AT&T Streamlines Complex Cash Management Operations With Redbridge
TELECOMMUNICATIONS
NORTH AMERICA
CASH MANAGEMENT
Challenge
AT&T managed 150-200 diverse cash management services with unclear costs and inconsistent fee structures across multiple banking partners. The sub-optimal earnings credit rate (ECR) offered by the company’s various banks did not align with current market rates, indicating significant inefficiencies in financial management and an opportunity for improvement.
Solution
AT&T partnered with Redbridge to conduct a detailed analysis of cash management processes, using proprietary benchmarking to identify potential savings across the board. The optimization strategies achieved clearer financial terms & improved cost management, leading to a 17% reduction in cash management costs without altering any banking relationships.
Results
17% Reduction in Cash Management Costs
AT&T achieved a 17% reduction in overall cash management costs through structured benchmarking and pricing alignment. The savings were realized without altering existing banking relationships, reinforcing cost discipline while preserving institutional continuity.
Nearly 40% Offset of Management Fees Through Improved Earnings Credit Rates
By recalibrating earnings credit rates to reflect current market standards, AT&T improved yield performance and offset nearly 40% of management fees. This adjustment corrected previously sub-optimal rate structures and enhanced overall efficiency within treasury operations.
Standardized Fee Structures Strengthened Financial Clarity
The engagement resulted in standardized bank fees aligned with market best practices. Clearer pricing structures improved transparency across cash management services and supported more informed financial decision-making.
“Redbridge’s tools and expertise helped us better understand the individual services we were using and rationalize each bank account resulting in significant savings for AT&T.”
Stacy Roth
AVP – Treasury Services, AT&T Inc.