Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017 - 16

LE MAGAZINE DU TRESORIER / TREASURER MAGAZINE

N°98

- JULY /

AUG / SEP 2017

SELECTING YOUR
BANK COULD BE
A CHALLENGE

The bank selection process has evolved over the last years for
different reasons. It is key to properly select your bank partners.
The technology has become a key criterion for a good bank relationship. Today, it is even more crucial to include the technology
requirements in the bank RFP's in order to determine the right
partners for the future. It is not an easy process...

Reasons for changing bank relationships
It is a mix of different factors. In a RFP and beauty contest,
the balance score card pre-defined weight the different parts
according to the importance for the customer/treasurer. Price
is obviously a key factor. It is also sane and sound financially
speaking to challenge banks on a regular basis to also give
opportunities to other bank partners to pitch if they can/
want. The technology criterion becomes more and more crucial in the selection in order to ensure the bank connectivity.
Are they able to offer eBAM? To prepare and issue cheques?
To offer virtual accounts? What about their network? Etc...
The service is also still important and eventually do not forget
the personal factor. It remains an intuitu personae relationship between individual. Human factor is still there at a
time we all talk about robots.

The hurdles and challenges
for changing bank relationships
It is challenging. Every change is always challenging as it is
always tough at inception and requires a lot of efforts from
both sides to adapt and to get things adjusted. However, the
idea remains to get better situation and costs afterwards.
It is a sort of compulsory / obliged path prior to cheaper and
better relationship. The major hurdle is the resistance to
changes. We are all lazy and changes will automatically mean
problems at the beginning. That's the human treasurer's
nature... Please also note that KYC's and other compliance
documentation are a real issue. I do recommend prior to
select a new bank (if you don't have accounts opened) to open
the account first or to check KYC first before on-boarding.

It is also sane and sound financially
speaking to challenge banks
on a regular basis to also give
opportunities to other bank partners
to pitch if they can/want.

Best ways to minimise disruption
when changing banks
The best way to minimise disruption is to prepare the ground
and the people. Do not neglect the affiliates' whom should be
involved too in order to make sure they are on-boarded and
"bought" the project. It is not that obvious in practice. Talk to
your affiliates before to make sure they validate your choices
or even better your recommendation. Give them the opportunity to participate to the selection process as far as you can.

Tips for a successful bank RFP process
First try to be comprehensive, clear and fair to avoid overexpectations from your bank partners. Be fair by regularly
challenging them and offering them opportunities to pitch.
Next time, they'll may be more successful. I would also recommend to try to understand and anticipate bank strategies
which can vary and evolve over time. We recently saw some
banks withdrawing from some countries, business or products. Look also for ideas, innovations and proactivity. Be fair
with the one coming with the idea! You should also consider
new methods of payment and technologies which now count
a lot for good bank relationships. A RFP should be a real one
with the idea of giving the business to the one who deserved it
and made the best offer. Do try to launch RFP's with the idea
of getting discount from your current partner. A fake RFP is
not to be recommended. Be as fair as you'd like your partners
to be!

Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017

Table of Contents for the Digital Edition of Trésorier/Treasurer magazine - N°98 - July/Aug/Sep 2017