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Bank Expert Smaller Banks Must Adopt New Ways Of Competing For Key...

The banking industry is finding it harder and harder to locate skilled commercial lenders -- the bankers who make loans to businesses -- and small, independent banks can't compete with the big banks on salary alone.

"Your small local or regional bank with a few branches just isn't going to be able to pay the same, for a commercial loan officer, that Wells Fargo or Bank of America can pay," according to banking consultant Jeff Judy. "But that doesn't mean they can't recruit, and retain, good employees."

Judy's recommendations were recently featured in the April, 2007 issue of Independent Banker, a trade journal focused on smaller banking organizations. His advice for small, independent banks includes:

- Looking for staff with non-traditional backgrounds. Instead of hoping to hire a commercial lender away from a bigger bank, small banks can find business people in their own markets who can be trained to become excellent commercial loan officers.

- Incentives for performance can be important. In some ways, an individual commercial loan officer has more opportunities for success than the counterpart at a huge bank, so the chances of earning those incentives can be higher.

- Investment in training. Access to training is a great retention tool, and employees appreciate the bank's investment in their careers. Helping staff with personal and professional growth can replace simple dollars as the 'glue' that keeps them with the organization. Training is available in a wide variety of formats, including online courses, that can help manage the costs.

- Being creative about building, and sharing, skills and knowledge. Banks should look for team members that complement one another. Given a choice, hire new employees who bring in skills that are most needed, and fill in deficiencies through training and teamwork.

Customers value working with the same banker again and again -- an experience that can be rare at some of the biggest banks. Smaller banks that get, and keep, good people can enjoy a significant competitive advantage.

"People will win over products, most of the time," observes Judy. With moderate investment, and a commitment to creativity, independent banks can take on the big banks and succeed.

About Jeff Judy

Jeff Judy has spent more than 30 years in the banking business, working with national, international, regional and local organizations. Through Jeff Judy & Associates, he provides consulting to bank management, delivers training to bank employees and appears as a speaker at numerous trade association meetings and industry conventions. In addition to working directly with clients, Judy spreads best practices among management and employees in financial services through articles in trade journals and client newsletters, and through his bi-weekly e-zine, Jeff's Thoughts.

Contact:

Jeff Judy, Principal

Jeff Judy & Associates

952-903-0113

http://www.jeffjudy.com

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