accounts. These institutions are marketing their deposit products with catchy names, cash-back incentives, or “free” banking. However, the futuristic bank does not succumb to this transactional mentality. By focusing on custom products, employing technology effectively and tailoring services specific to the entrepreneur or real estate professional, there is no need for tricky marketing tactics. The value is in the overall experience and the technology is certainly there to ease any future banking headaches. There’s value in simplicity.
Dixon Diebold, owner of Reurban Real Estate, says that a solid relationship with his banker is a top priority. “Managing bank accounts is a very large part of any real estate business day to day operation. Having a banker that you enjoy working with makes those interactions more enjoyable, productive and hassle-free.”
Real FaceTime
Building a virtual network via LinkedIn is not enough. A well-networked business banker has a solid understanding of the local business environment and knows market leaders and industry experts. Using your business banker as a resource for referrals is not only recommended, it should be an expectation. An effective banker will help build your personal network with introductions to other industry contacts. The best partnerships result from establishing synergistic relationships.
In Sync
Even with the inevitable changes afoot, technology and a strong banking relationship can coexist. While your business banker might not provide the best guidance on posting the most Instagramable photo, their partnership provides value beyond taking a picture of your check.
“Banking shouldn’t be a pain point for your business but more like an opportunity,” Diebold said.
“Once you find the right relationship that in and of itself is a game changer.”
