Better Banking Practices Begin with a Strong Partnership
(Originally published as an article within ECCU’s former e-publication, Ministry Banking Today.)
A lot of words can be used when describing the relationship between a financial institution and its customers. One word that seldom comes up is "partnership." However, with a strategic approach to your banking, you can move beyond transactions and engage in a true partnership with your financial institution.
The first step is finding an institution that understands ministry and can meet all your financing and cash management needs. That way, if you're looking for a loan, you can also check out the cash management products and services available. More than likely, you'll end up depositing your money there too. On the flip side, if your initial need is setting up cash management accounts, keep in mind that you will probably need financing services from the same institution somewhere down the road.
As you seek out the right financial partner for your ministry, consider these additional benefits of consolidating your accounts:
Leveraging deposit balances. Many institutions price their savings and certificate products to reward customers with higher balances. Pooling your funds with such an institution allows you to reap significant additional returns for your ministry.
Leveraging multiple banking products. Financial institutions will often provide incentives in the form of higher yields or reduced banking service charges if your ministry maintains multiple banking products at their institution. This is commonly known as "relationship pricing."
Lower rates when obtaining a loan. Many financial institutions offer their lowest financing rates if you have additional accounts with them.
Your financial institution knows more about your ministry. When your loan and all your banking accounts are with one institution, they can provide counsel during times of difficulty or suggest better cash management practices when excess funds are sitting in non-interest bearing accounts. In other words, your banking partner can more effectively prepare solutions by seeing your ministry's entire financial picture.
Learn more about how a strong banking partnership can maximize your benefits by reading ECCU's white paper Vital Information You Can Take to the Bank.