As our clients and all financial institutions weather the storm created by COVID-19, sources of income will become more important than ever, particularly as we all get back on our feet in the second half of 2020. The best recommendation we can provide is for you to be proactive now! When the dust settles later this year, the storm will be severe and many of the initiatives that were put on hold may continue to not get done. Let’s review a previous blog post provided by RLR’s Treasury Management expert, Nancy Cook, on how to leverage your Treasury Management Services that you have in place today!

ByNancy Cook,Senior Associate Consultant
RLR Management Consulting, Inc.

Treasury Management services are an excellent source of fee income for banks. Do you have processes in place to leverage these opportunities for more income?

1. Require all major borrowers to move their operational accounts to the Bank as a condition of their loan. This is standard practice at all large banking institutions and should be at Community Banks. This will help you to sell Treasury Management products to assist them in managing their finances.
2. All Treasury Management customers should be on account analysis, so set up automatic debits for their monthly fees to be processed on a certain day each month. This will eliminate late payments and customer follow up.
3. Institute an annual review of all fee waivers and discounts to confirm that the conditions of those waivers/discounts are still being met. Review for waivers or discounts that have expired or conditions that warrant removal of the waivers/discounts.
4. As part of the Business account opening workflow, set up Online Banking on all accounts and cross-sell other Treasury Management products based on customer needs.
5. Review all current Treasury Management and non-Treasury Management clients for additional product needs. These could include Remote Deposit for heavy deposit customers and Wire Initiation for heavy wire transfer use.

In banking we’ve been talking about “know thy customer” for a while, but it’s never been as true as it is today. Really getting to know your customer creates more opportunities for you to provide banking services the way your customers want it. Providing services the way your customers want them creates that “stickiness” that gives you the opportunity to cross-sell services. For help with maximizing your Treasury Management department, give us a call at 888-757-7330, or e-mail us at [email protected].