The Big Push for Cash Management Efficiency

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Business Finance:

Are treasurers changing the number of banking relationships their companies maintain, and if so, what is driving these changes?

Mike Fossaceca:

Large companies are reducing the number of banking relationships quite significantly. Corporations are looking for economies of scale and efficiencies. Dealing with fewer banks makes visibility into transaction flows, balance management and reconciliation processes much easier.

Daniel Rosenstein:

As a result of Sarbanes-Oxley, treasury groups have been forced to get a better handle on where their cash is and what it's doing. One effective way of taking control of cash is reducing the number of banks they are dealing with.

Joe Broce:

Being a public company, we continue to reduce our cost structure and staffing size. The fewer banks you have -- as long as they're providing the services you need -- the less work it generally takes.

David Fuller:

We have seen a lot of account consolidation within companies. [Corporate clients] are looking at their account structure and saying, "we don't necessarily need to move these from banking relationship to banking relationship but simplify our structure overall."

Greg Cicero:

Many of our customers tell us that their treasury staffs are getting leaner, but at the same time, their scope of responsibilities is broadening. Hence our customers are asking us for more comprehensive working capital management solutions.

Tom Gildea:

We consolidated substantially two or three years ago. Now some of our smaller subsidiaries are working with non-relationship banks, and undoubtedly we're going to consolidate some of those relationships, as well.