A recent American Banker article, No Business Like Risky Business for Regional Banks, discusses the various ways regional banks are diversifying their services in an effort to offset the decrease in their core businesses, including commercial lending.

While diversification can be good for business, it can also be risky. Meanwhile, many banks are missing out on solid loan opportunities in commercial lending. Some banks have been lending only to companies that they perceive as “rock solid” i.e. larger companies with relatively easily analyzed and mitigated risks. Favoring large, lower-risk companies while shying away from providing small- and medium-sized firms of the credit they need to grow, however, impacts not only revenue opportunity for banks but also the global economy. These small- and medium-sized companies generate the most employment and economic growth in nearly every country.

However, because there is no useful credit risk transfer option for smaller loans, lending institutions know that they can’t trade out of them and instead must bear the entire risk, creating a temptation to steer clear of multiple, harder-to-understand small- and middle-market loans in favor of fewer larger but safer credits.

With proper training, however, banks can make smart assessments of small- and medium-sized business loan opportunities and not only provide more lending opportunities in the current lean climate, but also build relationships that will grow with these businesses.

In the United States, a push by the SBA and the White House to help underwrite certain small business loans means the risk is often reduced on these ventures. The combination of that support and training can create a winning segment of business for any bank.

For more on the conditions affecting the current market and how small business relates, visit Omega Performance’s Maximizing Results, Minimizing Risk paper.  For more on available training in commercial lending, including the new Building Small Business Acumen program, visit Omega’s commercial lending page.

No matter how complicated the interest equation, the principle is simple:

• Loans repaid? Net income.
• Loans defaulted? Net loss.
• Too many loan defaults? Bank failure—the unfortunate plight of nearly 200 U.S. banks since 2008.

Economic setbacks and the subsequent slowdown have altered the mindsets of banking executives—and consumers— around the globe. As a result, financial institution leaders ponder critical questions:

• What’s the right approach to lending?
• What’s a qualified prospect?
• What kind of risk assessment criteria should we employ?
• How should we structure our sales and credit functions?
• How many prospects should we have in the pipeline?

In other words, how do we minimize risk, yet regain and sustain profitable growth?

To minimize risk, you must fill the pipeline with lots of highly qualified prospects. To maximize results, you must fill the pipeline with lots of highly qualified prospects.

From the 1970s until fairly recently, commercial lending institutions treated sales and credit as independent and opposing operations. This separation fueled dissension between the groups, sometimes to the point that credit officers criticized origination staff as undisciplined risk-takers, and originators perceived those in the credit role as conservative deal killers. This conflict between sales and risk management was one of the major contributing factors to the 2007 financial crisis. A push to generate a growing loan book spawned perilous trends in banking: under-pricing of risk, lower liquidity holdings, and an accelerated growth in lending.

In the last few years, however, executives of financial institutions around the world have returned to their roots: integrating, balancing, and creating synergy between growth and risk management. What accounts for this restored discipline?

• Shareholder demands for more prudent risk management
• New governmental regulation requiring more reserve capital

These factors have bank executives considering how to respond proactively. The solution for many is to create a culture where everyone, regardless of role, understands the need to drive revenue growth while also minimizing risk. To enable this synergy, financial institutions must assess the components of their institutional cultures, including training, communication, decision making, and compensation.

To rebuild their balance sheets, banks have been lending to companies that they perceive as likely to repay–larger companies. However, small- and medium-sized firms generate the most employment and economic growth in nearly every country. For both the economy and banks to recover, these companies need credit to grow.

As a result, bank lenders see no other option: assertive selling and aggressive risk management must coexist.

Simply stated, it’s back to the basics: Sell assertively, lend prudently–make money. Sell without focus, lend recklessly–lose money.

Many banks are implementing longer-term incentives by encouraging assertive selling based on the development of strong, long-lasting customer relationships. At the same time, they take a consultative approach to carefully manage existing credit relationships and examine new loan opportunities with due diligence and impartiality, maximizing results, while minimizing risk.

Benefits of Strong Risk Management Practices:

• Improved deal flow
• Favorable pricing
• Increased use of non-credit products

Benefits of Aggressive Risk Management to New Business:

• No distractions from poor portfolio performance
• Strong portfolio
• Fair treatment of customers
• Strengthened communication

Regardless of the country, economic setting, regulatory policies, or the structures and strategies employed, high-performing institutions align the purpose and objectives of sales and credit in a way that drives income growth based on balancing aggressive sales with minimizing risk. Forward-thinking leaders now recognize that this balance is not a paradox but an example of combined efforts being greater than the parts.

Read more in the full Maximizing Results, Minimizing Risk paper

Your small business customers expect you to understand the legal structure of their companies and your understanding adds value to the relationship. It is important to understand not only how the businesses are legally structured, but also the factors small business owners must consider when deciding which structure is the right one for their business. Here are the most common forms of business organization used by small businesses, each offering its own advantages and disadvantages:

1. Sole Proprietorship

What is a sole proprietorship? A sole proprietorship is the simplest legal structure. It is also the most common legal structure among small businesses. In a sole proprietorship, the business and the owner are viewed as being one and the same. The business owner incurs little expense in setting up a sole proprietorship. The owner has complete control of the business and the owner’s business income is taxed at the individual income tax rate. There can be only one owner of a business in a sole proprietorship.

What does this mean to a banker? The profits go directly to the owner so the responsibility for managing that money rests solely with the owner. Additionally, all debts of the business are the owner’s. The owner makes all of the decisions, even in areas in which he or she is not well-versed. If the owner is not experienced with financial statements, he or she will need a banker’s or accountant’s expertise in that area. As a banker, you will want to know about all personal liabilities that the owner is responsible to repay. There is no formal filing required to create a sole proprietorship.

2. General Partnership

What is a general partnership? A general partnership is a business association between two or more people in which the owners are personally liable for the debts of the business. The partners have “pass-through taxation”, meaning that the business’s taxes are “passed through” to the business owners’ individual tax returns via a K-1. This allows the partners to be taxed at the individual rate on their personal tax returns.

What does this mean to a banker? The business’s profits flow directly to the individual and his or her tax returns based on the ownership percentage in the partnership. Since the partners share in the decision-making, the banker needs to know which partners are involved in the business’s financial decisions. As a banker, you will want to know about all personal liabilities of each partner. In addition, be sure you review the complete tax return of each partner to understand tax obligations. There is no formal filing required to create a partnership but a Partnership Agreement may be filed. If none is filed, the partnership is governed under the Uniform Partnership Act.

3. Limited Partnership

What is a limited partnership? A limited partnership is similar to a general partnership, except that in addition to one or more general partners, there are one or more limited partners. While the general partners run the business, the limited partners do not have any management responsibility and are not responsible for debt obligations beyond their level of investment. In fact, the general partner may refer to the limited partner as a “silent partner” in the partnership.

What does this mean to a banker? General partners are exposed to unlimited liability, while limited partners’ liability is limited to the extent of their share of ownership. As a banker, you will want to know who all of the partners are in the partnership. A Certificate of Limited Partnership is required to be filed.

4. Limited Liability Partnership

What is a limited liability partnership? A limited liability partnership or LLP is similar to a limited partnership, except that all partners in a LLP have limited liability equal to the level of investment. Limited liability partnerships are common among professionals such as attorneys and accountants who are not allowed to use corporations to limit their liability.

What does this mean to a banker? Unlike a general partnership in which individual partners are liable for the partnership’s debts and obligations, an LLP provides each partner certain protection against errors and omissions of other partners or most employees of the firm. This is a pass-through taxation entity. Taxes are paid personally by the partners to their level of net income based on percentage of ownership. As a banker, you will want to know about all personal liabilities of each partner. In addition, be sure you review the complete tax return of each partner to understand tax obligations. Both a Partnership Agreement and a Certificate of Partnership are required to be filed.

5. “C” Corporation

What is a C corporation? A corporation is defined by the laws of the state in which the business is incorporated. It has a separate legal identity from its owners, known as shareholders. Shareholder liability for corporate obligations is limited to the amount invested, known as capital contribution. C corporations are preferred by many businesses such as venture capitalists since there is great flexibility in the number of shareholders allowed and the flexibility of who can be a shareholder.

What does this mean to a banker? C corporations are separately taxable entities. They file corporate tax returns and pay taxes at the corporate level. They also face the possibility of double taxation if corporate income is distributed to business owners as dividends. Tax on corporate income is paid first at the corporate level and again at the individual level on dividends. As a banker, you will want to know who the officers are and their experience in day-to-day management of the business. Articles of Incorporation and a Certificate of Good Standing are required to be filed.

6. “S” Corporation (also known as sub chapter S corporations)

What is an S corporation? S corporations are similar to C corporations, except there are significant restrictions on the number of shareholders. S corporations may have only 100 shareholders and all must be natural persons and not other companies, for example.

What does this mean to a banker? S corporations are pass-through tax entities like partnerships and LLCs. They file informational federal tax returns but do not pay tax at the corporate level. The profits or losses of the business are instead “passed through” the business and reported on the owners’ personal tax returns on Schedule E. Any tax due is paid at the individual level by the owners. As a banker, you will want to know who the officers and owners are of the corporation and review personal financial statements and complete tax returns. Articles of Incorporation and a Certificate of Good Standing are required to be filed.

7. Professional Corporation (also known as a PC)

What is a professional corporation? A professional corporation, also known as a professional association, involves individual shareholders who are professionals engaged in the same profession, such as doctors, dentists, lawyers, architects or veterinarians. A professional corporation is attractive to professionals because it provides some of the tax advantages (pass-through taxation) and liability protection (limited to capital contribution) of a C corporation.

What does this mean to a banker? Owners have no personal liability for the malpractice of other owners. In the past the so-called “learned professions” – lawyers, dentists and medical doctors – were not allowed to operate as corporations. But most states have now enacted a professional corporation or association act that allows professionals to practice under corporate rules provided that all shareholders are members of the profession. . As a banker, you will want to know who the officers and owners are of the corporation and review personal financial statements and complete tax returns. Articles of Incorporation and a Certificate of Incorporation are required to be filed.

8. Non-Profit Corporation

What is a non-profit corporation? A non-profit corporation is one with an ultimate purpose, specified by law, such as charitable, educational, civic, religious or cultural. Non-profit organizations do not have private owners. Rather, they have controlling members or boards but these people cannot sell their shares to others or personally benefit in any taxable way.

What does this mean to a banker? While non-profits are able to earn a profit, more accurately called a surplus, such earnings must be retained by the organization for its self-preservation, expansion and future plans. Non-profits may apply for tax exempt status so that the organization itself may be exempt from income tax and other taxes. There is no personal liability beyond the initial capital contribution of shareholders. Articles of Incorporation and a Certificate of Incorporation are required to be filed.

9. Limited Liability Company

What is a limited liability company? A limited liability company (LLC) is similar to corporations in that owners have limited personal liability for the debts and actions of the company. The features of an LLC however, such as management flexibility and the benefit of pass-through taxation, are more like a partnership. In many cases, an LLC has tax advantages over an S corporation because there are fewer hurdles and income can be allocated more flexibly.

What does this mean to a banker? LLCs offer limited personal liability for owners for business debts even if they participate in management. LLCs allow for the ability to choose between being taxed as a partnership or corporation, per IRS rules. As a banker, you will want to know who the manager(s) is and who the members are. Articles of Organization and a Certificate of Formation are required to be filed.

Do you have faith (or lack thereof) in the quality of the projection and sensitivity analyses you and your lenders have been doing?

Projections and sensitivity analyses that are done with the current, artificially low interest rate plugged in for an extended period of time are not “conservative.” Just think about making a mortgage decision with only the lowest possible variable rate factored in regarding affordability. NOT GOOD. We’ve seen this before in the 1980s, when interest rates climbed to 22% and more. We saw that again in the early 90s, and today, the conditions are set for an even more unstable interest rate environment. Interest rates affect everything . . . just like oil prices. There is a trickledown effect on borrowers, their customers and their suppliers. And while raising interest rates are good for consumer deposits/CDs, they can play havoc with even the best company’s ability to cover debt service and manage their business.

If you haven’t already, you should take steps to ensure that you have the training, procedures, and support to structure your loans and loan covenants properly to give appropriate “early warning signs.”

The last thing that any of us want to find ourselves in again is a bubble burst brought about by overly-optimistic projections.

Visit www.omega-performance.com for more information 

After years of optimizing financial models to extract relevant information from financial statements, anyone who uses financial statements is in for a big surprise. That’s because the look and feel of financial statements as we know them will change substantially when International Financial Reporting Standards (IFRS) come to Canada in January 2011. In addition, much of the underlying accounting will become more subjective and subject to more management discretion.

IFRS is a standardized set of accounting principles sweeping across the world. The globalized norms skyrocketed to prominence in 2005, when the European Union, Australia, and New Zealand adopted IFRS. When Canada adopts IFRS in 2011, these international standards will replace the nation’s current accounting rules, called Generally Accepted Accounting Principles (GAAP), for all publicly accountable enterprises. The United States is in the process of converting US GAAP to IFRS and is expected to adopt it several years after Canada, although the exact date has not yet been decided. Private companies will have a choice between reporting under IFRS and the new Accounting Standards for Private Enterprises (ASPE), commonly known as PE GAAP.

The proposed new format for financial statements represents the boldest accounting change financial professionals have witnessed in decades. Throughout all the accounting scandals of the last few years, the general structure of financial statements remained the same. An income statement calculates profit (or loss), and a balance sheet shows an organization’s assets, liabilities, and equity and splits them up into short-term and long-term sub-categories. 

Today, when bankers, risk managers, and credit analysts look at a balance sheet, they can quickly see that total assets equal liabilities plus equity. Many financial professionals use the balancing feature on the balance sheet as a checkpoint to ensure that the data they receive is accurate. Senior professionals check the work of junior staff. When bankers receive balance sheets from clients that are out of balance, the bankers send them back.

For everyone who derives comfort from the fact that balance sheets “balance,” that reassurance is about to disappear.

In a few years, instead of being split into the traditional categories of assets, liabilities, and equity, the new balance sheet will be structured in five categories – operating, financing, investing, taxes, and discontinued operations. Assets and liabilities will be scattered in each section, while equity will remain intact. Companies won’t be required to show a total for assets or liabilities on the new balance sheet as long as these totals are included somewhere in the financial statement notes. The same holds true for subtotals related to short-term or long-term assets and liabilities. Of course, the balance sheet still balances – but it isn’t as obvious.

In addition, the equity portion of the balance sheet will include non-controlling interest, which is currently located between the liability and equity sections of the statement. While relocating an item on the balance sheet may not seem like a major development, keep in mind that equity is the denominator in many common ratios employed by financial statement users, such as debt-equity ratios and return-on-equity (ROE) statistics. When the denominator of a fraction is increased, the impact is to reduce the overall result. Most companies will not take kindly to seeing their ROE decrease as result of new accounting policies. Similarly, bankers will not be happy to see a debt-equity ratio decrease simply because of accounting measures. In fact, many of the ratios used in debt covenants will need to be recalculated in order to enforce the same bank covenants used today.

Both the income statement and cash flow statement will be split into operating, financing, and investing categories and will be much more detailed than they are now. For some people, this will be a positive change since it means that all financial statements will have the same look and feel. For others, however, this change means the income statement will become more complicated.

A welcome change with IFRS is the new cash flow statement, which will show clearly and concisely the sources and uses of cash in the organization. Current cash flow statements are supposed to accomplish this, but non-accountants usually find them more confusing than helpful, because they don’t show cash flows directly. Instead, readers calculate cash flow by making a number of adjustments to net income. Without taking a few accounting courses, it’s very difficult to look at a cash flow statement and see how much cash is coming in from customers or going out to suppliers. The new format will solve this problem and should be much easier for financial professionals to understand.

There are also a substantial number of new financial notes under IFRS – in some cases, over 300 pages of notes. Today’s typical set of notes for a similar Canadian public company might be only 40 to 50 pages long. The new disclosures are required because IFRS makes many more accounting choices available to management, and it is important for users of financial statements to read through these notes to understand how the numbers are being calculated. This may not be welcome news to the majority of bankers, who don’t enjoy reading through today’s shorter notes.

If all of this weren’t confusing enough, IFRS won’t even be used by all organizations. In 2011, IFRS will become mandatory for publicly accountable companies in Canada. Private companies and not-for-profit organizations may continue to follow existing Canadian accounting standards, but they have the option of converting to IFRS. This means that two financial statement formats will be floating around, and users of financial statements must be just as comfortable with one accounting platform as they are with the other. Luckily, the Canadian marketplace will have a few years to adjust to the changes before the new financial statement format goes into effect.

The new format of the financial statements makes sense, giving a common look and feel to the various financial statements so that it is easier to make the connections between them. That being said, people are creatures of habit: after years of struggling to decipher financials in one format, most people will no doubt find it challenging to switch over to the new format. In fact, it almost means learning finance all over again.

Karine Benzacar (karine@knowledgeplus.ca) is Managing Director of Knowledge Plus Corp., which provides training and consulting services on IFRS and finance (www.knowledgeplus.org). Omega Performance is pleased to offer IFRS and PE GAAP courses developed specifically for bankers and other users of financial statements. 

Most financial institutions feel urgency around capturing the small business market and have this as one of their top priorities. That may be because the latest U.S. census data shows that there are over 27 million small businesses operating in this country alone.

Small businesses provide profitable opportunities. If pursued in the right manner, savvy financial institutions can seize those opportunities and gain valuable and loyal customers. They can gain the trust and long-term commitment of small business customers by meeting all their business needs with targeted solutions and the highest quality service.

Following are four strategies to help institutions earn the loyalty and trust of small businesses:

1. Understand what small businesses owners need

It’s not enough for financial professionals to be knowledgeable only about their own line of business products and services. The small business owner wants to be reassured that their bank contact is a true professional who understands their challenges and the goals of their business. A more effective strategy, therefore, is to first establish and engage in a robust dialogue with the business owner. This is accomplished by taking the time to learn about the business and asking questions on the needs of the business, and not on products and bank statements. According to JD Powers, when financial professionals understand the customer’s business, satisfaction averages 139 points higher than just partially understanding it. Unfortunately, only 45 percent of customers report their bankers today take the time to truly understand their business.

2. Take an enterprise approach

This approach is demonstrated when all professionals at the financial institution work as partners across the lines of business allowing the business owner to see the institution as one entity. When the total team approach is used, small businesses owners view the institution as a single, united entity assisting them with all of their goals, both personal and business related. To do so, employees from all lines of business need to be equipped with the skills to communicate the value proposition of the organization so the business owner sees that the organization is thinking holistically.

3. Create product bundles and tier pricing

Small business owners prefer to have their personal accounts at the same institution as their business accounts. It is in the bank’s best interest to create more benefits for the small business owner by bundling the products and presenting the small business owner with a total solution of lower fees and better rates. While taking care of the owner’s initial need is the first step, the institution can add value by offering discounts based on the relationship. Doing so reinforces the message that the financial organization wants to work with the owner on both short- and long-term goals and personal and business needs.

4. Develop professionals to be long term financial partners

The goal is to be viewed as a trusted advisor to the small business. With that in mind, equip your employees with the best practices to include reaching out to the small business owner on an ongoing basis. This can be accomplished by reviewing the accounts and relationships and maintaining communication through ongoing, proactive contacts. Ignoring this step will hinder the effort to build trust and form true partnerships with business owners.

Following these strategies provides a win-win situation for all parties because many financial institutions have much in common with small businesses—both want to reach out to the community and build valuable relationships. Institutions that succeed in partnering with small companies will reap additional benefits because these customers are connected to the community’s consumers and therefore are some of the best referral sources. Likewise, small business owners benefit doubly from their relationship with the financial institution because it can help them achieve both personal and business goals.

Two trends I see in the financial services industry today include, on the retail side, a shift in servicing to online and other non-branch options, and on the commercial front, a focus on credit quality and the impact of each relationship on overall portfolio performance. Put these two observations together and we are having fewer quality encounters with our customers, and when we do, they are often not broad enough. The solution is to construct better planned conversations.

To make your planning more effective, first, be proactive. In a branch setting, hoping for an extra few minutes at the end of a product purchase to go a little further or push the bank’s “tag on” product of the day is both haphazard and disrespectful of the customer’s time. The same logic applies in an outside call situation. Instead, contact your customers proactively and set up a time to discuss their overall situation.

Second, bring the customer along. Let him or her know the purpose of your questions. A positioning statement like, “In order to get a better idea of how we can serve you, I would like to get your thoughts about your current financial situation and anticipated needs,” helps the other person know where you are going. The more your customers know, the more they will participate.

Third, be topical. Random questions create confusion and distrust. As you plan your conversations, think about a logical progression of questions. For example, in retail banking, a relationship review conversation could cover these areas:

• Current service satisfaction level
• Current money management, including day to day banking, savings, investments, and borrowing
• Anticipated life and lifestyle events, such as a need for a new car or the postponement of retirement
• Resulting financial needs, such as a car loan or restructuring of a 401k plan
• Role that the bank can play in these decisions

Similarly, in the commercial arena, you could cover these areas:

• Current success level of the business
• Challenges and opportunities over the next 6-18 months (both for the company and the industry)
• Resulting plans to meet these challenges and opportunities
• Financial implications of the company plans
• The role that the bank can play in implementing these specific plans

Many financial organizations tout the role of “trusted financial advisors.” To truly earn that title, we need to establish that trust through better planned, truly two-way conversations, and offer real advice versus merely selling what’s available today.

To learn more visit: http://www.omega-performance.com

Many organizations find themselves in a training dilemma. They realize the significant benefits of training but need to minimize the costs—both out of pocket and opportunity—associated with training. There is a need for risk management skills, sales skills, product knowledge, and services skills. So how can organizations provide the benefits of synchronous, skills-based learning without the expense of travel, lodging, and all of the costs that classroom training entails?

One successful solution that is gaining popularity is virtual instructor lead training, or VILT. In VILT, participants join these virtual classrooms right from their desktops or laptops through web- and audio-conferencing services. The “virtual” facilitator then guides participants through the session, pausing for breaks as appropriate and even breaking the larger group into smaller, separate work groups before bringing everyone back together again. If done correctly, these sessions can be as interactive and engaging as classroom sessions, enabling participants to talk, write, discuss and exchange ideas, and practice new skills.

Employing VILT in your own organization can ensure that your employees:

• Receive training in a highly interactive way that translates back on the job
• Learn from their co-workers and peers
• Keep their skills honed while keeping costs down
• Improve both knowledge and skills because of a diversity of online functions

Participating in VILT is as close to attending a class as possible, without having to be there in person.

Learn more at: www.omega-performance.com

When effective coaching is applied to the process of analysis and decision making in a credit request, there is much to be gained by everyone involved. Consistent, planned coaching increases the skill level of new lenders much faster than experience alone. Consistent coaching fosters consistent processes—which, in turn, are essential for quality. This is obviously important to the success of your department as well as your organization.

Successful credit coaches follow six steps to success:

1. Guide the initial orientation. The framework and direction that you give in the beginning of a lender’s career creates a point of view and business orientation that will influence performance from then on.
2. Provide lenders with the knowledge and skills needed to be successful. Providing the right training at the right time motivates performance. However, when people are sent to training for skills they clearly possess, they feel unmotivated and discounted. This is where an assessment can be very helpful to identify training gaps and needs.
3. Understand that knowledge and skills gained in training don’t always transfer to the job. For training to transfer, it must have value in the workplace and contribute directly to “real work.” That’s why it is so important for managers to reinforce new knowledge and skills by helping the lender see how these apply to their work.
4. Hold lenders accountable for applying knowledge and skills appropriately for an assigned responsibility. Do this through a series of coaching sessions for 6-9 months in order to confirm the work a lender is doing matches the quality standards expected. At the end of this time, you should have a mature lender whom you can trust to consistently make sound credit decisions.
5. Involve the lender in the orientation of new lenders when proficiency, judgment, and maturity signal readiness.
6. Provide ongoing coaching to reinforce and recognize skills and contributions.

The first four steps of this sequence lay the foundation for a successful career. The final two steps—5 and 6—recognize and motivate competent lenders and encourage them to continue their professional development. Any step that’s skipped creates a potentially recurring problem that you will have to manage in the future.

Learn More at: http://www.omega-performance.com/solutions/leadership-coaching.asp

Lately, we’ve been hearing that employee product knowledge levels—or lack thereof—is a real concern with many banks. When asked to assess the current level of their employees’ product knowledge in the saving/investing money and borrowing money categories, executives tell us the average score is below 50 percent.

What’s the impact of scores this low? It means:

1. Bankers are not able to answer customers’ questions
2. Bankers are giving incorrect answers to customers’ questions
3. Bankers do not ask questions and are missing opportunities

Bottom line—this all contributes to a negative customer experience, adds little value for the customer, and fails to deepen the customer relationship.

The best bankers are able to assess accurately each customer’s financial situation and provide the appropriate products to match the needs. This is especially true today as organizations are trying to capture more share of wallet.

So how can organizations prepare bankers to be knowledge experts on products and services? Organizations should employ product mastery techniques (and there are several highly effective ones) to build skills and equip bankers so they have second-nature recall of products and services. Bankers who are able to speak with ease and confidence about the different products and services in a very effective manner can provide a memorable customer experience for their customers—and uncover additional sales opportunities.

Learn More at: www.omega-performance.com