Enduring customer relationships is top priority

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Can your banker match your name to your face, understand your business needs and help you reach your company’s goals?

When it comes to business banking relationships, community banks have a vested interest in going the extra mile to make sure customers have resources, professional referrals, guidance and services building trust through longstanding relationships.

It’s the relationship building that makes the difference

“In general having a [banking] relationship is crucial for any business owner. They have to be able to select the correct bank for them,” said Alba Fernandez, senior vice president and director of lending at Finanta Credit Union (formerly Community First Fund) based in Philadelphia. Finanta has offices in Allentown, Harrisburg, Lancaster, Reading and York.

Keeping it local

Small local banks and credit unions have an in-person advantage which makes relationship building easier.

From taking loan applications to advising clients about expansion projects and funding, working across the banker’s desk isn’t outdated or old fashioned.

“When you bank with a community bank it’s about the familiarity and the relationship,” said Scott G. Orzehoski, executive vice president and chief lending officer at QNB Bank in Quakertown, Bucks County. QNB Bank has offices in Allentown and Coopersburg as well as Bucks and Montgomery counties.

Orzehoski said regular and frequent meetings with clients create an engaged dynamic that benefits business.

“With every transaction we can understand your business and tailor a plan for you. We want to understand where you want to go” with your business, he explained.

Fernandez said Finanta’s credit union model is positioned to serve consumer and commercial customers because it provides greater access to lending along with resources and referrals to other professionals like CPAs, attorneys or business financial planning advisors and tax specialists.

Becoming a credit union “was a game changer for us to open access to business owners and individuals to more financial tools. Every business owner has also personal needs,” she said.

Lydia Walker, Finanta senior vice president, chief development and impact officer said Finanta among its strengths is helping business clients “create an ecosystem of success. It requires a network of professional providers, and we’re connected into those to help customers get access to those services,” she explained.

“While we help business owners we’re also helping them manage their [personal] budgets, build credit and save for a home.

These things help them have a greater impact on their business,” Fernandez said.

As a Community Development Financial Institution (CDFI), Finanta brings its resources to underserved sectors and populations, according to Fernandez.

“The unique part of CDFI includes guidance education access to key partners so business owners have the tools and knowledge to make financial decisions that will affect their business and its future,” Fernandez explained.

Team approach

Lessons learned during the coronavirus continue to inform QNB Bank’s approach to customers – including the impact a cohesive team approach can make.

During the pandemic the ability to react quickly and adjust to changes in U.S. Department of Treasury programs – including grants and loans – meant faster client responses and adjustments.

“We have the expertise in house,” Orzehoski said.
Branch managers meet commercial customers, deposit customers and commercial customers have access to specialists with international expertise.

“It’s not always about financing that new project but the whole team is involved in your everyday banking tasks,” Orzehoski said.

Loan and capital management

From expansion to routine cost management commercial customers require specialized staff to understand their business.

Fernandez said that in addition to raising capital – in the form of loans – Finanta partners with organizations that might offer grants to business owners.

“We don’t do our work alone so we have education resources if somebody needs a deeper understanding about financial management and analysis, and we have partners that can work one on one with them, too,” she said.

Fernandez said clients come for to Finanta for more than capital.

“They come to us for advice to help them make those decisions,” Fernandez said.

She said partnerships make facing challenges easier – especially when the next challenge is new.

Walker said Finanta looks “at the whole picture alongside our potential borrower.”

“We’re responsive to evolving challenges and changes and to commit resources to long term success,” Fernandez said.

Rather than take a yes/no loan request approach the team gathers to explore the borrowing request, the businesses challenges and the potential opportunities.

“We can craft the capital they need. We’re not just giving the capital were trying to understand and be a partner,” she said.

Commercial customers can take advantage of financial resources to explore a change of business model such as moving to ecommerce or considering a business expansion, new construction or acquisition process.

“Because of the increase in cost of business [elements] they may need more capital or look strategically at what needs to happen in their business to continue success,” Fernandez said.

One stop shop

 In addition to business and commercial banking needs, full service financial organizations can also help with personal banking, loans, retirement investment accounts like IRAs and personal mortgages.

“We can take care of the business owner personally because they have mortgages and need IRAs, too,” Orzehoski said.

Uncharted territory

 As uncertain economic times and new legislative initiatives emerge in 2025, Orzehoski said supply chain, credit limit management, interest rates and leases could be top priorities – and concerns for commercial customers.

Orzehoski said insurance could become the next big issue many businesses face.

“It’s harder to get insurance because there are increase costs and increase risks,” he explained.

Orzehoski said successful partnerships must include understanding client risk, creating awareness and finding solutions.

“That relationship we have to understand is what [the client has been] put at risk for – these are the things we need to talk about,” he said.

Loan interest rate changes can put a strain on a business and its debt service. Figuring out how to conserve capital, pay down loans or refinance them to work better for the company is a valuable service, according to Orzehoski.

Being proactive means having those conversations now to build an ongoing plan “two years from now,” he said.

“The goal is to make sure you are controlling expenses. You can make sales and lose money