Reliant Bancorp
Reliant Bancorp Inc. is a bank that understands the demands of building a business. The organization aims to rise above the challenges in the market by offering customized account options, the latest banking technologies, and convenient features that can help the community to increase their business efficiency. Reliant Bancorp Inc. attracts deposits and provides commercial banking services. According to Reliant Bank (2020), the bank offers a wide variety of businesses and consumer loans.
The financial and strategic priorities of Reliant Bancorp has a huge impact on its accounting and business decisions since such priorities often define the functioning and structure of the company. A company’s operation should be a reflection ofthe accounting procedures and business decisions. Being afinancial institution, Reliant Bancorp has come up with more strict accounting procedures and flexible business decision making. This is intended to make investment decisions more successful and obtain maximum returns from the market, based on their strategic and financial priorities.
Looking at Reliant Bancorp’s priorities, it is evident that the company seeksprofitability, and at the same time, maximizesthe reinvestment of operating income to drive capital expenditures and reduce its net income. Within its financial report, the company’s initiatives enable investors and the public to see how fast the company is growing based on its gross income and how successful its operations are. Profit maximization and growth have been a long-term trend within Reliant Bancorp, as evident from the security filings. While Reliant Bancorp tends to be a growth-oriented organization, it is also driven by the efficiency of operations. As with many other organizations, the Reliant Bancorp is vigilant about how it spends. It is important to note that today, the banking industry is facing a new blend of environmentsthat presents special stimulus to the need for operational efficiency. The shiftin customer expectations and preferences, intensifying competition, and new technologies are continuing to transform the nature of banking today. Banking services are shiftingtowards thedigitech model. For Reliant Bancorp to remain competitive, they have continued to invest in marketing, automation, technology, and self-service applications and have also tried optimizing their legacy investments in traditional systems and branches. Developing more efficiency in all the things they do is an essential strategic approach for Reliant Bank, and it has put significant effort into improvingcost after the experience of the last recession. According toBrigham & Houston (2012), improved efficiency ideally implies thatoperational processes are scalable and support a speedy growth rate for the bank’sasset base and revenue stream.
Banks are literally exposed to various types of risk, but Reliant Bancorp has identified ways of mitigating these risks and creating significant returns on a consistent basis for the shareholders. To effectively mitigate the risks, the company ensures that they correctly identify them, their causes, and the damages they can cause. One of the company’s major risks is credit risk, which arises from the potential non-payment of loans by debtors (Arnold, 2008). Even though credit risk is often considered as the risk of not receiving loan payments, Reliant Bancorp also incorporates the risk of a delayed payment of the loans. Securitizationhas helped Reliant Bancorp to eliminate the concentrated risk from the bank’sfinancial books and diffuse it to different investors in the capital market. The company focuses on long-term goals and achievements to ensure continuity of the business.
Reliant Bank is a full-service commercial bank that provides various deposits, lending, and mortgage productsand servicesto business and retail customers. The bank’s vision is to be the best financial institution at building and being part of the communities they serve (Reliant Bank, 2020).They want to continue building the brand across the market and remain committed to building long-term value for shareholders. Reliant Bank’s best non-financial assetis the management’s long termgrowth plan and the drive for efficiency. Within the industry, international growth is a major focus of Reliant Bank. In recent years, domestic growth has slowed down, but the company is focused on opening some of its branches in different countries (Reliant Bank, 2020).
Reputation is one of the most fragile and valuable assets that a bank can own. Reliant Bank has made it a priority to build public and consumer trust through reputation. According to Arnold (2005), a good reputation can differentiate a bank apart from its rivals. In 2019, the company set a program to reset the foundation for consumer relationships.The bank’s manager was quoted saying that reputation is a foundational aspect of a bank’s capacityto inspire trust. Reliant Bank has a strong and loyal customer base. However, the company has always expressed the need to expand its customer base and compete at the international level. As a result, they should put a reliable and robust customer relationship management to help deal with customer issues. They should put a good team to manage social media, online reviews, and customer feedback. And to continue providing excellent customer service, the company must keep its facilities and equipment up-to-date.
One of the internal risks that the bank faces is an operational risk that stems from inadequateor failed internal systems, procedures, internal controls, or policies due to employee errors, fraud, breaches, or any event that disrupts the processes of the financial institution. For instance, in 2018, one of the employees was involved in forgery and misappropriation of assetsresulting in losses inside the financial institution. Other internal risks have resulted from business disruptions and system failures. Software or hardware system failures, power failures, and disruptions in telecommunication systems within the company have interrupted the business operations of the financial institution on several occasions, causing financial loss.
References
Arnold, G. (2008). Corporate financial management. Pearson Education.
Brigham, E. F., & Houston, J. F. (2012). Fundamentals of financial management. Cengage Learning.
Reliant Bank (2020) About Us. Retrieved from https://www.reliantbank.com/about/for-investors/
