Lending-only relationship

A borrower with an active facility and no operating account, treasury product, card or deposits at the bank. The bank carries the credit and another bank has the relationship. Excludes syndicate participations and acquired portfolios by flag.

DefinitionA borrower with an active facility and no operating account, treasury product, card or deposits at the bank. The bank carries the credit and another bank has the relationship. Excludes syndicate participations and acquired portfolios by flag.

Valued at norm

At the deposits and fees that borrowers of the same size and sector with an operating account hold at this bank.

Group entities

The subsidiary borrows and the parent banks here. The master's group structure keeps it off the list.

How it is computed

Borrowers with an active facility and none of: an operating account, payments, cards, foreign exchange or deposits with the bank. Listed with exposure, return and estimated fee spend elsewhere.

Example

A manufacturer has a $12 million term loan and nothing else. Similar clients hold five products. Its estimated fees elsewhere are $140,000 a year, and the loan earns below the cost of capital.

Where it goes wrong

Reviewed annually by credit and never by sales. The client is on no list because it has not bought anything.

Articles that use this term

Wallet share and penetration

Share of wallet by industry: what the denominator is in twelve industries

Share of wallet is one formula and twelve different denominators. This hub sets out, for twelve industries, what the customer's wallet is, where the number comes from, what the numerator is in that industry's ledger, and the natural ceiling a share can reach, with a link to the full guide for each. Written for a commercial leader who has heard the term and wants to know what it means for their desk.

16 Sept 20263 min read Wallet share and penetration · Commercial banking

Ten questions a head of commercial banking asks, and the table that answers each

The ten questions a head of commercial banking puts to the relationship managers, which borrowers hold nothing but the loan, whose balances are leaving before the customer does, which facilities are drawn to the limit and which are paid for and unused, which customers hold fewer products than their sector peers, which lines refer and which only receive, which relationship managers can carry their gap list, which customers moved segment, who has not been contacted at cadence, which products are opened and never used, and what changed, each with the table from the loan book, the balances and the CRM, and the answer to send back.

16 Sept 20262 min read Coverage and territory

The weekly list by industry: what row one says on twelve desks

Every desk's analytics ends in a list, ranked by value, with a reason on each row and an owner. This hub gives, for twelve industries, what the weekly list is, what row one typically says, how it is ranked, who works it, and the guide that builds it, so that a reader can see the shape of the output before they see the arithmetic behind it.

16 Sept 20263 min read Alternatives and comparisons · Commercial banking

How to choose analytics software for commercial banking: questions, data and traps

How commercial banks should choose analytics software: start from the questions, check the data you hold, ask vendors ten questions, avoid the traps.

24 Sept 20264 min read Board and management reporting · Commercial banking

Relationship KPIs for commercial banking: ten measures that matter, each with its formula and the export it comes from

The ten relationship KPIs a commercial bank should run on, each with its formula, the export it comes from and what it tells you: products held against the sector norm, lending-only relationships, deposit flight, facility utilisation, share of wallet by product, relationship manager coverage at cadence, referrals between business lines, return per relationship, portfolio load against capacity, and primary bank indicators. Also the three measures most commercial banks miss, the figures to drop, the identities, and who owns what.

17 Sept 20264 min read