How 2+2 is not 4 in banking- Robin Trehan

How 2+2 is not 4 is not true in real life. It is all about driving in synergy with components. How different components in banking can be synergized to add value.

When it comes to basic math, two plus two equals four is an obvious truth. However, in business and in life “the whole is greater than the sum of its parts”. Banks can apply this principle to add value to their enterprises.

This may be achieved by creating synergy between different components. The total value created can greatly exceed the contribution of each individual element. By positioning itself as a total solutions provider, a bank can fully leverage its market position and attain the highest possible level of success.

The products and services needed are not difficult to determine. They of course include checking and saving accounts, credit cards, merchant account services, merchant processing, BIN relationship, investment consulting, commercial loans and lines of credit, fraud protection, online services, etc.

But simply offering everything a business needs “from soup to nuts” is just part of the big picture. The bank must take steps to ensure that all their offerings work together as a seamless whole. Customers should be able to easily access all their financial information from a single source. They should have a single point of contact who is intimately familiar with their situation and history and able to advise them on all their financial decisions.

For example, say a customer is interested in expanding their operations by purchasing a new facility. Their personal banker should be able to advise them about all aspects of the plan – how much they can afford to borrow, the state of the local real estate market, how best to structure the deal, what the impact might be on the company’s capitalization and cash flow, etc. Then, of course, the bank should follow through by providing all the services needed to carry out the plan. At no point during the process should the customer feel that they need to go elsewhere for information and advice. They should be assured that their bank has “all the bases covered”.

This same philosophy should apply no matter what a customer is planning or experiencing as far as their financial situation. In the words of Stephen Covey, “Synergy is the highest activity of life.”

Robin Trehan