The role of a Relationship Manager (RM) in the banking industry is undergoing a transformative change as banks embrace technological advancements. By integrating data-driven insights into their everyday practices, RMs can leverage the power of analytics and technology to drive tangible outcomes. In fact, our research reveals that the bionic approach, combining analytics and behavioral shifts, accounts for 70% of the impact, rather than just relying on technological capabilities.
Gone are the days when banks could implement a one-size-fits-all platform or introduce isolated tools to drive change. Instead, the shift towards a bionic approach should occur virally, spreading organically from one sales team to another. For this to happen, senior management must create the right conditions that encourage RMs to embrace organizational and individual changes, setting an example for others to follow. Five key elements need to come together to enable this transformation:
Data: Unleashing the Power Within
Banks possess a wealth of client-related information that, when properly integrated and interpreted, can offer deeper insights than traditional quarterly financial reports. This data includes transaction records, payment activities, credit utilization, and even client data collected during underwriting. By tracking these activities, banks can gain accurate and timely knowledge of their clients’ businesses, enabling RMs to provide more tailored solutions.
To make sense of the vast amount of data, banks must employ advanced analytics techniques, such as machine learning, to recognize patterns that could indicate high risks or great opportunities. However, advanced analytics alone isn’t sufficient. To achieve success, banks need to combine algorithms with in-depth business knowledge codified as business rules.
Actions: Augmenting Human Intelligence
The ultimate goal of the analysis is to translate it into actionable recommendations for RMs and sales teams. Advanced analytics should enhance an RM’s client judgment by providing additional product suggestions, meaningful correlations, and other relevant information. The aim is to augment human intelligence rather than replace it entirely.
Delivery: Achieving Seamless Integration
To unlock the true value of advanced analytics, banks must provide well-designed digital interfaces for RMs and sales teams. These digital tools should process the output of analytics models, offering a comprehensive view of clients’ businesses and streamlining the call preparation process. Online dashboards can provide prepopulated suggestions, workflow guidance, and prioritization features, enhancing collaboration and efficiency across sales teams.
Measurement: Holding Teams Accountable
Once these elements are deployed, management teams need to hold RMs and sales teams accountable for their data-driven efforts. Regular tracking of results and leveraging new insights to refine approaches are crucial to ensure continuous improvement.
These five elements must be supported by two additional factors:
An Operating Model: Collaborative Synergy
Implementing a data-driven operating model necessitates changes in sales processes and workflow. Increased collaboration between RMs and product specialists becomes essential, as the bank’s competitive advantage stems from insights shared across sales teams rather than individual star performers.
Enablement: Embracing Change
For these elements to generate measurable results, banks must provide comprehensive support to sales teams until the new way of working becomes second nature. This support includes hands-on training, a dedicated team for troubleshooting and guidance, a platform for knowledge sharing, and a leadership team committed to coaching and navigating the transformative journey.
As banks embrace the bionic approach, it’s essential to remember that the underlying technology involved, such as AI and advanced analytics, may seem unfamiliar at first. However, banks that have successfully adopted this approach testify that the changes soon become second nature. In fact, the bionic approach brings banking back to its roots, where a deeper understanding of each client’s situation makes the entire banking experience more manageable. RMs can now focus on building relationships, engaging with entrepreneurs and business leaders, and helping them realize their ambitions.
With the aid of these new tools, the mundane aspects of an RM’s role are alleviated, making way for valuable interactions and meaningful engagements. The seamless infrastructure created by the integration of technology allows RMs to devote their time to develop their judgment and provide the perspective that clients seek. By embracing this evolutionary change, RMs can reaffirm their role as trusted providers of not only funds but also valuable insights and guidance.
To embark on this transformative journey, seize the opportunity to revolutionize the banking experience by embracing the bionic approach today. Six Minute Dates, a leading platform, can help you navigate this transformation and unlock new possibilities for enhanced client relationships.