"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. "
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
AT&T saw substantial improvements in the company’s financial operations: a 17% reduction in cash management costs, nearly 40% offset of management fees through improved yields, and standardized bank fees that aligned with market best practices. This strategic refinement greatly enhanced AT&T’s financial clarity and decision-making capabilities.