Tennessee Firm Offers Menu of Products for Banks to Sell

The marketing company FISI-Madison Financial Inc. has developed a slate of small-business products for banks to sell to their customers.

The Nashville-based company last month introduced a set of products that includes equipment leasing, Small Business Administration loans, retirement plans, insurance, and sweep accounts.

John R. Murphy, FISI-Madison's senior vice president, said the offerings were designed to help banks build relationships by selling more products to their customers.

"The small-business owner is going to get his lease, even if that means he is going somewhere else," Mr. Murphy said. "Banks need to figure out how to keep their most valuable customers."

Charles Wendel, president of Financial Institutions Consulting Inc. in New York, said banks are increasingly offering outside companies' small- business products.

"Midsize and smaller banks do not have the deep pockets or the knowledge base to create all the products their customers demand," Mr. Wendel said.

Other small-business products offered by banks include Paychex Inc.'s payroll processing, insurance from Hartford Financial Services Group, and small-ticket leasing from Tokai Financial Services Inc.

Mr. Murphy said FISI-Madison's approach is unusual because it offers a set of products and allows banks to pick which to offer.

No banks are offering FISI-Madison's small-business products yet, but Mr. Murphy said the company hopes to have three banks selling them within the next three months.

The banks earn fee income from the product sales and FISI-Madison would collect interest payments from products such as SBA loans, Mr. Murphy said.

FISI-Madison, a subsidiary of Stamford, Conn.-based Cendant Corp., said it would also operate a telephone call center to answer bank customers' questions.

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