Banc One Corp.'s new manager of small-business banking, Jeffrey P. Gaia, plans to use PC banking and call centers to attract customers.
The Columbus, Ohio-based company is the third-largest bank lender to small business in the country, with $4.4 billion outstanding in 105,900 loans as of June 30, according to Sheshunoff Data Services.
"We're not going to be satisfied to stay in third position," Mr. Gaia said in an interview last week. "This is an extremely important area for the bank."
Banc One is targeting three segments of the small-business market: entrepreneurs who want relationship managers, those who use bank branches, and those who prefer high-tech service.
This year Banc One opened call centers in Houston and in Tempe, Ariz. It is one of just a handful of lenders that allow entrepreneurs to apply for credit lines and term loans by phone; most banks use automated telephone systems only to provide balance information and let customers move funds among accounts.
Banc One began offering PC banking for small businesses this year through Integrion Financial Network, which is owned by International Business Machines Corp., Visa U.S.A., and 18 banks.
Mr. Gaia said relationship managers are typically reserved for the bank's more profitable small-business customers, who use several bank services. "It makes sense for us to give the customer choices, rather than tell them how to access us," he said.
Mr. Gaia, 42, who assumed his new position Dec. 15, was previously president of the banking company's mortgage unit and chairman and president of Bank One Utah. He joined Banc One in 1988.
Ron C. Baldwin, who directed small-business banking, is now in charge of Banc One's retail delivery.
As head of the mortgage department, Mr. Gaia led an effort to cross-sell home equity loans, lines of credit, and investment products by sharing customer information with other areas of the bank.
Mr. Gaia said the bank will also promote its deposit and cash management products as well as consumer banking services for business owners.
