Loan originators often don’t realize the tremendous potential that exists to develop referral relationships with bankers. We automatically assume that the institutions they represent provide the same type of service we do, but this is not necessarily the case.

There are two categories of bankers we can market our services to; small community banks and the retail loan officers in larger banks. In this article, I will delve into the mindset of professionals in both categories and illustrate how to attract their business without being competitive.

As in any campaign to develop new referral partnerships, it is important to understand the targets’ areas of expertise, find out what their hot buttons are, and promote yourself as an outstanding referral partner.

Targeting Community Banks

In my career, I was able to develop very profitable referral relationships with executives at local banks. I found that while these institutions offered high-interest, short-term financing for auto loans, credit cards and some equity lines of credit, many did not specialize in long-term residential real estate lending. For the most part, they did not have the marketing dollars to compete with larger banks on this level. Instead, they focused on appealing to customers by offering more personalized banking services for residents and small business owners.

I made a point to offer my services in areas they did not excel in and the “take-out” loan became my unique selling proposition (USP) to numerous Vice Presidents of banks in my community. A take-out loan is one that pays off the short-term financing of construction or a land loan, and rolls the consumer over into long-term financing. This is sometimes referred to as a “permanent loan.”

They carried the short-term financing for construction and land loans, and passed their clients on to me for the long-term financing. I acted as an extension to these VPs, providing the same type of personalized service that was their tradition and accomplished paying off the loans they initially funded. I also made sure I did not use their larger competitors for permanent financing; I worked with lenders that were home loan specific and not considered rivals.

On the flip side, whenever I had a new client who owned their own business, I would find out what bank they used for their company. If the client said they were working with a large conglomerate, I gave a pitch to promote the advantages of using a community bank that treats their customers like real people and not just a number. I also referred many of my clients who needed a new car or truck, since I don’t do those types of loans, and in this manner I was able to reciprocate the referral of business back to those VPs.

Another USP is to share your own marketing strategies with small bankers. They have the same “client for life” mentality, as they do not want to lose their customer base to the larger banks, and they find innovative marketing strategies to be very interesting. Ask them to write guest articles for your own newsletter on topics they are experts on to further cement the relationship and get their name out in front of your database of borrowers.


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