Guide to Treasury Management Services in Banks

treasury management services

What is treasury management?

Treasury management is a business process management system that helps organizations to optimize liquidity and reduce financial and operational risk. Treasury management services and products in banks are focused on the implementation and management of procedures to help organizations manage their cash flows.

Why are treasury management services in banks important?

The primary goals of treasury management services in banks are to improve efficiency, boost productivity, and cut the costs associated with the operations of treasury services. Managing cash flow is crucial for all organizations. Mismanagement can lead to there being insufficient cash on hand to cover financial obligations.

With treasury management services, organizations can monitor the amounts and timing of cash coming in and going out. The bank’s treasury management teams are tasked with meeting the investment and risk coverage needs of institutional and corporate organizations. To this end, banks must provide innovative services to help organizations better manage their financial obligations and planning.

Many banks resist implementing new treasury management processes due to the costs associated with investing in new treasury technology and infrastructure.

ProcessMaker’s treasury management software eliminates the need for large investments in infrastructure and offers value from day one.  Download our BPM for Banking whitepaper or try a 7-day free trial

Treasury management services provide many benefits. These include:

  • Increased efficiency and reduced operating costs
  • Automate accounts receivable
  • Automate accounts payable
  • Improve visualization of data
  • Reduce fraud

Increased efficiency and reduced operating costs

While automation has made its way into many aspects of banking processes, a large percentage of organizations continue to rely on antiquated procedures for performing vital treasury activities. These include important treasury services tasks like accounts payable, accounts receivable, and new account openings.

Relying on manual processes causes team members to spend most of their time performing repetitive and time-consuming tasks. This leaves them with little time for more important functions like analysis and creating business intelligence. By automating some or all these processes, team members can focus on more productive and profitable activities.

Automate accounts receivable

An important part of maximizing cash flow is ensuring that customers timely pay their invoices. Depending on the industry, it can take upwards of 90 days or more to receive payment. Yet, in the interim, organizations must find ways to meet operating expenses.

Many organizations continue to spend a disproportionate amount of time manually creating, reviewing, printing, and mailing invoices. Once the invoices are out, additional time must be spend communicating with clients to collect and schedule payments.

Automating accounts receivable processes helps organizations to get paid quicker while leveraging technology to reduce the need for labor-intensive tasks. Organizations are also able to provide customers with better service, reduce the frequency of costly human errors, and reduce the costs of payment processing.

Automate accounts payable

Automating accounts payable allows organizations to process vendor invoices without human intervention. This both reduces costs by removing manual processes and avoids costly errors like duplicate or erroneous payments.

Improve visualization of data

Big data is playing an increasingly important role in the financial world. Treasury teams are turning to large data sources for important insights into performance. Manual processes lead to the accumulation of data with no corresponding ability to engage in meaningful analysis. Moreover, team members spend most of their time loading data and have very little time left to draw meaningful conclusions.

Through automation, organizations can take a forward-looking approach to treasury management, responding rather than reacting to cash flow challenges.

Reduce fraud

One of the biggest challenges that banks face is finding ways to reduce the occurrence of ever-evolving forms of bank fraud. The costs banks incur in mitigating fraud range from detecting and preventing fraud to covering actual losses to stiff regulatory fines and penalties.

Through automating customer verification, risk calculation, and suspicious activity monitoring with business process management (BPM) software, banks can cut costs and prevent fraud. BPM software also assists with compliance by streamlining document collection to simplify the audit process.

Treasury management products for banks

Treasury management products for banks help to eliminate gaps between sales and fulfillment and empower treasury management teams to drive onboarding processes while providing superior customer experiences. ProcessMaker’s banking automation workflow platform helps organizations streamline the account set-up process, correspondence generation, and management, funding, and activation.

ACH & wire origination

The Automated Clearing House (ACH) is a clearing network for electronic payments. Some $40 trillion in ACH transactions are processed each year. Strict regulations and security controls require banks to undergo checks and balances during funds transfers.

Both processing payments and actively monitoring for fraud place enormous burdens on treasury services teams. Customers have up to 60 days to file an ACH dispute. Businesses have only 2. Automated systems can flag potential payment exceptions and make it easy for treasury teams to cancel or approve pending transactions.

Sending and receiving money electronically by ACH and wire transfers is easy with ProcessMaker. ProcessMaker’s banking automation workflow platform provides organizations with greater transparency, ease of use, and heightened security technology. Team members can easily create replicable wire templates across entire banking systems and approve and cancel wire transfers. Organizations conserve resources, save money, reduce costly errors and fraud, and increase compliance.

Online & mobile banking

Modern banking customers expect to access their information from anywhere, at any time, and on any device. In addition to providing superior customer experiences, these forms of digital banking provide major benefits at the organizational level.

Digital banking is estimated to reduce banking operations by some 20 to 40%. Expensive back-end processing operations, real estate expenses associated with additional branches, and the occurrence of clerical errors are all reduced through the introduction of automated banking technologies.

With ProcessMaker’s bpm software for treasury management services, organizations can offer their customers consistent and intuitive online account openings that customers can access from any device.

Merchant services

Nearly every adult consumer has a credit or debit card. Cash transactions are slowly dying while some new form of digital payment seemingly springs up every few days. In an increasingly digital world, consumers expect immediate results and superior customer experiences.

ProcessMaker’s treasury services solutions allow organizations to significantly reduce the payment processing cycle and deliver superior customer services. Easily access customer data and transaction history in real time. Establish swift verification processes, monitoring checks, and quick inter-bank and inter-branch reconciliations.

Business credit card origination

Business credit cards are attractive for organizations looking to earn rewards and control employee spending. Complicated credit card applications are frustrating for new customers. Manually reviewing and processing new applications is time-consuming and leads to errors.

With ProcessMaker’s workflow software, businesses of all types have the power to create efficient customer credit application processes. Without having to write programming code, organizations can design credit applications that are easy to navigate and allow information to be used to populate multiple forms and fields at once. The application process is streamlined, and organizations can render credit decisions much quicker and more efficiently.

About ProcessMaker

ProcessMaker’s low-code intelligent automation platform empowers organizations to design business processes in seconds—no experience necessary. ProcessMaker effortlessly automates mission-critical processes, capitalizes on the next generation of AI-powered innovation, and unlocks the full productivity of your skilled workforce. The platform also offers a range of free trials to showcase ease of use and technical innovation.

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