Financial advisers drive the prosperity of the communities they serve. They offer personalized approaches that respond to the needs of the economic climate. Like individuals, businesses should set attainable goals that can be reached and provide success.
The region’s industry experts have offered recommendations on key areas businesses should focus on this year.
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“With 2024 in full swing, regional businesses stand to benefit immensely from focusing on innovative payment-processing and treasury-management products that help maximize interest and minimize expense,” said Kristine Lunde, senior treasury management sales officer with Gate City Bank, Fargo. “In today’s rate environment, it’s especially important for businesses to visit with a treasury management consultant who can help automate cash flow processes, which leads to paying down high-interest loans when there’s excess liquidity, or ensuring excess liquidity is earning interest.”
Building a strong brand presence will help retain customers and attract new ones, spurring business growth, she said.
Zach Miller, innovation officer and digital payment strategist with Bravera Bank, Dickinson, North Dakota, said digital channels are a primary vessel for growth, to maintain customer loyalty and provide a relationship-focused customer experience.
“To aid in that focus, we will enhance our business online banking platform in 2024. Areas of focus will include payables, receivables, liquidity management and fraud prevention. These enhancements will deliver an improved customer experience for our business customers and allow them more flexibility to digitally manage their cash flow,” he said.
In the banking and finance realm, there’s been a shift toward consumer digital services like Zelle, online deposit account opening, loan applications and even online chatbots.
“As a community bank, we must constantly evaluate, enhance and invest in digital and payments infrastructure to reduce friction for customers that gravitate toward using digital channels. Strong digital services backed by a team of dedicated customer care representatives will continue to strengthen our customer relationships in the years to come,” Miller said.
Chris Wolf, Northern Valley market president at Alerus, Grand Forks, North Dakota, said setting an annual budget and determining monthly cash flow projections are musts for every business.
“These allow you and your banker to assess your current working capital and plan from there for the year ahead,” he said.
Considerations should include: Will you need to increase your line of credit? Are you projecting excess capital that you want to inject back into your business? A good banker will help you evaluate all of your options to determine a path forward.
“Everyone wants to know what interest rates will do in 2024. The old saying, ‘hope for the best, plan for the worst,’ is solid advice when it comes to financial planning, particularly with regard to interest rate changes in 2024,” Wolf said. “No one knows exactly what will happen, so we are working with clients to plan for various interest rate scenarios and strategize potential impacts to their bottom lines. We anticipate this will be a continued focus throughout the year.”
Experts also advise businesses to work with a banking team that specializes in business finance.
“When it comes time to secure a loan, it’s important for your banking team to have the expertise and desire to help you understand the complexities of various financing choices, from fixed rates to variable rates and swap options,” Wolf said. “Experienced business bankers can also help identify local and state finance programs that may benefit your business.”
Greg Mastrud, market president with First International Bank & Trust, Fargo, shared two attainable habits that businesses should put into practice.
“Digital and human innovation is key,” he said. “It’s no secret that the future of countless industries lies in cyberspace. But crucially, customers don’t only want digital experiences. Look at the resurgence of vinyl records! Really understanding your customer base and their preferences is important.”
Offering a healthy mix of digital convenience with the human touch will allow a business to build strong connections with customers on their terms while staying relevant in a competitive market, Mastrud said.
The second habit is to bolster your relationship with your customer base, he said.
“In my time at FIBT, I’ve learned that a great bank is about so much more than ‘who has the best rate?’ Sure, we keep our rates competitive – but our organization would not be where it is now without the power of great relationships. A fulfilling banker-to-business relationship, built with trust and care over time, is a boon to any business owner. It helps your business thrive and grow – and can help protect you from unforeseen pitfalls. I encourage you to deepen your relationship with the banker you trust in 2024!”
Carrie McDermott joined Prairie Business magazine in March 2023. She covers business industry trends in North Dakota, South Dakota and west central Minnesota. Email address: [email protected].
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