The client was banking with its Bank for last 8 years. The relationship had been smooth but since last year they were not getting required service and financial support from their Bank .The company was in a growing phase and there dependence on the bank was increasing than before. The client had to choose between changing the Banker or continue with the existing one as this change would not only come at a price but also disturb the understanding and trust developed over the years.
We completed a detailed study and mapping of all the operational issues and financial requirements of the Business.
We documented the various events of delayed/ poor quality service in discussion with the staff of the company.
We also interacted with Bank officials and got the inputs which were examined in detail .This helped us to understand the reasons for Bank’s discomfort on the justified additional finance besides the change in transactional matrix over the last 1-2 years.
The key findings were discussed with the Management and were made aware of the pros and cons of the decisions.
The management agreed to our recommended steps to create few processes within their system which would smoothen the transactions with the Bank and avoid hassles.
These included Mail communication with the Bank, accountability of each client staff on different type of transactions, Quarterly review meeting to clear any impending issues, exchange of escalation matrix on either sides etc.
On the additional borrowing front the client could work out common grounds which enabled the Bank to sanction additional funds as well.
There are frequent changes in the Bank staff and their policies owing to the ever-changing dynamics of financial transactions. This could be a major cause of service related issues besides difficulties obtaining additional funds. Changing the lender is not the only advisable solution until we have explored all possibilities within the existing system.
