FintekNews Editorial team has started to see a trend. We’re getting a whole bunch of press releases from folks who consult with the banking and payments industries reporting record earnings in 2016. No doubt this has to do with the record rate of innovation and competition hitting the sector from fintech startups.
SRM (Strategic Resource Management), a leading independent contract advisory firm for financial institutions, onboarded a record number of new clients, signed several landmark project engagements and continued the growth of its workforce in 2016.
Key highlights from the year include:
- Gaining 87 new bank and credit union clients, taking its total client portfolio to over 550;
- Initiating more than 300 project engagementsacross its client portfolio;
- Delivering $400 million in total savings or new revenue for clients spanning various transactional practices, with an emphasis on payments and core processing; and
- Growing to 30 employees strong, with associates coast to coast.
The new additions to SRM’s client portfolio expanded the geographic scope and size of institutions enlisting the firm’s services. The company now works with financial institutions ranging in size from $85 million to more than $200 billion in assets, spread across all 50 U.S. states and in Canada. Banks and credit unions receive an average savings of 15 to 25 percent per engagement with SRM. To date, the firm has helped clients gain $2.2 billion in savings or increased revenue from more than two dozen distinct banking specialties.
Brad Downs, SRM CEO, said, “The increasing complexity of contracts is driving a record number of banks and credit unions to call on SRM for guidance. The proliferation of vendors, increased regulatory scrutiny and residual effects of mergers and acquisitions are just a few of the complications that bankers face when negotiating their major vendor contracts. Contract negotiations are growing more cumbersome for banks and credit unions of all sizes. We forged new relationships with several multibillion-dollar entities last year, and expect to partner with more organizations of this size in 2017 while continuing to re-engage with existing clients.”
SRM’s growing employee team was a direct response to business demand. The firm focused this expansion in the areas of sales and customer success, also promoting many executives from within. SRM’s approach to resource management allows it to support its diverse client base, promptly assigning resources and delivering greater savings in a fraction of the time.
Downs continued, “We are seeing increased payments activity as banks and credit unions work to establish top of wallet position, gain economies of scale and respond to initiatives associated with faster payment transactions. In addition, more institutions are upgrading their online and mobile banking services to meet growing demand for digital initiatives. Money movement, specifically bill pay, is being modernized in a way that allows financial institutions to consider options for least cost routing.”
SRM uses its proprietary database and negotiation expertise to regularly test the market, setting industry benchmarks for competitive pricing and counseling clients on how to more closely align their contracts with industry best practices. This approach allows clients opportunities to reduce expenses associated with their third-party relationships or unlock the potential to increase the revenue generated from those relationships. The SRM difference is based on its no-risk, performance-based model. The firm is compensated from a percentage of savings or revenue generated from its work, not through fixed fees.
“Our goal at SRM is to provide organizations with the data and guidance they need to make fair, objective contract decisions,” Downs concluded.“Entering our 25th year, we’re excited about the opportunities we have to impact our clients’ bottom lines and enhance their vendor relationships for the long term.”