Do You Know How Banks Affect Your Treasury Duties in Business?

January is generally the time of year when banks introduce annual pricing updates to their business banking services, like their Treasury Services.

Annual Service Pricing Updates

Most banks quietly place a brief notice in the November or December account analysis statements. From a regulatory standpoint, this notification technically completes the process. However, most are not aware of the pricing changes. Few have specific direction on how the pricing updates will impact their organization. Fewer still receive proactive insights regarding the management of pricing changes.

January statements are normally available in the second or third week of February. This is an opportune time to ask yourself two important questions:

  1. Has the bank introduced pricing changes, effective January 1st?
  2. What impact will the pricing changes have on your banking fees, or if the fee increases can be offset?

In 2016, Corporate Treasurers are no longer just tasked with reducing the treasury’s costs. They also play the role of strategic adviser to the corporate CFO. The Treasury team is responsible for providing operational risk management, working capital, and effective support or leadership to controls.

Bank Relationship Management

Every corporation should practice bank relationship management. By building a relationship with your bank, you’re building trust on both ends. Developing trust with your bank ensures you stay ahead of any changes that may be coming your way. It also contributes to a more financially beneficial situation for all parties involved.

A company can best manage and maintain the relationship two ways:

  1. Hold regular meetings to effectively communicate your strategy, potential strategy, and any upcoming opportunities.
  2. Ensure the banks have access to senior management.

A company’s bank can be its strongest ally – or its greatest enemy. Invest the time to build a solid working relationship with your banking institution, and your needs will be better managed in the future.

Being knowledgeable and current on your bank relationships will help you stay ahead of the curve. When you plan for the short term and beyond, you have a better understanding of pricing changes in banking operations and how they’ll affect your corporation.

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