Independent Banker - December 2017 - 62

Lender Life
SMALL-BUSINESS SMARTS
Is lending to millennials
all that different?
Millennial small-business owners share the same concerns as other
generations, but education, technology and a friendly atmosphere can help
your community bank stand out.
By William Atkinson
W
hat does it take
to create and
build strong
relationships
with millennial
business owners? Banks looking
to connect with this demographic
cohort must educate, offer technology
and emphasize personal relationships.
The hard work will be worth it.
" Millennials are now the driving
force of the economy, " says
Frank Sorrentino III, CEO of the
$4.7 billion-asset ConnectOne Bank
in Englewood Cliffs, N.J.
But just how different are millennials
from business owners of
other generations? " Everyone keeps
trying to place millennials into a box,
suggesting they are different from
everyone else, " Sorrentino says. " I
think they are more a product of
their environment than anything. So,
in that sense, they aren't that much
different from anyone else in their
communities. Small-business owners
in all generations just want to get the
best that they can. "
Still, though, there are some differences.
For one, millennials have a
particularly strong need for information
on how to run their businesses.
Industry
VOICE
William Atkinson, a longtime
Independent Banker contributor,
is an Illinois-based journalist
specializing in banking and smallbusiness
issues.
According to a May 2017 report from
America's Small Business Development
Centers and the Center for
Generational Kinetics, " America's
Voice on Small Business, " more
than 13 million millennials say the
number-one thing keeping them from
starting a business is not knowing
how to run one. That same number
believes the biggest barrier is not
knowing where to go for help.
ConnectOne Bank wants to provide
the answers. " Any time they have
questions, they know they can call
us, " Sorrentino says. " We run
seminars, conferences and
in-house training that are of
value to business owners. "
Technology is also important.
" People who know how
to utilize all of the technology
tools available today tend
to be millennials, " Sorrentino
58 ICBA Independent Banker December 2017
says. " They grew up with it. "
Ken Stoner, business innovation
coordinator for Southern Illinois
University in Carbondale, Ill., who
helps people start small businesses,
agrees. " I recently asked a group of 14
millennials what they consider most
important when considering a bank, "
he says. " They all agreed that their
banks must have a strong online presence.
Millennials operate at all hours
and want their banks to do the same. "
Advice for community bankers?
" Millennials need to know that banks
are typically full of friendly people who
want what is best for them, as well as
their businesses, " Stoner says. " The millennials
I have worked with wouldn't
jump ship over a slightly lower interest
rate. Relationships are important to
them, and they would rather work with
someone they know than with a faceless
corporate entity. "
Independent Banker - December 2017

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