Corporations experience multiple pain points at least 50% of the time through the treasury management implementation process, according to a survey by Wausau Financial Systems and consulting firm Treasury Strategies. Among key pain points include ‘on-time implementation’, lack of visibility into implementation status and poor communication with the bank.
The survey, completed by 19 banks with assets of over US$25bn plus and 20 corporations with US$500m-plus revenue, identifies the negative impact a paper-intensive onboarding process has on revenue and client satisfaction and ways banks can streamline the process. The results also identify gaps in technology, revealing many large banks aren’t effectively using the technology they already have in place, and mid-sized banks could benefit from some enhancements.
Advances in technology to improve the treasury management process can also be a revenue driver, because 70% of banks surveyed believe improving the implementation process will free up their sales team, while 90% believe a significant opportunity exists to accelerate revenue by shortening the implementation cycle time.
“Treasury onboarding today is bogged down by a paper-intensive process,” said Vicky Unson, principal, Treasury Strategies. “Banks are focused on finding better, more efficient ways of onboarding treasury management services for customers.
“Optimising the onboarding process is a major initiative for many banks with whom we work, given its strong impact on winning new and subsequent business. At the same time, corporate customers welcome innovations such as paperless treasury solutions to provide them with a smoother onboarding process.”
On a scale from one to five, with five being a ‘very strong impact’, corporations rated the treasury management implementation process a four-plus, validating the significance of the initial sale as well as the influence on future purchase behaviour. In addition, more than 75% of corporations believe electronic documents would be an acceptable alternative to paper-based documents.
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