CORPORATE BANKING SALES LEADERS ARE GETTING WORRIED
I’m speaking to Heads of Sales in Corporate Financial Services day in day out. From all my conversations I’m picking up that they are getting worried. Let me tell you why.
Concerns over disruption – Many senior banking sales leaders I talk to are getting more and more concerned about competitive disruption. In fact, JP Morgan wrote in their recent shareholder letter that ‘the banking system as we know it is shrinking relative to private markets and fintech, which are growing and becoming increasingly competitive’.
Many people are concerned that their business is not innovating fast enough and is at risk of being disrupted by a nimbler player subject to less regulation.
Struggling to achieve revenue targets – In a world where many decision makers do not reply to emails or answer unsolicited phone calls for fear of scams, Sales Heads are starting to get anxious about achieving revenue targets. The sales approaches that worked in the past don’t cut through anymore and the stress levels are rising.
Interest rates will be reducing – As soon as interest rates reduce the key net interest earning margin will reduce for many financial institutions. Sales leaders are already worrying about this in advance and working out how will they fill the revenue void.
Migration from lucrative credit interchange and international fees – Many banks are seeing customers move from profitable credit and international fees to domestic debit and local real time transactions. These changes are putting more pressure on Commercial Payment Sales Heads.
Making redundancies – No sales head wants to make loyal staff redundant. The reality is that many Sales Managers are underperforming and not covering their fully loaded cost of employment with the revenues they are bringing in. With businesses needing to retain profitability levels for shareholders, this is further amping up pressure on Corporate Sales Leaders.
If you would like to understand how you and your business can navigate these pressing challenges that are indeed stressful and worrying, please reach out for a confidential chat.
