Treasurers Managing Banking Relationships

1. From Banker to Strategic Advisor
Patricia Mullin, MBA, CCM
Vice President, Manager of Cash Management
Cambridge Trust Company
TMANE Board
Laurel Egan Kenny, MBA, MSCM
President, Turningpoint Communications
TMANE Board, New Membership , Communications Chair
Treasury Fundamentals October 20, 2010

2. 2
What You Will Learn Today
 What is a strategic banking advisor?
 How do you evaluate a banking relationship?
– Tools you can use!
 How can you find a win/win?
 “Yellow” Flags to watch out for
 You have negotiating power
10/20/2010 Copyright 2010. Turningpoint Communications

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Audience Poll:
How was your current bank chosen?
 I don’t know
 Close proximity to the office(s)
 As far as I know it’s always been this way
 My boss chose
 Company prefers not to deal with “the other bank
 Somebody at my company knows somebody there
 They gave my company a loan, so now we owe them
 Our bank was absorbed by our new bank
 Others?
 I followed my Strategic Advisor
10/20/2010 Copyright 2010. Turningpoint Communications

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What defines a Strategic Advisor?
 Led by a relationship manager (supported by a team)
with expertise in a particular industry
 Offers proactive industry research, trending, analysis
 Develops, maintains, customizes and delivers
state-of-the-art treasury solutions
 Acts as extension of the Treasury Manager’s team or
business
10/20/2010 Copyright 2010. Turningpoint Communications

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View your banking partners as
extensions of your team
Your Business Strategic Advisory Team
CEO
Treasury Relationship
Team Manager EVP, Director
Business Line RM (Treasury Management)
Business strategy and management
Business Line RM ( Commercial Banking)
Industry analysis
Operations Team
Competitive intelligence
Marketing Client Service Team
Implementation Manager
Product Development Manager
Trainers
Treasury Credit FX Cap Mkts Trade Other

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Why you need a Strategic Advisor –
Not just a Bank
 You have a Relationship Manager, who:
 Single point of contact
 Has your interests in mind
 Vast experience managing relationships
 Knows your company’s business strategy
 Innate knowledge of YOUR business model and industry
 Backed by team / senior management / decision makers
 Communicates effectively with your team
 World-class solutions / technology
 Opportunities for competitive pricing / cost control
 Risk mitigation: operational, industry, credit
10/20/2010 Copyright 2010. Turningpoint Communications

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Leveraging your Advisor:
In ways you may not have thought about
 Your Relationship Manager can help you with:
– Selling you / your ideas to your senior management
– Marketing/ Communications: Client Features
 Promotional communications: Success Stories, Case Studies, Testimonials
– Industry trends, research and analysis, competitive intelligence
– Perks: Business is not “ALL business”
 Patriots Tickets, Thought Leadership Event Admission.
 Benefits to you and your business:
– Promote yourself
– Compete through access to the industry’s best tools
– Leverage reporting tools: automating processes, cost controls
10/20/2010 Copyright 2010. Turningpoint Communications

8. 8
Shhhhh! Bankers’ Secrets
 Replacing you as a client is VERY expensive
 Lack of a scorecard or Account Analysis may open the door
for a competitor (Bankers do not like to play Defense)
 Cross selling opportunity / increasing share of wallet is
important
in relationship pricing
 People prefer to work with people they like
 Bank systems are tracking your service levels
 Good RMs are like the “Pied Piper”
10/20/2010 Copyright 2010. Turningpoint Communications

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“Yellow” Flags
 Financial Crisis: TARP money / Payback
 Banks in acquisition / merger mode
– Lack of focus on the business, product development, YOU
 Excessive turnover
 Communication breakdowns
 “Free”
– It comes with a price
10/20/2010 Copyright 2010. Turningpoint Communications

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Steps YOU can take to make your
Banking Advisor the best s/he can be
 Understand and maintain service expectations
 Establish milestones and celebrate success
 Communicate both ways
 Proactively set meetings
– Share your commendations and concerns
 Manage the relationship well and keep score,
 Add to your annual review
10/20/2010 Copyright 2010. Turningpoint Communications

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Service Level Agreements /
Scorecards: Keeping Track
 Use industry standard or create your own
– Incorporate everything you can quantify: performance, tangibles,
intangible items, frequency / method of communication / meetings
 Measure all banking relationships in the same way
 Refine document as business changes
– Volumes +/-, products used
 Ensure a support team is in place
 If sold, participate in meetings with new bank for a smooth
transition
10/20/2010 Copyright 2010. Turningpoint Communications

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Analysis Statements: Request and
Understand it
 Are you receiving
your statement?
 It is your right and
responsibility!
 Details hard fees
vs. compensating
balances.
 Use to help
negotiate better
alternative
services and
better pricing.
10/20/2010 Copyright 2010. Turningpoint Communications

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What we talked about
• Making the most of a strategic bank advisor
 Strategic Advisors offer a comprehensive suite of services –
beyond banking
 Use your partner wisely
• Evaluate your banking relationship regularly
• Understand and escalate “Yellow” Flags
• Together you and your bank can do great things
10/20/2010 Copyright 2010. Turningpoint Communications

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Contact Information
Laurel Egan Kenny, President
Turningpoint Communications
339-793-3485
laurel@turningpointcommunications.com
www.turningpointcommunications.com
Patricia Mullin, Vice President
Manager, Treasury Management
Cambridge Trust Company
617-441-1408
patricia.mullin@cambridgetrust.com
www.cambridgetrust.com
10/20/2010 Copyright 2010. Turningpoint Communications

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Treasury Information: Alphabet Soup
From ACH to ZBA
 ACH  TMANE Ernst & Young Cash management Survey
http://www.ey.com/US/en/Industries/Banking---Capital-
Markets/Banking_and_Capital_Markets_Cash_Management_Advisory_Services
 AFP  NEACH
Service Level Agreements
 ARC  NACHA The Association for Financial Professionals www.afponline.org
 BAI  POP AFP Payment Fraud and Control Study
www.afponline.org/pub/pdf/2009_Payments_Fraud_Survey.pdf
 CCD  POS AFP Best Payments Practices & Policies
www.afponline.org/pub/pdf/BESTPRA4.pdf
 CTP  PP Phoenix Hecht Blue Book of Pricing
 EDI  TM www.phoenixhecht.com/treasuryresources/PDF/BBExecSumm.pdf
RDC ROI Calculator
 FX  SWIFT www.RemoteDepositCapture.com
 IAP  ZBA Preview Yield Advantage for Governmental Entities
www.GFOA.org
10/20/2010 Copyright 2010. Turningpoint Communications