Endeavor Bank Turns Business Banking into a Conversation

Endeavor Bank in San Diego believes in the power of community banks’ relationship-based business model to help its commercial clients succeed—so much so that it has developed a model that goes even further. The $593.8 million‑asset community bank touts its “consultative banking model,” an approach that centers cultivating relationships, sharing advice and supporting business growth at a personal level.

“Consultative banking is what banking used to be,” says Steven Sefton, president of Endeavor Bank. “It is a relationship between the business owner and their banker, in which the banker has intimate knowledge of the business and its owner.”

Endeavor’s business clients can anticipate tailored meetings, regular check-ins and educational events. The community bank also helps develop client businesses through thoughtful brainstorming and facilitating important community connections. This approach aims to boost revenue, enhance profitability, solve challenges and seize opportunities for all involved.

Business owners also have access to business advisory services and account managers who know their businesses. In addition, they have access to decision-makers who are also founders of the bank, which ensures business owners engage in peer-to-peer discussions at Endeavor.

Old-school approach with a modern twist

According to Sefton, with the consultative banking model, the banker meets in person with the business owner on a regular basis,  typically meeting quarterly but sometimes more or less depending on the clients’ custom needs. 

“When the business owner encounters an opportunity, contemplates something or manages through a business challenge, that owner seeks and appreciates the banker’s advice or input,” he says. “Simply put, consultative banking involves generating ideas.” 

According to Sefton, in owner-managed companies with annual revenues between $5 million and $100 million, the business owner may not have a Harvard MBA in the treasury department, so “the banker serves as a valuable resource for ideas.” 

He adds that bankers in a consultative banking model may visit more than 100 businesses a year, learning 100 different ways to manage all aspects of running a business.

Endeavor Bank’s involvement with the consultative banking model evolved from the old Union Bank of California’s model used from the 1950s up until its exit in 1978. “These days, the consultative banking model is a lost art that a few of us [in the old Union Bank lineage] define as our culture,” says Sefton. “My current partner [and cofounder], Endeavor CEO Dan Yates, hired me at 1st Business Bank in the early 1990s, which is when he introduced me to the consultative approach. I have since become a believer in its impact on people’s lives.” 

Unlocking hidden potential

Sefton explains that the consultative banking model is not a program, per se. “It is a culture and a way of life,” he says. “Every client conversation is an opportunity to look for openings to make connections and provide advice based on experiences shared between clients.” 

He says all of Endeavor’s relationship managers understand that helping clients and providing advice is their primary role, and making loans and taking deposits are ancillary outcomes. “This consultative approach permeates our entire staff, whom we refer to as our ‘tribe,’” Sefton explains.

For example, a new accounts representative had referred a client with accounting needs to another client that is offering fractional CFO/controller services. “The depth of our culture is evident when everyone embraces it,” says Sefton.

Endeavor Bank generally hires experienced bankers to bolster staff expertise, because it takes time to build the confidence needed to suggest solutions based on another client’s experience. “However, we also implemented a [banker] training program during the COVID-19 pandemic that successfully educates new [college graduates] in consultative banking,” Sefton says.

“In our marketing meetings, we don’t ask who has a big loan in his or her pipeline,” he adds. “Instead, we ask who helped a client and how. We emphasize storytelling, driven by leadership’s commitment to our consultative culture.”

Best-kept secret

While Endeavor Bank has not conducted formal scientific research or surveys to measure the model’s success, Sefton says, “Anecdotally and intuitively, we believe our consultative approach sets us apart.” 

Clients have told the community bank that this approach is its ‘secret sauce’ and a defining characteristic that differentiates it from competitors. When clients choose Endeavor Bank, it is often because of its promise to provide innovative ideas to help run businesses.

 “We earn through consultative relationships by winning the right to bank clients,” says Sefton. “We believe this approach distinguishes us and gives us a competitive edge.”

The future is ever-evolving for Endeavor Bank, as it explores new tools, such as AI and computer-aided evaluations, to modernize its approach. According to Sefton, “The more resources we can provide clients, the more consultative we become.”