Bank Scorecard: What is the Handicap of Your Partners?

As an experienced treasury manager who has been in charge of managing and maintaining bank relationships I must admit that I have somewhat of a love/hate relationship with Bank Scorecards.  It does take time to construct a quality tool, keep the information up to date and make the time to keep the tool relevant to be in sync with changes in the dynamics of the nature of your bank relationships due to microeconomic or macroeconomic factors.

If given adequate consideration a bank scorecard it can be an invaluable tool in maintaining strong relationships and having new bank prospects at your fingertips should an existing bank partner "switch gears" on you or try and leverage your relationship beyond your comfort zone.

What are some keys to a quality Bank Scorecard?  I will offer what I see as relevant and appreciate any additions and comments:

    1. Qualitative Components - Customer Service, Your dedicated relationship
        manager, business continuity processes and technology at Bank, training
        resources

    2. Quantitative Components - account analysis, financial strength of bank

    3. Specific sections devoted to the services your company uses and will use in the
        future  benchmarks of market pricing, assessments of technology and process
        associated  with each major area of service

    4. "Buy In" from your bank partners (share it with them and get  their input)

    5. Automated components to the extent possible (pull in data from internal
        sources and have your banks push relevant data to you.)

What is the value of Bank Scorecards? Here is what I see as the major components of the Bank Scorecard value proposition.

   1.  Clearly sets expectations with bank partners.

   2.  Provides metrics to benchmark each relationship.

   3.  Clear communicates to banks how you measure success

   4.  Facilitates productive dialogue and fosters communication with partners .

   5.  A counterparty risk management tool

   6.  A tool to use to rank bank prospects if you keep one for potential partners

I hated Bank Scorecards when I was forced to design and mange them, but when the global financial crisis took hold a few years ago I learned to love them as having this tool at my fingertips most likely saved my job.