What Should Your Bank Expect From a Consulting Partner?

Financial institutions bring in outside expertise for a wide variety of reasons: a challenge may require specialized knowledge that does not exist internally, or perhaps leadership may seek perspective gained from seeing how other organizations have approached similar issues. But no matter what prompts the engagement, choosing the right consultant ultimately comes down to trust.

As a Business Development Officer at PRI, Scot Lewis spends much of his time building relationships with bankers and understanding their priorities, challenges and opportunities. Combined with more than 20 years of experience in regional and community banking, those conversations give him a valuable perspective on what banks should expect from an outside partner.

“Bringing in outside expertise requires a lot of trust,” Lewis notes. “You’re giving someone access to your business, asking them to understand your challenges and relying on their recommendations. Bankers should expect more than expertise. They should know that partner is working toward the same goals they are.”

So, what should bank leaders look for in a consulting relationship? Lewis recommends starting with five questions:

1. Do they understand banking?

Banks are complex organizations operating within an equally complex regulatory, technology and vendor environment. General business expertise can only go so far. A consultant should understand how banks uniquely operate and bring specialized knowledge in the specific area where the institution needs assistance.

That expertise matters whether the bank is evaluating its tech stack, reviewing a vendor relationship, improving operational processes, or addressing opportunities for profitability and growth. A banking-savvy consulting partner can spend less time learning the fundamentals and more time understanding your current situation and identifying opportunities.

2. Are they bringing a perspective we don’t already have?

Bank employees know their institution better than an outside consultant ever will. However, being close to the day-to-day work can make it difficult to step back and see an issue from a different angle.

Consultants who work across financial institutions can bring broader perspective and experience with approaches that have worked elsewhere. The goal is not to replace institutional knowledge, but instead to complement it with experience and perspective the bank may not have internally. That combination can reveal overlooked revenue opportunities, inefficient processes, underutilized technology or other areas where the bank could improve performance.

3. Are their incentives aligned with ours?

Expertise and perspective are important, but bank leaders should also understand how a potential partner defines success – and gets compensated.

“I think bankers should be able to look at a consulting relationship and say, ‘They win when I win,’” Lewis adds. “When both sides are working toward the same definition of success, it creates accountability and helps establish trust from the beginning.”

No matter the fee structure, bank leaders should understand what they are paying for, how success will be measured, and whether the consultant’s incentives support the results the bank is trying to achieve. Ultimately, the right partner should be more focused on improving the bank’s bottom line than its own. The goal is to create lasting value and trust, not simply another engagement.

4. Can we trust them to give us an honest answer?

Outside perspective has little value if the answer is predetermined. A consulting partner should be willing to challenge assumptions (including their own) and make tailored recommendations based on what makes sense for the institution. 

“Trust comes from knowing the answer isn’t predetermined,” Lewis points out. “Sometimes the right recommendation is to make a change. Other times, it’s to keep what you have and use it better. A good consultant should be equally comfortable telling you either.”

For bank leaders, that objectivity is an important test of the relationship. They should be confident that the recommendation reflects the bank’s best interests rather than a one-size-fits-all solution.

5. What will be different when the engagement is over?

Bank leaders should understand from the beginning what the project is intended to accomplish and how they will know whether it succeeded.

Depending on the engagement, success could mean stronger revenue, lower expenses, better contract terms, improved technology utilization, more efficient processes, or greater clarity around an important strategic decision. The specifics can vary, but the expectation should always remain the same: the work should bring quantifiable results to the bank.

The Bottom Line

A consulting engagement is ultimately a relationship built on trust. Bank leaders should know that their partner understands their industry, brings expertise and perspective they do not already have, shares their definition of success, and will give them an honest answer, even when that answer is not the easiest one.

“At the end of the day, you should feel confident that your consultant is invested in your success,” Lewis emphasizes. “The best relationships are the ones where you know you’re working toward the same goal, and you can trust that the work is going to make an impact.”

Our Experts

Scot Lewis is a Business Development Officer at PRI with more than 20 years of experience across regional and community banking, bringing expertise in commercial lending, deposit growth and bank operations. In his current role, Scot focuses on expanding PRI’s presence in the Midwest by building relationships with bankers, understanding their priorities and identifying opportunities to improve performance.

 Resources

Client Results & Testimonials – PRI 

About Profit Resources, Inc. – PRI  

10 Clear Signs You May Need To Hire A Consultant To Help Your Business – Forbes

Tips for Better Community Bank Vendor Management – Independent Banker 

PRI specializes in identifying profitability improvement areas for financial institutions through revenue growth, cost control, streamlining processes, and effective use of technology. Contact us to learn more about our personalized approach to propel growth and improve profitability.