A Personal Approach to Client Relationships

Following an international banking career with some of the world’s largest banks, I was quite clear as to the culture that I wanted to develop at Abu Dhabi Commercial Bank (ADCB) when I joined in 2007. In particular, I was, and remain, passionate about the importance of client engagement: not the occasional email or invitation to an event, but genuine relationships with clients that provide long-term mutual value. This is not easy to achieve in practice, and few banks have the culture, skills and confidence within their teams to engage in a meaningful way with the clients. At ADCB, client engagement is a priority, with considerable benefits for our clients and for the bank.

Defining and achieving client proximity

Effective client engagement is a complex activity that can be undertaken at an initial, basic or advanced level. First is proximity. Proximity is often referred to in requests for proposal, and is often used to refer to the degree of local presence that a bank has in a particular market and the number of branches. While these factors are important, and indeed, they are amongst the initial reasons why companies of all sizes choose to do business with ADCB, proximity involves far more than this. Specifically, a bank needs to build personal contacts with clients, spending time with them to understand their business, their constraints and competitive advantages, and the ways in which the bank can help them.

This sounds straightforward, but many banks find it challenging to achieve in practice. In a world of digital media, people find it easier to engage electronically rather than in person, as face-to-face contact can feel more intimidating, particularly while individuals are getting to know each other. However, relationships that are mostly conducted electronically lack depth and genuine understanding between the parties, and should be an adjunct to face-to-face dialogue.

At ADCB, client proximity is one of the most important key metrics that we use to measure staff performance. Relationship managers aim to meet with clients at least four times per year, according to their needs, and we independently monitor the degree of face-to-face interaction between our team members and our clients.

Active listening

Establishing a dialogue with clients is meaningless unless it leads to solutions that are more tailored to their requirements, and a higher quality client experience. This requires not only client proximity but also actively listening to their needs and acting accordingly. This is equally challenging, but for a variety of reasons. In some markets, such as the US and Europe, it is not unusual for a younger, potentially less experienced individual to challenge a senior manager within a client organisation and suggest alternatives. Therefore, lack of expertise and/ or confidence are the primary reasons why bank relationship managers may find it difficult to listen and respond appropriately to clients. These can also be issues to overcome in other markets too, of course, but in regions such as Middle East and some parts of Asia, there are also cultural reasons why this may be difficult.

Once again, this is something we are actively engaged in addressing at ADCB. Our team comprises experienced professionals with diverse skills and professional background, but who also bring together a variety of cultural backgrounds. This can be instrumental in building trust with clients, but also overcoming some of the cultural obstacles that can impede open and frank discussion.

The ultimate relationship goal

Ultimately, there is no magic formula to achieving this level of client engagement, and a great deal comes down to the quality of personal relationships. Inevitably, clients prefer to work with individuals who take an interest on both a business and a personal level, and with whom they can have a thought-provoking conversation, not only about their own business, but about wider issues too. Some of the most fulfilling relationships I have had with my clients throughout my career are those where the client has said “You made us think”. Often clients are surprised and touched when their banker remembers and acknowledges a family event, or sends a follow-up letter after a meeting that shows that they were really listening, and it can make an enormous difference.

This is an art rather than a science, and many experienced and talented bankers find it difficult to engage at this level. The reasons for doing so are manifold, however, not least as it makes for more fulfilling relationships, both for the bank and for their clients. At a commercial level too, there are distinct benefits. Treasurers and finance managers gain a trusted partner who can advise and support them throughout the business cycle, and ensure that they are accessing the right solutions and services at the right time that will add value to their business. For the bank, this proximity ensures greater awareness of the needs of the client, so they can position the bank’s solutions accordingly. In many cases, in a highly competitive banking environment, the quality of relationships can make the vital difference between working with bank A or bank B, all other issues being equal.

Catalysts for engagement

There is a tendency to believe that technology evolution will erode, or even replace personal relationships with clients, and indeed, many banks have allowed this to happen. In contrast, we recognise that while technology plays an essential role in automating the flow of transactions and information, it should be an enabler rather than an inhibitor of these relationships. Instead of spending time dealing with operational issues, meetings can be better spent on more strategic issues that offer more value to clients. Our clients are constantly encountering new challenges and opportunities, whether due to changes within their own business, or wider market or regulatory changes. Basel III is one such example which will have a profound impact on every bank and its clients globally. By continuing to engage and communicate, we continue to support clients through these changing times, through relationships based on trust, openness and proximity with our clients. In doing so, we can support them at whatever stage they are in their business cycle, overcome internal and external obstacles and leverage new opportunities as they arise.