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Bankers: Don’t Let Google and Technology Replace You

Posted March 16, 2015 by Susan Bell

Hey bankers...I hate to have to break this to you, but the internet is taking your place.

In the February 11 edition of the Barlow Research Associates' Analyst's Journal, Joel Mueller discusses a concerning stat from their first quarter 2015 Pulse data: while 75% of small businesses solicited advice about various business activities in the previous 12 months, more owners used Google than a banker when seeking that advice. So in short, businesses with under $10 million in sales would rather consult with the internet than with you. No offense.

Now, Joel goes on to say that the number-one topic that these small businesses were researching was technology–not exactly in most bankers' primary wheelhouse–but they were also interested in topics like marketing, sales, financial management, and strategy.

And here’s another troubling fact: technology is making the small business loan application and approval process easier and easier. Non-traditional banking competitors such as OnDeck and American Express have lower cost structures and are lending billions to small businesses. And new types of banks such as LiveOak Bank, which caters specifically to industries, are springing up too.

So why should traditional banks continue to pay for your salary (sometimes north of $100,000 plus overhead) instead of eliminating your job and putting everything online? It’s a really important question to ask yourself. Bankers need to make themselves increasingly relevant in order to keep their value. Here is a start...

4 things Google and non-traditional competitors can't do...but a banker can

No matter how good a search engine or website is, there are some things they will never be able to do as well as you. A human banker can:

Offer advice, assistance, and ideas about how to improve a small business's cash flow by reengineering its financial operations.

Gain expertise by becoming an industry specialist, meeting with lots of businesses in that field, and applying that knowledge to similar niche clients.

Instead of simply offering answers (à la Google), ask small business clients thought-provoking questions that can help their business succeed. Such as, “Other engineering companies I meet with are buying upgraded computer equipment and software; are you considering that?”

Provide clients only trustworthy information that has been vetted by reliable sources. (Google can’t do that.)

The key is you must show your small business clients that you offer more value as an advisor to them and their company than does the internet.

But how?

Shift the Conversation

As long as industries evolve and grow, the personal guidance of a knowledgeable banker will never be obsolete. But you have to put in the research time to gain that expertise and keep up-to-date as the industry changes.

Vertical IQ can assist you as you strive to best the internet as a source of trusted advice for your small business clients. We offer the industry knowledge you need to ask the right questions and convey to your client that you understand their business needs, their challenges, and their opportunities. And unlike the web, all of the information you find on Vertical IQ has been vetted by a team of researchers who not only have MBAs but also have expertise in the industries about which they are writing.

Get to the Point During Meetings

There's one way many bankers could be a bit more like a search engine: don't waste a small business owner's time with small talk...get right to the point the way Google does (best search results at the top of the page). Many modern business owners don't want to spend time shooting the breeze about topics unrelated to their industry. Vertical IQ can assist with this too by offering timely, industry-specific news articles and call prep questions to help you keep the conversation flowing.

Do your research using Vertical IQ, and pretty soon, your clients will be calling you when they are looking for business advice!

Learn more about how Vertical IQ can help you prepare for your client and prospect calls.

Tags: competition, Industry research, technology, Uncategorized

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