Big Nonbanks Are Going After Small-Business Accounts.

• Author: Albro, Walt
• Position: Brief Article

Merrill Lynch, AT&T, American Express and other national lenders have entered the market for small-business services, which means community banks are going to have to ratchet up their marketing in order to compete, says a leading risk-management professional.

"These big nonbank companies hire talented people at six-figure salaries to call your good customers all over the country," Steve Abercrombie, president of Business Resource Services of Seattle, during an audio conference conducted by the Risk Management Association.

"They are talented in their social conversation and product knowledge," Abercrombie said. "And they listen well. They are well trained. They know how to put together products to match needs. American Express has set up representatives around the country who now live in local communities. They have someone in the customer's office within 24 to 48 hours. It's a huge problem...