What are the most common challenges that institutional sales professionals face when selling to banks?

Increasing Competition: The banking industry faces competition from FinTechs, which target profitable areas in financial services. Cultural Shift Toward Technology: In today’s digital world, manual processes and systems have no place. Regulatory Compliance Burden: The dramatic increase in regulatory fees since the 2008 financial crisis poses a significant challenge. Customization for Each Client: Adding value customized to each client efficiently is crucial.

Institutional sales professionals who sell to banks face a unique set of challenges due to the complex nature of banking institutions. 1. Regulatory Compliance 2. Understanding the Bank's Needs 3. Decision-Making Processes:decision-making processes involving multiple stakeholders 4. Market Volatility and Risk Management 5. Competitive Landscape: sales professionals need to differentiate their offerings from those of competitors 6. Economic and Market Conditions 7. Building Trust and Credibility 8. Long Sales Cycles 9. In-depth Product Knowledge of process Successfully addressing these challenges requires a combination of industry knowledge relationship building skills, adaptability and a persistent focus on delivering value to the bank.

No matter who you're selling to, you must always know your customer. Who are they, what are their pain points, who are the decision makers? Understand the sales cycle and their budget season. The best way to stand out as a sales professional is to know exactly who your customer is and understanding their needs.

A common challenge for institutional sales professionals selling to banks is understanding the complex decision-making process within these institutions. With multiple stakeholders involved, including executives, managers, analysts, and compliance officers, navigating the hierarchy and aligning with various needs and objectives can be daunting. To succeed, sales professionals must identify key decision-makers, influencers, and gatekeepers, and tailor their approach accordingly. Anticipating objections and understanding the timeline and criteria of the decision-making process are also critical for effective sales strategies.

Bank are probably one of the hardest businesses to sell to. They have a billion employees with a million decision-makers. Those decision-makers are hard to reach. They are (usually) slow to innovate. etc.

Another significant challenge for institutional sales professionals selling to banks is establishing trust and credibility. Banks prioritize reliability and reputation, particularly with new or innovative offerings. To earn their trust, sales professionals must demonstrate expertise, reliability, and an understanding of the banking industry's intricacies. Providing evidence of past successes, references, and industry knowledge can bolster credibility. Additionally, maintaining transparency, consistency, and responsiveness throughout the sales process is crucial for fostering trust. Follow-up with valuable insights and information reinforces credibility and strengthens the client relationship.

Each enterprise sales process has a chain of decision of a different length, where the salesman has to define it. Sometimes it's longer, sometimes it's shorter. But with a bank - can it ever be anything else than long? Since banks are the most regulated institutions in the world, that means more departments, that means more heads of departments, and more people that have to trust you and want to buy from you.

While it is true that banks always adjust their strategy based on market trends, economy, etc. In some aspects, banks are very conservative and want stability. It all comes down to the product you're selling. For instance, a bank's tech stack will barely change with time, from what I know most banks still use Java-based operational software. Other times, banks will want to implement a new thing as fast as possible, like crypto support, ai-based chatbots, etc.