Scott Kelly With Bank of America

Intro: Broadcasting live from the Business RadioX studio in Atlanta, Georgia. It’s time for Atlanta Business Radio, brought to you by Kennesaw State University’s Executive MBA program, the accelerated degree program for working professionals looking to advance their career and enhance their leadership skills. And now, here’s your host.

Lee Kantor: Lee Kantor here, another episode of Atlanta Business Radio. And this is going to be a good one. But before we get started, it’s important to recognize our sponsors CSU’s executive MBA program. Without them, we couldn’t be sharing these important stories today on Atlanta Business Radio. We have Scott Kelly, who’s the Senior Vice President, Market Executive with Georgia Business Banking section of Bank of America. Welcome, Scott.

Kelly Scott: Thanks so much. Good to be here.

Lee Kantor: Well, I’m excited to get caught up with what’s happening at Bank of America. I think we’re going to talk about why it’s important for entrepreneurs and business owners to kind of do a state of the business every year. And since we’re in the first quarter, now’s as good a time as any to have this kind of conversation.

Kelly Scott: Well, we couldn’t agree more. And again, thanks so much for having me today. I’ve been with Bank of America for 27 years, entirely on the business and commercial side of the bank. So your topic today is a very important one, and one that I know. Well, you know, there’s 33 million small and midsize businesses in the United States, and that makes up 99% of all the firms in the U.S.. So if you take out large corporate and fortune 500 companies, the small and midsize businesses are really the backbone of the economy. And so they account for roughly half of the GDP, half the private sector employment. They drive 70% of new job creation. And so, to your point, I think every year it’s so important to kind of take that step back and really evaluate and review the state of their business.

Lee Kantor: So put yourself in the shoes of that entrepreneur or that business leader. What are kind of what’s what should be on that checklist to get done at the beginning of the year?

Kelly Scott: It’s such a great question. And it’s so important because strategies have to be adjusted. If you look at the election cycle we just came through and all of the volatility and the headwinds our business owners have had to face, they have to be flexible and adaptive and recognize that, you know, this landscape is constantly evolving. So in the start of the new year, you know, we always recommend businesses and owners do a Swot analysis to really analyze their strengths, their weaknesses, opportunities and threats. And it really it helps you look for improvement, but also maybe where there’s challenges. And while the bank expects this to be a really good overall economic year, we do recognize there will still be some volatility. So doing this review and you know looking at productivity. And you know, what’s anticipated in the year ahead is so important because some of the things we’re looking at are inflation and the jobs market. And we’ll continue to see I think equities and rates have some volatility as that longer term yield curve does start to normalize. And while we think we’re kind of still in that mid cycle bull market, really taking that deep look each year at your business and evaluating, you know, what you want to change or accomplish in the year ahead is super critical.

Lee Kantor: Now should these business leaders be doing this exercise by themselves or in concert with their trusted advisors, like their banker or their CPA or their attorney, like the other people that are kind of working with them, their insurance guy, like, where does the banker come into play in this?

Kelly Scott: Well, we always want to be a part of that equation. And so I think the best advice is for them to consult their advisor. And hopefully that’s their banker, at least one of the seats at the table in terms of, you know, seeking that advice and being a part of, you know, those proactive solutions to make sure they are truly positioned and, you know, understanding the headwinds as well as the opportunities in that new year.

Lee Kantor: Now, a lot of people, obviously all business owners have a bank of some sort. And their relationship with the banker, though may not all be the same. Is should an entrepreneur or a business leader really invest time in getting to know the banker, having the banker know them personally, where they, you know, look each other in the eye, periodically shake each other’s hands or on zoom or however they do this and really kind of have the banker involved at this level and have a conversation and talk about, hey, this is my challenge that does the banker want to hear from them?

Kelly Scott: Absolutely. Not only do we want to hear from them, but we want to be proactively contacting them. And it looks a little bit different and unique with each business. It’s not a one shoe fits all. And what one business might need that, say, has a traditional storefront versus another that may be more internationally focused and or online. That contact with that relationship manager or advisor may look completely different, but that’s one of the great things about Bank of America is we really, you know, we listen to the needs of each customer and create customized solution based on what those are. And if you think about it, I mean, there’s a lot of things out there these business owners are dealing with. I mentioned the election cycle earlier, but think about inflation and supply chain. You know that those weren’t just Covid problems and done. We’re still seeing lingering effects of that. We’ve got the new administration, as I mentioned, driving regulatory and policy changes. We have, you know, uncertainty around tariffs and trade. There’s still pressure on energy and commodity prices and look at everything going on geopolitically. And so I would just say relationships are more important than ever. Having that trusted or key advisor and really doing that Swot analysis and that deep review of the business strategy at the beginning of the year is probably more important than it’s ever been.

Lee Kantor: Now, you mentioned that 99% of businesses are small businesses, and they’re not the fortune 500 or these kind of unicorn companies. Is there services for that? Mom and pop, the person who has kind of the the store on the square. Is is there a place in Bank of America to have kind of a human interaction with a banker to get help, or is that something only for that, the 1% that are the, you know, the big mega companies, the enterprise level organizations?

Kelly Scott: No, that’s that’s such an important distinction. Bank of America has a a platform for any size business. And recognizing that stat that I shared earlier that, you know, 99% of the businesses fall into those small to midsize. We’ve invested so much in, you know, technology, um, people, resources, skills, you know, digital and mobile, all of these things to support a business essentially from a start up phase to, you know, establish and sophisticated businesses to where they might need M&A services or taking a company public or, you know, these more complex needs that you see in up market companies. But not only do we serve all of those companies across the spectrum, we have dedicated professionals within each segment. We have eight lines of business that we serve at Bank of America. And each of those niches is an area that we may start in our retail center and then move up into small and, you know, business banking and then eventually evolve into, you know, some of our corporate and some of those larger companies you mentioned. But we have services to support all of those businesses.

Lee Kantor: Now, how are you seeing AI kind of impact your business as well as kind of your clients businesses? It’s what everybody’s talking about nowadays.

Kelly Scott: Well, technology is almost the part of every conversation and it’s truly impossible to avoid. And, you know, today’s business era. So we just say businesses have to continue to evolve. They need the tools and resources that come with technology and AI, and that’s why Bank of America is so heavily invested in mobile and digital. And we want to help our clients do business wherever they operate on the move worldwide. But we also recognized with technology comes other risks. And our our largest responsibility is information protection. So we have to help our clients with technology and AI. We have to give them mobile and digital access. But we’ve got to do it safely and securely. And there’s a lot of really, you know, good bad guys out there that are very complex and good at what they do. So we have to, you know, constantly evolve and build out increased protection for our clients. But 71% of small business owners say they have digitally optimized their business over the last year. I mean, that’s a huge number. And while technology can help with a variety of challenges, you know, it does, as I mentioned, present some risks. So you have to kind of manage both both sides of the platform, but AI and automation can assist with things like screening, you know. Interviews, you know, new candidates that businesses are looking to hire. It can help with project management, team collaboration, workflow and managing customers. So we give a lot of, uh, help with that through digital and mobile devices. And, you know, many of our clients now do business, as I mentioned, internationally, we we do business in over 200 countries now and support over 150 currencies. And we couldn’t do that without the part of technology.

Lee Kantor: Now, when, uh, a business leader is having a conversation with somebody on your team, is this conversation primarily about capital sourcing? Is it about finance, or can it kind of expand into just kind of general business advice?

Kelly Scott: Yeah, it may start with, you know, typically there’s one topic or one catalyst that that kind of leads into initial conversations. And at Bank of America, we deliver as a team. So you might have that banker at the forefront, but they’re surrounded by experts across the bank, from Treasury solutions to, you know, cash management to lending needs. So capital and Treasury are two areas we focus heavily on. But to your point, it might evolve into broader advice or broader discussions around, you know, how do I find and recruit the best talent. How do I, you know, grow in an increasingly international business marketplace? So we do have a variety of services, but we don’t do that with, you know, with only one person or one team mate. They may be the initial quarterback, but having that team of experts around that quarterback to deliver for the client holistically and create those customized solutions I mentioned earlier, I think is one area that really differentiates us.

Lee Kantor: So you’re looking to kind of be that, um, partner in there helping the leader with whatever the challenge might be and it might obviously you’re going to a banker Anchor for either you’re giving them money to hang on to, or they’re helping you get more money into your account in some transactional manner, but you’re available for anything. Like you mentioned. It could be talent. So talent isn’t part of Bank of America’s services, right? If you’re not helping them recruit or anything, but you have enough experts there that can give them some recommendations.

Kelly Scott: Absolutely. And, you know, talent is an area that we focus on tremendously because people are your greatest assets. You can have the best brand, the best technology, and some of the things that we’ve talked about. But without your people, it’s very difficult to drive a relationship focused business. So it starts with attracting the best talent, but then you’ve got to retain that talent that you’re so heavily invested in. And a lot of businesses think that it’s mostly or all about compensation. It matters. You’ve got to start by being competitive, but once you retain that talent or recruit it to retain it, you have to be more, um, differentiated. And so business owners now are doing things like bringing educational resources for employees directly on site for things like career growth or even personal and professional seminars. We see things like family planning, uh, financial wellness, first time home buying. You know, many of our young employees have never bought a home for the first time. Or maybe our employees that have been in the workforce longer are looking for that bridge to retirement and need some advice. So we come in and help companies with things like talent, recruiting and retaining the best, um, you know, employees without, uh, only focusing on banking services. So it’s a really good question.

Lee Kantor: Now, what about when it comes to, um, sourcing capital? A lot of firms struggle in this area. They don’t maybe have enough collateral or they, um, maybe don’t have enough revenue right now. Is there kind of more creative ways to source capital nowadays? Um, or is this something that you and your team can help them with in terms of getting access to capital and maybe areas that were more difficult in the past?

Kelly Scott: Absolutely. And, you know, so capital is one of the things I think businesses most commonly think of banks for. I need a loan or I’m growing my business. How can the bank support me? So sourcing capital is clearly one of the areas of expertise that we have. And that refers mostly to traditional capital. You know what we typically think of as a core bank lending. And that’s working capital lines of credit. Maybe they’re buying a commercial property for their business and they need a real estate term loan. They’re buying some new equipment and they need to to, uh, you know, stock the warehouse or the medical facility with that new equipment. And we finance acquisitions and we offer SBA loans. So there’s a lot of traditional sources. But I think to your question, in today’s business marketplace, um, entrepreneurs have to think more broadly because many times there’s a specific need that is is maybe it’s an emerging company that’s just too new for traditional debt, or maybe it’s too large of a loan and they need, you know, multiple layers of capital. And so there’s other sources, you know, that that are available to clients such as, um, you know, government and foundation grants, equity partners, uh, venture capital, angel loans and other alternative lenders and even asset specific lenders. So the state of Georgia has roughly 200 bank charters. It’s one of the highest in the country. So it’s a very competitive marketplace for loans and access to capital. And that’s really good for clients because each bank kind of defines their client selectivity model differently. So that competition and accessibility is good for our clients. And we want to, you know, compete in that marketplace. But then it’s great to know that through these additional resources, clients have access to other sources of capital, as you’ve asked.

Lee Kantor: So what do you need more of? How can we help you?

Kelly Scott: Well, I think it starts with an introduction. We, you know, we want to work with every business and consumer client that we have, and we do that through the power of every connection. We do it one client at a time. As I mentioned, it’s a relationship business. We want to bring the best resources, expertise, data to our clients and then help them as they’re growing, whatever their goals are. And again, recognizing that there’s a lot of changing, uh, you know, environment in today’s business world, but that we through customized solutions, can support our clients. So it starts with that first conversation or that first, um, you know, contact and your audience can go to Bank of america.com. They can drill down to we’ve got links for small business and business banking. They can explore a variety of resources to just help them move their bank, their business forward and see what the bank can help them with. We also have a website. It’s access to capital. Directory.com that’s access to capital directory.com. And there they can explore some additional sources of funding that I mentioned earlier. So those are just a couple of areas. But really an introduction and an initial conversation will get us started.

Lee Kantor: Should they just walk into a bank.

Kelly Scott: Well there’s certainly nothing wrong with that. But we have great access through our consumer financial center channel, and they are equipped to handle any ask that comes in and get them in touch with the right resources across the bank. But as we talk about that great technology earlier, right from a smartphone device or their laptop going to Bank of America. Com or reaching out to Merrill Lynch or any of our other lines of business, we work together to to get our customers connected with the right areas of our bank.

Lee Kantor: So it’s better to connect that way rather than a bank, because that local banker may not be the right resource for you.

Kelly Scott: Well, I think every way, you know, regardless of how that connection starts, our teammates are trained to help, you know, do that initial screening to make sure we ask the right questions, to get them in touch with the area of the bank that can best help them. Again, a mortgage need is going to be something very different than, hey, I’m looking to, you know, sell my business. So we’re going to really triage that and help get them regardless of how they come into the bank. We want to work with them to find the best partner and the capabilities to align with their need.

Lee Kantor: Well, Scott, thank you so much for sharing your story today. You’re doing important work and we appreciate you.

Kelly Scott: Well, we truly appreciate the opportunity to speak to your audience. You have a great show, by the way, and it’s just truly been a pleasure. Hope to talk to you again soon.

Lee Kantor: All right. This is Lee Kantor. We’ll see you all next time on Atlanta Business Radio.