Middle market companies in the United States, numbering around 200,000 as of 2024, have an average age of 30 years and a median age of 23, according to a report from Ohio State’s National Center for the Middle Market. These figures suggest that such firms often take a long-term approach to strategic planning.
Aaron Lemke, Wells Fargo Commercial Banking Leader, shared his perspective on how these businesses can benefit from establishing enduring relationships with their banking partners. “In my experience as a 20-year banking leader, and having served middle market businesses (ranging from $25 million to $2 billion in annual revenue) for the last 11 years, establishing a long-term relationship with a company is the ideal way to align financial advice and services with their nature,” Lemke said.
Lemke emphasized that building this kind of relationship requires business leaders to invest effort in researching banks that prioritize both culture and client longevity. He noted that high turnover at financial institutions can make it difficult to foster trust and understanding over time. Changing banks can also be disruptive due to the time needed for new teams to learn about a company’s goals and history.
He added: “To avoid the disruptive costs of changing banking partners, and to reap the value that a longtime relationship brings, it benefits a company to find a bank that can accommodate its growth and financial goals with an array of services and products, while maintaining a culture that attracts and retains top banking talent.”
According to Lemke, effective communication is another key factor. He observed changes in business interaction since March 2020 when the World Health Organization declared COVID-19 a pandemic (https://www.dcd.gov/museum/timeline/covid19.html). The shift toward virtual meetings has persisted beyond the initial crisis period but may not fully replace face-to-face engagement. “My view: Businesses should consider the value of routine in-person meetings and collaborations with their banking partner. While virtual engagement may be easier to coordinate, face-to-face communication affords deeper understanding and relationship-building,” he said.
Lemke also advised companies to evaluate whether their banking services align with their long-term vision rather than just present needs. He encouraged leaders to assess if their bankers are willing to understand industry specifics and invest time in supporting business objectives.
“For many of the middle market companies I have worked with, the deepest banking relationships are forged during hard times. Relationships are easy when profits are up and targets are reached; it’s when challenges arise, and creative solutions are needed, that value is tested,” Lemke stated.
He concluded by noting that finding a committed partner who supports both good times and bad can play an important role in determining whether a business merely survives or thrives.
