RFP Best Practices: “Speaking the Same Language” · Concentrate online banking payments and maximize straight -through-electronic processing. ... desktop or your mobile device

RFP Best Practices: “Speaking the Same Language”April 2019Pat t y FougeratVice PresidentGovernment and Inst it ut ional Banking Relat ionship Manager

Kim Maxey, CTPSenior Vice PresidentGovernment and Inst it ut ional Banking/ Treasury Management Consultant

© 2019 Wells Fargo Bank, N.A. All right s reserved. Confident ial.

Today’s agenda

• Int roduct ions• RFP Guidelines

• Product Lingo

• Product Descript ions• Quest ions

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Identifying Your Objectives and Needs

• Where t o Begin:– Start wit h what you have t oday– Evaluate your current sit uat ion– Out line your object ives– Set goals

• Helpful Tools:– Current report s– Analysis statements– Account Flowchart

First Steps

Closely evaluate your needs and object ives

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Developing an RFP

• Ident ify minimum qualif icat ions:– Locat ion(s) in your area– Collateralizat ion of your deposit s– Asset Size

• Provide clear and concise inst ruct ions

• Develop an “easy” format

• Eliminate repet it ive informat ion request s t hroughout t he RFP

• Provide services requested and volume est imates

• Out line t he account st ructure

• Ident ify evaluat ion factors clearly and provide crit eria weight if applicable

• Make an elect ronic copy of t he RFP available in MS Word / Excel (pricing pages – do not “protect ” cells as it prevents ent it ies t o define t heir t erminology or pricing)

Must Haves

Essent ial elements t o ensure t he select ion of an opt imal banking

partner

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Developing an RFPSet Clear Expectations

Establish a schedule of events and t imeline for t he RFP TI

MEL

INE

Month Two

Month Three

Month One

Develop RFP RFP release dat e

Pre-proposal conference (opt ional) Deadline for addit ional quest ions Issue answers for writ t en quest ions RFP Due Dat e

Select ion of finalist s (opt ional) Oral present at ions (opt ional) Award business Negot iat e cont ract

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• An oral present at ion provides t he opport unit y t o discuss t he services offered and t o demonst rat e elect ronic solut ions

• For an effect ive evaluat ion, you should:– Select only finalist s for oral present at ions– Set a t ime limit for each finalist ’s present at ion– Ask hard quest ions

Banks Welcome the Opportunity to Present Solutions in Person

Oral presentat ions provide a bet t er understanding of t he solut ions offered and bet t er equip you t o make t he right

choice

RFP Evaluation

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• Reaffirm your decision wit h posit ive answers t o t hese quest ions:

– Can t his bank meet all of our current and fut ure needs?

– Does t his bank offer t he best value for t he product s and services provided?

– Does t his bank have t he resources t o provide innovat ive solut ions?

– Will t his bank provide t he best cust omer service t o support our needs?

• Not ify all respondent s of t he RFP out come

– Provide evaluat ion result s including pricing, int erest rat e, and any ot her fact ors t hat influenced your decision

The Optimal Banking Partner Will Deliver the Right Solutions

Select a bank based on value, capabilit ies and commitment t o

customer service

RFP Evaluation

Payables

What are t he dif ferent t ypes of disbursements?

ACHChecks Wires

• Domestic• International• Repetitive/ Freeform• Non-Repetitive/

Templated

Traditional checks Controlled Disbursement

Checks Multiple Signatures

Required

Direct deposit Direct payments Vendor payments State and federal tax

payments Cash concentration and

disbursement Check conversion and

truncation services

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Settlement Time:Could be days before the check clears the bank depending on the mail float, deposit float, and clearing float.

Settlement Time:Same-Day (ACH Credits Only with $25,000 transaction limit)

One-Day

Two-Day

Settlement Time:Same-Day (if prior to Bank’s wire deadline)

Next –Day

Governing Agency: Uniform Commercial Code

Governing Agency: National Automated Clearing House Association

Governing Agency: Federal Reserve Bank

Know your funding totals early with early daily not if icat ion of t he dollar amount of checks t hat will clear against your account t hrough our Van Wert , Ohio endpoint

Wit h our Perfect Presentment®service, we compare your checks t o your issued check file and t o our st op payment dat abase prior t o post ing t o your account

Controlled Disbursement

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Account Reconciliation Plan (ARP)Two opt ions

Full ARP

Part ial ARP

You provide Wells Fargo wit h issued check informat ion

Wells Fargo reconciles your paid checks t o your issued checks and sends a det ailed st at ement

You can request a variet y of opt ional report s, including paid checks, out st anding checks, st op payment s and several ot hers in various out put format s

Wells Fargo provides an ARP st at ement

You can request a variet y of opt ional report s including paid checks, st op payment s, and several ot hers in various out put format s

Cust omers use t he st at ement or opt ional report s t o reconcile t heir st at ement and ident ify any except ions

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ACH servicesProcessing opt ions

• Delete and reverse domest ic t ransact ion wit h a simple online form

• Automated return it em redeposit– Redeposit debit s returned for insuff icient or uncollected funds up t o two addit ional

t imes– Days 1-9, Thursday, Friday, 15th of t he month, end of t he month

• Mult iple originat ion channels– Direct t ransmission of NACHA-format ted f ile– One f ile for check, card, domest ic and internat ional ACH, and domest ic and internat ional

wires t hrough our Payment Manager® service– ACH Payment s t hrough Commercial Electronic Off ice® (CEO®) port al

• Set t lement opt ions– Net , gross, gross bat ch, single it em

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Online wire transfer payments

Create wire templates for recurring wire transfers

Set up dual control to require one or more approvers

Set dollar limits on transactions at the user level to help reduce the risk of fraud

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Receivables

Remote Deposit serviceDeposit checks from anywhere, at any t ime

How it works

Mult iple locat ions

Single bank convenience

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View images online for easy access and research

Wholesale lockbox solutions

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Leverage t he closest lockbox locat ion t o reduce mail float

Reduce days’ sales out st anding and speed funds availabilit y by minimizing mail float

Receive direct t ransmissions of your remit t ance det ail in cust om format

Send a daily out st anding account reconciliat ion (AR) file t o reduce except ions and provide real- t ime decisioning

Electronic lockboxOverview

Concent rate online banking payments and maximize st raight-t hrough-elect ronic processing

St andard validat ions

• Account masking validat ion

• Cross reference dat abase processing

Opt ional validat ions

• Check digit validat ion

• Dollar amount edit s

• Validat ion files: posit ive, st op, and cross-reference

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Electronic lockboxE-Box® with Receivables Manager services

Fraud protection services

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ACH Fraud FilterProtecting your accounts from fraud

Prot ect Stop all ACH t ransact ions presented against your account Preauthorize designated t ransact ions

Review Make pay or return decisions Update fraud f ilt er crit eria online

Monit or View unauthorized t ransact ions Receive not ice when an unauthorized ACH t ransact ion is

detected by fax, email, or t ext message

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Image Positive PayProtect your accounts from lost, stolen, and counterfeit checks

Benef it s

Addit ional opt ions

Payee Validat ion

Teller Posit ive Pay

Reducesaccount

reconciliat ion t ime

Providesimages for more informed pay/no

pay decision

Prot ect sagainst fraud

Cat chesMICR encoding

errors

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Positive Pay OnlyProtect your accounts from lost, stolen, and counterfeit checks

Benef it s

Additional options

Reducesaccount

reconciliat ion t ime

Providesimages for more informed pay/no

pay decision

Prot ect sagainst fraud

Cat chesMICR encoding

errors

Payee Validat ion

Teller Posit ive Pay

Opt ional report s for reconciliat ion

By placing cont rols and limit s on checks, you will benef it f rom:

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Payment Authorization serviceIncrease fraud protection for your disbursement accounts

Added securit y – Prevent unaut horized t ransact ions by:

Placing dollar limit s on checks being present ed t o t he bank

Disallowing checks payable t o individuals

Limit ing t he dollar amount of checks post ed t o your deposit ory-only or elect ronic-only account

Limit ing t he dollar amount of checks cashed and ot her over-t he-count er wit hdrawals

Convenience – No need t o send a daily issue file t o t he bank

Reporting and reconciliation

CEO®Treasury Information ReportingOverview

Access comprehensive account balance, summary, and detailed transaction data online

Access domest ic and int ernat ional t reasury act ivit y when you’re in t he office, on t he road, or anyt ime, anywhere t hat you need crit ical business informat ion

Over 20 st andard report s for Previous Day and Int raday act ivit y, ACH t ransact ions, and account st at ement s are provided

Choose from st andard report set ups, or cust omize your own t emplat es

Det ermine which crit ical account informat ion appears on your cust omized CEOport al log-in page

Most report s are available in a variet y of format s, including HTML, Adobe Acrobat PDF, Microsoft Excel or CSV, and BAI v2

Use t he Aut oLink service t o schedule report s for aut omat ic ret rieval and delivery direct ly t o your workst at ion or print er

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CEO®Treasury Information Reporting Features

Accurate information, delivered when and how you need it

One global view of all of your Wells Fargo and non-Wells Fargo bank accounts, both domestic and international

Automated, customizable information about business activities online through the CEO portal

Single sign-on and just one password - from your desktop or your mobile device

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Information reporting options

Global view of cash posit ion

CEO®Treasury Informat ion Report ing

Previous day and int raday BAI V2, CSV, Excel, HTML, and

PDF formats Automate downloading

report s with t he Aut olinkservice

SWIFT

MT940, MT941, MT942, and MT 950 messages

CEO®St at ement s & Not ices

Direct BAI f ile t ransfer

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St at ement s, not ices, and legal disclosures online

PDF format

Previous and int raday

BAI V2 format

Questions?

Thank you