What would happen if counties and their associated public entities shared more services?
Nationwide, states are pushing for it and taxpayers are expecting greater teamwork.
Would such a plan lead to more efficiencies, lower costs, and fewer tax hikes? Can it be done without these associated entities losing their sense of control? Could it result in a win/win for all involved?
When it comes to banking services, the answer is a resounding “yes.” The ability to create the right level of buying power is critical, especially in the changing landscape of public banking.
With fewer bank branches in smaller towns or villages, the ability to negotiate competitive banking fees and deposit rates has become a challenge.
By combining the forces of a county’s towns, villages, and school districts, collaborating entities can have immense power in today’s banking environment.
As an example, if a town or village acts alone—and has only one bank to serve its banking needs—the level of service fees will be high and the deposit rates will be very low.
On the other hand, if several entities work together, combining their buying power across a greater geographic area, an increased number of banks will be in play. More account options would become available, allowing each entity to have its own bank account(s) but at lower negotiated costs and with higher deposit rates, thanks to higher dollar levels.
How do you achieve such a level of cooperation between public entities and their banks?
At three+one we have the expertise and resources to access the banking and liquidity needs of all the entities involved. We can help by putting together a single blanket banking services Request For Proposal (RFP) for both transaction fees and deposit rates. Once assessed, the ability to pick one or several banks is possible—leading to a significant level of savings on fees and earnings on deposits.
The end result will be more banking services for all the entities involved, greater choice, lower costs, new levels of income, and less burden on taxpayers. Best of all, they won’t lose control of their most important asset: cash.
See Us At These Upcoming Events and Conferences:
GFOA South Carolina – May 1
National GFOA in Denver – May 21
New York State Association of Counties Finance School- May 2-4