New Banking Relation

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Executive Summary

The paper will clearly outlined the purpose of the new bank relation proposal. Through a procedural analysis, the study shall examine different categories of the proposal and the advantages to be achieved before implementation. Much focus shall be paid on the need to unify all the hotel branches under one bank. Secondly, the paper has evaluated all the banks alternatives consider when unifying the hotels. Much weight has been given to the cost saved under each alternative. Lastly, the study will examine the financial and online authority matrices and the manners in which they would assist in the success of the new proposal. Finally, the paper will provide the recommendation by the HC’s treasurer after analyzing the whole process.

Introduction

The Hotel Chain (HC), a public Listed Company have got other nine hotels. Each of the hotels have operate several bank accounts with three banks namely Bank X, Bank Y, and Bank Z.As at the end of 201,the banks provided two main services to the hotel chains namely the point of sales services and the payroll system services. The management of Hotel Chain has proposed on improving the bank services in 2015 by requesting the banks to provide new services proposal for both the payroll system and POS.

The new proposal included three services rates namely the Debit rates, VISA, and AMEX. The Debit rates is provided at 0.6% or $10 by Bank X,0.8% or $10 by bank Y, and 0.6% or $8 by bank Z. The payroll System Services under the new proposal shall be provided at the rates of $ 0 when the transaction involves the bank account, $2 for a transaction involving another account and $ 0 for ATM card issuance under the Bank X. The same services are offered at $0, $ 2 and $ 10 under bank Y for same bank account, another bank account and ATM Card issuance services respectively. Bank Z offers same bank account, another bank account transactions and ATM...