Relationship pricing is a blessing and a curse to those in Treasury. Large companies enjoy getting relationship discounts from a single bank, but at the same time struggle because no two banks’ bills (account analyses) are alike. Determining whether they are getting a fair deal from one bank by comparing it to another is a daunting task that takes time, expertise, and patience to perform.
Last week we spoke at the TEXPO conference with FISERV/Open Solutions and AT&T about this very subject. In two weeks, Steve Weiland, representing The Montauk Group, will be speaking again on the topic in Chicago at the Windy City Summit. No matter how you sugar-coat the project, or claim it can all be automated, or swear by the effectiveness of AFP codes, cross-bank comparison projects are a chore.
Going through the exercise is like taking every piece of clothing out of your closet, looking at it, sorting it, and thinking about how much you’ve used/worn it. After all shorts, pants, shirts, shoes, belts, hats, etc have been properly classified by color, use, and effectiveness, you have to make the decision to keep, donate, or trash each item, and in some cases buy new items. Some decisions are obvious – “Do I really need 10 blue shirts?” Some are hard – “This shirt has a lot of sentimental value but I’ll never wear it, do I keep it?” Some discoveries are fun- “Oh, I forgot about that!” Some lead to shopping to replace things that are just worn out. At the end of the exercise, you will be exhausted, but you’ll know exactly what and why you have everything in your closet.
A cross-bank comparison exercise is a cleaning of your banking services closet. Each company needs to take a hard look at each line item to determine what they have and why they have it. You won’t be tempted to add new services you don’t need if you know and understand what you already have. Instead, you’ll shop to replace services that are outdated or worn out and make your overall experience more efficient, less costly, and sensible.
Are you ready to dive in?
Product Manager, Bank Relationship Management Services
The Montauk Group, LLC.
390 Plandome Road, Suite 209, Manhasset, NY 11030