|
 The
Money Management Newsletter: Managing
Money
Taking advantage of the Financial Services
Revolution
By the Money Management Editor (with files from NC)
Money Management Newsletter, June 2004
Since the early 1990's the Canadian banking sector
has undergone a service revolution and has moved away from trying to satisfy
all its customers with a "one-size-fits-all" approach, which
didn't really fit. Instead, thanks in large part to new information technology
and a greater ability to process information and data quickly, today's
top banks can provide tailored financial services designed to meet the
specific needs of each of its customers. So what does this mean for you?
In a word: savings.
First, if you haven't thought about your banking
relationships for several years you should do so now. Doing nothing can
be extremely costly. It is important to establish a process to regularly
assess your current financial needs and the services offered by your financial
institution to ensure that they both are in line with current best practices
for the industry. You or your business will probably have some specific
banking and financial management needs and/or preferences. But you must
identify what they are.
Second, accept the fact that there is only one
person ultimately responsible for ensuring that your financial management
needs are being met in the best and most cost-effective manner. That person
is you…not your banker. Most certainly, your banker should be there
for advice and answers, but your role is to know the facts and ask the
right questions.
Third, when operating a business account, your
concerns with cash-flow and/or use of money - accounts receivable, accounts
payable, investments, cash, operating expenses, etc. are important but
you must also commit to a periodic review of your banking needs and processes.
Too often business owners focus almost exclusively on loan interest rates
with the presumption being that if one gets a "good rate" then
they must have a good banking arrangement. "This is not necessarily
the case." say's Kathleen O'Neill, Executive Vice-President of Business
Banking at BMO Bank of Montreal.
"You should review all your banking relationships
based on the entire financial services package rather than one element
alone. Business banking can be complex and businesspeople should explore
options and opportunities to improve operating efficiencies, reduce fees,
and manage cash flow." "The same is true for your personal banking
accounts." say's David Newman, Director of Information Services,
Fiscal Agents, Financial Service Group, Oakville. In other words, look
beyond the obvious when dealing with your banker and make sure the services
are tailored to your specific needs. Also review the costs of your credit
card add-on's. For the most part the bonus points and/or air miles attached
to premium cards are items you're actually paying for! If you have money
on deposit or a loan, compare the interest rate against what's on offer
at other financial institutions - earning more and paying less is the
name of the game. Also, many banks offer fixed cost monthly packages that
can significantly reduce such things as ATM fees for frequent users of
bank machines.
* *
*
|
|
Use this link to load a printer-friendly
version of this document. |
Have a question regarding this article? Use our feedback form to send us a note.
©
, Fiscal Agents Money Management Newsletter
25 Lakeshore Road, Oakville, On L6K 1C6.
(905) 844-7700
|
