I like things that are easy. Who doesn’t? The 80/20 rule is one of those things. It’s easy to understand, but perhaps better yet, it applies across a such a wide swath of topics that I think it’s fair to say it’s universal. For instance, I’m pretty sure 80% of my gray hair comes from 20% of the stupid things my kids do.
In commercial banking, it’s no different (minus the teenage stupidity of course). I think it would be fair to say that ~80% of total outstandings come from around 20% of total origination volume. The same with profitability. I’d guess you get somewhere really close to 80% of your profitability from your top 20% of customers. Am I right? And I’d venture another guess that you’re probably interested in (a) taking really good care of the top 20%; and (b) finding ways to make the other 80% more like your top 20%. See? It all comes back to liking things that are easy!
In the list of things that are not easy, Terence Roche from Gonzobanker tells us that deposit growth will be “a slugfest,” in 2019. Well, where better to solve that problem than from your most profitable segment – your small business and commercial lending customers?
How? Glad you asked…
Small business owners have the deposits you want. They need fast and convenient access to capital. So why not offer them an easy and fast way to share their financials with you – saving them time and headaches (and potentially some gray hair), while also allowing you to make a better credit decision FASTER.
Get their loan business, and they’ll bring their deposits. If you build it, they will come…it’s a Win/Win.
This is where Validis can help. With our DataShare software, your small business clients can securely upload financials with the click of a button. When you get the data, it will be standardized and organized into clean, dynamic reports that make credit decisions a breeze. Validis can also integrate our software into your existing systems for a seamless experience.
DataShare takes very few resources to set up and is as easy as online shopping. And based on how much online shopping many of us (not mentioning any names) have done recently, that’s pretty easy. And who doesn’t like things that are easy?
Contact us today for more information!