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Your bank market share is the percentage of business for which your bank is responsible in your local bank market. A large market share is essential to the success of any bank.
Reasons to Increase Bank Market Share
There are a number of red flags that a bank must work on increasing its market share in order to weather an economical storm. They include:
- No recognizable strength - Your goal needn't be the overall top bank market share, but you must have at least one strength. For example, small community banks in some areas have as much as 50% of the small business loans under $100,000.
- Small clientele - In a credit crisis, your bank should have people practically pounding on the doors for a chance to get financing. If people are ignoring your bank, you're in trouble.
Capturing a greater market share means that your bank must offer something that sets it apart from the other competitors in the area. Try the following:
- Better terms - Short of "giving money away," a surefire way to increase your bank market share is to offer the best loan and credit terms. For example, offer low interest rates or faster cash disbursements.
- Faster results - Many potential clients want to open a bank line of credit, but they're fed up with the same, slow-moving bureaucratic paperwork approval process. Make speed and efficiency something that defines your bank.
