Bank cash management or treasury management services have been a basic staple of major banks’ corporate services for over 30 years. Beginning in the late 1980’s and early 1990’s mid-sized banks in the $1 to $5 billion asset range began offering cash management services often as a defensive measure to stem the run-off of their larger corporate customers to the major banks offering a complete range of cash management services. Gene Cooney completed his first consulting engagement in this area during 1993 when he assisted in the installation of a battery of 13 cash management products at a $1.6 billion bank. During the last five to ten years, banks with assets to $200 million have begun to offer some types of cash management services from basic sweep accounts to more advanced services such as Account Reconcilement and ACH origination.

 

Technology and service offerings have reached the point where it is not necessary for a financial institution to develop or implement its own cash management services. Most high end deposit system software packages contain modules for Sweep Accounts, Account Analysis and Account Reconcilement. In addition, Third Party providers offer a complete range of cash management services that rival those of any major bank in terms of flexibility and quality at reasonable prices. One of the Third Party providers is consistently the top rated cash management bank in the nation. This approach has proven to be very appealing to mid sized and smaller banks. In fact, many major banks use services offered by these same Third Party providers. The Third Party provider is completely transparent to your customers.

Experience   Services   Available Third Party Products

High quality cash management services are an excellent source of fee income and may be an important aspect in the retention of growing business customers. Incomplete or poor quality service offerings can result in poor customer relations and the loss of major accounts.