Banking & Treasury Insights
Practical perspectives on banking, treasury management and financial operations—designed to help organizations ask better questions and make more informed decisions.
Banking Optimization
Is Your Commercial Banking Relationship Actually Competitive?
Your banking relationship may be working—but that doesn't necessarily mean it's optimized. A periodic review of pricing, services, account structure, earnings credit and overall relationship value can uncover opportunities that aren't obvious from a monthly bank statement.
Source: Financial Professionals
Treasury & Financial Operations
Your Banking Structure Is Part of Your Treasury Strategy
Accounts, payments, liquidity, controls and banking services shouldn't be viewed as separate pieces. They work together to determine how effectively an organization manages its financial operations.
AFP describes bank relationship management as including performance evaluation, relationship reviews and managing the financial services organizations rely on.
Source: AFP
Banking Strategy
Does Your Organization Need a New Bank—or a Better Banking Strategy?
Growth, acquisitions, changing financial requirements, service issues or evolving treasury needs can create legitimate reasons to evaluate additional or alternative banking relationships. The decision should begin with understanding the organization's needs—not simply shopping for another bank.
AFP's research shows that organizations often maintain multiple banking relationships, with economies of scale among the reasons organizations expand their banking relationships.
Source: AFP
When was the last time you took a comprehensive look at your commercial bank accounts—not just your fees, but the entire relationship?
Banking structures can become increasingly complex as organizations grow, add services, change payment processes, or establish new banking relationships. What made sense several years ago may not be the most efficient structure today.
A commercial bank account audit provides an opportunity to step back and evaluate whether your accounts, services, pricing, and balances are still working effectively for your organization.
Why Conduct an Independent Review?
Your bank is an important partner, but an independent review provides another perspective on the overall relationship.
The objective isn't necessarily to change banks or eliminate services. It's to determine whether your banking structure, services, pricing, and balances are efficient and aligned with your organization's current needs.
An independent review can identify opportunities that may be difficult to see when you're evaluating the relationship from inside the organization.
The question isn't whether your bank accounts work. It's whether they're working as efficiently as they could.
What Should You Look At?
A comprehensive review should go beyond the monthly bank statement. Key areas include:
Account Structure
Are all accounts necessary, or have accounts accumulated over time that could be consolidated?
Bank Fees & Pricing
Are you paying for services you no longer use? Are your fees aligned with the services and value you receive?
Earnings Credit Rate
If your organization maintains compensating balances, are your earnings credits being fully utilized against eligible banking fees?
Treasury Services
Are your treasury services being fully utilized, or are there redundant or underused services?
Cash & Liquidity
Are operating and excess balances positioned appropriately for your organization's needs?
Payment & Fraud Controls
Do your payment processes, access controls, and fraud protections reflect your current transaction activity and risk environment?
5 Warning Signs Your Banking Structure Needs a Review
Your banking structure may be working—but that doesn't necessarily mean it is working efficiently.
As organizations grow, banking relationships often become more complex. Accounts are added, services change, transaction volumes increase, and new banking relationships may develop.
Over time, those changes can create opportunities to simplify, improve efficiency, or reduce unnecessary costs.
Here are five warning signs that it may be time to take a closer look at your banking structure.
Take a Fresh Look
A banking structure doesn't have to be broken to benefit from a review.
A periodic assessment can help identify opportunities to improve efficiency, better utilize existing services, and reduce unnecessary banking costs.
The goal isn't simply to have fewer accounts or pay lower fees. It's to have a banking structure that makes sense for your organization today.
Razatos & Associates provides an independent perspective on commercial banking relationships and helps organizations identify opportunities to improve their banking structure, efficiency, and overall cost.
1. Banking fees keep increasing
Your costs are rising without a clear change in services or value.
2. You have more accounts than you need
Growth, acquisitions and operational changes can leave behind unnecessary or duplicate accounts.
3. Earnings credits aren't being fully utilized
Your ECR may not be offsetting eligible banking fees as effectively as it could.
4. You're paying for services you don't fully use
Treasury and banking services can accumulate over time and may no longer align with your needs.
5. Your banking structure hasn't been reviewed in years
Your organization has changed. Your banking structure should evolve with it.