"Redbridge helped us optimize our cash management fees and generate significant value for our treasury function. The project revitalized our key banking relationships"

Gerard Tuinenburg
Treasury Operations Director

Assignment overview

  • Assess and optimize the cash management fees charged by six global banks
  • Scope: Europe and North America (across 24 countries and 10 currencies)

Objectives

  • Improve visibility on volumes and fees for each bank
  • Perform a sanity check on charges over the past 12 months
  • Review current market practices and innovative service offerings
  • Design and implement a fee optimization strategy
  • Maintain strong relationships with banks

 
 
 
 

Results

  • Conducted bilateral negotiations with the banks leading to a recurring annual savings of 17%
  • Added seven figure overall value to Unilever’s bottom line
  • Provided potential ways to optimize unchecked service items such as payment cards and earnings credit rate (ECR)
  • Obtained competitive offerings from incumbent banks, even on new and innovative services
  • Ensured better visibility and monitoring of fees going forward by implementing agreed-upon pricing grids

Methodology

  • Full assessment and mapping of banking services, including volumes and pricing, coupled with a thorough review of the fees charged over the last 12 months
  • Detailed benchmark of all payments and services (including payment cards and ECR)
  • Support provided to Unilever’s treasury team during the decision-making process and negotiations with banks

Value added by Redbridge

  • Helped collect all the data from the banks
  • Conducted a rigorous assessment to map and estimate cash management costs by bank
  • Provided in-depth knowledge of market prices and banking best practices across services and countries
  • Supported Unilever during extensive negotiations with banks to safeguard long-term relationships
  • Provided full support to Unilever until new pricing schemes were implemented
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