Here's how you can navigate industry disruptions as a banking professional using strategic thinking.

To make decisions it is always important to understand the landscape. 1) Banking and old line financial services are heavily regulated, as a result their ability to innovate is limited. 2) Technology has seen innovation at a pace beyond any growth curve humankind has experienced. 3) The politcalization of the SEC among other regulators has set the country back, limiting business ability to think beyond political disruption. People are best suited to look beyond the regulated world. There are ample technological tools that avail businesses unique opportunities. Look to find resources and services that utilize these tools. FinTech will dominate as legacy businesses stagnate in the political morass.

The best relationship managers are the ones that arrange time with customers outside product pitching in an effort to understand business goals and obstacles. When you commit to active listening, you become privy to trends before they hit the Wall Street Journal. By then, you've already missed precious time to address the trend. Understanding trends has a lot to do with broader macro events, sure, but the real value comes from the consistent dialogue you share with your customers.

As a university teacher to adult banking students in the 1970's, I helped them comprehend Management Accounting (mostly financial statements analyses) + Financial Analysis & Control (mostly ratio calculations). For the next 50 years, Canadian bank managers were tightly controlled by head office loan security information + past tax returns. Few had interest in visiting businesses, accounting or operations or consumer mix. When bank appointed trustees took over, the bank answer to all business was to liquidate. Most of these were turned around by analyzing their resources, not financial statements. Their Human, Physical, Informational, Technolgical & Financial resources mix hold the secrets to their past & future goals & strategies.

Understanding trends allows banking professionals to navigate disruptions with strategic thinking by providing insights into emerging market shifts and potential challenges. Often rooted in attending events and consulting with prospects, staying ahead of trends, you can anticipate changes, innovate solutions, and adapt business models proactively. This foresight enables the identification of new opportunities such as evolving customer needs and technological advancements. Leveraging trend analysis, relationship managers develop resilient strategies that mitigate risks, optimize resource allocation, and maintain competitive advantage. Ultimately, this proactive approach ensures sustained growth and stability in a dynamic financial landscape.

As a vendor to banks, partnerships have become a crucial component of business success in 2024, specifically because of two trends. 1st, the initiative to centralize vendors/software onto a single hub (CRM, Intranet, etc). Creating partnerships allows a business to navigate integrations more smoothly, and keep current with the industry-wide goal to manage resources more effectively. 2nd, buying processes are being scrutinized more than ever. More risk measures are being taken, and buying committees have 2-3x in size. So, partner referrals go a long way in cutting through procurement red tape.

As ZIRP ended, much of the banking industry was faced with their first challenge of prioritizing other products to businesses aside from loans. Agility was incredibly important during this time, and continues to be, as bankers are tasked with advising business customers on how to structure their operations in this new economy. Suddenly, cash management was the hottest new product to position, but many bankers weren't comfortable with the value prop, nor did they know which partners to pull-in when the conversation arose. Whether rates continue high, drop, or stay level is not as important the ability to stay agile, and NEVER pigeonhole yourself to limited outcomes.