Making the most of treasury management
Managing your company’s money, or treasury management, is a critical component of business operations. From collecting payments to paying bills and protecting your account from fraud, the benefits of expert treasury management support are wide-ranging, as are the ramifications of poor treasury management services. Many businesses have not had a chance to conduct a thorough review of their treasury management services, resulting in outdated processes, uncaptured efficiencies, and a negative impact to the bottom line. If you haven’t reviewed your treasury management services recently, you may be missing out.
Here are three important aspects of treasury management every company should consider incorporating into their services.
Treasury management is one of the most rapidly evolving aspects of banking, primarily due to technology advancements that provide enhanced automation and efficiencies. Advanced software and artificial intelligence (AI) enable businesses to manage their cash flows and investments more efficiently. Real-time visibility into financial transactions and accounts allows for faster decision-making and risk mitigation. Tools to integrate payables and receivables can enhance money management, quickly handle routine payments, and more efficiently move money at the right times with little hands-on involvement.
Efficient funds management focuses on maximizing returns on investments, reducing risk, and supporting overall financial stability. Sweep account tools can be used to pay down a line of credit or move funds to an attractive interest-bearing account. Insured cash sweep or repurchase sweep arrangements help optimize cash balances and safeguard liquidity by automatically transferring excess funds. Balances in sweep programs at FDIC-insured banks are insured up to the maximum amount in accordance with FDIC rules, including pass-through FDIC coverage for IOLTAs, ensuring deposit security and safety. Effective funds management is tailored to each firm’s unique needs and is regularly monitored and enhanced or updated as needed.
Every business is vulnerable to cyber fraud, regardless of the size or type of business. The best way to protect against cyber fraud is by educating employees through training and awareness efforts to recognize and avoid common fraud attacks. Employees are your first line of defense. Implementing processes such as internal controls, multi-factor authentication and secure password policies provide additional layers of protection. Tools including transaction authentication, dual control processing, and ACH and check positive pay enable additional account protection.
Financial institutions also use tools to monitor IP addresses, conduct behavioral analytics, and run intrusion detection software to keep additional watch on your account but businesses are often ultimately responsible for fraudulent activity on their account. Fraudsters are increasingly sophisticated and constantly creating new ways to scam, so it’s vital to stay up to date with employee training and available technology to protect against potential attacks.
Treasury management factors significantly into effective and efficient business operations. Your commercial banker and treasury management consultant should guide your day-to-day operations and regularly review the processes you have in place to ensure you are receiving the right services for your business’s unique needs. When choosing a provider, look for a banker with experience in your industry and a skilled support team to serve as your partners and deliver tailored solutions to help you achieve long-term success.