Why a strong relationship with your bank manager in good (and bad) times is so important

Over the last few years, we’ve all struggled with increasing interest rates, challenging economic conditions and most recently for some drought and frost. So it would be fair to say banks have struggled in the popularity stakes. For some people, the thought of even speaking with their bank manager is enough to raise stress and heart levels.

Your bank manager is not your enemy

Having an open and productive relationship with your bank manager is vital for the success of your farm or agribusiness. Taking the time to get to know your bank manager is a valuable investment in your long-term success.

I know many clients find this a frustrating process, taking time away from the business. Especially when it feels like managers move on so quickly. But trust me when I say it’s worth it. And as the broker in your corner, it’s something I’m also focused on.

Tips for building better bank relationships

As with any relationship, there are no shortcuts in getting to know your business bank manager. There are ways to make the process much smoother and to ensure you get the most out of it.

Build depth in the relationship

Don’t just focus on your local branch manager or your business banker. Attempt to get to know their managers and team. That way, if one of them moves on, you’ve still got a good contact.

Voice your concerns

If you’re unhappy with your current bank manager, you need to speak up. Perhaps they’re not the right fit and don’t have the right skills for your business. This is where having multiple contacts in the bank can help. It’s also where a broker (like me) can step in to help.

Review your loan structure

Make sure you’ve got the right loans for your needs. If your loan is the wrong fit, you’ll experience frustration every time you need to contact the bank to make changes. When you have the right loan structure, you’ll rely less on your bank manager. And chances are, your interactions will be more positive.

Work with your bank

Good relationships work both ways. If you want a better relationship with your bank, you need to build trust and credibility with the manager and staff. By putting in the effort to follow-up communications and provide information in a timely manner, you’re showing the bank you value them and the relationship.

Add value with a broker

As an agrifinance broker, I’m not here to replace the relationship you have with your bank. But what I can do it complement it, providing another point of contact. As your broker, I know your story. I understand your business and your business goals. By working with a broker, you’ll know you’re getting the right loan structure, which will support a positive relationship with your bank.

Managing changes in bank personnel

You’ve followed my suggestions and invested the time in getting to know your local bank manager or agribusiness manager. Then they leave. There’s no doubt it is frustrating, because you’re losing knowledge, history and trust.

Unfortunately, there is high turnover in agribusiness personnel in Australia, because of various factors.

1. Corporate restructuring – banks frequently reorganise to align teams with changes in strategies.
2. Career progression – as with any industry, good people receive offers of promotions inside the bank or with other organisations.
3. Burnout and workload – agribusiness is a high-pressure environment, leading to burnout and career change.

The challenge of bank manager changes

A high turnover of bank managers creates several challenges, including:

1. Investing time in re-establishing relationships, sharing your financial history and plans
2. Delays in decision making on loan approvals and adjustments while a new manager gets up to speed
3. Loss of continuity because your manager hasn’t shared information with their successor. This may cause misunderstandings or missed opportunities.
4. Increased stress from the constant change in managers.

Surviving a change in bank managers

But there are ways to mitigate this change, so you and your business aren’t affected.

Maintain comprehensive records

Make sure your financial history, business plan, and operational details are well-documented. This will help you quickly bring your new bank manager up to speed, minimising disruptions.

Build relationships beyond your manager

I mentioned this earlier, but make sure you’re not relying on one person within your bank. Build connections with senior staff and key contacts.

Communicate proactively

That’s why it’s important to keep in regular contact with your bank manager and contacts. If you know they are leaving, request a meeting with their successor to facilitate a smooth transition and bring them up to speed.

Leverage technology

Using financial management tools and software centralises information and makes it easy to share, which is helpful if staff change.

Work with a specialist broker

As a specialist agrifinance broker, I provide continuity, even when your bank manager changes. With a strong understanding of your operations, background and business goals, I’ll advocate for your needs.

Make 2025 the year to build better bank relationships

You already know the importance of building strong relationships to support your business, whether it’s with suppliers and customers, or advisors and fellow business owners. Your financial institution needs to be on your list of important connections. And if it isn’t, maybe 2025 is the year to focus on building a better business banking relationship.