I've had a few people over the last few days ask what I actually do. What's wrong with you people don't you know bank lingo? ;)
I'm an Account Manager, that doesn't mean I do peoples banking for them, or, surprisingly manage their accounts. I'm a business lender. Businesses come to me when they want loans, mastercards or lines of credit. I take care of customers who are only looking for 250k or less.
My days, once I'm trained, will be full of talking with customers about their businesses, customer visits and then meeting their needs.
There, now you don't have any excuses.
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6 comments:
So do you only deal will small to medium business? Or do you deal with individuals as well?
By customer visits, does that mean that you get to go to the customer's business? Or do they always come to you in the bank? I think it would be fun/interesting to talk with people about their businesses...but it would be difficult at times as there is a reason they are coming in to ask for a loan...and it's not always good.
What criteria do you evaluate before making lending decisions?
At the level I'm at its mostly small and medium sized businesses. And yeah I go on customers visits just as often as they come to me. Sometimes its better to go to their businesses then I get a better idea what they do and if its a good business to invest in. Becuase that's really what it is I'm recommending whether ATB should or shouldn't be investing in these businesses.
And actually if a customer needs a loan it is rarely bad. Most of the time its because things are going very well and they want to expand. But you're right sometimes its cause sales are down. In that case I have to say no most of the time and they are usually upset about that.
We base decisions on their financial statements and looking at financial ratios seeing if they can carry debt, if their cash flow is still there. What their personal credit is like. What kind of security they have and what kind of charachter they have. Unfortunetly there are alot of good guys who are stupid with money and we can't help them very often.
That sounds like a fun job - well at least to me.
In your opinion is the account managers' opinion the most important factor in whether the customer will recieve a loan or not? I mean, obviously there are criteria that you use as a guide - but really the bank is trusting that your opinion is of sound judgement when saying yes or no to investing in the "opportunities".
What is the return for the bank? The interest?
How long do you have of training before you go "live"?
This sounds like a job that you would like - I'm so excited that you got it.
The account managers advice is very important, but not the last word. After we write the credit it is sent to a business center where it is checked over by a credit adjudicator who then works with the lender to make it work.
The main way banks earn money is what is called the spread. You deposit money and earn 3% interest, I take that money and lend it at 7% interest. The spread is 4%. The second most important way that banks earn money are the dreaded bank fees. Business lending is more expensive then personal lending as we have higher fees, and often they need to be paid annually. For instance a regular $50k operating loan will run the client $125 in loan fees every year they have the loan on top of the interest they are paying. Fees, as you all know are charged everywhere in the bank, but ike I said it isn't the most significant portion to the bottom line.
I'm 'live' now. The thing about the position that I took is that I'm taking over a portfolio and learning on the job. This means that the other two AMs are pulling up the slack of me not knowing what I'm doing, but I've already completed a few credits so its coming together slowly. I've been calling alot of my bigger clients ad introducing myself to them already. I'm going to need to learn as soon as I can though to take pressure off of everyone. I expect to be fully up and running by January or so.
And yes it is a job that I already really enjoy. It's a position that you can stay in and be comfortable, or I can easily slide into a branch manager role within 4 years easily. But I havne't decided what I want to do yet.....there is alot of time to decide.
Lots of good information here, Rob. Thanks, Victoria for the good questions that spurred more information.
I know you will do well, Rob. You always do - you are one of those people that are good at lot's of things.
Good at everything, master of none, that's my life story.
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