Last week I was in a room full of ex-bankers, many of whom had 30+ years of experience. Over the last 5 years Lloyds have lost 18% of their workforce – and NatWest 28%…
What is going on?
The banks have lost good and able bankers, credit policies are tighter with increasing “computer says no” mentality, and new challenger banks and funds are doing the business that banks used to do.
When I started my advisory work, after my banking career, I had a notion that business owners needed help accessing the right funding package in a market which had fundamentally changed.
This is even more true today, but looking back over the last 5 years, good bankers have not disappeared – they have moved to different places.
Whilst borrowing money has become steadily more difficult, new capital has been invested in new banks and new funds, and that combination of willingness to lend and experienced bankers provides additional options for business owners requiring funding.
Of course the banks are still staffed with some great people, but their scope of activity can be more restrictive than they would like. For those of you who suspect that it has always been like this; the influx of new capital and new lenders is unprecedented, and a wider search for the right funding fit is more important than ever.