UMB Bank
Four questions to ask before choosing a bank and banker
Increasing rates, tightening credit, and managing inflation are among today’s challenges facing businesses, making it even more crucial to find the right bank and banker. Having spent 17 years on the customer side of the table as a CFO and COO, there are some key questions business leaders should ask themselves — and their banker — before making this decision.
What is the current state of business lending in Texas, and how is the bank tackling it?
Many banks are sitting on the sidelines waiting for this current financial environment to improve, which can make it challenging for businesses to secure the financial capital they need.
At UMB, we are bolstering our current relationships and proactively looking for new ones. With all five major cities in Texas growing at a rapid pace, there are still a plethora of opportunities to start, grow, or expand your business, and an aggressive mindset is a must for your bank and banker to find success during these times.
Is the banker genuinely inquisitive about my company?
There is more to a banker relationship than lending money. Your banker should understand all the ins and outs of your business and truly help you carry out your vision to achieve your business goals. That means coming on-site and asking the right questions to understand what you do; how you do it; your vendors, customers, competitors, etc. By doing this, your banker understands what makes your business unique and can help you map out what success looks like, brainstorm solutions to obstacles, and build a plan to achieve your goals, together.
How does the bank react through economic cycles?
While no one can predict how or when relief will come, these conditions won’t last forever. The economy experiences cycles and will continue to have ups and downs, so knowing how a bank has not only handled past cycles, but also how their customers fared during those times will tell you a lot.
What is my back-up plan for addressing challenges?
If these unusual times have taught us anything, it’s that finding a strong, stable bank is critical, as well as making sure you have well-documented backup plans. For example, if you create a comprehensive business financial plan alongside your banker, we are aware of your opportunities and challenges, which helps us provide more personalized recommendations. Noting your variable line items, payment float times, receivables processes, and credit and financing options allows us to brainstorm solutions quickly if times get tough.
Finding your fit
Just like businesses, every bank has its own personality — in how they work with clients, manage operations, target industries, and build relationships. It’s important to understand the personality of the bank and banker calling on you to determine whether it is a fit with who you are, what you are doing, and where your business is headed. Equally as important is the bank’s expertise and ability to guide your business through economic cycles to help you not only weather challenging times, but to thrive in them.
Eddie Broussard, president of UMB Bank Fort Worth, has nearly 23 years of banking experience and a passion for business growth in Fort Worth. Since 1913, UMB has remained focused on cultivating relationships based on integrity and quality and helping clients achieve their goals. For more than 110 years, we've operated with high-touch service, prudent business practices, and a stable balance sheet that allow us to weather all economic cycles and continue to serve our clients.
To learn more about our commitment to growth in Fort Worth, visit umb.com/Texas