Your commercial and small business bankers love Vertical IQ for call preparation, but the value of Industry Intelligence reaches far beyond these groups. In this seven-part blog series, we will discuss how Industry Intelligence can be utilized by lines of business across your bank enterprise.
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Part 1 of 7: Industry Intelligence Offers a Wealth of Treasury Management InsightPart 2 of 7: Industry Intelligence Puts Card Services in Charge
Part 3 of 7: Credit Underwriting Can Connect the Dots with Industry Intelligence
Part 4 of 7: Industry Intelligence Adds Up for Wealth Management & Investments
Part 5 of 7: Get Group Banking on Team Industry Intelligence
Part 6 of 7: Private Equity Informed by Industry Intelligence
In a single day, a small business banker could be calling on a machine shop, a dentist, and a jewelry store. With such a diverse array of clients in their portfolios, Industry Intelligence is a must-have for their call preparation. But there are numerous other groups across your bank enterprise that also can benefit from these insights, such as your small business platform lending team.
Industry Intelligence can help nearly any small business lending group save time and manage risk more effectively. After all, objectivity is the name of the game when it comes to risk analysis. With Vertical IQ, your small business platform lending team has the datapoints and details they need to make unbiased decisions — right at their fingertips.
For example, Industry Intelligence can help these lenders:
Get an unbiased picture of the industry’s credit environment
The “Credit Underwriting & Risks” chapter of the Vertical IQ Industry Profile helps lenders thoroughly analyze the big picture issues that may impact a particular industry’s creditworthiness. This could include exogenous risk factors, as well as challenges that might arise from within businesses in certain industries. The sections on Underwriting Considerations, Industry Risks, and Company Risks give lenders the macro-level issues as well as micro matters to consider.
For additional impartial information on the lending landscape within an industry, Vertical IQ’s proprietary Industry Risk Rating and Key Metrics are here to help. The Industry Risk Rating is an average of scores from six risk-related categories including exit rates, barriers to entry, exogenous risks, and others. Key Metrics offer lenders intel on topics like the industry’s loan default rate and how the industry fared during the 2007 to 2009 recession.
Taken on the whole, the Credit Underwriting & Risks chapter provides small business platform lending teams the very insights they need to understand the overall lending environment of their client’s or prospect’s industry, all in one place, saving time and effort.
Conduct thorough risk analysis of a specific business
Once a lender understands the big picture of a would-be borrower’s industry, it’s time to look at the specifics around that particular business. And Industry Intelligence can lead the way with this research as well.
A small business lender can gather salient information from the business by asking industry-specific “Call Prep Questions” from the Industry Profile. Let’s say the client is a pest control company. Instead of saying, “Tell me about your business,” the lender could ask, “How does your company minimize the financial risk associated with termite guarantees?” or “How does your company ensure compliance with government regulations around toxic chemicals?” Such tailored questions can get to the heart of a business’s creditworthiness
Additionally, the Financial Comparison Toolkit, found under the “Credit Underwriting & Risks” chapter, helps lenders objectively compare a client’s financial metrics to industry averages. This widget allows you to input a company’s financials for categories like gross profit margin, operating profit margin, leverage, and more to see how they stack up to industry averages.
Learn about which loan products are commonly used by businesses within the industry
Want a sneak peek at what loan products are most often used by companies within a particular industry? Industry Intelligence can give you this inside edge.
The “Banking Solutions” chapter of the Industry Profile details common challenges within each industry and the banking solutions that can address that issue. The “Bank Product Usage” chapter gives you a look at which products are most often used by businesses within the industry. This knowledge can save a lender time and also give the business owner an idea of how peers are managing their finances.
Stay abreast of industry news and current events
It’s useful for a lender to understand the latest goings on within an industry to get a further grasp on the lending landscape. Industry Intelligence makes it simple to gather such reconnaissance.
Chapters like “Industry Trends,” “Industry Forecast,” and “News” allow bankers to put a finger on the pulse of an industry, gaining an understanding of what is happening now and what is anticipated to occur down the road within the borrower’s niche.
There is even a section dedicated to “Impact of COVID-19,” which highlights industries that have seen challenges or opportunities as a result of the pandemic. Such insight can give the lender a better understanding of an industry’s resiliency.
A timesaving, insightful research tool for small business lenders
Vertical IQ was specifically designed to make it simple to find the Industry Intelligence bankers need to serve their small to medium-sized business clients. The site’s Industry Intelligence also can “lend” a helping hand to small business platform lenders who need to gather objective insights on a prospective client.
A single, easy-to-use resource that saves time, improves analysis, and reduces risk — now that’s a tool your lending team wants in their arsenal!
Want to learn more about Vertical IQ’s value-added enterprise solutions? Contact Vertical IQ today to schedule a demo!
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