"We run a tight ship with a relatively small team. Redbridge added resources that acted as an extension of our team to help us accomplish one of our treasury priorities – optimizing my bank fees, while requiring very little of my team’s time."
Mandate Type
- BRM Insight, Cash Management USA
Objectives
- Review organizational processes, service utilization needs and overall quality of banking relationships
- Identify opportunities for optimizing bank fees, rates and services
- Propose customized strategies to capitalize upon identified opportunities and to implement strategy
- Establish measurable and fortified fee & service structure with banks while maintaining flexibility to meet long-term growth needs
Methodology
- Audited 6 months of Southwest’s Account Analysis statements, benchmarked fees; compared yield to market levels; identified areas for improvement, and developed an action plan
- Created Bank Discussion Documents (BDD) to bilaterally engage the 4 incumbent banks. Managed two mediation rounds and presented detailed findings
- Managed final bank agreements and pro-forma to guarantee newly agreed upon bank fee structure. Monitor fees for 3 months to ensure banks’ compliance with terms & conditions
Achievements
- Account restructuring resulted in over $600k in yearly savings
- Gross bank fees reduced by 20% to generate additional savings
- Realized further 25% decrease on LC costs
- Uncovered and eliminated 12 superfluous services