Unlocking Strategic Financial Partnerships: Navigating Treasury Management and Banking Relationships for Success

Unlocking Strategic Financial Partnerships: Navigating Treasury Management and Banking Relationships for Success

Author:  Chris Giese, Managing Director, Commercial Payment Solutions

At its core, treasury management involves overseeing cash flow and ensuring that financial obligations are met. However, the treasury operation really serves as the financial hub of a business, playing a critical role in managing monetary resources and fiscal health. This applies to companies of all sizes, from small mom-and-pop operations to large corporations with a team of treasury management professionals.

The connection between a business and its bank's treasury services extends beyond a mere component of the organizational structure. Instead, it plays a pivotal role in ensuring the company’s financial stability. This dynamic relationship is integral to navigating the complexities of financial management and securing the firm's overall well-being.

When It’s Time to Evaluate Treasury Functions

As economic landscapes shift, treasury needs will change. To hedge against market uncertainties, it’s important to evaluate your treasury operations and be willing to identify and make changes when necessary to better secure financial operations.

As you evaluate the strength of your treasury functions, consider first how well your bank’s services are meeting the specific needs of your organization. Do the bank’s solutions align with your operations, and can they expand to accommodate future growth plans? If not, does the bank have the expertise to guide your organization to a better fit and the products to fulfill those needs?

Another important consideration is whether your current bank provides the security measures needed to protect against the increasing risks of financial fraud and cyber threats. In an increasingly digital world, the potential for cyberattacks is escalating daily, exposing your business to many potential risks.

Effective security measures can help protect the confidentiality and integrity of financial transactions. In the end, this does more than safeguard profitability. Stringent security can help prevent data leaks or financial mishaps that could lead to loss of customer trust and damage your brand’s reputation.

Choosing the Right Bank for Treasury Management

What distinguishes one financial institute’s treasury services from another is the bank’s commitment to identifying and meeting the unique needs of your individual business. The relationship you have with your bank should extend beyond a standard service provider and client dynamic to a true partnership.

Many banks offer segmented solutions aligned to different treasury functions, like ACH wires and transaction services. While this approach may initially fit the needs of your business, your requirements can change as your business grows, and treasury services need to do the same. If your bank can’t identify and customize services to your business, they aren’t offering the partnership approach necessary to support robust financial growth.

Look instead for a bank that provides you with a team of dedicated professionals, allowing you to build a few key relationships that manage the entire spectrum of treasury functions. The ideal bank provides personalized support for each business, avoiding a commoditized approach where your company is forced to adapt to a predetermined suite of services.

Your bank partner should provide you with a core team beyond your relationship manager that includes a dedicated treasury officer as well as support teams available to manage day-to-day banking operations. These individuals will become familiar with the intricacies of your operation and provide continuing guidance on treasury performance.

Going a step further, businesses may want to seek out a bank with proficiency in their specific industry. For example, a bank experienced in the agricultural sector will better serve the needs of an agribusiness and offer more applicable advice and solutions than one that has no understanding of the industry.

By partnering with the right bank, you will receive customized support and solutions whether you are managing cash, planning for the future or mitigating risk. Having a treasury ally like this in your corner can be a strategic component to ensuring strong operations and continued growth.

Discover how FNBO’s can support your treasury management needs and goals.

About the Author

Chris heads FNBO’s team of relationship managers in support of treasury management, card, merchant and global requirements.   He has over 20 years of experience in the payments space and is pleased to lead an exceptional and dedicated team focused on understanding how the bank can partner to serve their financial needs.