Clearly identify the scope of your banking relatonship RFP
- Concisely articulate the size and scope of your potential business providing detailed and accurate information on your transaction flows and your business requirements: i.e., exactly what it is that you are looking for and the products and services that are needed, your transactional requirements, your account structure, and any special services that you should require;
- Identify your transactions volumes and types, the average monthly value, cash flows and volume of transactions, and payment instruments: e.g., domestic wires (Fedwire, CHIPS, ACH, checks, bank cards), international wires (SWIFT), LCRs (electronic trade bills), BORs (electronic promissory notes);
- Identify the banking services you need in your relevant geographies: e.g., rent guarantees, export guarantees, VAT reimbursements, specialized software (e.g., for handling payrolls);
- Identify your target account architecture: e.g., provide funds flow diagrams, show relationships with arrows, your account hierarchy and zero balancing accounts;
- Describe techniques you wish to employ: e.g., physical pooling, cash concentrations;
- Identify who owns the cash and how you are doing your receivables, payables, liquidity structure, and bulk payments (host to host payments).
Clearly identify your treasury footprint
- Legal names and ownership structure (who's who in the zoo);
- Tax and legal status;
- Hierarchy of job functions (who has responsibility for banking relationships);
- Who is going to manage cash at the local and regional level;
- Who is empowered to make investment and borrowing decisions;
- How the financial management unit relates to the business management units and how their performance is monitored and evaluated;
- Product lines covered.
Cautions in drafting and managing RFPs for banking services
- Do not do global RFPs — do regional RFPs instead;
- Keep in mind that banks are service providers, not designers — you must architect and design your own treasury management system;
- Develop RFPs de novo — do not use templates;
- Clearly "level set" the background on your company(s) so that your prospective banking services providers unmistakably understand the scope and implications of your operations and goals;
- Define both your process and process improvement objectives: e.g., reducing the number of bank accounts, goals for concentrating cash, organizing geographically or functionally, whether or not you are seeking solutions that rely on a bank's network, strategic partners, or vendors, etcetera;
- Seek specific information regarding the technology used for specific payment products you request;
- Clearly state your administrative requirements: e.g., format and timing of responses, opportunity for asking questions, etcetera;
- Request a single point of contact from the financial institution and in turn provide them a single point of contact for your company(s).
