Alasdair Swan, Senior Commercial Manager at The Cumberland, shares his thoughts on the importance of a relationship managed approach to banking and how hospitality businesses can navigate the challenges ahead.
“The cost-of-living crisis represents a significant challenge with the exponential rise in prices affecting the hospitality industry two-fold. Firstly, consumers have less money to spend. To compound this issue, businesses must now cope with their own rising costs, with those in the sector facing an average increase of 55.2 percent in operating costs.”
Difficulties don’t just stop at rising costs, however, with staff shortages and retention in the sector remaining significant hurdles for hospitality business owners.
“It has never been more important for banking institutions to support customers through a more targeted, human approach by providing a relationship managed service. At The Cumberland, we take this approach to ensure we understand and build relationships with the businesses that we work with so that we can provide support for them during any situation, good or bad.”
On customers’ attitudes towards typical banking processes, Alasdair says “Customers have grown weary of the centralisation of banking operations. They’ve grown tired of call centres instead of having direct access to an expert who understands their case”.
He explains, “Taking the opposite approach, with a model which places an emphasis on building a relationship between the finance provider and the client, is something which will stand both parties in good stead. Relationship managers place the client first, taking an interest in every aspect of their business”.
“Relationship managers don’t just navigate business situations for their clients, they spend time with customers and provide support when it’s most needed, acting as a safeguard ahead of potentially choppy waters the client hasn’t recognised yet”.
“By creating a genuine, human rapport, our customers know they have direct access to their relationship manager or an associate so they can contact someone who understands their business whenever their need arises. As a result, issues can be dealt with quickly and efficiently.”
He concludes, “While the hospitality sector is set to face further challenges, it doesn’t mean owners and operators should go it alone. It is the banking institutions who provide a people first approach who will be best placed to support existing and prospective customers”.
For more on The Cumberland’s commercial mortgages for hospitality businesses, visit our business page.