Thursday, March 26, 2020

I've Closed My Lobbies: Now What?

This is my third weekly update to you during the COVID-19 situation.  I’m simply trying to help by keeping you focused on managing your bank as well as you can.  Your employees, your customers, and your communities need you.

First, as I’ve said before, keep doing what community banks do – meeting the unique needs of customers.  In today’s environment, it means closing lobbies to protect the health of employees and customers, while making yourself available via phone, email, and even in-person meetings to be sure your customers’ needs are met.

Maybe I should have said “first, communicate well” but I’ll address that now.  Even if you are doing the right things, all around, it won’t matter much if customers don’t know.  Make sure you are communicating information about hours and methods of operation, how to contact you if in-person appointments are necessary (ranging from business discussions to safe deposit access), using the optimum communications methods in your markets.  Remind them that the authorities consider banking an “essential” service and that you will remain open.  This starts with good signage (hopefully your communities are relaxing any signage rules during this time) at your locations, updating your web site (a stale web site communicates the wrong message, so update it often) traditional media outlets, and various social media channels including Facebook and Twitter.  Messages need to be simple and concise.  Make sure you are answering the phones promptly, in a positive, reassuring manner.

I’m operating on the assumption (based on a lot of discussions) that most of you are not as busy as normal.  Make sure you take advantage of these slow periods to address important projects.

Here are three areas that you may want to consider.

Ø  Lending: make sure you have a plan to renew and extend operating loans, including (for many of you) ag loans to help farmers prepare for planting.  Stay in touch with your farmers, as many areas are also dealing with way too much rain, which may delay planting and impact crop choices, or require farmers to file insurance claims.

Ø  Source of funds: we love small businesses, because they are a good source of low-cost funds.  Make sure you stay in touch with your most reliable depositors, and find ways to help them.  If they are burning through cash, struggling to make payroll, etc., look for creative ways to keep them afloat.  They need you, and you need them.   Of course, if you see that commonly available deposits are dwindling, you’ll also need to consider alternate funding sources, so now is the time to assess your current borrowing capabilities, as well as considering CD promotions to gather additional funds.

Ø  Projects: Let’s get a handle on projects that you have underway: acquisitions, developing new products and services, renewing or renegotiating vendor agreements, or opening new facilities.  While some of these efforts may slow down a bit, there may be deadlines for deals to get done that you want to honor.  Don’t let a temporary situation prevent you from making good long-term decisions.  Dust off that strategy and let’s talk about how to keep you focused on the future while you manage the present.


Odds and Ends

Ø  Remind your employees to look for fraud.  If it doesn’t “feel” right, ask for help before you cash that check, or wire those funds.  Sadly, there are many looking to exploit the difficult times we are operating in.

Ø  Keep your ATMs full.  There’s plenty of cash.  But the last thing you need is for an ATM to run out of money and someone post that on Facebook!  Look at how irrationally people are shopping.  They will fall for a “cash shortage” situation without fact checking, and you may have a run on your hands.  Keeping that ATM full is a good way to protect yourself . . . but you also want to review with your employees your plans for responding to a run on cash. (thanks to alert reader DF for the ATM tip)

Ø  Work to keep up morale.  As a manager, stay visible, stay positive, and LEAD.  Don’t be paralyzed by the situation.

Ø  Finally – feel free to share any tips with me about what’s working for you – I will include them in my next letter.


As always, I’m here if you need me.  Call, email, or whatever works.  Day or night.

Trent Fleming
(901)896-4007



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