Companies face two choices when dealing with hidden banking costs
Post the financial crisis and with new regulation being heaped on banks the cost of traditional banking services will increase.This will mean higher costs for the majority of companies who conduct their banking activities in a traditional manner.
The big banks with their vast branch networks and people heavy delivery of banking services will have no option but to increase the price of these services. This is the easiest and in some cases the only solution. They do not have the agility or the where-with-all to innovate and deliver lower cost services.
This will lead to increased profitability in the short term, satisfying their shareholders, but ultimately to a slow suffocating demise in the long term. Many banks have no choice. Their IT systems are outdated and their people are institutionalised. They have never practiced innovation and have trained their staff to be process driven.
For companies there are two options. Do nothing and try and ensure the cost of banking is minimised by beating the bank with a stick on pricing. Or, embrace the change that is taking place, understand what an optimum banking structure looks like and go for it.
For many companies much of the banking cost is hidden in net interest and FX margins. Their bank accounts are leaking underground and they are oblivious to the problem. The real cost of banking can best be identified and quantified using specialist tools like Bankhawk365. Bankhawk365 allows companies to easily calculate and benchmark net interest margins, FX margins and transaction costs.
The rewards for Companies who embrace change are huge. An efficient banking structure can deliver millions of savings of millions with relatively little time and effort.