Corporate banking generally refers to the relationship between banks and companies, usually in the context of “relationship banking.” If, in the past, companies – almost acting like beggars – asked not to be left behind, today banks are the ones vying for the good graces of companies as part of their SME offensives. Even investment banks have discovered the latent potential in SME client markets. Still, the idea of an international bank operating in every country in the world and in every area has not become reality. Today, one concentrates on regional core markets and expands on core competencies. Corporate banking relationships are usually established over many years. If one looks at the association of credit unions or savings banks, these relationships usually develop over decades. These are relics that involved things such as the assumption of liability by states, cities and municipalities, which no longer exist in such a form.
Corporate Banking Support
At many companies that operate internationally, bank relationship management is still organized in a decentralized manner. This means that the corporate management has assigned the topic to the local organizations and enjoys advantages not only in the negotiation of conditions, but also, for example, through the perception of the institute. The centralization of bank management and clear communication by a central treasury position entails that the relationship will be valued substantially more, both domestically and internationally. This is due alone to the fact that the “relationshipper” is now seated across from someone who speaks the same language and can judge the quality and pricing of the services. Now that the SEPA zone has been introduced, there is also no reason to have a bank account in each SEPA country outside of a few exceptional cases. Therefore, the focus should be on transparency and reducing the complexity of your bank relationships. This will also reduce your workload for KYC and other requirements that tie up immense amounts of capacity in companies today.
We would be glad to help you determine the status quo of your bank relationships. We can start with the institutions, continue with the account landscape and fee structure, and also include your contracts to reveal potential for improvement. We will be glad to act as a sparring partner for you to develop a strategy or prepare a tender.
Please contact us if you have any questions or would like to arrange a non-binding appointment to meet.