What cost savings should a company expect if it adopts benchmarking for its next renewal?
It depends. Circumstances determine how much benchmarking pays off. There are three sources of bank fee cost savings in most companies. Some cost savings are a function of treasury arrangements. There are multiple interfaces between a company’s treasury system and the bank. In companies where these interfaces are poorly managed, remediation usually pays big dividends. For example, something as simple as financial instrument selection can substantially reduce borrowing costs Some bank cost savings are straight forward price plays. If, for example, FX pricing isn’t competitive, the cost savings associated with benchmarking can be substantial. The final cost saving driver is history. In many companies, bank pricing is predicated on yesterday’s volumes or credit assessments. Updating pricing to reflect today’s activity base or credit assessment can yield substantial savings. In small and medium sized companies that haven’t looked critically at their treasury systems or bank pricing, cost s
