Without effective two-way communication, your banking relationships can quickly deteriorate. Read more to understand how to strengthen your company’s banking relationships in 2019.
How well does your company work with its banking partners? Can the connection be stronger in some areas? The answer to both questions is yes. Although banks and their customers have different goals in mind, the methods must align to achieve success for both parties. As a Chief Financial Officer or a Corporate Treasurer, it is imperative to be transparent about what you want and need from your banks.
Without effective two-way communication, your banking relationships can quickly deteriorate causing major financial issues. Regularly meeting with your banking partners sets the precedent for communication. If your bank does not understand your vision, their performance for your company will be subpar. Redbridge Debt and Treasury Advisory can improve your understanding of your bank’s profitability on your relationship and assist in your monitoring capabilities while giving you more control of your overall banking relationships and setting you up for success during your regular bank meetings.
As a Chief Financial Officer, Treasurer, or upper management team member, you rely on banks to help you achieve your goals. You expect accurate, timely payments, informative currency forecasting, and other efficient auxiliary services. When payments are made in an untimely manner or yields differ significantly, your assessment of the banking relationship is unfavorable. Keep in mind that the banks are also seeking advantages in their association with you. Are you on the same page? If not, create a plan that lays out everyone’s objectives.
Understand the Evolution
Objectives on both sides are destined to change over time. Thriving companies inevitably evolve in some capacity and their priorities can shift drastically. The banking industry is also evolving with the emergence of online transactions. A recent Citi Mobile banking study reveals that mobile banking usage skyrocketed by 50% in the past year. Additionally, eight out of 10 U.S. adults use mobile banking nine days out of the month. Four out of 10 adults in the U.K. use mobile banking apps for their financial transactions. Banks have noticed the adoption of technology by its customers by incorporating online and mobile banking into the banking experience. To stay on top of changes and updates such as the technology advancements, companies must conduct regular meetings with their banks.
Use Industry Standard Measurement Tools
One of the tools that banks utilize is a formula to measure their risk-adjusted return on capital, known as RAROC. It gives banks a clear view of their relationships with applicable companies. Redbridge is skilled in measuring the RAROC of corporations such as EDF Energy. Utilizing RAROC, we expertly monitor costs and can negotiate competitive pricing on your behalf. Our team stays abreast of the ever-changing regulations and markets, so we can ensure your banking relationships remain robust yet stable. Redbridge will assess the services and fees that you are incurring and compare them to what is most beneficial for your company. We strive to learn how we can assist you with services that you require while making sure that you receive the quality that you deserve.
How Redbridge Can Help
As your unbiased consulting and advisory firm, Redbridge provides your company with analytics, fee optimization strategies, and global benchmarking. Armed with our revolutionary bank fee monitoring software, we develop strategies for optimizing global cash management, banking relationships, and treasury operations. Contact us today to start 2019 off with the right banking relationships and to strengthen them throughout the year.