Building a Good Customer-Bank-Relationship
Working closely with their banking partners throughout the year, finance professionals have longer, structured conversations with key partners once a year. These annual meetings offer the opportunity to build strong working relationships and take a holistic look at the entire bank portfolio. During this meeting, both sides assess the relationship, discussing day-to-day and strategic treasury challenges, new bank products and services and plan for the upcoming year. Commonly, treasury professionals go prepared into the annual bank meetings, but maybe they do not prepare to the full extent possible.
Analyzing Your Bank Relationships
From a treasury perspective, these annual meetings with key bank partners should be used to optimize individual bank relationships and spread counterparty risk across the bank portfolio. Here are the top 5 best practice reports treasurers usually prepare for their annual bank meetings:
- Business with each bank by volume and on a transaction basis
- Transaction analysis by type
- Contract inventory and maturity lists as well as credit facilities
- Bank fee analysis: “What´s the value of our company to the bank?”
- Counterparty risk evaluation
For all reports, it is important to consider corporate and subsidiary bank accounts and transactions. Only treasury teams that are able to make the entire business relationship with all of their bank partners transparent are able to spread counterparty risk among primary and secondary banks efficiently.
Technology to Manage Your Bank Portfolio
Cloud-based Treasury and Risk Management (TRM) systems enable corporates to collect all financial data in a single place, making the information available for real-time analysis and reporting. TRM systems offer a variety of reporting capabilities, including interactive dashboards, a library of best practice reports and do-it-yourself-kits to build custom reports. Corporates can pull reports to prepare for their meetings with their banks, and also look up additional details during their discussions.
Treasurers should meet with their bank partners on a yearly basis to review and evolve their relationships. By using cloud-based technology, treasurers can better plan for the next business year and build stronger, long-term partnerships with their bank partners.