""Redbridge’s in-depth understanding of banking sector and proven expertise in running RFPs helped us achieve significant savings on our day-to-day cash management fees.""
Engagement overview
Scope of analysis: 116 companies in France, including 62 in its fiber to the home retail business line and 46 in its B2B division.
We analyzed these companies’ 308 bank accounts with 24 standalone banks, which are part of seven banking groups.
We consulted eight banks providing cash management services from six banking groups.
Comprehensive review of cash management services and fees (excluding yield on deposits).
Objectives
- Identify the 2024 cash management costs for all of the group’s business lines (including its non-core telecom activities).
- Optimize bank services and fees.
- Develop terms and conditions covering all group entities (including future acquisitions).
- Put in place conditions that enable long-term bank fees monitoring.
- Strengthen cash management banking partnerships.
Results
- 35% overall reduction in cash management expenses, driven by:
- 51% reduction in Commission de Mouvement de Compte (CMC)
- reductions in certain fees directly linked to cash management services, telematics and other operating charges.
- Implementation of simpler, more transparent billing processes (including flat fees with two banks).
- Multi-year contractual agreements ensuring long-term visibility of banking terms and conditions for all group entities.
Methodology
- Calculation of current costs using account analysis statements in the French CFONB banking format from 24 standalone banks.
- Tender limited to eight banks, accounting for 84% of current costs.
- Two-round negotiation process: the first with all banks, the second only with those “half-way” towards optimal conditions.
- Support through to the signing of contracts.
Value added by Redbridge
- Detailed audit of transaction volumes and associated cash management fees carried out in close collaboration with Altitude’s teams.
- In-depth knowledge of fair market conditions and banks’ cash management services.
- Project managed fully respecting the group’s strategic banking relationships.
- Final results exceeded the group’s expectations.