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How Partnering with a Cash Management Company Can Benefit Treasury Clients


In the early days of the COVID-19 pandemic branches shut down and both commercial clients and financial institutions had to look for new ways to complete various day-to-day operations. During this time, cash management companies were called upon with urgency to fulfill business requests such as making deposits on behalf of their commercial clients. While the cash management landscape continues to evolve and change, the need for a reliable cash management partnership has not. The the benefits of cash management services are heavily documented for commercial businesses, there are also significant advantages for treasury management teams when they partner with a cash management company that combines cutting-edge technology with a high level of service and expertise.

Mitigate risk and free up resources.

The goal of a financial institution’s treasury management department is to help their commercial clients, but also reduce operational and reputational risk to the financial institution. Cash management services such as cash-in-transit schedules and smart safes can limit the amount of funds in the bank and reduce overall branch foot traffic, which ultimately helps reduce risks to customers, employees, and the financial institution. In addition to mitigating a lot of risk that is often associated with a commercial client coming into a branch to make a deposit, or other tasks, this also frees up staff and other resources so they can focus on more lucrative tasks for the financial institution.

By having a cash management partner, the treasury management department fulfills its goal of reducing risk while better serving its commercial clients and the financial institution.

Improve reputation among commercial clients.

Many commercial clients look at their treasury management team as a trusted advisor. Being able to intelligently promote cash management solutions helps the treasury management team not only start new conversations with clients in an advisory capacity, but it often will help expand the commercial portfolio. A strong understanding of cash management offerings and services from a trusted cash management partner can position the treasury management team as industry thought leader. In addition, promoting solutions that save businesses money and maximize return on investment can help strengthen client relationships.

Maximize the ROI of reserve on hand.

One of the riskiest and time-consuming tasks for a financial institution is making deposits on behalf of commercial clients. When treasury clients use smarts safes and make a deposit, those funds are provisionally credited to the business’s bank account. This removes the risk of having the client personally transport the funds and allows the financial institution to use those funds to produce more loans and investments to maximize the returns of reserves on hand.

Choosing the right cash management company.

To truly reap the above benefits, financial institutions should look for a cash management partner that offers variety in their services and solutions and are dependable. Cash management is not a one-size-fits-all solution and each business is unique and has their own cash management challenges and needs. Commercial businesses need to partner with providers that offer tech-forward, configurable solutions and top-notch service and support that position them for success. A treasury management department should work with their selected cash management partner to ensure the needs of the business are being met with an individualized plan and diverse offerings that will help them succeed in reaching their cash management goals. In addition to selecting the right cash management partner, treasury management should focus on enhancing their knowledge of cash management trends to create opportunities with current and future clients.

Find out how Loomis can position your financial institution for success with technology-driven cash management solutions.

Find out how we can help with your cash management.

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