Getting more bank for your buck. (Treasury Management )

Financial Executive, November, 1993 by Prendergast, S. Lawrence

AT&T's experience demonstrates that businesses can build a mutually beneficial relationship with their banks. The telephone company has around 65 major banking relationships and spends about $75 million annually as payment for various banking services, including lockboxes, payroll and vendor disbursement, investment advise, and revolving credit facility. To get better banking services, A&T proposed the establishment of a unique partnership with its banks. Under this arrangement, interested banks would strive to learn as much as they can about AT&T's cash-management operations so they could help improve the telephone company's processes. The partnership also gives banks a fair chance to bid for banking services that AT&T will contract out, while the firm is given the same chance to...

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