Re-organization of a National Middle Market Banking Team

A national middle market banking team, comprising 1,500 bankers across over 100 locations in the United States, served companies with annual sales between $20 million and $500 million. Leadership recognized significant differences in how smaller and larger clients leveraged their banking services. Smaller clients required simpler products and less overall attention, while larger clients had complex needs that demanded more comprehensive services. Despite the vast number of smaller clients, they were often under-served, with bankers focusing more on larger clients.

Challenges & Considerations

– Diverse Client Needs: Addressing the varied needs of clients within the $20 million to $500 million sales range.

– Resource Allocation: Aligning bankers’ skills with the appropriate client segments.

– Market Analysis: Conducting comprehensive market research to inform the reorganization.

– Change Management: Managing the transition and ensuring buy-in from both bankers and clients.

– Feedback Integration: Continuously refining the approach based on feedback from each implementation phase.

The primary goal was to develop a model that could:

Improve Coverage: Ensure more complete coverage of smaller clients and prospects.
Increase Market Share: Target growth opportunities, particularly among clients with <$100 million in sales.
Optimize Resources: Align bankers' skills and experience with client needs.
Enhance Product Offerings: Develop segment-specific product bundles.
Streamline Processes: Establish a more efficient credit decision process for simpler credit clients.

Approach & Implementation

Market Analysis: Conducted extensive research to understand the specific needs and growth opportunities within the target segments.
Stakeholder Interviews: Interviewed clients and internal resources to gather insights and identify pain points.
Data Analysis: Analyzed data to identify trends and inform strategic decisions.
Human Resources Involvement: Collaborated with HR to reassign roles based on bankers’ experience and skill sets.
Redefining Management and Reporting Lines: Established clear management structures for the new segmented teams.
Pilot Implementation: Rolled out the new segmentation region by region, incorporating feedback sessions to refine the approach.
Training and Development: Provided targeted training to bankers to enhance their ability to serve their assigned client segments.

Outcomes

– Improved Coverage: Achieved more complete coverage of the middle market prospect population.

– Increased Client Conversion: Converted over 1,000 prospects into clients per year.

– Optimized Banker Roles: Strong alignment of bankers’ skills with their assigned roles.

– Enhanced Product Offerings: Developed segment-specific product bundles, improving client satisfaction and engagement.

– Streamlined Credit Decisioning: Implemented a more efficient credit decision process for simpler credit clients.

– Market Share Growth: Increased market share at the lower end of the middle market.

The re-organization of the national middle market banking team into two distinct coverage segments successfully addressed the unique needs of smaller and larger clients. By aligning banker roles with their expertise and developing targeted product bundles, the bank improved client coverage, increased prospect conversion rates, and grew its market share. The phased implementation and continuous feedback integration were critical to the success of this reorganization, ensuring that both clients and bankers adapted smoothly to the new structure.