Listen to this articleEconomic conditions, particularly inflation and interest rates, are significant concerns for business owners. From consulting and new banking products to help with navigating cash flow, banks are working with businesses throughout Nassau and Suffolk counties to adapt as conditions warrant.
Especially as opportunities and challenges are frequently changing, Long Island’s major banks are working to customize and personalize services for business customers—both in-person and online—in an effort to keep pace with their needs.
However, the obstacle course, as always, can be tricky.
“Our recently released 2024 Bank of America Business Owner Report found business owners’ concerns remain high around key economic factors such as inflation, interest rates, and commodities prices, but are down since last spring,” said Bob Isaksen, market executive of business banking for Bank of America.
Through it all, opportunities are evident to Long Island businesses—giving larger banking institutions to meet customers where they are needed most.
“The Long Island market has had a very tight commercial real estate market for some time,” Isaksen said. “The commercial properties small and mid-size businesses seek for expansion are difficult to find.
“By providing financing structures that combine our equipment finance and SBA teams, all local here on Long Island, we’ve helped small and mid-size companies bridge the gap as they seek capital to fuel their growth.”
Long Island Business News spoke to various national banks with a regional presence, all of whom continue to their approach led by in-person engagement. This as well as offering new financing products and technology as conditions evolve.
“We bank companies in a variety of industries and sectors, supporting our business customers with their lending, treasury management, depository, foreign exchange, and capital markets needs throughout Nassau and Suffolk counties,” said Vin Zerilli, Wells Fargo executive for New York City and Long Island commercial banking.
Wells Fargo, Bank of America, and JP Morgan Chase all provide electronic banking apps for business customers. These apps can include invoicing, ways to analyze or manage cash flow, and other self-service that can provide time savings as well as 24-7 insight into finances.
Wells Fargo maintains expertise and services tailored for industry-specific customers, including those in real estate; beverage, food and agribusiness; tech; health care; higher education; clean tech, consumer products, and environmental services, Zerilli said.
For its part, Wells Fargo has collaborated with the Community Reinvestment Fund, USA to launch an online Small Business Resource Navigator directory. The portal “enables Wells Fargo bankers to help introduce small business owners to potential financing options and technical assistance through Community Development Financial Institutions (CDFIs),” said Silvia Lara, district branch network senior manager at Wells Fargo.
“We’re focused on personalizing services and making improvements to our digital capabilities to simplify the account opening and management experience for our customers,” Lara said.
“Our model is face-to-face,” said Neal Pollack, executive director of business banking for Long Island for JPMorgan Chase. “We like to be at the customer’s place of business, taking the tour and really understanding the business. The most common issue facing business owners today is retaining and attracting talent.”
The Coaching for Impact program, initiated by JPMorgan Chase in 2020, provides comprehensive one-on-one coaching for business clients, whether they bank with Chase or not. It also hosts local workshops—including one held recently at Green Acres Mall for entrepreneurs—at no cost to attendees.
The program also includes workshops comprising topics such as marketing, cash flow management, and government contracting, as well as luncheon and breakfast sessions.
“When we get clients in front of each other at these networking events, they make meaningful connections, and I’ve seen a lot of magic happen in person,” said Akim Jones, a senior business consultant at JPMorgan Chase.
Bank of America has a similar strategy to incorporate both face-to-face and digital banking. Its “clients have access to CashPro, our digital platform for payments, receipts, liquidity, investments, FX and trade,” Isaksen said.
This facilitates users to connect via desktop, mobile app, APIs and file transfer to conduct business from anywhere. It also includes high levels of fraud protection to ease any security concerns.
As aforementioned, Bank of America’s report found that inflation and interest rates are top concerns for business owners, with banks looking for ways to mitigate these risks as well as easing customer pain points.
“We help our clients navigate through all economic cycles and mitigate risk,” Isaksen said.
Wells Fargo’s approach includes advising clients on managing cash flow fluctuations and other financial challenges. “Many owners are raising their prices to deal with inflation. I tell my clients not to be afraid to get help if needed,” says Lara. “Each small business’ situation is different, and a banker will be able to share what next steps may be helpful.”
JPMorgan Chase provides fixed-rate terms on interest rates, which customers have used particularly for equipment loans and owner-occupied real estate, “Our niche is owner-occupied real estate,” Pollack says. “Helping business owners build generational wealth by getting into their own space and not paying rent.”