Conducting an RFP (Request for Proposal) for banking services is one of the most complex and time-consuming tasks treasury teams face. Ranging from validating the services and pricing to soliciting new service proposals, treasury groups have to get everything done in an efficient and timely manner.
Are you looking for RFP support? Here are the best practices treasury teams may conduct to conduct a successful RFP for banking services.
What is an RFP?
An RFP (Request for Proposal) is a formal request that an issuer sends to the vendor to ask for proposal submissions. It must demonstrate how its product or service can address the critical business needs of the issuer. RFPs have been playing a crucial role in the banking sector for years. They allow the issuer to invite offerings from multiple vendors and their unique benefits. Ideally, an RFP must describe the solution sought depending on the tasks to perform and the required timeline.
6 Essential Steps to Conduct RFP for Banking Services
RFP involves a great deal of research, preparation, and execution, based on which a business can make an informed decision. Although complicated, this post will break down the RFP process into six essential steps to make it pretty straightforward.
Gathering the Requirements:
While an RFP is like asking for a partnership, it is crucial to provide sufficient background in the RFP to help others understand the business needs. With complete information of problems to be addressed, the vendors can respond appropriately. Try to make the document crystal clear with valuable and accurate information.
Craft the RFP Document:
RFP contains questions ranging from a dozen to hundreds. Try to keep the number of questions to a minimum since it will simplify the selection by attracting worthy vendors with on-time completion.
The questions should be in a ‘yes or no’ format to quickly eliminate underqualified or unqualified suppliers. However, if you are looking for a provider that understands your needs, opt for text-based answers in which your suppliers can share their vision and creativity.
Some crucial questions should be regarding their trial, competitors, implementation process, training, customer support, and others. Go through their reviews, case studies, and references to get a clear idea of their performance.
Once the vendors submit their proposals, you may begin the preliminary evaluation. During this evaluation, you may identify and shortlist the most qualified vendors to address your needs. Compare the strengths of various vendors and eliminate the ones that cannot compete. Consider several factors while shortlisting vendors, including deadlines, experience, scope to scale, and membership with a trusted agency, association, or organization.
Once you shortlist the vendors, start an in-depth evaluation to identify the winning vendor. These are the steps involved in the follow-up process:
- Contact the shortlisted vendors
- Ask follow-up questions focusing on vital factors
- Set the scoring criteria
- Request a demo or presentation from the finalists
You may commend vendors who could not qualify for their efforts since the competition is still on, and you may give them negotiating power to keep the options open. Ask them to show how their service is better than the competitors while clarifying your needs.
Complete the Final Evaluation:
You must have a clear understanding of what the vendors are offering at this stage. Based on this information, you can decide which one can best address your needs. For proper evaluation, compare each vendor by giving them weighted scores and considering the valued ones.
You may review the finalists individually or in a group setting. Identify and address any areas of disagreement while accounting for each perspective. Finally, check the scores and make your final selection. Moreover, if you cannot conclude, schedule interviews, demos, or follow-ups to address any doubts.
Issue the Contract:
After making your final selection, document your decision by creating and signing a contract. Provide the RFP results to the legal department, draft a document of the gathered responses, and review the contract process. The agreement should be as detailed as possible, clearly defining the issuer and the vendor to work together.
Be extra careful while creating a contract, as this document will be crucial should any litigation be required. It must eliminate any confusion and misunderstandings and reinforce both parties’ commitment. It should provide clear expectations, define liabilities, and serve as a valid reference document for RFP support.
Once your agreement is final, you may close the RFP. At this stage, inform the vendors about the results and provide them feedback telling them the reason for your decision. Appreciating their efforts and maintaining a positive relationship will ensure that they are eager to serve you the next time you face a challenge. If required, you may contact a research and analytics service provider offering RFP support in the financial sector. With automated solutions and advanced technology, you can improve your business and drive higher revenues.
Get more exciting blogs read more on pinay scandal.