7 Banking Strategies in the Age of Political Correctness
Can you trust the banks? How do you de-risk your banking relationships?
Certainly the question of trusting the banks has always been there. The most common complaints from clients over the past 20 years: my bank only lends when I don’t need the money, the assigned account manager doesn’t know anything about my business, and the account manager doesn’t use judgment – only formulas and standard metrics.
But now, what if the causes I support are not politically acceptable to certain influential people or those with power? What if I serve a market and have customers that may not be acceptable fully to certain influential people or those with power?
7 Strategies to Handle the Current Banking Climate:
- Play by all the rules. Stay ethically upright in dealing with your banks. Be careful what causes you support – not because I would want you to become politically correct – but because you have very little individual power when it comes to the bank or the government.
- Do business with at least two banks. Split your activities. Operating account here. Savings account and investments there. One line of credit here. Another one there. Loan over there. Shop around.
- Hold a reserve of actual cash. Yes, do it. I’m not kidding.
- Open a US bank account. Consider currency in other forms like crypto or new ways of holding precious metals like gold wafers.
- Deal with a smart FX group – they can help you hedge in interesting ways. Try it.
- Educate your bankers about your business. Go out of your way to teach them about what you do, what your metrics portray, and how your customers appreciate you.
- Stay alert to signals your bank is sending about causes they support.
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