This raises the often-asked question:  What do bankers want in a relationship?  While many financial institutions say that they "value relationships," determining exactly what banks are looking for can sometimes be difficult.  You probably already know that bankers have a multitude of interests, including an interest in addressing your financial needs.  This column examines several key points you need to know and understand about forming a successful relationship with your banker.  While such a relationship is never a "one-way street," this discussion seeks to give you a better understanding of the relationship issue from the banker's perspective.

Know your needs and communicate them to your banker. 

This might seem obvious, but you would be amazed at how often clients and prospective clients fail to communicate what they need when it comes to financial services.  Sometimes, they fail to know what services are needed.  Other times, they assume that the banker understands or can anticipate their needs.  

Bankers have many skills, but psychic abilities are not usually on their list!  Make it an on-going business practice to inform your banker of your financial service needs.

Provide access to your senior management. 

Having senior management involvement is key to a successful banking relationship. Bankers want to get to know your company's senior managers, and they want these individuals to know the service capabilities and goals of the financial institution.  Achieving a mutual level of understanding allows both parties to make informed decisions regarding the relationship and the financial services provided.  

From a banker's perspective, senior managers provide a unique view of the business enterprise.  When bankers understand the "vision" held by senior managers relative to the company's future and its position within the marketplace, they are better able to assess their own institution's ability to meet the immediate, intermediate and long-term needs of the enterprise.

Provide reliable financial reports. 

Accurate and timely reporting of financial information is essential to most banking relationships, particularly if extension to credit is involved.

Frequently, bank clients and prospective clients feel that financial reports only serve the needs of the bank's credit committee.  In reality, income statements, balance sheets, cash flow statements and projections are just as critical to the business owner and manager.  These financial reports equip business owners with information needed to run the business more efficiently.

Share knowledge of the industry. 

Getting your banker to understand the dynamics of your business is an important step in forming a successful relationship with a financial institution.  It is your job to equip your banker with intimate knowledge of your industry and your business.

In most cases, your banker will not have extensive knowledge of the historical developments that have shaped your industry and your business.  Competitive factors, industry trends and other relevant information help enable your banker to understand, anticipate and respond to your company's financial needs.   

Many firms utilize plant tours, industry gatherings, and meetings with other individuals inside of the operation to enhance the banker's knowledge level.

Simply put, better understanding of your business by the banker will result in higher levels of satisfaction relative to meeting your needs.

Maintain good communications. 

Eliminate Surprises.

Eliminating surprises is such an important communications and strategic issue that it warrants special consideration.

Bankers do not like surprises (especially bad surprises), so it is important to develop a strategy to communicate adverse conditions and developments to your banker.  

The key here is to measure the magnitude and implications of the "surprise" and then select the proper time and means of communicating with your banker.  While you do not want to inform your banker of each and every crisis that arises, you do not want your banker to read about a large lawsuit, loss of a big client, change in senior management, or some other important matter, in the newspaper.

You may not be able to alter the circumstances of some events, but you can help your banker to understand what the impact might be on your industry, market, products and service offerings.  Taking the time to make key contacts aware of your situation will speak volumes about how you value your banking relationship.

Consolidate Services. 

When clients do all or a significant portion of their banking with one institution, that institution is in a much better position to offer favorable pricing, along with customized and higher quality services.  Even institutions that are "transactional" by nature want their customers to do all of their transactions with them.  

Although this works from the financial institution's perspective, you need to determine whether it is in your organization's strategic interest to consolidate most of its financial transactions with one institution, and whether that institution is your present bank.  Your decision should reflect thoughtful consideration of your company's immediate, intermediate and long-term needs.

Serve as a referral source. 

Guy Summers is a regularly featured columnist with diversityinbusiness.com.  Guy is founder and President of Farrell Group, LLC, a management consulting and training company.  The company's mission is to provide services that improve strategic relationships with clients, work associates, and other key contacts in the private, public, and not-for-profit sectors.

Farrell Group delivers its relationship services via seminars, speeches and consultation.  The company also provides training seminars for golf entertainment, often referred to as Business Golf.