4 Steps to Success in Treasury Management

By Greg Aumann

Increasing fee-based revenue has long been a hot topic for banks. For many, one of the most effective means of generating fee-based revenue is through treasury management services like wire transfers, payment rails, ACH origination, remote deposit capture and more.

Treasury management services allow your institution to generate fee revenue while simultaneously ingraining it as an indispensable part of your customers’ business operations—but not without some effort on your part. The following four-step plan will guide your institution through launching a successful treasury management program.

Step 1: Let Market Demand Be Your Guide

Before any strategic treasury management goal is considered, you must understand the demand for these services within your market. Is your institution seeking to heighten relationships with small- to mid-sized business customers? Or will you seek a more aggressive approach and attempt to reel in larger customers with your treasury management offerings? Depending on the demand in your market, either option (or a hybrid) could be beneficial.

Step 2: Get Someone to Own It

Treasury management is a specialized and complex line of business for institutions. Each individual service within a treasury management suite is multifaceted; and each unique customer—from a small retailer to a hospital—has its own unique treasury management needs.

Designating an employee to a singular treasury management focus is crucial to the success of your initiative. Empower someone on your staff—or a new hire from outside your institution who has applicable experience—with the freedom to make treasury management their primary focus. Boasting this sort of dedication to treasury management efforts will be an important selling point for your program moving forward.

Step 3: Leverage Your Treasury Management Services

Consider treasury management as a suite of services you provide, rather than just a product you sell. More important than the total number of services in your treasury management arsenal is your understanding of how you can leverage them efficiently.

For example, if a customer wants to move their ACH origination to your bank because you offer a more competitive price and a seamless process, you must be willing to take that business and attempt to fulfill that customer’s other treasury management needs. Make them aware of the other services in your treasury management suite for maximum gain.

Step 4: Don’t Be Afraid to Charge

If you want treasury management services to have a positive impact on your institution’s bottom line, you must charge fees for them. This seems like a basic principle, but many community banks provide treasury management services free of charge—either because they are afraid the fees will drive away business, or they have underestimated the value of the services themselves.

When considering what to charge a customer for a particular treasury service, you’ll need to take into account the lending relationship, the deposit relationship, total relationship profitability and volume usage of services. Although your bank will have fee schedules associated with treasury management products, the key is for the billing system to be flexible enough to price services based on relationship—and not a one-size-fits-all approach.

No bank is too big or too small to offer treasury management as a beneficial service to customers. No matter your asset size or location, treasury management services are a fantastic way to satisfy current business customers, as well as a beacon that can attract prospects to your institution.

For a more in-depth view of these four steps, read CSI’s Implementing a Successful Treasury Management Strategy white paper.

Greg Aumann is the application product manager for NuPoint ACH. He is responsible for ensuring the application remains competitive and compliant in today’s rapidly changing ACH environment. Greg is an Accredited ACH Professional (AAP) and is also a member of EPCOR’s Education Committee. 






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