Successful corporate banking: keep customers close

Bank selection and performance evaluation

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To select core banking partners, about half of respondents conduct a formal request for proposal (RFP) process that includes pre-established and prioritized selection criteria. These executives consider current relationships with their banks, as well as the banks’ credit commitments, risk exposure thresholds and abilities to deliver desired products and services.

Services are then typically secured on a rotational basis or through a competitive bidding process.

In our survey, the method of bank performance evaluation was divided fairly evenly. About half (45%) have a formal system in place; the other half do not, but many report that they plan to institute a more formal process.

“Always listen to your client. Don’t try to impose things that are not relevant.”

Formal evaluation systems share several common characteristics, such as a timeline, defined performance criteria and face-to-face review meetings.