"Redbridge helped us optimize our cash management fees, credit yield and generate significant value for our treasury function. The project revitalized our key banking relationships and helped us opt for the optimal service and account remuneration structure."
Engagement overview
- Assess and optimize the services and the fees, charged by 6 global relationship cash management banks;
- Optimize the structure and levels associated with credit yield related to the company’s cash management;
- Scope: Europe and North America (across 9 countries)
Objectives
- Improve and refine visibility on volumes and banking fees per bank;
- Review current market practices and innovative service offerings;
- Analyze credit interest rate offers in comparison with market best practices.
- Maintain strong relationships with banks.
Results
- Conducted negotiations with the banks leading to first-year savings of 15% – interaction with major banks in 9 countries;
- Structuring a tailored solution regarding credit yield and obtaining “best-in-class” conditions on credit remuneration;
- Better visibility and monitoring of fees going forward on clearly agreed price catalogues.
Methodology
- Full mapping and audit of existing perimeter banking services including volumes and pricing;
- Detailed benchmark for all means of payments and services, aiming achievable levels in line with relevant market practice;
- Accompany treasury team in their reflection and analysis during bank discussions and negotiations;
- Implementation with each bank of recurrent reporting on volumes managed and fees charged.
Value added by Redbridge
- Collect all the data from banks until complete exhaustiveness;
- Rigorous diagnosis process to map and reconstitute cash management costs per bank;
- In-depth knowledge of market prices and banking best practices across services and countries;
- Supported Avolta for balanced and considerate negotiations with banks to safeguard long-term relationships but also benefit from best conditions for each service type;
- Full client support until documentation signing.