After working with many institutions over the years, we’re convinced that there are a minimum of 12 online banking features that are essential for business success. One of the most important systems your institution invests in is your Online Banking Platform (OLB) – yet many of our clients have purchased OLB systems that are missing several features and are not able to offer them as services.

The Online Banking Platform is the primary delivery mechanism through which business customers access your treasury management services. It is the foundation of your business-focused digital banking strategy. Your Online Banking Platform, at a minimum, must be available 24 hours per day and offer complete access via web and mobile interfaces. Today, we’re focusing on the web-based online banking capabilities and their integration with treasury management services.

Let’s Evaluate your Current Business Offerings:

1. Does your Online Banking Platform integrate well with your core system?
   1. Rate your institution from 1-5 with a 1 having no integration and a 5 with a completely human “hands off” integration.
2. Does your Online Banking Platform integrate well with each of the TM services you offer your business customers?
   1. Rate your institution from 1-5 with a 1 having no integration to backend TM services and a 5 with a completely human “hands off” integration.
3. Do you have a separate OLB Platform for consumers and businesses?
   1. Rate your institution from a 1-5 with a 1 having one platform for both and a 5 for two separate platforms customized for each customer type.

If you scored less than a 5 on our evaluation, read on, we’ve got some great advice for you. If you scored a 12-15, either you are one of our clients or you have a very robust OLB/TM system.

Let’s discuss the 12 Online Banking Features That Are Essential for Business Success:

Let’s start with the minimum expectations of your Online Banking Platform for business customers:

• The system allows multiple users with multiple security levels under a single business entity.
• The system allows multiple businesses under one umbrella (i.e., holding company and subsidiaries).
• The system offers multifactor authentication (MFA) options (hard token, soft token, or biometric).
  • Side note: We no longer consider text messaging safe for business OLB system access. It is still too easy to SIM swap a mobile phone.

Your business customers should be able to conduct all or most of their banking business on this platform.

Basic Banking Functions

1. Initiate internal transfers. Businesses need to make transfers between their main operating account and other accounts such as payroll and savings accounts. Initiating internal transfers is a must. Certain business owners who have their personal accounts with you may need to transfer funds between personal and business accounts. These businesses are typically solopreneurs or Single Member LLC entities. Your OLB system should allow this function and it typically occurs via the consumer platform.
2. Initiate stop payments. Businesses with high check writing activity may need, from time to time, to place stop payment on a check. Your OLB platform should allow them to initiate the stop payment with all the appropriate information and submit it online. Often we see clients with a completely manual process behind the scenes as if the customer showed up at a branch. Instead, the system should be able to automatically place the stop payment and process the charge.
3. View current and previous day transaction information. The ability to download previous day information has been available from the early days of online banking. Businesses should be able to download their bank information to their accounting software anytime. The next step will be to download real time transactions (items that post that day).
4. Electronic Bank Statements. Businesses expect the ability to download their monthly bank statement via PDF format for at least the last 18 months. Many institutions offer longer availability, but most businesses usually need 18-24 months’ worth of data.
5. View check images. Along with statements, businesses need to view images of checks that cleared, or items deposited. It is especially important to be able to view checks deposited via remote or mobile deposit capture. Again, the expectation is a minimum of 18 months availability.
6. Originate payments via BillPay. Small businesses enjoy the capability of issuing payments via the BillPay service which is typically free. As their volume of payments increases, you can offer other ways of paying their bills like ACH origination (see below).

Many of the above basic banking functions may be for smaller businesses with low transaction volume. We typically see these types of customers enrolled on the consumer (retail) OLB platform. Your large customers may also as for these functions, so be sure your business OLB system can do them also.

Treasury Management Services

7. Initiate domestic and international wire transfers. As your business customers grow or as you acquire larger commercial customers, they will need Treasury Management services. They will need the capability to initiate domestic wires and international wires. It is important to offer this service with multifactor authentication and the ability to set up multiple authority levels. The more robust OLB platforms allow the business customer to do self-administration where they assign the authority levels to their users.
8. Account Reconciliation service. The ability to download daily account transactions also allows the business customer’s accounting software to reconcile to the bank daily. Account Reconciliation is one of the oldest TM services; however, not all OLB platforms offer it.
9. View PDF Account Analysis Statements. Your TM customers will expect to receive their monthly Account Analysis statement via the OLB platform. This capability is a big challenge for certain core systems that do not produce the Account Analysis statements digitally. They look like a “raw statement” and is not presentable to the customers without major manual work. Some institutions even have to print them to statement paper first and then digitize them because the core is antiquated.
10. Originate ACH payments. One of the top-selling TM services you must offer to your business customers is ACH Origination. For businesses that pay lots of bills via check, the ability to pay bills via ACH saves them time and money. Your TM business customers should be able to upload their ACH batches via your OLB platform.
11. Access Check and ACH Positive Pay. Your business customers should be able to upload their Check or ACH batches via your OLB platform. This is another important TM service that typically is not integrated (or not well) with the core. Therefore, operations staff must do a lot of manual workarounds to make it work correctly. All done behind the scenes so customers “feel” like the system is working as intended. This process can be costly and inefficient for the institution.
12. Connect to Remote Deposit Capture. Finally, your RDC customers should be able to connect to their RDC service through the OLB platform. Again, it takes integration between the core system, the RDC provider (if other than the core provider), and the OLB platform.

It is important to continually offer convenience and safety to your business customers when using your OLB platform. I hope this list of 12 online banking features that are essential for business success will serve as a foundation to improve upon.

Looking for assistance with refining your Treasury Management department? As always, we’re here to help.

Are you a business developer or a relationship manager? That is a question every business banker should ask him or herself. Why? Because there is confusion about what these two roles do within a community bank or credit union. We’ve seen various titles for this job such as commercial lenders, commercial bankers, business bankers, business banking officers, and others. However, the actual role performed by individuals in those roles is different based on the person’s sales skills, experience, and personality.

There may be many business bankers or commercial lenders, but few are “rain makers” – those who are out there selling every day and bringing in the net-new business. I propose there are two different roles: The sales roles and the relationship manager role. And there may be a team arrangement that works better than the one your institution currently has in place.

Let me explain. Community financial institutions share the following challenges regarding the sales role in their organizations (especially in rural areas):

The challenges community banks and credit unions encounter:

• Many commercial lenders/bankers, business bankers, business development officers (whatever their titles), are not producing net-new deals every month. They are the highest paid staff in the organization and are paid to bring new business into the bank. Yet they are not going out to sell. Instead, they are “order takers” and prefer to stay in the branch waiting for businesses to come out of nowhere. These same employees are excellent lenders and relationship managers.
• Because it is very difficult to attract and retain talent in rural areas and small towns, community banks and credit unions feel stuck with the business bankers they have. It’s a catch 22! If they let go of the current talent, it may take several months to rehire that position. If they keep the current bankers, the lack of net-new sales remains.
• There is no sales culture. In fact, many bankers are either terrified or at least against the four-letter-word: “sell.” The non-sales culture must change. But not to the extent of certain large institutions where some abused the system and took advantage of customers. There is a balanced approach for community banks and credit unions that is appropriate and well received by customers.
• But the biggest challenge we’re seeing is with family-owned banks. The ownership does not want to or does not know how to keep the bankers accountable. There have never been consequences for not bringing new business to the bank.

Below are three ways to address this important issue at your institution:

Establish Accountability

Measure the sales team by using incentive compensation plans with goals and performance reviews to assess results. In fact, one of the questions that leadership should ask bankers in these positions is: Are you a business developer or a relationship manager? Do you believe you are in the right role based on your sales skills, experience, and personality? Below is a grouping example of incentive bonus compensation plans for the various areas of the institution:

1. Senior and executive leadership
2. Business sales staff (business bankers, commercial lenders, commercial bankers, business development officers are all the same role: sales)
3. Relationship Managers. Maybe it’s time to think of a separate plan for relationship managers who don’t sell but take care of the customers well. They can have their own goals or be part of the team approach incentive compensation.
4. Retail sales staff
5. Support staff

Incentive Compensation Bonus Plans need to have an organization-wide goal, then branch goals, team goals (for a sales team approach) and lastly, individual goals. It is also wise to include a subjective piece that includes the employee’s behavior and team relations.

Use a Sales Team Approach

We’ve seen the team approach work very well for some institutions. Each team has one rain maker who is always out on calls and bringing in net-new business. They don’t underwrite their own loans, and some don’t keep a portfolio. Their role is purely sales. The in-house relationship manager becomes the ongoing “maintainer” of  relationships with the ability to cross-sell other services. This team has one credit analyst to work with both the rain maker and the relationship manager. Separately, loan operations and loan documentation support this team in the entire lending process.

Establish a Balanced Sales Culture

Selling is not bad. In fact, without sales, companies would not exist. Each institution must find the right approach to their sales culture. Employees at all levels should be trained to identify customers’ needs and match them with a banking product. Or at the minimum, refer the customer to the right person in the institution. When you approach sales as simply meeting your customers’ banking and financial needs, there is no shame. It is fulfilling when you see the results of how you helped each business flourish because of your banking services.

Conclusion

There is no perfect answer for each community bank or credit union to address the issue of bankers not selling. But there should always be accountability in place to ensure all employees perform their role. If you are in the role of business banker or commercial lender, ask yourself this question: Are you a business developer or a relationship manager? It is okay to be one or the other based on what you enjoy most and do best. But ensure you are in the right role as that will bring success to both you and your institution.

Looking for ideas to expand your Treasury Management reach to new business customers? Look into the TMClarity Framework, our comprehensive and transformative training and Treasury Management business management system that leads to greater sales success, higher margins, and increased customer retention in a competitive marketplace.