If you’ve ever lived in a small community, you know what it’s like to run into your doctor at the grocery store, your accountant at the baseball diamond, or your child’s teacher at a restaurant. There is something to be said for the way this interconnectedness bolsters our relationships and our sense of community.
Credit unions’ relationship managers and lenders frequently run into their members out in the community as well. This is likely one reason that credit unions are revered for their stellar customer focus, built on the principle of prioritizing their members’ interests. Afterall, their members are their neighbors.
In recent years, many credit unions have broadened their target beyond just consumer members to include business relationships as well. Their appeal for business owners is easy to understand.
For instance, as not-for-profit organizations, credit unions invest their net profits back into their membership. This is manifested in the form of lower loan rates and higher deposit rates — a big plus for cost-conscious business owners. Oftentimes, credit unions contribute to local non-profit organizations and charitable events as well, which can be appealing to community-minded small business owners.
Another plus: When it comes to analyzing a business’s loan application and determining factors such as loan rates, payment schedules, penalties, and fees, credit unions may have more flexibility than their bank counterparts. The credit team also may be more likely to take the time to get to know a business owner, their company, and their industry, boosting the credit union’s willingness to find innovative solutions to get the business the money they need … as well as potentially better supporting a business customer during times of trouble.
A focus on what makes each business unique
This type of personalized customer service — focusing on understanding the nuances of a business and its industry — can be a key differentiator between credit unions and conventional banks. And by using Industry Intelligence from Vertical IQ, credit union relationship managers and lenders can quickly and easily learn about a prospect’s or member’s business to ensure they are tailoring financial solutions to best meet the business owner’s unique needs.
Here are just a few of the pieces of Industry Intelligence you’ll find on Vertical IQ that can be particularly valuable to credit unions that are calling on and working with businesses.
Prep Sheets and Current Conditions: Get the scoop on an industry
Particularly when calling on a prospect in an industry you’ve not previously worked with, it is essential to get the latest details on what’s going on in that industry. Using both the Prep Sheets and the Current Conditions chapters of the Vertical IQ Industry Profile will enable you to get up to speed on any industry in just minutes.
Call Prep Questions: Get the conversation started
Business owners are passionate about their business and are almost always eager to talk about it. When you come into a call armed with industry-focused questions, you’ll not only get the owner talking, but you’ll impress them with your astuteness while also helping to uncover their potential financial needs.
Local Data: An even closer look at the forces driving a business
Understanding the local landscape in which a business is operating allows you to offer more tailored advice and solutions to a business owner. This is particularly important to credit unions in their quest to differentiate themselves from bigger, sometimes “impersonal” financial institutions. With Localized Industry Data, you get detailed, industry-specific market data down to the city or county level, while our Local Economies content helps you monitor and understand the local economic environment and how those forces affect a business’s success.
Credit Underwriting and Risk: Tailor your advice, inform your decisions
Oftentimes, smaller business owners have to wear the hats of the CEO, CSO, CFO, and more, which is why credit and lending is an area where credit unions can really shine with their business members. Using the Credit Underwriting and Risk section of Vertical IQ gives you guidance on common challenges a business may face and also provides the credit team with underwriting considerations and specific industry and company risks they need to take into consideration in their analysis. You’ll even find our proprietary Industry Risk Rating score for an overall assessment of the industry’s risk.
Industry Forecast: The crystal ball you’ve been looking for
Of course, no one can REALLY predict the future, but there are certain telltale data points that can offer important insights into what may lay ahead for an industry. The Industry Forecast chapter of the Industry Profile discusses an industry’s outlook, recent trends, macroeconomic indicators, and key drivers, all of which can help you better advise a business owner.
Financial Benchmarks: Compare apples to apples
There’s no doubt that nearly every business owner has wondered, “What’s my business worth?” Whether for purposes of succession planning, mergers and acquisitions, or credit analysis, the Financial Benchmarks data on Vertical IQ can offer the data needed to accurately calculate a business’s value. You’ll find an industry financial summary, ratios, income statements, balance sheets, and more!
Further setting credit unions apart with Industry Intelligence
The financial services sector as a whole has experienced some turbulence in recent years — the demise of several high-profile banks, an uncertain economic climate, and rising interest rates. This shaky environment has prompted more businesses to reevaluate their banking relationships and consider credit unions as an alternative to conventional banks.
Credit unions can further bolster their unique value proposition to business owners by adding Industry Intelligence from Vertical IQ to their prospecting and member retention processes. Armed with insights about what makes a business owner’s industry unique, credit unions are able to provide businesses with the customized experience and tailored solutions they are looking for while building trust and member satisfaction.
But credit unions must also be good stewards of their members’ assets, which is why credit underwriting and risk mitigation are so important. Industry Intelligence is a timesaving resource for business lending and credit teams as they analyze a company’s risk and creditworthiness.
As one Vertical IQ user from a credit union explained: “Vertical IQ is our go-to platform for our underwriters. … We tap into Vertical IQs industry information as a means to complete our analysis of the industry. … It’s really easy, very thorough, [and] provides us information that we need to help us get an understanding of the risk of that industry.”
With Vertical IQ in your team’s toolkit, they’ll gain full access to the actionable, convenient, focused Industry Intelligence they need to win, grow, and retain more business relationships while providing business owners with the personalized, customer-focused experience they expect from a credit union.
Ready to get started? Contact us today to learn more!