Universities - Card Acquiring
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.
Review & Tender of Credit and Debit Card Acquiring Services:
The Rationale:
The acceptance of debit and credit cards is a growth area for all Universities and increasingly represents a significant cost.
Historically, Universities have tended to use their main bank to provide card acquiring facilities and have not sought quotes from other banks.
Moving arrangements from one card acquirer to another does not present the same problems as moving bank and we are increasingly seeing Universities seek competitive quotes via a tender process. Significant savings can be achieved as a result of a tender process.
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 all card acquiring processes and inclusion of any improvements in the tender process
- Thorough evaluation of tenders - all hidden costs identified
- Assistance with short listing and clarification process
The Benefits:
- Expert assistance obtained in completing the tender process
- Professional and thorough documentation ensures keener pricing from banks
- Savings often generated
- Advice provided in relation to the options available for the acceptance of online transactions and the use of fraud screening services
- Thorough evaluation of tenders
- Minimal strain on internal resources - time saved
Review & Benchmark of Credit and Debit Card Acquiring Tariffs and Costs:
The Rationale:
Although we often find that the most competitive deals are achieved through a tender process, we can provide a benchmarking service for Universities who consider that tendering is not appropriate. This service can be completed as part of a wider review of all banking arrangements or as a bespoke project.
The Service:
- An alternative to placing a contract to tender whilst still achieving market pricing
- Benchmark of tariffs and services to assist in negotiating extensions to the card acquiring contract
- Benchmark 'tender' tariffs and settlement timescales supplied
- Negotiation tactics provided
The Benefits:
- Market tariffs achieved avoiding a time consuming tender process
- Savings often generated
- Possible improvements to services identified
- Internal processes improved
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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