Improving loan officer productivity

RMA Journal, The, June, 2002 by Terry W. Anderson, J. Kempton Shields, II, Kathryn E. Tusler

So why aren't we sitting around with our feet up? Though it's still hard to definitively track loan officer productivity, Kempton Shields [SunTrust Bank] recently observed, "We must be more productive now, since loans, deposits, and fees continue to grow but employees are fewer."

Productivity Thoughts: An Update

Over the past 12 years, loan officers have been expected to spend mote and more time on the sales process. Meanwhile, the product array continues to expand--loans and deposits have been joined by trust services; personal mortgages and other consumer products; mutual funds, stocks, and capital market products; and on across the financial services spectrum. Loan officers are now responsible for cross-selling these products, either directly or through referral.

We're not thrown into this without help, of course. Technology and automation continue to provide newer computer systems, improved internal information availability, enhanced Internet uses, voicemail, e-mail, and more. In short, we're pretty well equipped to deliver the productivity expected of us.

However, many of the keys to success are the same as they were years ago; opening the locks has just become more complex. Let's look at three of these keys: proper training/implementation practices, excellent communication skills, and teamwork.

Relationship managers have had to learn numerous additional software systems since 1990, including automated credit approval packages; sales calls; loan documentation exceptions; client profitability; risk ratings; related products in trust, consumer, or mortgage; e-mail, voicemail, and so forth. Success is not ensured just by the initial training; rather, it comes as we figure out the detailed nuances and shortcuts that come from everyday use. Productive folks also spend time exchanging good ideas (shortcuts) with others, so that everyone in the office can benefit from these successes. Thus, improved productivity involves continual interaction with others.

As technology changes, communication skills become ever more critical. Attentive listening, to fully understand others, requires us to think and reflect before responding. Often, we need to ask clarifying questions before responding. Choosing the right words in our response that demonstrate we understand what was said is important, particularly if we have a different point of view. E-mail and voicemail are necessary and valuable, but if a conversation or discussion is needed, an in-person meeting or phone call can avoid miscommunication. Differences of opinion are seldom rectified by e-mail.

The most important key is teamwork. As the loan officer's job expands to cover all the client's financial needs, and as computer systems grow ever more specialized to satisfy complex financial services for each client, it is imperative that the relationship manager be able to rely on numerous other staff members to provide high-quality client service. This should not mean that the relationship manager is dependent on other employees (obviously, neither can the RM be independent). It does mean that interdependence and working together as a team are more critical today. The relationship manager must be proactive and show the leadership necessary to motivate numerous people to help satisfy the client's needs. This process is made more difficult when teamwork must be accomplished within a group of employees who report to different managers or who are in different departments or even cities within the bank. The entire team must be in accord with coordinated planning, decision making, and prioritization of key iss ues. A winning attitude is needed, but even more important is effective communication within the group to diagnose the best solution for the client and the bank.