Universities - 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.
Banking Review & Tender:
The Rationale:
Banks are usually keen to win business from Universities and as such a tender process can generate reasonable savings. Focus on Banking is very experienced in either managing the entire tender project and/or providing expert independent advice to an internal project team.
Not only are internal resources saved, the use of an external independent expert enables banking arrangements together with 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 (if appropriate)
- Preparation of an invitation to tender document
- Review of processes and use of the banking system - separate report 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
- Savings often generated
- Minimal strain on internal resources - time saved
Benchmarking Review of Bank Tariffs and Costs:
The Rationale:
In instances where a University feels that tendering the banking contract is inappropriate we are able to review and benchmark the current arrangements.
Based on our experience of having worked with numerous Universities and public sector bodies 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.
The Service:
- An alternative to placing a contract to tender whilst still achieving market tariffs
- 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:
- Market tariffs achieved without the need for a time consuming tender process
- Improvements to services identified
- Internal processes improved
- Bank relationship enhanced
News
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.
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.
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.
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.
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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