Procurement of Banking Service Providers
Overview
As the state’s chief banker, the Illinois Treasurer is responsible for the procurement of banking services for Illinois government agencies, boards, and commissions in a manner that presents the most advantageous solution to their individual needs. This includes the receipt, custody, and safekeeping of all public monies of the State and ensuring sufficient appropriations and sufficient fund balances are on hand for the payment of the State’s obligations.
Pursuant to this authority, the Treasurer maintains accounts with multiple financial institutions for the purpose of (1) accepting receipts in the form of coins, cash, checks, drafts, electronic fund transfers, electronic checks, credit card payments, debit card payments, and other similar payment instruments and (2) disbursing payments made by the Comptroller or State agencies.
Services Sought
The Office of the Illinois Treasurer maintains numerous accounts with external financial institutions to process deposits for check clearing, lockbox services, ACH transactions, depository and custodial services, and electronic payment transactions on the State’s behalf.
The Office of the Illinois Treasurer continually looks for more efficient solutions to meet the banking needs of the agencies we serve. Examples of these services include electronic check scanners, on-site cash vaults, and electronic cash letters.
Procurement Opportunities
The Office of the Illinois Treasurer contracts with financial institutions to obtain various banking services. In most instances, banking service providers must participate in a Request for Proposal (RFP) process. RFPs are posted on the Procurement page.
To receive automatic email notifications when new RFPs are issued, sign up for the procurement notification system.
Investment Services Sought
The Illinois Treasurer seeks a wide range of financial services and products from MWVD firms, including the following:
Broker/Dealer Services
- U.S. Treasuries
- Supranational bonds
- U.S. agencies
- Commercial paper
- Foreign bonds
- Municipal bonds
- Corporate bonds and notes
- Repurchase agreements
Investment Management Services
- Fixed income
- Cash and cash equivalents
- Public equities
- Real estate
- Private equity
- Venture capital
- Securities lending
- Private debt
Banking Services
- Custody and safekeeping
- Depository services
- ACH transactions
- Lockbox services
- Cash and check processing
- Credit and debit card processing
Other Investment Services
- Investment consulting
- Linked and time deposits
- Bond arbitrage
- Third-party research
- Treasury consulting
Expanding Opportunities for MWVD Businesses
As set forth in Section 30 of the State Treasurer Act, 15 ILCS 505/30, the Illinois State Treasurer has an aspirational goal to use minority-, women-, veteran-, and disability-owned businesses, also known as MWVD businesses, in at least 25% of the total dollar amount of:
- Funds under management
- Purchases of investment securities
- Other contracts
Treasurer Frerichs supported the passage of Senate Bill 2363, which was signed into law on August 19, 2018. The law formalized this 25% goal and strengthened the Treasurer’s ability to expand opportunities for qualified MWVD firms.
The law also:
- Requires an annual report on MWVD utilization
- Allows procurement preferences for MWVD firms
- Requires review of Community Reinvestment Act ratings
Current Procurement Procedures
The Illinois Treasurer includes detailed questions about diverse ownership in its Requests for Proposals, or RFPs. These questions give the Office a better understanding of which businesses are competing successfully and where barriers may still exist.
Current RFPs include statements like this:
Respondents receive a diversity score based on their answers to the Diversity and Inclusion questions in the RFP. Higher scores may be awarded to firms that are minority-, women-, veteran-, or disability-owned or managed. Higher scores also may be awarded when a greater share of subcontractors are minority-, women-, veteran-, or disability-owned or managed.
Partner with us to expand access to financial services across Illinois
Contact the Illinois State Treasurer’s Office at BankingWebsite@illinoistreasurer.gov for questions about banking products and services.
RFPs for banking services are posted on our website.