Treasury Management Monitor™

Quality Index™

Comparisons of Treasury Services Quality

Banks retain their largest, most profitable customers with outstanding customer service. The challenge facing the remaining 80 to 90 percent of bank customers is making their voice heard and getting the bank to exceed the companies’ service expectations.

Each fall treasury executives provide Phoenix-Hecht® with evaluations of the banks they use for credit and services. The on-line survey examines Product Operations, Overall Product Satisfaction, Customer Service, Technical Support and the Treasury Management Relationship Manager.

The treasury executives receive a confidential report summarizing the individual performance of each bank in the study. The Summary Grade Report is used as a reference point for comparing bank performance within two peer groups based on company sales size.

The peer comparison data is used by treasury executives to structure performance conversations or relationship reviews with their bankers. The comparison data is also valuable should the executive be considering adding or changing a bank.

The confidential report is only available to corporations who complete the Treasury Management Monitor™ — a Credit and Bank Quality Survey. The higher the number of companies we have participating in the study creates a stronger incentive for the bank to continually improve.

There is a Quality Index™ based on the annual sales size of the corporation. Phoenix-Hecht has calculated that a difference exists for each market segment. Customers should request the most appropriate Index from their service provider.

  • Middle Market ($20-$500 Million)
  • Large Corporate (Over $500 Million)

More Information:

Products Operations

  • Timeliness for incoming wire notification
  • Accuracy of processing for wholesale lockbox
  • Accuracy of payee recognition
  • Speed of ACH error correction

Overall Product Satisfaction

  • Web-based reporting and transaction initiation
  • Wire transfers
  • Wholesale lockbox
  • Controlled disbursement/positive pay
  • ACH
  • Remote deposit
  • Credit card (used for invoice payments)

Customer Service

  • Processing account maintenance requests
  • Customer service

Technical Support

  • Web-based reporting and transactions
  • ACH
  • Credit card (used for invoice payments)

Treasury Management Relationship Manager

  • Anticipates needs for new/modified services
  • Prompt call follow-up
  • Overall effectiveness

Phoenix-Hecht compiles quality evalutions for the following banks:

Bank of America Merrill Lynch
BBVA Compass Bank
BMO Harris Bank
BNY Mellon
BOK Financial (Bank of Oklahoma)
Capital One Bank
Citizens Bank
Commerce Bancshares K.C.
Deutsche Bank
Fifth Third
First Tennessee
JPMorgan Chase
M & T Bank
MUFG Union Bank
Northern Trust
PNC Bank
Regions Bank
TD Bank
UMB Banks
US Bank
Wells Fargo

Note: Individual bank results are released at the sole discretion of the individual bank. Distribution rights are granted to subscribing financial institutions.

The Phoenix-Hecht Bank Quality Index™ is based on thousands of individual bank quality evaluations gathered by the Treasury Management Monitor™ Survey. Any corporation can request the individual product and service grades along with the numeric scores directly from your banker for their institution.

A summary of the letter grades is provided to corporations responding to the Treasury Management Monitor™ Survey.

The objective of the Quality Index™ is to provide the most reliable predictor of a bank’s performance relative to its peers. Middle market companies tend to rate their banks higher than large corporates. In the middle market, there is somewhat of a halo effect from positive evaluations of credit that also translates into higher evaluations. Larger corporations have more banks to compare and are not as sensitive to credit needs. We account for this with different grade thresholds for each segment.

The Quality Index™ has two elements that can be used to evaluate quality: (a) the numeric score for each question and (b) the letter grade for that question. The numeric score is based on a scale of 1 to 9 with 5 being "Meets Expectations" and 9 being reserved for "Exceptional."

All banks do a very reasonable job of meeting customer expectations. The vast majority of numeric evaluations are in the 5 to 8 range. Higher grades are a reflection of how frequently the bank exceeds its customer’s expectations. However, just as in EPA mileage standards, individual customer experiences may vary.

The letter grade is a reflection of where the bank ranks relative to all other banks in the marketplace based on the distribution of numeric scores. For each of the five groupings, there are numeric ranges that equate to specific letter grades. The Quality Index™ has eight grade categories, with A+ the highest and B the lowest. Finally, for each bank, a grade is calculated and reported only if the variance/sample size passes acceptable parameters.

Grade thresholds are set at a targeted distribution of 20% A+, 20% A, 20% A-, 10% B+, and 20% B. This distribution is applied to each of five distinct groups of questions:

  • Overall product satisfaction
  • Operational issues (product processing)
  • Bank perception (customer service and customer calling program
  • Technical support
  • Treasury management relationship managers

The application of this distribution means that while a bank has the potential to receive a top grade in any question, some questions within the category will receive lower grades overall.

Individual product and service grades along with the numeric scores can be obtained directly from your banker for their institution. We recommend use of the quality grades with existing banks as a starting point for conversations around quality. Quality grades should also be request from potential providers as part of an RFP.

From August to November each year, Phoenix-Hecht conducts its annual study of senior financial executives respondsible for managing the bank relationships for treasury management services. The study targets public and private U.S. corporations with annual sales greater than $20 million.

The Treasury Management Monitor is conducted using an on-line instrument. As part of the survey, respondents are asked about their credit and major treasury management relationships with a select list of banks in the United States. The purpose of this methodology is to obtain representative coverage of these banks.