Bank relationships are vital. Bank Relationship Management (BRM) is a major task in any corporate treasury department and covers many other staff around the company. Often large companies use hundreds of banks world-wide and have thousands of bank accounts. The efficient and auditable management of bank relationships and authorities is essential for Sarbanes Oxley compliance and can cut administration costs significantly.
Bank Relationship Management
Source: J&W Associates Copyright© 2011
There are three main areas in BRM: bank account and authority management, bank fees reconciliation and management, and evaluation of banks' overall performance.
Electronic Bank Account Management (eBAM) systems and services minimize the administration and overhead costs of keeping tabs on all the bank accounts world-wide and the delegation of authority for making financial transactions. The new systems and services enable corporate treasury departments to manage banks and accounts much more easily and effectively.
Bank Fees Management and Negotiation systems and services minimise the cost of analysing and comparing bank fees. They also help to identify and eliminate bank fee errors.
Evaluating a Bank's Overall Performance covers all aspects of a bank's work. It requires all the data and analyses from the BRM systems and services as well as special analyses to give a full picture of the bank's performance.
New standards are being introduced to automate all aspects of Bank Relationship Management which, when they are implemented widely, could significantly reduce costs and improve accuracy and efficiency.