Transaction or Relationship Oriented:
Finding the Bank that Fits By C. LawrenCe “Larry” Thomas
Banks come in many shapes and sizes; they specialize and generalize; and, they are categorized as “community,” “regional,” and “national” in scope. There are “internet” banks, “bricks-and-mortar” banks, “consumer” banks and “business” banks. There are even banks “to big to fail.”
W
ith all these varied and usually undefined terms, the selection of the “right” bank can be confusing. So let’s simplify the decision. Putting aside the descriptions above, banks and bank services fall into two basic categories: transaction-oriented and relationship-oriented.
Transaction-oriented banks are banks that offer a range of banking services from which one chooses based on their perceived needs. These banks are good places to store, and from which to dispense, money. Their customer service focus is on the products offer and their customer’s utilization of them. Sometimes they feature high interest on accounts (especially CDs) to attract transactions. But, they often charge substantial fees for transactions in other accounts such as checking and money market. In short, transactional-oriented banks offer a collection of products, much like a store. Selecting the right ones is up to the customer. Relationship-oriented banks also offer a range of services but their focus is on the customer. The goal here is to get to know the customer and to structure a suite of banking services that
integrates with their cash management and lending requirements. The intended outcome is to save the customer time and money while providing efficient financial management. In this model, the bank and the banker are resources for the customer, an important part of their financial team. Here, the bank offers solutions to cash management and lending issues and helps implement them. Most businesses, regardless of size, prefer a relationship-oriented bank. Consumers do nicely with transaction-oriented banks because their needs are less complicated. If the relationship-oriented bank is a local bank that is involved in and gives back to the communities it serves, even better. Chances are that this relationship-oriented local bank will know the customer’s name and not treat them like a number. That last paragraph describes Partners Bank to a tee. Founded in 2007, Partners Bank of California delivers a ‘concierge-style’ of professional banking services with a full array of solutions for the unique needs of small to midsized businesses. Offered through a team of dedicated business banking veterans, solutions include commercial, construction and commercial real estate lending, electronic banking, remote deposit capture, checking and interest-bearing deposit accounts. Partners Bank of California serves South Orange County, is locally owned and operated, and is active in the communities it serves. Partners Bank of California… connect with success.
C. Lawrence “Larry” Thomas is Senior Vice President, Regional Banking Manager for South Orange County of Partners Bank of California. The region includes the cities of San Juan Capistrano, Dana Point and San Clemente. Larry can be reached at (949) 732-4020. AUGUST 2015
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SOUTH COUNTY MAGAZINE