Does your organization measure the performance of its banking partners? It should. That's the key finding of a EuroFinance survey of 214 corporate treasury professionals conducted in late May.
The majority of respondents work for large global enterprises; around 75 percent come from companies with at least $1 billion in annual revenue. Yet 57 percent of these organizations have no formal process for measuring the performance of their banking relationships. Among the 42 percent that do formally measure bank performance, around half (22 percent of all respondents) use metrics in the measurement process. Many of the respondents in companies that do have an established approach for gauging bank performance reported inconsistencies between regions or divisions of the company, and some said that measurement is ad hoc and/or subjective.
The survey also asked respondents about the proportion of their banking partners that deliver "value for money" (VFM)—in other words, whether they think they're getting their money's worth from their financial service providers. Few respondents believe that either all their banks (9 percent) or none of their banks (1 percent) deliver value for money. But more than 60 percent believe the majority of their banks meet this standard, and 22 percent think half their banks do.
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