Local Authorities/Government Departments - Banking
All of our work is tailored to individual clients' needs. Our projects however are typically either based around a review/benchmark of arrangements or assistance with a tender process.
Benchmarking Review of Bank Tariffs & Costs:
The Rationale:
With limited appetite in the industry for local authority banking contracts, negotiating with your existing bank rather than seeking quotes via a formal tender process can often achieve the most competitive deal. Based on our experience of having worked with around 200 local authorities and a number of government departments plus our current knowledge of the industry we are able to compare your arrangements with those that you would achieve at tender in the current market. This will enable you to negotiate from a position of strength and ultimately demonstrate Best Value.
The Service:
- An alternative to placing a contract to tender whilst still demonstrating best value and achieving market tariffs
- Can form part of a Best Value Review
- Benchmark of tariffs and services to assist in negotiating extensions to banking contract
- Benchmark 'tender' tariffs supplied together with advice on negotiating improved terms.
- Possible improvements to processes and use of the banking system identified
- Negotiation tactics provided
The Benefits:
- Best Value demonstrated whilst avoiding a time consuming tender process
- Improvements to services identified
- Internal processes improved
- Bank relationship enhanced
Banking Review and Tender:
The Rationale:
When a tender process cannot be avoided we are able to provide specialist assistance at each stage of the project.
Not only are internal resources saved, the use of an external independent expert enables banking arrangements together with the use of banking products and services to be reviewed and compared to best practice. We will often identify savings in our review process that exceed any fee we charge for managing the tender project.The Service:
- Management of all or part of the tender process
- Dealing with European Union procurement requirements
- Preparation of an invitation to tender document
- Review of processes and use of the banking system - separate report can be provided highlighting potential savings
- Evaluation of tenders and production of a report suitable for internal reporting purposes
- Assistance with short listing banks and clarification process
The Benefits:
- Expert assistance obtained in completing the tender process
- Professional and thorough documentation ensures keener pricing from banks
- Processes and use of the banking system reviewed and improvements identified
- Thorough evaluation of tenders - all hidden costs identified
- Minimal strain on internal resources - time saved
News
Banks Continue to Seek Increased Income From Relationships
Banks continue to seek increased margins and fees for working capital and debt. At the same time, we are frequently seeing requests to increase money transmission tariffs.
Our experience is, however, that it remains a competitive market place and banks do want to lend to good quality covenants and retain existing or win new money transmission business. We continue to help clients reduce costs and if your bank has increased its income from lines of credit or charges then it is probably a good time to review the whole relationship to ensure that in overall terms pricing and charges remain competitive.
Our experience is, however, that it remains a competitive market place and banks do want to lend to good quality covenants and retain existing or win new money transmission business. We continue to help clients reduce costs and if your bank has increased its income from lines of credit or charges then it is probably a good time to review the whole relationship to ensure that in overall terms pricing and charges remain competitive.
Reducing costs in the Charity sector
The economic downturn has hit the charity sector with most UK charities experiencing a fall in donation income.
This has driven charities to look harder for ways to reduce costs and improve efficiency. Focus on Banking has now worked with 15 major UK charities in the last two years and has been able to generate savings in banking and credit/debit card acquiring arrangements of well over £500,000.
This has driven charities to look harder for ways to reduce costs and improve efficiency. Focus on Banking has now worked with 15 major UK charities in the last two years and has been able to generate savings in banking and credit/debit card acquiring arrangements of well over £500,000.
Joint Procurement for Local Authorities
The profile of procurement in local authorities has been raised in the last few years through a number of Government publications and reviews. All local authorities are now considering options for procuring good/services on a joint basis with neighbouring authorities.
Whilst undoubtedly for certain types of contracts, authorities will benefit from economies of scale, this does not necessarily apply to banking. In fact banks have tended to show little appetite for complicated joint contracts and will not usually offer discounts or reduced pricing when several authorities collaborate.
Whilst undoubtedly for certain types of contracts, authorities will benefit from economies of scale, this does not necessarily apply to banking. In fact banks have tended to show little appetite for complicated joint contracts and will not usually offer discounts or reduced pricing when several authorities collaborate.
Law Firms Remain Critical Customers For Banks
The ongoing shortage of liquidity in the market has seen the competition between banks for the client balances that law firms hold increase. At the same time, banks will often fail to offer competitive terms for balances already held. Given that banks are also restricting the use of Base Rate linked facilities and increasing margins and fees for credit lines, the dynamics of firms' bank relationships are fundamentally changing.
Maintaining and increasing client balances held has become a key target for banks and there has never been a better time to review relationships.
We have now worked with more than 65 of the UK's largest professional firms and the number continues to grow.
Maintaining and increasing client balances held has become a key target for banks and there has never been a better time to review relationships.
We have now worked with more than 65 of the UK's largest professional firms and the number continues to grow.
EU Regulations for Banking Contracts
Following the tightening of EU regulations for tendering public contracts, Local Authorities are now seeing more challenges to contract award decisions than ever before.
Although we are not aware of any recent challenges in respect of banking contracts, it is now vital to ensure that Bank Tender documentation clearly outlines the criteria and scoring methodology in order to avoid any potential challenge.
Focus on Banking has vast experience in tendering Local Authority banking contacts and we are familiar with how banks will respond to the questions asked. We are therefore able to devise bespoke scoring systems to ensure that the contract is awarded to the most appropriate bank. Without professional involvement in the production of evaluation criteria, Local Authorities face the risk of having to award a bank contract based on the evaluation scores even though in real terms the highest scoring bank does not offer the best value for money.
Although we are not aware of any recent challenges in respect of banking contracts, it is now vital to ensure that Bank Tender documentation clearly outlines the criteria and scoring methodology in order to avoid any potential challenge.
Focus on Banking has vast experience in tendering Local Authority banking contacts and we are familiar with how banks will respond to the questions asked. We are therefore able to devise bespoke scoring systems to ensure that the contract is awarded to the most appropriate bank. Without professional involvement in the production of evaluation criteria, Local Authorities face the risk of having to award a bank contract based on the evaluation scores even though in real terms the highest scoring bank does not offer the best value for money.
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