Relationship Banking 101: What are the Pros and Cons of Working with a Relationship Banker? Relationship Banking 101: What are the Pros and Cons of Working with a Relationship Banker?
Working with a relationship banker has many advantages for clients who want to use many products and services offered by a financial institution. Instead of navigating multiple points of contact for each product or service at your bank or credit union, a relationship banking service allows you the opportunity to work with one person across multiple lines of business. In doing so, you'll not only develop a deeper relationship with your banker but will receive more personalized advice on how to achieve your financial goals.
Below we'll explore the ins and outs of relationship banking including how it works, what bank accounts and services are offered, the overall benefits and drawbacks of relationship banking, and the differences between relationship banking and transactional banking.
Quicklinks:
- How Does Relationship Banking Work?
- Benefits of Relationship Banking: Pros and Cons
- What is Transactional Banking?
- How to Get Started with Relationship Banking
- Elevate Products
- Elevate Services
Key Takeaways:
- Relationship banking provides clients with a more personalized banking experience
- This approach allows banks to serve as a one-stop-shop for their clients’ banking needs
- Your relationship banker will tailor advice to help you meet your specific financial goals
- Relationship banking allows you to work with one point of contact across all lines of business at a bank
How Does Relationship Banking Work?
Relationship banking is a financial service offered by some financial institutions aimed at providing clients with a more personal banking experience and deepening customer loyalty. Usually offered to both personal and business banking clients, relationship services allow banks to create more personal, long-term relationships with their clients by offering a more consultative approach and serving as a one-stop shop for meeting their banking and lending needs.
For instance, if you are a customer of a bank that offers relationship services and have a Checking Account with them, your contact at the bank may reach out periodically to check in on your savings goals and let you know about any additional deposit accounts the bank offers that can help you achieve those goals. These could be a special high-yield Savings Account with a better interest rate, Money Market Account, or a Certificate of Deposit. They may also offer added benefits to relationship clients like a streamlined account opening process, specialized rates, and referral services. Some institutions also offer financial planning and wealth management services to high-net-worth customers as part of their relationship services. While every bank's relationship services offer different products and services, the common theme is a more personalized banking experience focused on strengthening customer loyalty.
Benefits of Relationship Banking: Pros and Cons
How you benefit from relationship banking will ultimately depend on your own needs and goals. Since relationship banking is a strategy banks use to build a personal relationship with customers in order to deepen customer loyalty and create a more holistic banking experience, customers who use a bank's relationship services will likely receive more competitive rates and fees associated with their accounts in addition to the higher level of customer service in meeting their needs and priorities. The biggest benefit of using a bank's relationship service is without a doubt the personal relationship you'll develop with your banker -- they'll gain a deeper understanding of what your financial goals are and be able to determine which products and services the bank offers are best suited to help you achieve those goals.
If you like shopping around at different banks and credit unions to see what different banking solutions are best suited for your financial needs, or if a more personal service experience with one point of contact for all of your banking needs isn't something you're interested in then a relationship banking approach might not be the right fit for you.
What is Transactional Banking?
If it's not important to you to have all your accounts and transactions consolidated at one bank with a personalized service experience, you may want to explore an alternative to relationship services. Transactional banking focuses less on the relationship between customer and bank and more on offering the most competitive rate or terms on specific banking products. An example would be someone who has Checking and Savings Accounts with one bank and a Certificate of Deposit with another.
How to Get Started with Relationship Banking
The good news is that whether you already have an account with a bank that offers relationship banking services or you're looking to open an account for the first time with one, the process is easy! For instance, Elevate Banking at Leader Bank makes the account opening process as easy as possible and gives you immediate access to a personal banker to assist you with everything from account opening processes to ongoing guidance about how the innovative solutions offered by the Bank can help you achieve the next level of financial success.
The Elevate Banking team has decades of experience tailoring custom banking solutions for both personal and business clients (and their advisors). Whether helping a client across the country open an account using e-sign or assisting a local business with a remote scanner installation in person, the Elevate Banking team is available 24/7 to help with any and all client needs.
Elevate Products:
- Elevate Checking Account
- Elevate Money Market Account
- Certificates of Deposit
- Online Banking and Mobile Banking with Enhanced Limits
- Complimentary Checks and Debit Card Services
- Remote Deposit Scanner
- Elevate Cash Reserve
Elevate Services:
- Specialized Rates
- Deposit Placement to Help Maximize FDIC Coverage
- 24/7 Access to Private Banker
- Streamlined Digital Account Opening
- ACH and Wire Services
- Commercial and Residential Lending Services
Have a question about how Elevate Banking's services can help you achieve your banking goals? Reach out to our team today to get the process started!
