Bank Makes ‘House Calls’ to Tap Physicians’ Funds
A Fresno bank makes “house calls” for doctors and other busy professionals.
Regency Bank found in a 1982 study that professionals in Fresno, like doctors, lawyers and accountants, were a likely source of core deposits if the bank could offer more personalized service.
“The medical community in particular felt underserved and unappreciated, which caused us to look closely at that market,” said Robert Dillon, Regency president and chief executive officer.
The bank responded by taking the day-to-day task of deposits and other banking chores directly to professional offices.
Daily Trips
A courier makes daily trips to 106 clients, and Regency offers after-hours banking at a branch in an exclusive neighborhood of expensive homes and manicured lawns.
Bank representatives go to doctors’ offices by appointment to process loan applications, and most decisions are made the same day.
“Unlike other banks, we tend to measure our success on how empty our lobby is,” Dillon said.
The average balance in the professional accounts is about $65,000, and 80% to 90% of new accounts are in that category.
Regency, with assets of $37 million, now claims a 32% share of Fresno’s medical community as clients.
“They clearly are good customers. They’ve got substantial deposits; they’ve got good business; they deserve the attention that we give,” Dillon said. “What they’re looking for is a relationship with someone who they really know and is going to be there for awhile.”
Special Divisions
Some commercial banks have special divisions for professional clients, but Dillon said they often lack the personal touch that Regency provides.
Two factors work in the small bank’s favor. The biggest complaint from doctors who transfer accounts from other banks is “just not being recognized when they go through the doors,” Dillon said.
On the business side, professionals chafe at having even simple loan decisions delayed for review by an out-of-town bank executive.
Currently, the bank is attracting newcomers by word of mouth.
“We’ve essentially stopped our marketing plan just because we’ve got more clients than we can deal with,” Dillon said. “At this point, it’s a matter of getting time to see the clients who wish to see us.”
Most cities with a major medical center are likely to have banks targeting the medical community for accounts, he said.
“Frankly, Regency is just another bank,” Dillon said. “It’s basically an issue of products and services. There’s almost no difference in products today. What it comes down to is the level of service. The key is to really make it a reality.”
