2010 10 treasury fundamentals sov
DESCRIPTION
Treasurers Managing Banking RelationshipsTRANSCRIPT
From Banker to Strategic Advisor
Patricia Mullin, MBA, CCMVice President, Manager of Cash ManagementCambridge Trust Company
TMANE Board
Laurel Egan Kenny, MBA, MSCMPresident, Turningpoint Communications
TMANE Board, New Membership , Communications Chair
Treasury Fundamentals October 20, 2010
What You Will Learn Today
What is a strategic banking advisor?
How do you evaluate a banking relationship?
– Tools you can use!
How can you find a win/win?
“Yellow” Flags to watch out for
You have negotiating power
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Audience Poll: How was your current bank chosen?
I don’t know
Close proximity to the office(s)
As far as I know it’s always been this way
My boss chose
Company prefers not to deal with “the other bank
Somebody at my company knows somebody there
They gave my company a loan, so now we owe them
Our bank was absorbed by our new bank
Others?
I followed my Strategic Advisor
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What defines a Strategic Advisor?
Led by a relationship manager (supported by a team)
with expertise in a particular industry
Offers proactive industry research, trending, analysis
Develops, maintains, customizes and delivers
state-of-the-art treasury solutions
Acts as extension of the Treasury Manager’s team or
business
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View your banking partners as extensions of your team
EVP, Director
CEO
Operations Team
Business Line RM ( Commercial Banking)
Implementation Manager
Product Development Manager
Client Service Team
Business Line RM (Treasury Management)
Trainers
CreditTreasury Cap Mkts OtherTrade
Strategic Advisory Team
FX
Relationship
Manager
Treasury
Team
Business strategy and management
Industry analysis
Competitive intelligence
Marketing
Your Business
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Why you need a Strategic Advisor –Not just a Bank
You have a Relationship Manager, who:
World-class solutions / technology Opportunities for competitive pricing / cost control Risk mitigation: operational, industry, credit
Single point of contact
Has your interests in mind
Vast experience managing relationships
Knows your company’s business strategy
Innate knowledge of YOUR business model and industry
Backed by team / senior management / decision makers
Communicates effectively with your team
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Leveraging your Advisor: In ways you may not have thought about
Your Relationship Manager can help you with:– Selling you / your ideas to your senior management
– Marketing/ Communications: Client Features Promotional communications: Success Stories, Case Studies, Testimonials
– Industry trends, research and analysis, competitive intelligence
– Perks: Business is not “ALL business” Patriots Tickets, Thought Leadership Event Admission.
Benefits to you and your business:– Promote yourself
– Compete through access to the industry’s best tools
– Leverage reporting tools: automating processes, cost controls
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Shhhhh! Bankers’ Secrets
Replacing you as a client is VERY expensive
Lack of a scorecard or Account Analysis may open the door for a competitor (Bankers do not like to play Defense)
Cross selling opportunity / increasing share of wallet is important in relationship pricing
People prefer to work with people they like
Bank systems are tracking your service levels
Good RMs are like the “Pied Piper”
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“Yellow” Flags
Financial Crisis: TARP money / Payback
Banks in acquisition / merger mode– Lack of focus on the business, product development, YOU
Excessive turnover
Communication breakdowns
“Free” – It comes with a price
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Steps YOU can take to make your Banking Advisor the best s/he can be
Understand and maintain service expectations
Establish milestones and celebrate success
Communicate both ways
Proactively set meetings
– Share your commendations and concerns
Manage the relationship well and keep score,
Add to your annual review
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Service Level Agreements /Scorecards: Keeping Track
Use industry standard or create your own– Incorporate everything you can quantify: performance, tangibles,
intangible items, frequency / method of communication / meetings
Measure all banking relationships in the same way
Refine document as business changes – Volumes +/-, products used
Ensure a support team is in place
If sold, participate in meetings with new bank for a smooth transition
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Analysis Statements: Request and Understand it
Are you receiving your statement?
It is your right and responsibility!
Details hard fees vs. compensating balances.
Use to help negotiate better alternative services and better pricing.
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What we talked about
• Making the most of a strategic bank advisor
Strategic Advisors offer a comprehensive suite of services –beyond banking
Use your partner wisely
• Evaluate your banking relationship regularly
• Understand and escalate “Yellow” Flags
• Together you and your bank can do great things
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Contact Information
Laurel Egan Kenny, PresidentTurningpoint Communications339-793-3485laurel@turningpointcommunications.comwww.turningpointcommunications.com
Patricia Mullin, Vice PresidentManager, Treasury ManagementCambridge Trust Company617-441-1408 [email protected]
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Treasury Information: Alphabet Soup From ACH to ZBA
ACH
AFP
ARC
BAI
CCD
CTP
EDI
FX
IAP
TMANE
NEACH
NACHA
POP
POS
PP
TM
SWIFT
ZBA
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Ernst & Young Cash management Surveyhttp://www.ey.com/US/en/Industries/Banking---Capital-Markets/Banking_and_Capital_Markets_Cash_Management_Advisory_Services
Service Level AgreementsThe Association for Financial Professionals www.afponline.org
AFP Payment Fraud and Control Studywww.afponline.org/pub/pdf/2009_Payments_Fraud_Survey.pdf
AFP Best Payments Practices & Policieswww.afponline.org/pub/pdf/BESTPRA4.pdf
Phoenix Hecht Blue Book of Pricingwww.phoenixhecht.com/treasuryresources/PDF/BBExecSumm.pdf
RDC ROI Calculatorwww.RemoteDepositCapture.com
Preview Yield Advantage for Governmental Entitieswww.GFOA.org