There’s always something beneficial that comes out of a good working relationship. Just like your neighbourhood dentist who throws in a free toothpaste when he sees your friendly smile, your bank could also choose to be friendlier if you maintain a good rapport.

These friendly gestures might be extended to you in more ways than usual banking services.

If you build a strong relationship with your bank, you could be rewarded with the following benefits.

Additional convenience

When you maintain a long-term relationship with your bank, you are provided with a point-of-contact who manages your financial needs. This representative becomes familiar with your finances and your details, which makes it quicker when processing your work. This is beneficial when it comes to depositing cheques or transferring money. Additionally, since they already know you well, your loan approvals and processes could be faster too, since they don’t have to dig too deep to know your credibility.

Better loan terms and interest rates

Banks usually concentrate on bringing more business from their present customers. This puts you in a good situation, to begin with. If you have an excellent standing with your bank regarding creditworthiness, you could access more benefits when it comes to taking further credit. For instance, since you have a good reputation, you could be offered better interest rates and terms on loans than what is advertised to the public.

Concession in fees

Because you’re looked upon on as a highly-valued customer, banks might be more lenient with you when it comes to certain fees. For instance, they could waive penalties like cheque-bouncing fees or overdraft charges. If you maintain a good relationship with your bank, they could co-operate with you better. You might not only be able to manoeuvre fees, but also negotiate lower fees with them.

Better customer service

Branch managers need to retain their loyal customers as it benefits their office’s profitability too. If you keep giving them more business and work towards building a good relationship with them, there’s a good chance you’ll be treated quite well. It’s not unusual for loyal customers with particularly profitable accounts to be treated with a higher level of customer service by their representative.

Personalised advice                

When you invest in a good relationship with your bank, your bank takes an interest in your dealings too. An experienced bank manager could sometimes be a good financial adviser to you, recommending you profitable avenues to grow your wealth. If you’re struggling with your business, your trusted financial adviser can assist you in developing strategies to survive or recommend suitable loans.

Tolerant conditions

If you’re having trouble repaying a loan, your bank could consider changing your borrowing arrangements to make it easier. You could also discuss your situation further with your adviser and plan to improve your condition with their expert advice.

Conclusion

Clearly, there are quite a few benefits to relationship-based banking. To be able to do so, it is important to be professional in your dealing with the bank and always maintain a healthy two-way conversation.