The term ‘relationship management’ is often referred to in the professional world as businesses continue to look for ways in which to improve the experiences of their customers or clients.
Particularly in the banking sector, where competition is rife and sensitive data is crucial, the need for adequate relationship management is key to retaining clients on a long term basis.
While many banks hire dedicated relationship managers, it is important to instil a culture of client-centricity throughout the entire business to help develop skills related to customer service, as well as aligning all employees towards the same goal.
So, why exactly is relationship management in banking, and why is it so important?
What is relationship management in banking?
Relationship management in banking refers to the client-facing employees who serve as advisors to clients and customers alike, offering support and guidance related to specific products and services that the bank offers.
In addition to managing communications with existing clients and customers, relationship management will typically entail the onboarding of new customers, helping to maintain long term partnerships and increase market share.
Why is relationship management important?
Anyone in the banking sector, or any client-facing professional industry for that matter, will confirm the correlation between customer satisfaction and success. For a bank to maintain this satisfaction, there needs to be a consideration of the following:
- Taking the time to understand the specific financial needs of clients
- Being able to demonstrate a high level of knowledge related to products and services
- Building relationships with new clients
- Conducting regular reviews in line with KYC and risk policies associated with onboarding customers
- Taking ownership of client service requests and enquiries
- Taking the time to contact clients directly and responding swiftly to requests.
As we covered in our previous blog on client centricity, placing the client at the core of an organisation's operations will pose huge benefits. Especially relevant for banks during 2020, where people have been reported to be spending more carefully as a result of the coronavirus pandemic, the security of their finances will be more important than ever.
In addition, when you consider the fact that 61% of customers said it was extremely or very important for their bank to focus on 'finding better ways to reward loyal customers', it soon becomes clear how crucial relationship management is.
What do relationship managers in banking actually do?
The typical day-to-day role of a relationship manager in banking will be to work closely with clients, customers and institutions to provide a sufficient level of service in order to meet their financial needs.
They will also be responsible for maintaining a sense of trust with clients, which is something that has proven to be particularly difficult, especially in the UK. According to Reuters, 66% of adults in the UK do not trust banks to work in the best interests of society.
In addition, the relationship manager must be able to display a high level of commercial
acumen related to the financial services industry in order to analyse market trends and make educated decisions.
Our virtual training programmes for relationship management in banking
At MDA Training, we provide world-renowned training programmes for the banking sector, paying particular attention to the importance of relationship management.
Delivered entirely virtually via WebEx or Zoom, our programmes are designed to provide your employees with tools they can use every day, as well as skills and insights to deliver their goals more effectively.
The skills we focus on include but are not limited to:
- Effective listening
- Effective questioning
- Managing client meetings
- Communicating effectively
- Analysing current customer needs
- Analysing future customer needs
- Building credibility.
Our virtual training facilitators have over 30 years of experience and work to deliver a training event that is seamless, memorable and engaging. Find out more information about our relationship management skills programme here.