Treasury management is something companies with spare funds require to secure better returns on short-term funds that they’re not putting to work. Whether placing funds in a corporate treasury account or another similar investment offered by a financial institution, corporate customers are looking for ease of use and the best rate possible.
Raising Service Quality in a Low Rate Environment
One of the challenges for financial institutions offering treasury management facilities is that the low-rate cycle means lackluster interest for their customers. Taking a reasonable fee from an already low-returning short-term investment makes it difficult for either party to get a satisfactory return.
Service levels need to improve with lower rates because it’s a key differentiator between one financial institution and another. Continuing to use printed contracts, a hands-on slow manual procedure, and in-person signatures by senior members of the company creates an impediment to providing a satisfactory experience from the start.
Timeframes to get started with treasury management tries the patience of new customers requiring multiple interactions. Ultimately, treasury deposits don’t start for days or weeks later which could be expensive for corporations with substantial sums available for overnight deposit.
Smoother Treasury Management Onboarding as a Differentiator
With digitized treasure management onboarding, the multiple touchpoints for the customer are removed. Using digital document images, secure sending of completed documentation, sensible workflow adjustments, and a thoroughly paperless process, financial institutions are freed from hand-holding.
Sales teams have more time available to answer questions and smooth out any wrinkles in the sales and onboarding process. Or, they have the capacity to handle more corporate clients over a given period which is more profitable for the institution providing treasury services.
Repeat Business & Referrals
Shifting to a paperless treasury management onboard process cuts the time to go live by up to a one third. Compared to the previous experience for corporations when trying a new treasure management option, the faster startup gets noticed. With online access to different treasury products where corporate clients can swap between products as needed, they can decide how long to lock up funds without needing to speak to sales staff to confirm the change.
Improvements in speed and online functionality often lead to repeat business where accounting staff are pleased with the smoother operation. They’re freed up to focus on the accounts of the business and spend less time handling spare cash within the business accounts. Referrals to colleagues or friends who work in the accounting departments of other major corporations is bound to happen. Rather than continually hearing about the headache someone else has with treasury management dealings at a less progressive financial institution, colleagues and friends are likely to share better solutions to resolve their pain point.
In an age where interest rates seem to stay forever low, financial institutions need to market treasury management services based on the service quality and innovation, not the return. While companies prefer to lock up funds overnight, at least, to get a money-market level return on their cash balances, it’s the improved convenience that will put a smile on their faces.
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