Many large banks want to use technology rather than face- to-face relationship managers to personalize services for their smallest business customers.
Bankers gathered at the Consumer Bankers Association's annual small- business conference here last week said they want to use computer data bases to compile personalized information about each customer.
The shift away from relationship managers comes as banks grow accustomed to technological developments such as credit scoring to reduce the cost of making smaller business loans.
"There is a growing generation of small-business owners that is very comfortable with a virtual relationship with their bank," said Nickolas Certo, senior vice president for PNC Bank Corp.
Kathleen McClave, vice chairwoman of Furash & Co., said banks developed their relationship manager strategies to set themselves apart from nonbank competitors.
But banks are remodeling their approach after realizing that face-to- face service is too expensive to provide to smaller customers, Ms. McClave said.
Bankers said computerized data bases would help a revolving staff of customer service representatives, rather than specific relationship managers, attend to small-business owners' individual needs.
The large banks would maintain relationship managers for their most profitable small-business customers, but would steer others to cheaper delivery methods. "You need to focus the relationship managers where you can get the most bang for the buck," said James Schmitt, director of Norwest Corp.'s business banking division.
According to the association's annual small-business survey, relationship managers handle an average of 147 loan and deposit relationships. About a third handle only deposit relationships.
Mr. Schmitt said banks should imitate L.L. Bean and USAA's insurance operations, which personalize their services with customer data bases.
He said San Antonio-based USAA sent his son, a college senior listed on his auto insurance policy, a letter explaining how he could purchase his own policy after graduation.
A similar strategy would lead banks to train relationship managers to specialize in specific industries or larger transactions, said Sandra Maltby, KeyCorp executive vice president.
Ms. Maltby said banks may charge smaller business owners, who want face- to-face personal service, higher fees to compensate the bank for the higher costs.
