Growing a successful treasury management program

For a credit union looking to establish a treasury management program, offering services that help a business manage cash, liquidity, risk and payment services is only the first step. Having the right tools in place to lift the program off the ground once services are available to business members is another critical component to success. There are four areas of focus that a credit union should prioritize to take their treasury management program to the next level:

• Collaborative internal partnerships
• Analysis of existing book of business
• New business development
• Creative marketing efforts

Collaborative internal partnerships

Collaboration among internal business segments of the credit union (think retail banking and business development officers) alongside treasury management is necessary to meet the full 360 needs of the business member. A branch manager can introduce treasury management services to clients seeking cash flow efficiencies and improved ways to make and receive payments. A business development officer can utilize treasury management services as an incentive to move large operational deposits as a condition of the proposed loan terms. Establishing these dynamic partnerships between treasury management and other business segments ensures continuous improvement in service delivery and provides integrated solutions for members that provide value across multiple areas of their business operations, ultimately enhancing the client experience. Treasury management is the glue that makes the relationship “sticky,” and is the catalyst that strengthens the member relationship and enhances the value proposition overall.

Existing book of business

Credit unions can analyze the financial data of their existing business members to identify patterns and trends that indicate opportunities for treasury management services. Evaluating data to determine business members that visit a branch frequently to originate wires or deposit large amounts of checks are low hanging fruit for online wire transfer or remote deposit capture services.  Transaction history that reflects the issuance of checks for payment, particularly for payroll, indicates a significant opportunity for ACH origination in lieu of expensive and risky check issuance.

By dissecting data already at its disposal, a credit union can then design a plan to engage in consultations with their existing business members to evaluate their treasury management needs, challenges, and goals, and propose efficient and tailored solutions that will benefit the member in so many ways.

New business development

Credit unions can prospect for new business clients using a variety of strategies tailored to their target market and objectives. Here are some effective methods:

Networking: Building relationships through networking events, industry conferences, and trade shows can be invaluable. Credit union representatives can engage with business owners, industry professionals, and community leaders to establish trust and rapport, which may lead to new business opportunities.

Direct sales: Proactive outreach by sales teams to businesses within targeted industries or geographic areas can yield results. This may involve cold calling, emailing, or arranging face-to-face meetings to introduce the credit union’s offerings and demonstrate how they can meet the prospect’s needs.

Referrals: Encouraging existing clients, employees, and business partners to refer potential clients can be a powerful way to generate leads. Offering incentives for referrals can further motivate individuals to recommend the credit union’s services to their networks.

Partnerships: Collaborating with other businesses, such as accounting firms, law firms, or business associations, can create opportunities for referrals and joint marketing efforts. Building strategic partnerships with organizations that serve similar client demographics can expand the credit union’s reach and credibility.

Thought leadership: Establishing the credit union as a thought leader in relevant industries can attract business clients seeking expertise and innovative solutions. Publishing research reports, hosting webinars, and speaking at industry events can showcase the credit union’s knowledge and capabilities, making it more appealing to potential clients.

Community involvement: Participating in community events, sponsoring local initiatives, and supporting charitable causes can raise the credit union’s profile and demonstrate its commitment to the community. Positive exposure can lead to increased brand recognition and attract business clients who prioritize working with socially responsible organizations.

Creative marketing efforts

Marketing plays a crucial role in growing a treasury management program by increasing awareness, demonstrating value, and building trust with potential clients. Here are several ways marketing can help:

Market segmentation: Segmenting the market based on industry, company size, location, and other relevant criteria allows credit unions to target their marketing efforts more effectively. Tailoring messaging and solutions to the specific needs of each segment increases the likelihood of attracting new business clients.

Marketing slicks: Consider including a treasury management one-pager in a welcome packet that a member receives upon establishing membership that informs them of the cash management services offered by the credit union with contact information if interested.  Provide internal partners with product leave-behinds that they can share with members as they engage and assist them with tools to create awareness and educate the member.

Digital marketing: Leveraging digital channels such as social media, email marketing, and content marketing can help a credit union reach a wider audience and engage potential new members online. Run a LinkedIn campaign or include a banner message on the credit union’s website and/or online banking landing page notifying business followers of newly offered treasury management services.

By employing a combination of these strategies, credit unions can effectively grow a successful treasury management program that will maximize fee and deposit growth, improve member relationships and retention, optimize efficiencies for business relationships, and ultimately establish and maintain a competitive position in the industry.

Bring these strategies to life with Tru Treasury

Discover how to apply the strategies outlined in this article to your credit union with Tru Treasury, the industry’s leading full-service treasury management solution designed specifically for credit unions. Our team offers unparalleled expertise, tools, and products to enhance your treasury services, strengthen member relationships, and secure a competitive edge. Learn more about our services and how we can help transform your treasury management program at www.TruTreasury.com or reach out to Jeff Sharkey at Jeff.Sharkey@TruTreasury.com.