As we work with our consulting clients, a challenge they frequently face is how to present their treasury management services pricing. There are several key components of effective Treasury Management Fee Schedules and today, we’re going to visit a way to present your fee schedules to your business customers.

The Fee Schedule is a document that Treasury Management and Business Banking Officers use to disclose service pricing in a consistent manner. Additionally, it can help your team with the negotiation process with larger business customers over recurring fees. The Fee Schedule should not be a secret, but please do not post it on your website – your competitors will use it against you. It should list all TM services your institution offers in addition to regular “banking services” fees. The goal is to establish a clear understanding of your fee structure and incentivizes your business customers to offset those fees with their Earnings Credit Allowance.

What is the Earnings Credit Allowance?

To explain what the Earnings Credit Allowance is, let’s first describe what the Account Analysis System is and why it’s important to have this system implemented correctly. The Account Analysis System is your “billing system.” Your TM business customers should receive an itemized monthly statement listing all their service charges. This Account Analysis Statement should also show the customers their average collected balances and the Earnings Credit Allowance.

To make the billing system work, you set an Earnings Credit Rate that is applied to the customers’ average collected balances minus the reserve requirement. This is called the “investable balance.” This formula results in the Earnings Credit Allowance that customers can use to offset their service charges.

What is the Treasury Management Fee Schedule?

The TM Fee Schedule is different than the business analyzed checking account activity fee schedule. The goal is to differentiate the account maintenance and activity fees from the TM services fees. It is also important to list only the “Analyzed” business checking account fees. You may have a brochure listing all the business checking and savings account types. However, it’s clearer for customers to see fees just for the business analyzed checking account that produces the Account Analysis Statement.

Key Components of Effective Treasury Management Fee Schedules

It’s a best practice to have one Fee Schedule document with two sections. The first section describes the account maintenance and activity fees. The second section contains the itemized list of TM services fees. We’ve typically seen these two schedules combined into a single document, with Business Analyzed Account Maintenance and Activity Fees on one side and Treasury Management Service Fees on the other.

Again, do not post this document on your public website, but make it freely available to your banking staff and customers.

Section 1: Business Analyzed Checking Account Fees. The name of the actual account varies based on what your institution chooses to call it.

• Column 1: Type of service. In this section, you describe the types of services you offer for this checking account which includes maintenance fee. Examples are transaction fees, business online banking, paper statement fee, physical security token, stop payments, return items, coin/currency orders, etc.
• Column 2: Description of service. Enter the type of service detail. For example, for transactions, enter if it’s a debit or credit transactions, on-us or non-on-us checks, or foreign checks.
• Column 3: Fee. Enter the fee you charge for the service.
• Column 4: Charge/Frequency. Enter how often you charge for this item. For example: the fee for each debit transaction is $.15 and it’s charged “per transaction.” The account maintenance is charged “monthly.”

Section 2: Treasury Management Services Fees.

• Column 1: TM Service Name. Example: ACH Origination, Remote Deposit Capture, Wire Transfers, Check & ACH Positive Pay, etc.
• Column 2: Description of the type of fee. Example: Maintenance, ACH debits, ACH credits, Incoming or Outgoing Domestic Wire, etc.
• Column 3: Example: $35.00 (enter the fee for each service and transaction)
• Column 4: Charge/Frequency. Example: Monthly, per transaction, per item, per batch, etc.

The goal of offering a combined Account Maintenance and Transaction Fee Schedule with the Treasury Management Fee Schedule is clarity. Transparency is also key so customers can corelate the service charges from the Fee Schedule to the Account Analysis Statement.

We hope these examples and best practices of key components of effective Treasury Management Fee Schedules help you develop yours.

As always, we’re here to help.

As community institutions work to attract core deposits and increase non-interest fee income, a strong Treasury Management infrastructure becomes essential. This includes the right team, support, and suite of services. However, without the right Treasury Management Sales Officer (TMSO or “TMO”), your organization could miss valuable opportunities. My goal here is to help you achieve a win-win: growing your core deposits and fee income while ensuring your Treasury Management customers enjoy top-notch service.

In this blog, I’ll share the 7 paths to a Treasury Management Officer and provide insights to help you identify the right candidates for this crucial role.

Retail Branches or Banking Centers

Even though treasury management sales belong under business banking, you can often find great candidates in retail branches or banking centers. Look for the superstars who consistently bring in new customers and excel at helping them. These individuals are natural salespeople, often working as Universal Bankers or Branch Managers. You might also find a consumer banker eager to transition into business banking. While they might not be ready for a TMO role immediately, they could start as a Treasury Management Sales Associate and grow from there.

Deposit Operations

While many deposit operations employees prefer behind-the-scenes roles, you might find an exception – someone who enjoys interacting with customers and has a knack for sales. TMOs with operations experience have a deep understanding of how treasury management services work behind the scenes. This knowledge makes them excellent problem-solvers and effective communicators, bridging the gap between sales and support teams.

E-Banking or Digital Banking

Employees in e-banking or digital banking roles are often technologically savvy, making them strong candidates for TMO positions. If they’re eager to sell and understand how treasury management services function, they could excel in this role.

Commercial Lending

Some of the best TMOs come from commercial lending backgrounds. These individuals have experience working directly with businesses, understanding their operations and challenges. They’ve helped businesses grow through lending and are now ready to optimize cash management for those same customers. Their existing business connections also provide a strong foundation for success.

Small Business Lending

Like commercial lenders, those with small business lending experience make excellent TMOs. They’ve watched small businesses grow to the point of needing treasury management services and know how to ask the right questions. Combine this experience with the key traits of a successful TMO, and you’ve found a winning candidate.

Build a Career Path

If you’re struggling to find experienced TMOs internally, consider creating a clear career path within your organization. Roles like Treasury Management Sales Assistant, Treasury Management Support Specialist, and Treasury Management Operations Manager provide stepping stones. You could also create an Inside Sales or Digital Sales role focused on treasury management, giving employees a chance to develop the skills needed for success.

External Candidates

When internal options are exhausted, it’s time to look outside your organization. Consider these two external sources:

Sales Professionals

Great salespeople can succeed in almost any industry. If you find someone with a strong sales record who aligns with your institution’s core values, bring them on board. You can teach them banking and treasury management, but their natural ability to connect with customers is irreplaceable.

Entrepreneurs

Entrepreneurs bring a unique perspective to the TMO role. They’ve experienced the highs and lows of running a business, making them relatable to your customers. Their entrepreneurial spirit allows them to connect with business customers on a deeper level and foster trust quickly.

By exploring these 7 paths to a Treasury Management Officer, you’ll position your institution to find and develop the ideal candidate. With the right TMO, your institution can thrive, driving growth and delivering exceptional service to your customers.

Looking to strengthen or create your Treasury Management department? As always, we’re here to help.