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Aligning Banking Services with Your Organizational Needs

Moderator Jennifer LeTourneau Vice President, Wintrust Treasury Management. Aligning Banking Services with Your Organizational Needs. Panelists Brian Koehler Accountant, Village of Lombard Scott L. Hirsch, CPA-PFS, CFA, CFP®, CFO, The Benida Group LLC Aimee Briles

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Aligning Banking Services with Your Organizational Needs

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  1. Moderator Jennifer LeTourneau Vice President, Wintrust Treasury Management Aligning Banking Services with Your Organizational Needs Panelists Brian Koehler Accountant, Village of Lombard Scott L. Hirsch, CPA-PFS, CFA, CFP®, CFO, The Benida Group LLC Aimee Briles Vice President, Wintrust Government Funds

  2. Optimal Bank Relationship • Communication • Regular and effective • Open and honest • Commitment • Will work through unique situations • Understands your industry/business • Fully engaged • Collaboration • Mutually beneficial • Profitable and productive

  3. Dysfunctional Relationships • Customer Service Woes • No explanations on how/why things work • No one takes ownership of issues • No urgency to find solutions or complete tasks • Endless myriad of voicemail boxes • Communication issues • Withholding information • Blindsiding

  4. Obstacles to Ideal Relationship Bank Client Turnover Inexperienced and change –averse staff Non-responsive contacts Reactive communication Siloed product groups Lack of resources • Turnover • Poorly trained Treasury Reps • Slow problem resolution • Siloed product groups • Lack of resources • Introspective

  5. Best Practices - Keeping the Relationship Strong Bank Client Timely reconcilement Monitor accounts daily Utilize dual control Maintain IT protection Restrict access Dedicated PC Talk regularly Be open Don’t procrastinate Trust your gut • Deliver on commitments • Do homework • Understand business • Regular relationship review • Offer proactive solutions • Follow up • Respond quickly • Be available • Communicate, communicate, communicate

  6. Panel Feedback • What are the important components of a banking relationship? • What are you looking for in a relationship management team? • Product offerings and delivery? • Customization of relationship/services?

  7. Why Seek Formal Proposals? • Evaluates current banking relationship • Provides information on new banking/TM services/technology • Improve efficiencies • Potentially lower costs through competitive bidding and/or negotiation • Mediates political situations (internal and external)

  8. Proposal Preparation & Considerations • Are you actually willing to change providers? • Understand your current contract, services, fees and relationship • Determine minimum qualifications for proposers & list of banks to be included • Determine team members to be involved

  9. Panel Feedback • Why explore other banks? • What were your goals? • Board/Senior Mgmt. driven? • Contract expiring/fee increase? • Are you open to actually changing banks?

  10. Panel Feedback • How do you decide what banks to include in the proposal process? • Location convenience • Board/senior management driven • Bankers you know/have worked with • Product/service differentiation • Who internally should be included in the putting together and evaluating the proposals?

  11. Proposal Preparation Tips – Help Bidders and Yourself • Be specific about your needs and “wants” • Allow for question submission & pre-bidder conference • Provide a copy of Investment Policy & Collateral requirements if applicable • Provide electronic form of RFP and attachments (include any required agreements) • Goal is “apples to apples” comparison – maybe even provide current analysis statement

  12. Evaluating Us; Evaluating You Banks look at: Companies should look at: Is the bank financially strong? Tenure of management team Work history of RM Support staff depth, breadth and credentials Convenience & service capabilities References from like entities using similar services • Is the company financially strong? • Length/experience of management team & Board • Funding sources • Concentration of funding • “Back up” funds-Foundation/reserve accts. • Outside firms – CPA, Attorney, etc.

  13. Evaluation Process • Ability to meet service requirements • Creative suggestions for enhancements • Industry experience of Bank & RM • References • Finalist Interviews • Bank location • Price guarantee

  14. Evaluation Process – Price Considerations • Low Cost vs. Best Value • Lowest compensating balance, lowest fees, best interest or earnings credit rate, individual price points • Bundled services or menu based • Access and per item charges • Activity retention fees • Discounts for online initiated transactions

  15. Panel Feedback • What were deciding factors in the evaluation process? • Low cost vs. Best value - Would you allow for “pencil sharpening?” • Is there something you did not include that you should have?

  16. Multiple Bank Relationship? • Possible roles for multiple banks • Concentration Bank • Disbursement Bank • Investment Bank • Lockbox Collections • Some banks may meet certain product/service needs better • Multi-bank information reporting • Panel thoughts??

  17. Questions?Thank you!

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