The Right Advice Is Key To Relationship, Say Treasurers

Simply extending more credit to corporations does not necessarily lead to a greater share of their banking business, new research has shown. Rather, proactive advice about risk management and specialist funding is a surer route to the lion’s share of the corporate wallet. ‘Corporations are saying: ‘Before I invite you to be a privileged provider, you need to understand my business thoroughly and anticipate my standard and more complex financing needs’,’ said Justyn Trenner, chief executive officer of ClientKnowledge, the research and consulting firm. Once a bank earns that privileged provider status, the relationship is likely to be a long one, the firm asserted. In Europe, the average length of a company’s relationship with its number one banking provider is nearly 15 years, compared to nearly ten years for its fifth most important banking provider. The 2001 Relationship Banking Study, conducted by ClientKnowledge, is based on nearly 1300 interviews with corporate treasurers and other buyers of relationship banking services world-wide between November 2001 and March 2002.

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