Treasury in Practice Guides
Better Bank Fee Analysis: Making an Onerous Process Easier
Analyzing bank fees tends to be a tedious, onerous process, but it’s worth it — a comprehensive analysis can yield substantial cost savings.
When done correctly, bank fee analysis can reduce a company’s annual spending on bank services by tens of thousands—even millions — of dollars. The AFP Treasury in Practice Guide: Better Bank Fee Analysis: Making an Onerous Process Easier, shows how a complete analysis allows a corporation to uncover pricing errors, close unnecessary or obsolete accounts, and discontinue unwanted or irrelevant services.
Bank relationship management, and, more specifically, monitoring and analyzing bank fees, can be a treasury analyst’s most challenging task. Treasury groups can, however, take a few steps to make bank fee analysis feasible — and in the end, profitable.
Regularly monitor fees, and alert your bank to any mistakes
- One of the best ways to detect and correct mistakes is to request invoices from your bank.
Create and maintain a table of bank rates
- It is a challenge, when issues like why a straightforward, commodity product like
lockbox is priced differently for providing the same services
Automate the process
- Automating bank fee tracking and analysis makes the process far easier and less prone to human error.
Ask your bank to use current AFP codes
- AFP codes are standardized codes for every bank service. They are essentially a dictionary of treasury management.
Track fees from international accounts
- More and more large enterprises are demanding electronic bank fee files for all their global cash management activity. To gain this visibility into their accounts, companies should enroll as soon as possible in electronic bank fee reporting.
Work with your banks
- Tracking fees is onerous, but banks do not have the resources to do it all themselves.