A recent article with the same title recently appeared in CFO magazine.\u00a0 The article points out a recent CFO survey that\u00a025% of the respondents describe their relationship with their banker as strictly transactional \u2013 that is, their bank\u00a0thinks of them simply as a source of revenue.<\/p>\n
CFOs apparently are motivated by their dissatisfaction with bank\u2019s customer service and are prepared to take some action.\u00a0 According to Greenwich Associates, in the next year 16% of small businesses will be requesting proposals from competing banks.\u00a0 Historically, only about 10% of firms swithch banks in any given year.<\/p>\n
Other CFOs are taking a different approach.\u00a0 Switching banks during a weak lending period may indirectly hurt the firm\u2019s creditworthiness.\u00a0 Some CFOs are trying to improve the relationship with their existing banks and are adopting the following strategies to improve their leverage:<\/p>\n
a) Consider the\u00a0allocation of\u00a0basic banking services among competing banks.\u00a0 For example, separate the credit card service from treasury management services.\u00a0 Also, consider separating the\u00a0employee retirement and medical reimbursement accounts to competing banks.<\/p>\n
b) Step into your bank\u2019s shoes and calculate the value\u00a0your company brings to the bank.\u00a0 That includes the value of fees, plus the estimated \u2018spread\u2019 on outstanding loans.\u00a0 Make sure your Relationship Manager knows that you understand this value.<\/p>\n
c) Make a point to meet the boss of your relationship manager and discuss\u00a0specific\u00a0issues you have with the bank.<\/p>\n
Today is a new day in banking relationships.\u00a0 The new rules are still being written.\u00a0 However, a CFO should be alert and proactive in making sure his company has the best banking relationship that is possible given today\u2019s economic situation.<\/p>\n","protected":false},"excerpt":{"rendered":"
A recent article with the same title recently appeared in CFO magazine.\u00a0 The article points out a recent CFO survey that\u00a025% of the respondents describe their relationship with their banker as strictly transactional \u2013 that is, their bank\u00a0thinks of them simply as a source of revenue. CFOs apparently are motivated by their dissatisfaction with bank\u2019s…<\/p>\n","protected":false},"author":104,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_editorskit_title_hidden":false,"_editorskit_reading_time":0,"_editorskit_is_block_options_detached":false,"_editorskit_block_options_position":"{}","cybocfi_hide_featured_image":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-1677","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"acf":[],"yoast_head":"\n