|
“Leadership
Banks” Program
A Timely Initiative for Increasing IOLTA
Revenues During the Economic Crisis
Whether
or not your state has an IOLTA rate comparability requirement, you can
potentially increase revenues right now with a well-executed "leadership
banks" program.
The
Texas IOLTA program has set the pace with its "Prime Partner"
program, offering incentives like high visibility in the legal community to
banks that go above and beyond rate comparability in the rates they pay on
IOLTA accounts.
While
many variations regarding bank promotion exist, we believe that simplest is best. For example, we have
recommended the following to one of our IOLTA clients as the criterion for
awarding "leadership bank" status:
•
"Leadership
bank" = a bank that pays its
"comparable" IOLTA rate plus 50 basis points
Note
that with such an approach, a leadership bank program can be effective in a
non-comparability state as well. Here are the steps we recommend for getting a
“leadership banks” program in place:
•
Identify all the
incentives your IOLTA program can offer.
•
Develop a proposal you
can present to banks.
•
Meet face-to-face with
the short list of banks that hold, as a rule of thumb, a combined 80 percent of
all IOLTA principal balances. Get as many as possible to sign on.
•
Do a mailing to the
rest of the banks.
•
Continue to enroll
banks at every opportunity over the next year or more.
•
Integrate the
“leadership banks” program with everything you do, ranging from paid
advertisements to links on your website to the banks’ websites to recognition
at your annual banquet to plaques or certificates that can be displayed by the
banks.
About The Resource for Great Programs
We can
help with all aspects of rate comparability…
Conduct
revenue impact studies – To determine how much you could reap through a rate comparability rule and
to set a fair and effective “benchmark” or “safe harbor” rate.
Develop a rate comparability rule – To earn the same high
rates for IOLTA that non-IOLTA customers get.
Persuade bench, bar, & banks – To support your efforts
for more money & fair rates.
Implement your comparability rule – To join the multiple
states we’ve helped to implement rules with more than 1,000 banks. Campaigns to
move from voluntary to mandatory too.
Make sense of your remit data – To understand what the
rates & principal balances are.
Learn what banks should be paying IOLTA – To level the playing field
in your state.
Foster
policy innovations – To maximize revenue & strengthen your hand with banks.
Monitor
bank compliance – To ensure banks continue to comply with your rule as products, rates,
& fees change.
Forecast your future revenues –To allow you to develop reserves & stabilize
grants.
|
