There seems to be an acronym for everything in banking, so here’s one I’ve coined over the years that every relationship banker should remember: DUMB — doesn’t understand my business.
No, it’s not an “official” banking term, but I can assure you it’s one that many business owners have silently assigned to bankers who walk into a meeting unprepared. You know the type of conversation I’m talking about: “So … tell me about your business.”
On the surface, it might sound like a reasonable question for a banker to ask a business owner. After all, you’re trying to learn more about them. But to a business owner, especially one who’s met with numerous bankers over the years, that question often says something entirely different: “You didn’t take the time to learn anything about me before this meeting.”
The irony is that most bankers don’t intend to come across that way. They’re simply trying to start a business-focused conversation. But, first impressions matter, and when a client has to spend the first 15 minutes of a meeting explaining their industry, their business model, and the challenges they’re facing, you’ve missed an opportunity to establish yourself as a trusted advisor from the very beginning.
The good news is that avoiding the “DUMB banker” label doesn’t require you to conduct hours of pre-call research. You simply need the right Industry Intelligence at your fingertips and to know how to use it.
Preparation means understanding the industry, not just the company
One of the biggest mistakes I see bankers make is spending all of their call preparation time reviewing the company’s financial statements and website. Sure, those are important, but they only tell you about one specific business.
The more valuable questions often come from understanding what’s happening outside that business. What’s changing in the industry? What economic pressures are affecting margins? What labor challenges are competitors facing? Are new regulations, supply chain issues, or shifting customer preferences creating opportunities … or risks?
Business owners deal with these realities every single day. When you can speak intelligently about the environment surrounding their company, the conversation changes immediately. And that’s where Vertical IQ’s Industry Intelligence becomes invaluable.
Before every client meeting, spend just a few minutes reviewing the Current Conditions, Industry Trends, and Industry Challenges chapters of the corresponding Vertical IQ Industry Profile. You’ll quickly understand the issues most likely keeping that business owner awake at night.
Now, instead of asking generic questions in your initial meeting, you can open with something like:
“We’re seeing labor shortages continue to pressure businesses in your industry. Is that affecting your hiring plans?”
Or
“I’ve been reading about rising insurance costs impacting companies like yours. How has that changed the way you’re planning for the year?”
Those aren’t canned, “DUMB” questions. They’re informed, industry-focused conversation starters that demonstrate you’ve invested time in understanding the business owner’s world before walking through their door.
Let the client validate your industry knowledge
One lesson I learned during my decades-long banking career is that clients don’t expect you to know everything. They do expect you to know enough to ask thoughtful questions, however. That’s why one of my favorite conversation starters is: “I’ve been reading about several trends affecting your industry, but I’d love to hear whether you’re seeing the same things in your business.”
Notice the difference? You’re not pretending to be the expert on their company or industry. Rather, you’re inviting them to validate (or challenge) the industry insights you’ve gathered prior to your conversation. That approach creates a true dialogue rather than a monologue or “interview.”
Vertical IQ’s Industry Intelligence gives bankers the confidence to begin conversations this way because the information is current, relevant, and written specifically to help professionals understand the industries they are calling on.
Move beyond surface-level conversations with Call Prep Questions
Preparation doesn’t stop at understanding industry trends. That’s why one of my favorite resources inside Vertical IQ is the industry-specific Call Prep Questions.
Too often, bankers rely on the same list of questions regardless of who they’re meeting. As a result, every conversation sounds the same — generic.
Industry-focused questions create a completely different experience. Instead of asking, “How’s business?” you can ask questions tailored to the business owner’s unique operating environment, workforce, customer demand, or competitive pressures.
Those questions uncover opportunities that cookie-cutter conversations often miss — topics like capital expenditures, treasury management needs, succession planning, equipment financing opportunities, or cash flow challenges that wouldn’t have surfaced otherwise. The business owner leaves thinking, “This banker understands businesses like mine.” And that’s exactly what you want!
Speak their language
Another simple way to avoid becoming the “DUMB” banker is learning the language your prospective client uses every day.
Every industry has its own terminology, metrics, and operational vocabulary. When bankers misuse terms, or avoid them entirely, it creates distance. On the other hand, when they use the business owner’s language correctly, it builds credibility almost immediately.
Before an important meeting, review the Industry Profile’s Industry Terms chapter.
You don’t need to become a linguistics expert overnight. Learning a handful of key terms can make your conversations more natural and demonstrate genuine interest in the prospect’s business. Indeed, credibility can sometimes be built in surprisingly small moments.
Looking beyond the loan
One of the biggest advantages of understanding a prospect’s industry is that you begin seeing opportunities beyond the original reason for the meeting. A discussion about growth plans may uncover treasury management opportunities. Industry trends may point to equipment financing needs. Ownership changes may naturally lead to conversations about succession planning or wealth management.
The Banking Solutions chapter of the Industry Profile helps connect the dots between common industry challenges and relevant banking products and services, making it easier to identify ways your financial institution can solve problems rather than simply sell products. That can put a relationship banker in a much stronger position.
Help your teammates avoid being ‘DUMB,’ too
During my banking career, I saw too many situations where a commercial lender had built tremendous credibility with a client only to introduce another banker on their team who immediately asked the client to explain their business all over again. Few things erode confidence faster.
One of the ideas I discussed in my recent “One Bank, One Voice” blog is that every banker who interacts with a business owner should have a basic understanding of that client’s industry. When commercial banking, treasury management, private banking, and wealth management all prepare using the same Industry Intelligence, clients experience one coordinated team, not a collection of disconnected specialists.
Sharing Vertical IQ Industry Intelligence internally before joint meetings helps everyone contribute meaningful questions and informed insights. More importantly, it prevents clients from wondering whether anyone inside the bank actually communicates!
Don’t earn the ‘DUMB’ label
To be clear: Business owners don’t expect perfection. They don’t expect bankers to know every detail of their company before the first meeting. But they do expect preparation, and rightly so. Their time is valuable.
Spending just a few minutes inside Vertical IQ, you can walk into every client or prospect conversation understanding their industry’s current conditions, trends, terminology, common challenges, and relevant banking opportunities. That preparation allows you to ask smarter questions, uncover more potential opportunities, and build credibility from the very first conversation.
At the end of the day, the most successful relationship bankers aren’t the ones who talk the most. They’re the ones who demonstrate that they understand the client’s business before the business owner has to explain it. And that’s the difference between being thought of as a trusted advisor … or being remembered as the “DUMB” banker.
Want to be the “smart” banker who understands a business owner’s industry even during your first conversation? Start your free seven-day Vertical IQ trial today!