I frequently hear lamentations about the gap between the performance expectations of community financial institution (FI) personnel and performance results. A frequent challenge is that performance expectations are not documented in the form of job descriptions. Instead, expectations are often trapped between the ears of the supervisor or senior management.
This post is geared toward drafting a job description of the FI business banker. Although I am not an HR expert, I am often engaged in discussions with FI senior management teams on what they expect from the person occupying this position. Often, senior management would like business bankers to build total relationships with businesses within the FI's market area. Instead, they often get commercial real estate transaction specialists, leaving small and medium sized businesses that don't own real estate in no-man's land between the branch manager and the "lender". The job description does not include qualifications or compensation, as each FI can assess what is needed based on their own expectations.
Summary of Responsibilities: Relationship management... Develop relationships with business's within the position's assigned market area. Relationships should include knowledge of the customers' business, industry, banking needs and their service expectations from their FI. Evaluate customer product use to determine optimal product utilization, and make routine customer contact. The objective is a level of customer satisfaction that increases customer loyalty based on service and relationship, not price/rate.
Product knowledge and expertise... Develop and maintain significant knowledge of FI product offerings, with an emphasis on products most needed by target customers as per the demographic profile of the area surrounding the FI and the FI's strategic focus. Develop and maintain financial acumen in customer balance sheet and cash flow management to assist customers achieve financial success. The objective is to establish the business banker as the subject matter expert of bank products within the bank's market(s).
Community relations... Become the primary community representative by joining a minimum of two community organizations with an emphasis on those where business owners are likely to participate. Volunteer for a leadership position in at least one. The objective is to promote community involvement consistent with the FI's strategy and to expand the business banker's relationships for future business development activities.
Business development... Grow customers at a pace faster than general market growth that is consistent with the FI's strategy. Interface with other FI departments such as branches and marketing to maximize effectiveness of business development efforts. Participate in social media efforts by contributing blog posts and managing FI-branded Twitter account geared toward small business.
Portfolio Management... Business bankers should manage 100-200 relationships, dependent on size and nature of relationships. Portfolios should include all forms of business lending within the FIs capability and strategy and consistent with risk appetite. Deposit portfolio should equate to at least 50% of loan portfolio. Business banker will lead the customer support team that includes portfolio managers, loan administration and loan servicing personnel.
Credit Quality... Business bankers are responsible for the quality of the loans they book. All loans shall be consistent with the FIs risk appetite and within loan policy, unless approved as exceptions to policy. The business banker will be the first to contact borrowers for non-compliance with loan covenants and the first to initiate collection on delinquent loans. However, loans scored as "doubtful" or worse shall be managed by the FIs workout department. A portion of the business banker's incentive compensation is subject to a multi-year holdback to offset loan losses.
Business Banking Department Profitability... Business bankers are collectively responsible for the overall profitability of the Department, and to establish a positive profit trend that is consistent with the FI's overall strategy.
Other duties as assigned.
What did I miss?