Egyii The Trust Edge For Private Banking


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No doubt that the financial crisis has spanked the image of banks and financial institutions in the eyes of the client. Not all institutions have practiced the force feed of complicated products on unsuspecting clients, but all institutions have undoubtedly suffered the consequences from the overall reputation of the financial world.

No matter what marketing efforts or executive initiatives are made, it will be difficult to change the client’s perspective.

So what now?

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Egyii The Trust Edge For Private Banking

  1. 1. The Trust Edge for High Net Worth/Private Wealth Relationship Managers Skills and Behaviours for Success An Egyii White Paper By Trip Allen
  2. 2. One means to do this is through trust; Challenges being trusted by developing No doubt that the financial trustworthiness. crisis has spanked the image of banks and financial Trust is ever so important in business institutions in the eyes of the commerce today and it is believed client. Not all institutions have that trust-based business practiced the force feed of relationships are the single best route complicated products on to corporate and personal success. unsuspecting clients, but all institutions have undoubtedly Although the concept of trust is not suffered the consequences innovative or new, the actual from the overall reputation of application is new, as it is rarely the financial world. recognised or taught (and being trustworthy can be taught). No matter what marketing efforts or executive initiatives And of course trust ties into are made, it will be difficult to relationships. Experienced bankers change the client’s recognise that relationships are perspective. important in private banking and also recognise that trust is an integral So what now? part of it. A Solution Banking business leaders and In today’s overly competitive marketers are talking a lot about it, market, where products tend but action speaks louder than words. to look the same and the bankers and financial Trust-Based Selling for Private Wealth institutions struggle with their Divisions image , it is believed that the key differentiator is your The only way to be trusted in people. banking is to be worthy of trust—to be trustworthy. So now, it is ever so important that your Relationship The core of trust-based selling is the Managers be face to face belief that if you behave in a with the clients, dispelling the trustworthy manner, your customers rumours and differentiating will more than amply reward you. In your wealth management practice, it means you must organization from the continually measure decisions and competition. actions first by what is good for the client and, second, by what is good for you. It means you must, for example:
  3. 3. • Occasionally look past Principle 1: Client orientation for the the transaction to the sake of the client, not the relationship Relationship Manager. • Be willing to work with your customers as True client orientation means we willingly as you would seek to address the client’s best work with your co- interests, in the sales process as in all workers else. If that means another bank is • Behave transparently to best for the client for a particular your clients with respect transaction or product, we say so, to data, processes, even knowing that in the long run we get internal performance credit from present and future clients metrics and motivations for being client focused for the client’s sake. The benefits of being trustworthy are enormous—but True client orientation also means also paradoxical. They cannot listening, and listening reveals be sought as ends in another paradox; the most powerful themselves; they only come to way to sell depends on unlinking us as side effects. listening from selling—and instead, just listening. If you are a trusted advisor to your clients, you will be very Principle 2: A medium- to long-term profitable. But if you set out to perspective. This means a focus on be profitable through trust— the relationship, not the transaction. trying to make trust a tactic or We should say, “The relationship is a tool—it will fail. the client.” Being trustworthy means being Acting with the medium- to long- willing to put the client’s term perspective in mind also solves interests ahead of our own. If the usual sellers’ concern about the we’re only doing it to make a economics of trust: It means the buck, then by definition we economics of a particular become selfish and transaction should be discussed in untrustworthy. Hence the terms of fairness in the long run, paradox: You actually have to rather than in competitive terms. A care. couple in a marriage quickly compromises on who takes out the Those who do behave in a rubbish, rather than belabour it to trustworthy manner tend to get the best deal. There is much apply four basic principles more at stake in a serious relationship continuously throughout all than getting the best deal in each their business development transaction. efforts.
  4. 4. Focusing on relationships Principle 4: A willingness to be totally fosters transactions, but transparent. Nothing destroys client transactional focus alone—in trust faster than the Relationship isolation from others—can Manager who appears to be choke relationships. That withholding information or trying to doesn’t mean we can’t focus control the client. When you don’t on transactions-just that they know something, say so. When you can’t be viewed in isolation haven’t got the perfect product, say from the stream of so. Be willing to be open about your transactions over time that pricing policies, product offerings, define much of the expertise. relationship-added value to both the client and the bank. What you lose in control over perceptions is more than Principle 3: A habit of compensated for by the goodwill collaboration. Relationship you get for being transparent. Managers demonstrate trustworthiness by constantly The Benefits of Utilising the Four Trust involving the client-to-be. Principles • Don’t speculate about A few benefits for Relationship what clients are Managers are the ability to: thinking—ask them. • Convert more prospects into • View business clients and more current development processes clients into long term clients themselves as things • Utilise a client focus approach that can be done that is truly client focused to collaboratively, rather bring results than as a competitive • Create a greater sense of exercise in putting the ease and comfort in client best face for-ward. interactions • Value meetings over • Gain a deeper understanding phone calls and phone of the client’s personal and calls over letters and business objectives to steer emails. away from product pushing • Practice putting all • Elevate Relationship Managers issues on the table for from a “relationship based joint discussion, rather relationship” to the highest than negotiating on level relationship attainable, them from competitive the trusted advisor relationship. positions. Following the four trust principles may appear be a bit “risky,” but they are often innate behaviours for
  5. 5. the Relationship Managers. Centring on the theme of trust in Some may be consciously business relationships, Trusted Advisor following some or all and Associates works with complex some may not. If they are not, organizations to improve trust in the principles are easy to sales, internal trust between grasp and comprehend. If organizations, and trusted advisor they are, then the principles relationships with external clients and are a great refresher and customers. means if reinforcement. Either way they are powerful skills in Email: the Relationship Manager’s relationship skills toolkit. For more information: About Egyii Egyii is a Singapore based learning and development consultancy that helps your For updates: business achieve better results by strengthening your people’s relationship skills. It’s time for a change. Egyii specializes in: • Building and fostering *some materials are taken directly from client relationships and based on content from Trusted • Enhancing the customer Advisors Associates and Charles H. experience Green. • Building and rebuilding trust • Maximising sales performance and skills Egyii is the authorised partner for Trusted Advisor Associates in Singapore and Asia. About Trusted Advisor Associates Trusted Advisor Associates is a US based company led by Charles H. Green the author of Trust-based Selling and co- author of The Trusted Advisor.