Choosing the right bank or broker for your treasury operations is one of the most consequential decisions a CFO can make — yet it is often done informally, based on existing relationships rather than a structured evaluation. A proper selection process ensures you get competitive pricing, appropriate service levels, and a counterparty you can rely on.
When to run a selection process
There are several triggers for a formal review: a significant change in FX or hedging volumes, dissatisfaction with current service or pricing, a change in the treasury team, or simply the passage of time — if you have not reviewed your banking arrangements in three years or more, you are overdue.
Structuring the RFP
A well-constructed Request for Proposal should cover the following areas, tailored to your specific requirements.
Company overview and requirements
Provide enough context for respondents to understand your business, your FX and treasury activity, your current volumes, and the instruments you use or plan to use. Be specific about currencies, typical deal sizes, and frequency.
Pricing
Ask for indicative pricing on your most common currency pairs and deal sizes. Request transparency on how pricing is structured — fixed spread, variable spread, or commission-based. Ask for sample pricing at different trade sizes to understand the pricing curve.
Platform and technology
If you require an online platform, specify your requirements — execution capability, reporting, integration with your treasury management system or ERP, and mobile access.
Service model
Ask about the team that will cover your account — their experience, availability, and whether you will have a named relationship manager. Understand escalation procedures and out-of-hours coverage.
Regulatory status and financial strength
Request details of the provider's regulatory authorisation, capital adequacy, and how client funds are held. For FCA-authorised firms, this information should be readily available.
Pricing: 30–40% · Service quality: 20–30% · Platform: 15–20% · Counterparty strength: 15–20%
Making the transition
Once you have selected a provider, allow adequate time for onboarding, documentation, and testing. Run the new arrangement in parallel with your existing provider for a period before fully transitioning. This reduces operational risk and gives both teams confidence.