A:   MYD Consulting is a national, boutique consulting firm comprised of ex-bankers the major national and regional banks in the US. MYD helps middle market to large corporate businesses and non-profit organizations significantly reduce operating expenses by finding undiscovered cost savings of 20 to 50 percent in their cash management business, including treasury management, purchase card and merchant card.

A:   We require very little of your time or your staff's time nor do we even require on-site space for our team.  The typical engagement requires less than two hours of your company’s time including modeling review, bank-tailored approaches, and monthly reviews.

A: Your team has undoubtedly done a good job with the level of information available via the web, local conferences, or even purchased indices.  We work to build upon those fundamentals with our own proprietary data, processes and leverage:

·  Four indices – We pay for all indices, which normally you would pay several thousand dollars for access to this information.  We look as well to stratify you to your peers or understand your leverage to better position the pricing request.  We have better data as well in that we do not factor just one index or the fact a price point could be lower.  We factor overall bank profitability with a pricing request

·  Look beyond pricing, focus on profitability – We try to best comprehend all ancillary business you provide and leverage every aspect of your bank relationship with our pricing request.

·  Multi-month audit – Our service continues for the life of our contract and we audit all variances beyond $100 to alert you of potential challenges

·  Draft all dialogue and communication – We know what banks are seeking “semantics wise” from you the client and draft all correspondence so time can be saved or directed to other internal projects.

·  Offer view from the inside (market discount knowledge and profitability model experience) – We add color to what and why the banks seek certain business within the many treasury solutions

·  Know what bank wants – Having viewed 2,400+ profitability models… we know which fee drivers have margin and those that do not. 

·  Offer fresh perspective - Know the margin areas in bank pricing and profitability

·  Quartile positioning – We try to position you within the respective pricing matrix that you should reside (example the top 10% versus the median).

A: The challenge you’ll find with models is that they work off of blue book pricing or some other index, which is geared to find the average discount in the market. Not the best discount, but the middle of the bell curve. MYD is not looking for an average discount provided every bank situation is unique with different leverage points and profitability.  That’s why we don’t focus on understanding your discount but instead focus on understanding your profitability.  From that information we can determine if you can be moved into top 20%, 10% or even 5% discounted pricing on the bell curve.  We call this “quartile positioning”

A:   Middle market and large corporate organizations, ranging from $50MM in top-line revenue and up. Industries include, but are not limited to, Healthcare, Real Estate, Non-Profit, Universities and Private Schools, Restaurants, Grocery Chains, and so on.

A: 95% of our clients stay with the current bank.  MYD’s primary focus is to benchmark the client’s current pricing to the market, model profitability of the relationship, and help negotiate the best deal for the relationship behind the scenes and through the client to keep the partnership intact.  

A: Most of our clients have a dedicated treasury/finance team or individual responsible for the overall treasury management and banking matters.  Moreover, many have conducted RFP’s to achieve lower pricing; however, what we know as bankers… very few corporate practitioners have actually managed bank profitability models or sold treasury management solutions.  Thus, this is how MYD differentiates ourselves from the marketplace.  We are ex-bankers that know how low the discounts can go and what wiggle room truly exists within your price drivers.  These folks all do a great job as practitioners; however, MYD employees have hands-on experience reviewing over 2,400+ bank profitability models in our history.  

A: We 100% concur… we also show that is the correct manner when approaching a bank provided the rate of return increases over 12% versus leveraging a consultant in your meeting.  As ex-bankers, we know that a credit provider is not a standard vendor – they are partners.  The only exception to working covertly through our clients is if an outright bank change was to take place or new/incremental business was a factor.  Only then would we suggest you considering leveraging someone from our team in person during your bank meetings.

A:   You are under no obligation to implement our recommendations. We understand that there is more to your banking relationships than price alone.  In fact, we do not get paid unless you implement our recommendations and save money as a result.  Our goal is to outline the often inflated profitability levels of your relationships for you to decide if there’s something you should do about it.

A:   We need your previous 3 months of statements (account analysis, purchase card and/or merchant card). With this data, we can run a profitability analysis to determine line-item profit margin as well as overall profitability level.  This is not only done by looking at your own data, but also by comparing you to peers in the market in terms of industry, size, and geography. 

A:   Not very long. A majority of the work in analyzing your relationship has already been done by our proprietary modeling system, pricing database, and negotiation indexes. These systems are updated daily with the latest rates, prices and trends in the market to ensure your analysis is thorough and complete.  Once all statements are received, we can provide a full report within a week or two.

A:   From analyzing your information, we are able to focus on two key areas that maximize return on time invested.  We first look for line items with significant profit margin built into them.  We then correlate these line items with those that are also significant fee drivers. The two combine to spotlight the “fat” in the relationship we can trim.

A:   If desired, we can highlight more efficient processes and products in the market as well as companies (bank and third party) who can provide alternatives to what you have today. Understand our goal is to not have you utilize them nor to move to them, but simply provide transparency in the market place so that you can make the most informed decision.

A:   Your company only pays MYD after we save you money. We are paid a percentage of the savings realized in your account. This fee is paid over time as your savings are realized. If we do not save you any money, we never get paid. No results, no fee. It's that simple.

A:   Yes, very well and successfully for many years. MYD’s service is unique in that generally we are only paid when your company realizes savings. Few companies are so confident in their services to make their fee dependent upon the success of their service.