A version of this article was originally published in The Business Times.

In today’s dynamic landscape, bankers and their corporate clients need to move beyond a transactional relationship to one that is a true partnership. Demand for customized, industry-specific solutions is soaring and being fueled by global macro trends such as digitization, supply chain disruptions, and sustainability. As a result, corporate clients’ expectations of their bankers are increasing.

Corporate clients want access to best-in-class products and services, and to have their bank act as a strategic long-term partner, according to a CGI and Global Treasurer survey of corporate clients globally. These trends suggest that the relationship manager (RM)–corporate relationship being credit-led are outdated. Corporate clients are now expecting their bankers to support them more holistically.

The survey also found that corporate clients are becoming more critical of their banking providers. Respondents revealed a drop in overall satisfaction with their main banking providers, with more responses landing in the middle of the scale.  

Transitioning from product advisors to trusted advisors

If corporate banks want to stay relevant, RMs need to retool their approach and become trusted advisors. Being a trusted advisor is often an overlooked but powerful trait — it encompasses understanding the client’s business as well as the ecosystem the client is in. It requires bankers to stay top of sectoral and market trends such as sustainability or digital connectivity, and proactively engage and advise their clients on how these will shape their future business and needs.

Being a trusted advisor also means presenting a one-bank view to clients and delivering holistic propositions across markets and products to help clients better operate and grow their business, as well as manage risks. At the end of the day, bankers who position themselves as client advisors rather than product providers will emerge with the strongest and lasting client relationships.

Three levers for banks to build new age talent capabilities

We have identified three areas where banks can act now to evolve their client relationships:

Assessing banks' existing talent model

Banks should evaluate their current talent to determine if their staff are equipped appropriately to meet their strategic vision. In assessing their talent models, we see banks leveraging varying tools across voice of client surveys, capabilities or productivity benchmarking, and bankers’ self-assessment. These assessments provide valuable insights for the banks to craft meaningful learnings journeys for targeted audiences, spanning functions, divisions, geographies, and seniority levels.

Investing in capabilities uplift to upskill talent

Investing in sales capabilities uplift remains a priority focus for banks over the next few years. Where learning and development used to be perceived as a cost center, leading banks that emphasize talent strategy now view learning and development as a critical enabler to delivering their financial strategy. In fact, some banks have committed to doubling their training budget over the next three years to upskill their corporate bankers.

Pivoting training approach

Banks are recognizing that traditional learning and development programs, which tend to be technical– and product–oriented and delivered classroom style, are ineffective. Our research suggests that capabilities-focused and impact-driven training have been effective in changing frontline behavior, increasing cross-sell, and driving potential revenue from key clients by up to 90%.

To optimize the return on investment (ROI) of training programs, we believe these key principles below should be incorporated in their design and approach:

• Focused and realistic: Objectives of the workshop need to be grounded on and aligned with the bank’s strategy and vision. Actual bank’s frameworks and processes should be embedded in the training content to ensure that participants can easily relate the training to their day-to-day work, and are able to identify areas of application 
• Practical: Industry case studies are used to exemplify classroom teaching of theoretical concepts. For instance, a study of how another bank approaches a similar deal, or how a corporate client thinks about its strategy and relationship with banks, can provide very valuable insights to bankers and prompt them to review their existing relationships and pipeline
• Interactive: Most of the well-received workshops we have seen tend to follow the 30-70 rule — 30% teaching, and 70% practicing and discussing, with a heavy focus on individual and group exercises. There are also a variety of training aids available like real-time polling, videos, and role plays which can encourage participants’ engagement 
• Action oriented: To drive impact, participants are encouraged to ‘learn by doing’ and bring along their current portfolio or case for review during the program

Bank's transition to a trusted advisory role — UOB case study

UOB identified talent strategy as central to delivering their business strategy and firmly believes that having world class bankers with a strong growth mindset is a differentiator and right to win. 

In partnership with us, UOB designed and rolled out a sustainability training program to equip their RMs, credit team, and product partners to go to market effectively on sustainability. At the workshop, participants gained a deeper understanding of how they should engage their clients actively on sustainability across the sales process, from prospecting to engagement, to solutioning, and finally pitching.

Training content was contextualized based on the bank’s prioritized sectors, where they have set net-zero targets on top of its key business targets. To exemplify application of sustainability concepts, the bank incorporated live case studies of sustainable finance deals, to highlight key learnings and best practices. The training ultimately culminated into a Shark Tank-style pitch for participants to apply theory into practice, where they delivered a sustainability pitch for an actual client.

Beyond textbook knowledge of the products available, UOB also focused on imbibing the mindset of caring for clients, which they saw as fundamental in shaping the next generation of bankers.

Critical questions for banks to optimize their talent models 

For banks to stay competitive, they must reassess their talent strategy. There is significant value for banks to unlock if they optimize their talent model. To get started on this journey, we encourage banks to consider these questions:

1. Does the bank have a clearly defined talent strategy? To what extent is the strategy in line with the bank’s medium-term and short-term vision and targets?
2. Does the bank have a good understanding of their bankers’ capabilities? How competitive are their bankers today, and what are clients’ perceptions towards their bankers? What are the key dimensions where bankers are “underperforming” relative to the market, and relative to their clients’ expectations?
3. What specific actions has the bank taken or planned to uplift the bankers’ capabilities? Are these planned programs specific, practical, and focused?
4. How will the ROI of these training programs be measured and reported?

Training bank relationship managers to be strategic advisors to their clients is crucial in preparing them to be trusted advisors in a rapidly changing financial landscape. As geopolitical tensions continue to rise and the pressures of decarbonization become increasingly prominent, clients will seek guidance on navigating these complexities. By equipping relationship managers with strategic advisor skills, banks can position themselves as valuable partners in helping clients understand and address the implications of geopolitical shifts and decarbonization efforts on their finances.

Strategic advisor training can enhance relationship managers' understanding of geopolitical factors and how they impact global markets and clients' investment decisions. This knowledge enables them to provide insightful recommendations that align with clients' values and investment objectives in the face of geopolitical uncertainties. Additionally, a deep understanding of decarbonization pressures empowers relationship managers to help clients assess and capitalize on sustainable investment opportunities while managing associated risks.

Ultimately, fostering strategic advisor capabilities in bank relationship managers not only strengthens client relationships but also positions banks as proactive and forward-thinking partners in addressing the evolving challenges and opportunities in the financial world.

Read the original article, here.