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Ditch as for cleared-out bank accounts

Ditch that account

Curbing an excessive number of bank accounts across your group, could help optimise your accounts payable and accounts receivable processes – and reach a range of other gains too.

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Releasing trapped cash, and easing the need for short-term borrowings … Clearing up bushes of old bank accounts can bring a list of benefits.

The matter is explored in an article by magazine Treasury Today.

A rich flora of accounts is often a result of mergers over time, or of direct investments where they have been opened for temporary convenience.

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Go methodic

In terms of approaches to solving the challenge, the article looks closer at ”the wallet distribution methodology”. It is described as a frequently used methodology for evaluating multiple banking partners. The amount of corporate banking business that goes with each banking partner (measured in both direct and indirect fees) is compared to the same bank’s credit commitment. Thus corporates can evaluate if each partner’s reward balances with the commitments.

Stay agnostic

According to Pieter Sermeus – who is manager at treasury consultant firm Zanders and interviewed in the article – corporates can use the methodology to build beneficial relationships with its core banking partners who are committed for the long term and rewarded accordingly. Yet he proposes that the corporates should stay ”bank-agnostic”, keeping their flexibility for situations where they may have to change banking partners anyway.

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