Different companies have different views on the utility of the request for proposal (RFP) process. Some like to issue RFPs to stay on top of the latest banking capabilities and some see it as a major process that should be done sparingly. But when a company does decide to issue an RFP, what should it be looking for from potential partner banks?
“I think technology is the most important factor when issuing RFPs,” said Jack Spitzer, assistant treasurer at Starwood Hotels and Resorts. “If you use SAP [an enterprise resource planning system] then you need to ask the bank how many SAP implementations they have done. I have found that some banks over-market themselves on the technology front.”
Asian banks are focusing more on technology these days, as they strive to provide their clients with more efficient services. As international banks expand in the region, there is a need to be more pro-active and to gain a deeper understanding of local regulations. Spitzer believes that companies should ask potential banking partners how much they have invested in their platforms to acquire a sense of the bank’s technological capabilities.
Interestingly for some, pricing is not the most decisive factor when weighing up the pros and cons of banking candidates. “We put pricing last because we want the banks to make money,” said Thierry Cairus, director of global treasury at Japan Tobacco International. “We are looking for international banks with a local touch.”
“When dealing with banks you need to make sure you like the people you are working with,” Spitzer added. Lay Perk Toh, regional treasury manager of Honeywell Singapore, also sees the relationship between a company and a partner bank as a key influence in the decision-making process.
“In Asia, the banking relationship has evolved from being just a service provider to a business partner,” said Toh. “In the past, we told the banks what we needed, but today we want the banks to grow with us a business partner. We want them to contribute ideas and to have an up-to-date understanding of the client.”
Since the global financial crisis, Asian banks have been stepping up their transaction services game. When it comes to banking capabilities, in reality both international and the large local banks are on a similar playing field. The difference between banks comes into play when a company wants help with cross-border transactions. “For multinational corporations, the international banks have an advantage because they can leverage on a global relationship,” said Toh.
So, in short, a stable relationship team and a solid technology platform are the most important factors for winning business in Asia. Treasurers and CFOs say it is frustrating when they have to deal with a different relationship manager every time they call the bank. For an expanding business, especially one that operates in multiple countries, the longevity of a banking partner will always take precedence over a cheaper banking partner.
