3 Reasons for Treasurers to Build Strong Bank Relationships

Here’s Why You Should Tap Into the Power of Partnership.


The relationship between a company’s treasurer and its bank can help support a business’s financial stability and resiliency. Like any successful relationship, it requires openness and trust. 

In essence, it’s all about the power of a good partner.

Once trust has been established, treasurers and bankers can drive efficiency and transparency throughout the cash management and risk management process.

Here are 3 reasons why it’s critical for treasurers to build strong bank relationships. We’ll also explore why both treasurers and bankers should prioritize that partnership.

1. Banks Can Support Treasurers in Their Digital Transformation Efforts.

A banking partner can meet treasurers where they are in their digital transformation journey. Key to this is identifying proactive steps for greater efficiency.

Treasury management processes like collections, disbursements and trading have largely remained the same over the past few years while other banking innovations have taken off. While the banking industry is moving toward fully automated solutions, it isn’t there yet. 

Treasury management processes still occur through digital and analog modes like cash, check, and ACH. And they take place through multiple channels, whether that’s in person, via mail or handled electronically

When it comes to treasury management, every company’s at a different point in its technological journey. Some companies are cash-based while others are fully digital. This has led to a market that’s ripe for disruption. 

Fintechs are reigniting innovation as they make their way into the treasury management space. Banks have responded with products and services that fintechs can’t necessarily deliver. 

2. Banks Can Help Treasurers Capitalize on Insights.

Successful banking relationships provide treasurers with the opportunity to gain insights they may not have otherwise gleaned. These insights are built on dialogue and interaction with similar clients. 

Any reputable bank can provide data and services, but a trusted advisor will help treasurers find value in their data and glean actionable outcomes. This is especially critical in an omni-channel and multi-modal environment.

3. Banks Can Offer Capabilities Beyond Their Lending.

Treasurers consider many factors when choosing a bank. A bank that will give access to capital and support liquidity needs is usually an obvious choice. 

But treasurers should also consider the bank’s capabilities beyond their lending. 

Consider these questions: 

  • Does the bank have a roadmap for driving future cash management technologies? 
  • Do they directly engage in conversations about current and anticipated needs?
  • What investments are they making to support best-in-class payables, receivables, and liquidity processes?

Supporting Treasurers in Achieving Their Goals

Commercial banks offer a wealth of experience and domain knowledge that treasurers can tap into as a resource. That’s why maintaining a good treasurer-bank relationship is so important.

Great things can happen when treasurers and their banks make the relationship a priority. The shared benefit is that it can drive business growth and profitability for both.


For Informational Purposes Only

The information contained herein is shared for educational purposes only and it does not provide a comprehensive list of all financial operations considerations or best practices. This information does not represent any opinion, guidance or recommendation, whether formal or informal, of Capital One, National Association, or any of its officers, directors, employees, advisors, attorneys, consultants, affiliates or subsidiaries (collectively, “Capital One”). Nothing contained herein shall give rise to, or be construed to give rise to, any obligations or liability whatsoever on the part of Capital One.

 

Products and services are offered by Capital One, N.A., Member FDIC.  © 2020 Capital One.

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