Tracking a New Route: Driving Growth in Railroad Banking

Reestablishing our railroad vertical, reaffirming our value at Associated Bank

Members of the Associated Bank rail team have been serving the rail industry’s financial needs for more than 15 years. With this experience comes a deep understanding of not only the key players in the industry but also how they operate. As a bank, we’re building out our capabilities to further meet industry needs.

Under the guidance of this team, Associated Bank is gaining momentum in the short line and regional railroad space. Client-focused delivery, local decision making and community involvement are important differentiators to railroads, and these are how Associated Bank has made a name for itself over the past 160+ years. Perhaps the strongest uniting factor is a shared value of always putting people first.

Banking is, at its core, a people business. What sets a great bank apart isn’t just products or pricing—it’s also the relationships, trust and understanding built over time. By putting people first, we create solutions that truly fit, respond faster and build partnerships that grow stronger with every interaction.

Associated Bank offers a diverse range of financial products and services to benefit rail operators of any size.

• Explore lending options, including working capital lines of credit, capital expenditure lines, term loans for equipment or M&As and syndicated credit facilities for M&As or debt consolidation.
• Treasury Management offers a full suite of solutions, including working capital optimization strategies, liquidity management, digital payment solutions,¹ fraud prevention tools, integrated and automated payables, credit card programs,² expense management tools and ERP integration options.
• Other industry-leading solutions are available across the bank, including employee benefit administration (e.g. 401(k), HSA,³ etc.),⁴ ⁵ private wealth/personal banking for owners, corporate trust services, foreign exchange (FX),⁶ interest rate derivatives and more.

Whether rail operators are looking for ways to support their workforce, optimize their cash flow, expand their business or understand their data, Associated Bank has the team and the solutions to serve their needs.

Panel takeaways: enterprise resource planning systems for rail operators

A panel discussion at the conference illuminated the strong and growing importance of data transparency for railroad companies. Nearly all panel attendees had recently upgraded their ERP system—or were in the process of upgrading. Based on their collective knowledge and the knowledge of Associated Bank's rail team, here are key considerations for rail operators regarding ERP systems.

• Common choices for new ERP software included Acumatica, Sage and Microsoft Dynamics 365, with a handful choosing NetSuite and QuickBooks. Although these are popular ERP options in general, industry peer groups and recommendations played an important role in helping some rise to the top.
• Pull in an experienced ERP implementation partner and not just a software vendor. (Associated Bank has previously shared this tip in our article about picking the right ERP.) Associated Bank also knows the value of a smooth implementation process and prioritizes this experience as part of our banking relationships.
• Select a software provider that not only solves the pain points you have today but will also create your ideal future state by supporting the integrations every department needs.
• Share knowledge with non-competing peers who have been in your shoes and share your knowledge with the next company. The panel mentioned a peer group for finance executives in the rail industry that helped each other solve similar problems as they arose.
• Get buy-in from top leadership before the upgrade begins to ensure smooth internal pathways and resource allocation. This goes for any large-scale project, like choosing a new financial institution.

Even with the time, hurdles and change management involved in a complex project like an ERP upgrade, the operational improvements are worthwhile. A properly chosen and implemented ERP solution gives your business less fragmentation, more automation, reduced human error and countless other benefits.

For more information, see How to pick the right ERP for your organization and Implementing your ERP with success.

Associated Bank is on track with the rail industry’s future.

For railroads that want a full-service banking partner who puts people first, turn to Associated Bank. Connect with our rail industry team using the contact information below.