In cash pooling, companies have a choice between using their bank partner or relying on the functionalities of their treasury management system (TMS) to manually (or semi-manually) manage their deposits. Redbridge reviews the advantages and disadvantages of each solution.
The relationships that corporate treasury maintains with banks to manage cash operations are some of the most complicated and often confusing in the entire business. Because of the general misunderstanding of the cash management services bought from banks and the lack of available time in most treasury organizations, many companies perform only a cursory review of the information banks provide on service usage and costs each month. In some parts of the world, banks are not yet even providing the details of the number of transactions completed or their cost which leaves geographical blind spots in many organizations. There are literally millions in errors taking place each month that go unnoticed and we simply have to do a better job. By most estimates these errors range from 5% to 10% of our total bank fee spend and that represents real money in most companies. So, what is there we can do?
The leading financial management partner to corporations is now closer to its Swiss clients and the many treasury centers of multinational companies in Switzerland.
Bridget Meyer, senior director of Redbridge Analytics, presents in the Demo Pit at EuroFinance’s International Treasury Management conference 2017.
Regulatory changes over the past ten years in checking, transfers, withdrawals and payments by card, together with the arrival of new, nonbank players, have significantly disrupted the classic banking business model for cash management in Europe.
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.
How do banks price your term loans, revolvers, and other credit facilities? 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.
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.
A privately held retailer headquartered in the United States selected Redbridge 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.
