Banks must look after their existing customers
Oct 21 2008 By Sid Muir
I am delighted to be asked to write a column for the Birmingham Post but I do so with some trepidation.
Against the unprecedented global turmoil affecting all financial institutions, operating as a banker currently could be said to be as popular as Gordon Brown would have been at the Tory Party conference at the ICC last month.
Indeed, I have been asked by a number of the Birmingham networking population over recent weeks two questions: “How are you finding things?” and “How are you coping with the abuse?”
Certainly banking over recent months, days, and even hours has changed out of all recognition.
I am reminded of my 15-year-old son who after a week’s work experience commented: “I don’t know how you stand work every day, it’s so boring!”
Clearly this is not the case at the moment when as I travel to work, I know no two days are going to be the same. The last two weeks alone has seen…
* US congress votes out the rescue plan;
* Bank shares tumble over 20 per cent in one day;
* British government increases guarantee on deposits to £50,000;
* Brown rescues British Banking system by taking equity stakes;
* Base rate drops 50 basis points a day early & 3 month Libor goes up 2 basis points;
* FTSE falls over 12 per cent in 2 days;
* Global recession hits ‘real economy’.
Against this backdrop I believe the corporate bankers need to get on with what they do best.
Look after existing customers; they have never been so important to us and they need to know we are there for them as the economy dips and the credit crunch continues to bite.
Keep on communicating – not only with your customers but with your own teams and with the professional community with which you have done deals to meet your customers’ needs over the years.
These are unprecedented times in the financial sector and they call for extraordinary actions.
History shows that Birmingham people by working together have proven their ability to adapt to changing times.
It's now time for Birmingham’s largest business sector – professional and finance – to step up to the mark.
As to the abuse question, I can only tell you we are not experiencing it.
It is vital that Birmingham professionals continue to talk to each other and work together as usual to look after our customers.
Without customers none of us have a business.
* Sid Muir works for AIB (GB)
