Open season on small business relationship managers

The European Financial Management & Marketing Association (Efma) has questioned the need for banks to employ small business relationship managers.

In a recently published Efma/Finalta report, the body urges banks to review how they are using such managers and whether real value is being generated.

According to the study, approximately 50% of small business customers are relationship managed across Europe.

However, the findings suggests that managers spend too much time hiding poor lending processes and other business inefficiencies from the customer.

In addition they stand accused of focusing on low-value activities, instead of working on deepening relationships with existing customers and exploring the personal aspects of the customer’s needs.

The report predicts that successful banks will redefine the role and that there are likely to be significantly fewer small business relationship managers by 2015.

Efma secretary general, Patrick Desmarès, comments: “We believe that part of our role is to help our members recognise where they can improve both their business model and their customer service, and in my view this report identifies some significant opportunities for improvement for this sector.”

Finalta director, Russell Shore, adds: “For the relationship manager to survive long term, they must add value both to the customer and to the bank.”

Ninety banks took part in this research, representing 27 countries and 16 million small business customers.

Emfa is also busy looking at the role of social media in the retail banking sector.

The Association has joined forced with research firm, Aite Group, to examine the use of social networking tools in attracting, retaining and servicing customers.

Tags: Efma, European Financial Management & Marketing Association, report, research, role, small business relationship managers, value

Category: Banking Jobs News, Banking News, Business Banking News