Banks must do far more to serve evolving customers and capitalize on new treasury services opportunities.
Boston, MA, February 9, 2009 – A new report from Aite Group, LLC recommends ways that banks may best leverage new and existing treasury products to succeed in today's rapidly evolving environment. Based on a January 2009 Aite Group survey of 23 treasury professionals representing 22 of the 100 largest North American banks, the report examines key products driving bank treasury services revenues, and analyzes bank priorities and perceptions of how their treasury services customers are evolving.
While bank lending and brokerage businesses have been hard-hit by the financial crisis, bank treasury services groups are well positioned to create greater stability by growing much-needed deposits and fee-based revenues. Of treasury professionals surveyed, 96% indicated that treasury services have increased in importance to their banks since the start of the current financial crisis. While banks recognize some of the changes taking place within the treasury services business, their business models and product offerings are not being adjusted rapidly enough to satisfy their customers' needs. In fact, most should be doing far more than they currently are.
"With increasing responsibility for working capital management, treasury has become a far more integral and strategic component of companies' financial supply chain than it was just a few years ago," says Judson Murchie, analyst with Aite Group and co-author of this report. "Banks that wish to ultimately succeed should (1) focus on growing on-balance sheet deposits, (2) increase emphasis on international capabilities, (3) create differentiators, (4) shift to a client, rather than product, focus, (5) leverage technology partners to support sales, analytics and improved customer service, and (6) streamline systemic interfaces between the bank and its commercial customers."
This 27-page Impact Note contains seven figures and two tables. Clients of Aite Group's Wholesale Banking service can download the report.