There are a lot of lessons I learned in my decades of working in the banking industry. Some I learned the easy way, while others took a bit more blood, sweat, and the occasion tears to grasp. But there’s one particularly valuable thing I learned, which I can pass along with absolute confidence: Most client relationship problems don’t start with pricing, products, or credit decisions. They start with silence.
‘Breadcrumbing’ your bank clients
Maybe you’re familiar with the colloquial term “breadcrumbing.” Breadcrumbing is the practice of offering small, low-effort bits of communication (such as quick replies or occasional messages) without any real intention of building a meaningful relationship. This keeps the other person hopeful but stuck in limbo, often leading to confusion or frustration. (Us “more seasoned” folks used to call this “stringing someone along.”) While commonly associated with dating, breadcrumbing can also occur in friendships and professional relationships.
Oftentimes, business banking clients may feel like their bank is breadcrumbing them: reaching out only when they have something to pitch or need something from the client. In even worse-case scenarios, clients feel that they’ve been “ghosted” — completely ignored by their financial institution. This perception can be quite costly to the bank, often leading to lost opportunities and lost clients.
Clients want strategic partners, not ‘order-takers’
In a recent article, Chris Nichols, director of Capital Markets at SouthState Bank, underscores this troubling and all-to-common dynamic of business banking clients feeling “breadcrumbed” by their financial institutions. According to Nichols, many business banking clients say their financial institution:
- Doesn’t explain available tools and functionality
- Doesn’t provide evidence they understand the client’s industry
- Doesn’t offer advisory-level financial guidance
- Doesn’t proactively recommend solutions
That’s a painful reality to accept, especially when your bank does offer exactly what the client wants, but the client has no idea. Nichols calls this “the saddest scenario in banking.”
But let’s dig deeper into the root issue: In most of these situations, it isn’t a lack of products or expertise. Too often, clients simply don’t believe that the bank understands their business well enough to bring tailored solutions to the table to address their unique challenges. And the reason they don’t realize this is usually because of the bank’s lackluster or inconsistent communication strategy.
I know first-hand that relationship managers and credit officers are stretched thin and often forced into reactive roles. Business owners, however, are actively looking for strategic partners — someone who can bring real-world value to their interactions. When a banker shows up as a simple “order taker,” the business owner may question if the relationship is really bringing beneficial value to the table for their business.
Proactive outreach drives satisfaction … and wallet share
Research from Barlow Research Associates reinforces what many of us learned in the field (sometimes the easy way; sometimes the hard way): Proactive outreach works … and measurably so. Indeed, for business banking relationship managers and credit officers, consistent, value-added client communication isn’t a “nice to have;” it’s the foundation of client trust, long-term loyalty, and relationship growth.
Barlow’s middle-market research shows that proactive bank outreach is strongly associated with higher client satisfaction, increased retention, and a greater share of wallet. The data is telling:
- Clients who hear from their bank more often are far more likely to return when a new need arises.
- Clients who receive no calls or visits from their account officer are the least likely to purchase additional products.
- Clients who receive two or more touchpoints are more than 20 percentage points more likely to say they are “very likely” to purchase again compared to those who receive no touchpoints.
In short: Silence and inconsistency both send a message to banking clients of all sizes, whether we intend it or not. And financial institutions that maintain regular, meaningful client contact often outperform those that rely merely on reactive engagement.
Vertical IQ enables smarter, proactive client communication
On a logical level, most bankers understand the importance of staying in touch with their clients, but there are still challenges.
- What’s a relevant reason to reach out?
- How do you demonstrate industry knowledge efficiently?
- How do you add value beyond “just checking in”?
This is where the right tools make all the difference. Vertical IQ gives business banking relationship managers and credit officers industry-specific intelligence that transforms outreach from awkward to advisory. Instead of generic “How’s business?” conversations, bankers can lead with tailored insight that proves they understand the client’s world. For example …
Industry-driven touchpoints
Vertical IQ’s easy-to-share Industry Profiles highlight trends, risks, and operating challenges specific to each client’s industry. That enables outreach messages like: “We’re seeing labor availability and wage pressure continue to impact your industry; how is that affecting your margins this year?”
That’s not a sales pitch. That’s relevance.
Better credit conversations
Credit officers can use Vertical IQ insights to frame stronger discussions around the client’s cash flow drivers, their industry’s seasonality, customer concentration, and working-capital cycles … often before issues surface. That leads to better underwriting and stronger relationships.
Proactive treasury and cash management advice
Many of the communication gaps Nichols highlights in his article, especially around treasury tools, stem from clients not knowing what financial products and solutions are available. Vertical IQ highlights common receivables, payments, and liquidity challenges by industry, as well as banking products/services often utilized by others in the owner’s industry. Such insights provide bankers with natural opportunities to proactively recommend solutions clients may not even realize they need.
Consistent, value-based outreach all year
Vertical IQ makes it easier to plan regular, meaningful client touchpoints throughout the year. Instead of scrambling for a reason to call or email, bankers always have something timely and relevant to share, such as industry-specific trends, benchmarking insights, or emerging risks, all available on Vertical IQ.
From reactive to relevant
Business owners today crave collaboration. They want business partners who are looking out for them and their business — people who they feel are invested in their success. As a result, the banks that win these relationships won’t necessarily be the ones with the longest product list. Instead, they’ll be the ones that communicate best: clearly, consistently, and with genuine understanding of the business owner’s pain points and opportunities.
Business banking clients aren’t unreasonable; they don’t expect their bankers to predict the future. But they do expect them to pay attention, bring ideas, and show up as strategic partners. Proactive, industry-focused communication can turn bankers from order-takers into the trusted advisors these business owners are looking for. And with Industry Intelligence from Vertical IQ, it doesn’t require more time … just more consistency.
Want more ideas on how to elevate communications with your bank clients? Check out our Success Stories page or request a Vertical IQ demo today!
Image: Luis Villasmil, Unsplash