Current European Trends in Cash Management
Over the last 12 months, Redbridge Debt and Treasury Advisory in conjunction with the CGI Workgroup 5 has conducted one of the most extensive surveys of BSB availability and scope of Global AFP code usage to date. While 16 known banks can currently produce the BSB file in a variety of countries, the survey reveals that there is still a long way to go for truly global coverage, even among the top global money center banks.
On Wednesday, September 19th, the Dallas Association for Financial Professionals will hold its annual education and networking event.
The use of cash and coin is not only declining, it is becoming more expensive each year. Large corporations required to receive payment in cash constantly look to reduce the cost of this service and manage the associated risks. Read here for some of the latest trends in cash and coin collection.
Not paying attention to how your banks assess your creditworthiness could cost you millions of dollars
How do your banks price your term loans, revolvers, and other credit facilities and importantly, what makes your business profitable to each of your banks? Each bank has its own internal methodology, of which you might not be aware, but should be, writes Stephan Ireland.
RAROC – A treasurer’s best tool for optimizing banking relationships and reducing financial expenses
Banks utilize RAROC (risk adjusted return on capital), a risk-based profitability measurement, to assess the efficiency of their business relationships with corporations. Similarly, savvy treasurers utilize the tool to monitor costs and to ensure competitive pricing in their banking relationships. The range of products & services offered are evolving and their costs are increasing as treasurers’ needs broaden, regulations become more burdensome, and markets become more sophisticated.
The Redbridge team is excited to be exhibiting and speaking at the AFP Annual Conference in San Diego, October 15 to 18, 2017. Keeping with the AFP theme of « Where the Best Get Even Better », Redbridge experts will present key insights on some of the most important developments, trends and opportunities within treasury management. Our delegation of BRM experts will be available for meetings on current topics, including treasury service utilization, bank fee optimization, merchant card costs, credit ratings, fundraising, and debt structuring.
At some banks, paper Account Analysis Statements are still priced lower than electronic versions of the same report in PDF, CSV, or EDI 822. One bank is actually charging its corporate clients up to $175 per account monthly to receive an electronic version of the same report that comes in paper form for $25! That does not make sense! writes Bridget Meyer, senior director at Redbridge.
Solenn Le Lay and Hélène Shen, consultants from Redbridge DTA, identify important areas that treasurers should consider to avoid the common pitfalls of doing business with banks in Asia: obtain optimal pricing and ensure top quality services for all their local cash management needs.
In 2013, a privately held retailer headquartered in the United States selected Redbridge (at the time, The Montauk Group) to conduct a bank fees and services optimization called “BRM Insight”. This ‘big-box’ retailer – with more than 200 domestic US locations – utilizes a total of seven banks for its daily cash management, cash & coin deposits, and banking needs. In addition, the client works with multiple armored car couriers to facilitate the carrying of hard cash between its stores and banks.
Two of America’s largest banks have recently sent notices to customers communicating the changes to their services. Multiple global banks are also in the middle of streamlining service lines as they bring additional countries into a centralized global billing system.
Over recent years, the banking community has made steady progress toward establishing standardized billing formats.
When treasurers are able to understand how they are using the bank’s services and the cost of their global cash management operations they become better customers. Accessibility to the service usage and fee information relieves many of the pressures that currently exist in the treasury banking partnership, writes Dan Gill, Senior Director, Redbridge Analytics.
Corporate case studies and presentations reflect growing adoption of the BSB. European and UK e-invoicing regulation addressing retail bank statements and could in future have an influence on wholesale providers and users. The vendor survey is completed! An initial view of the results are reported on in this issue of the newsletter. Surveys are in progress to assess corporations using BSB as well as banks providing bank billing statements in BSB format. Corporate practitioners attribute value to use of the BSB format.
Treasurers should be stressing the importance of discussing account analysis statements when looking at a new non-U.S. bank relationship, write Tamir Shafer and Stephan Ireland.