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.
When treasurers are able to understand how they are using the bank’s services and the cost of their global cash management operations they become better customers. Accessibility to the service usage and fee information relieves many of the pressures that currently exist in the treasury banking partnership, writes Dan Gill, Senior Director, Redbridge Analytics.
Corporate case studies and presentations reflect growing adoption of the BSB. European and UK e-invoicing regulation addressing retail bank statements and could in future have an influence on wholesale providers and users. The vendor survey is completed! An initial view of the results are reported on in this issue of the newsletter. Surveys are in progress to assess corporations using BSB as well as banks providing bank billing statements in BSB format. Corporate practitioners attribute value to use of the BSB format.
Treasurers should be stressing the importance of discussing account analysis statements when looking at a new non-U.S. bank relationship, write Tamir Shafer and Stephan Ireland.
Corporate treasurers must now become more vigilant than ever in monitoring the inventory of bank accounts, the services and volumes their banks are claiming were used, and the rates applied to these volumes, each and every month, write Daniel Gill and Tamir Shafer.
The most influential variable for optimal decision making is not based upon accurately utilizing and pricing all available information; rather, it is the inability to place any acceptable degree of confidence on the variable for uncertainty over future potential outcomes. Managing such uncertainty is precisely the challenge the corporate finance community faces after Britain’s recent referendum to withdrawal from the EU, writes Bob Callahan, Director at Redbridge DTA.
While rates are on the rise in a competitive environment, such as an RFP, it will take time before ECRs are increased across the board – especially at the large money center banks focused on shedding deposits rather than attracting them, says Redbridge’s nationally recognized treasury expert, Bridget Meyer.
An operational analysis of the European market for bank financing for large corporations reveals major pricing disparities among lenders, with indicative spreads that can vary by up to 100% within the same facility.
When thinking about the typical set of cash management services that banks provide to corporations, there is no reason that a bank should be treated differently from any other corporate vendor in order to be paid for its services, writes Tamir Shafer, Senior Director at Redbridge Debt & Treasury Advisory.
