Tips for Start-up Banking Companies, by Rhett B. Rowe

August 13, 2012

Tips for Start-up Banking Companies, by Rhett B. Rowe

A start-up banking company’s early investments can mean the difference between a strong start that carries it far into the future, or a stumble that causes it to fold within the first year or two of operation. Business-service technology investments are one such crucial investment. Focus on technologies that will grow with the company rather than ones that must be shed in order to evolve. For example, develop a robust online banking platform that combines an accessible user interface with a plethora of options that allow clients to complete most, if not all, of their banking tasks remotely.

One common mistake is to open two full-service branches right out of the gate. Two full-service branches require two sets of experienced personnel and more management oversight than is affordable to give as a start-up. Finally, start-ups should also consider loans a risky investment. In periods of economic turbulence, many clients might find themselves unable to pay their loans. Instead, focus business development on acquiring low-cost deposits.

About the author: Rhett B. Rowe serves Global Wave Group as Senior Vice President and Managing Director of National Accounts, which entails building new client relationships using rapid-process loan processing software.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: