In Australia you would be excused for thinking that all banks are the same. Oligolopolies promote this. However my experience is quite different.
I assist businesses everyday to get better banking outcomes. Often this involves the business learning about what is important to banks, and occasionally it is because the bank is being very unreasonable. But I am constantly bemused by how different banks act and think, and in this series "Lenders that are lending" I plan to share these experiences.
It is important to note that my experiences are not necessarily what you can expect across Australia, though my business has national reach and my views are influenced by our interactions nationally. It is also important to note that my experiences are ny experiences. Yours might be different and if so then I would like to hear them too.
Ultimately, my goal here is to improve banking competition and to identify bankers who are great for my clients. If you know of great bankers, drop me a note!
Time to name names:
Right now I am sending most of my business clients to ANZ. The credit team understand cash flow lending and they will approve applications for loans displaying sensible risk. They are slow, and they are not cheap, but they are interested in writing business.
I also see evidence of this with NAB, however I am less inclined to send clients there because firstly I am a NAB customer and I've never enjoyed it, and secondly they don't pay brokerage. This is a conflict of interest that I disclose to my clients, and my clients are happy not to go there for the most part. The clients that I do send there, are looked after, though again, things move very slowly and due diligence is very very diligent!
I have CBA looking at a Property development deal that I am doing at the moment and they are performing very well. They are interested in lending, and they have been very open in what they will and won't do, which is great. I am not however taking cash flow lending deals (ie deals secured by business cash flow and working capital assets) as most of the clients I am working with are CBA (assisting with existing bank applications) or bankwest (wishing to exit) clients. The clients that I have who bank CBA are for the most part keen to stay there, which is positive.
Bankwest seems to me to have some very experienced and talented bankers. Where they fall down is that in recent history that have taken on a lot of higher risk clients and this has left their credit department and the bankers a little shellshocked. It is very hard to get deals written here are the moment but I will keep trying as I like the guys that I deal with here.
I am sending a lot of my deals to St George. Trouble is, I can't get one approved. The deals are getting approved, often quite easily elsewhere, so I know its not the deal that's the problem. I don't think St George credit guys understand cash flow lending. I'm told that they want this business, and the Relationship managers I deal with are the most persistent at asking for new client opportunities, but crickey its proving difficult to get a win. I think once you're signed up you love this bank, and that's why I put clients up to them and will continue to. One day perhaps I'll get there.
The bank that I have totally given up on at the moment is Westpac. Everyone I talk to says that Westpac have been shut for the last year or 2 and this validates my experience too. I understand that they see all third party introduced deals as higher risk, and perhaps this is part of the problem. I have lost all contacts as they have got sick of not getting deals approved and have left. I am now at the stage where I can't even get a Westpac banker to return my call. Is it me? All the other banks seem to like my clients.
The one positive thing about Westpac is that I don't get unhappy Westpac customers contacting me wanting a new bank (well I've had one but that's all). Either they don't actually have many customers, which is possible given recent form, or they really look after them once they get on board. If anyone knows a hungry Westpac Business or Corporate banker please send them my way as I'd love to send a few deals to them.
Hope this is helpful.
If you know of any businesses having problems with their bank, chances are there is not a commercial justification for moving, but perhaps a Pearl Financial Services Banker can assist them to way up options and establish what can be done to improve the situation. Give us a call!
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