Maximizing the Treasury Management Opportunity Through Automation. Wednesday, 4/27 11am PT / 2pm ET

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Agnes Fitzgerald
5 years ago
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1 Maximizing the Treasury Management Opportunity Through Automation Wednesday, 4/27 11am PT / 2pm ET 1

Presenters LISA SALAZAR, TCF BANK SVP, Commercial Banking & National Director Treasury Management Sales JEB BURKE, TCF BANK VP, Senior Manager, Treasury Management Product

2 Presenters LISA SALAZAR, TCF BANK SVP, Commercial Banking & National Director Treasury Management Sales JEB BURKE, TCF BANK VP, Senior Manager, Treasury Management Product Development and Operations PATRICIA TRIPAR, WEST MONROE PARTNERS Senior Manager, Banking & Credit Unions Moderator: JONATHAN ROWE, Ph.D., ncino Director of Marketing and Research

3 Fee Income Is a Valuable Asset to Financial Institutions The Value of Treasury Management Value of treasury management 40% 42% 23% 26% 19% 27% 11% 12% revenue opportunity pre-tax margin business banking large corporate mid corp mid market

4 Bank Customers View Treasury Management as an Enabler According to the 2014 AFP Strategic Role of Treasury survey: TM IS STRATEGIC TM IS GROWING TM IS AN OPPORTUNITY 84% of financial professionals report treasury is playing a more strategic role in their organization. 83% of respondents anticipate growth in Treasury over the next five years. 45% of respondents believe their organizations should take greater advantage of treasury to optimize financial performance.

5 Poll What is the biggest challenge area in your current treasury operating model? a) Organizational model b) Process c) Technology d) Scalability/ Sustainability e) Other

6 Treasury Management Onboarding: Opportunities and Challenges for Banks and Their Customers Lisa Salazar and Jeb Burke TCF Bank

7 TCF Aligned Strategic Objectives to Strategy and Leading Practices Technology enabled process and organizational change Strategy Process Organization Technology Better user & customer onboarding experience Reduce risks and inefficiencies Increase productivity Enhance compliance Strengthen reporting & measurements Enter customer data only once by automating the entry Enhance sales prep, proposals, pricing proformas by using customer profile Visibility into fulfillment status by seeing implementation stages Employees can acquire new skills and competencies Provide better career pathing by optimizing skillsets Due to better automation, Sales Advisors are able to spend more time out of the market Client and pricing data flow through system Automated approval hierarchy E-presentation of documents; e-signature Leverage new features to improve customer relationship view Leading Practices Customer focused processes Scalable operating model Data driven insights aligned with strategy Enabling change from Bank centric to customer centric

Treasury Challenges People Customers Inconsistent, manual touch points Lack of visibility into process, timing and

efficiencies Manual entry of data, multiple times for the same deliverable Limited collaboration among business

reporting Limited tracking measures and metrics on performance relative to service level agreements Inadequate sales

8 Treasury Challenges People Customers Inconsistent, manual touch points Lack of visibility into process, timing and status Limited understanding of the entire onboarding process requirements Technology Lack of automation and workflow efficiencies Manual entry of data, multiple times for the same deliverable Limited collaboration among business channels Process including implementation, Sales & Onboarding Implementation Limited view of product profitability and reporting Limited tracking measures and metrics on performance relative to service level agreements Inadequate sales support and cross sell coverage Paper intensive and time consuming Limited ability to track progress Disparate onboarding processes

9 Automated Treasury Management Benefits vs. Challenges Pre-Automation Challenges Post-Automation Benefits Highly manual, paper driven process /fax/print Multiple points of data entry Lack of visibility into client implementations status Paper based pricing management, including exception pricing approvals Time in double/triple checking and error handling Sustainable Service Level Agreement (SLA) for future growth Report management - sales tracking & product profitability, Workflow distribution and capacity management Paperless environment One-time customer data entry Heightened customer experience Integration to analysis/pricing system Automated exception pricing approval process Elimination of re-keying Reduction in errors Automated reporting Data-driven status tracking and SLA metrics Workload balance

10 Q&A Lisa Salazar & Jeb Burke TCF Bank

11 Automating Onboarding Process Presents Opportunities Patricia Tripar West Monroe Partners

12 Treasury Onboarding Trends Increased automation in the middle and back-office (Onboarding and Implementation) Workflow automation with straight-through processing capabilities Enterprise-friendly Saas/cloud technology is more widely accepted Communication and collaboration Document management solutions using singlesign on and portal Customer ability to view the status of their implementations through a channel/portal

13 Core Tenets of Leading Practice Treasury Management Automation Focus on Scalability and Customer Focused Processes and Specialization Organizational Capabilities Build core competencies with skill-based roles Accountability for revenue & client-facing production activity in Sales Accountability for product/ services fulfillment in the Implementation organization Single point of coordination Market focused operating model Sales Officers per Analyst Scalable Operating Model Process Capabilities Automatic assignment of deals Standard, uniform product processes and reporting Implementation/Service completes adds/deletes instead of Operations Comprehensive metrics and KPI Defined, customer focused SLA s Accountability to Customer Experience Technology Capabilities Resolve capacity constraints of manual processes Automated communication & notifications Electronic presentation of forms and documents Scalable/ efficient infrastructure Automation & Data Driven Insights

14 Treasury Onboarding Automation Should Produce the Following Best Practices Project Management Methodology Capacity & Organizational Development Data-Driven Insights Transparency and consistent communications Single point of communication and coordination Electronic presentation of forms, documents, and signatures Delineate between Sales and Implementation Develop geographic and industry expertise Operational focus by product, customer, complexity Segmentation by customer, complexity, product Identify opportunities to reduce time to revenue Defined, customer centric SLA s

15 Target Operating Model is Transformed Customer Sale / Request Customer Information / KYC Forms and Agreements Requests and Project Management Fulfillment Testing/ Training Client QA Customer Inquiry Support Monitor Process Sales creates Proforma pricing scenarios Internal Approvals Client says yes Deposit Accounts Opened / initiated Gather detail on service set up (e.g. user details, transaction types, etc.) Execute Service Agreements Implementation project planning Build / configure client services in bank applications Outsourced / third party services established Testing, Training and Go Live Transition High Value clients to Relationship Manager Handoff to service/contact center support Begin billing for services SALES & PRICING ONBOARDING & IMPLEMENTATION FULFILLMENT SERVICING Roles Sales Advisor Sales Analyst Relationship Manager Client Manager Onboarding Manager Onboarding Coordinator Implemnt. Manager Implement. Specialist Operations Manager Operations Analyst Client Servicing Manager Client Support Analyst Client Contact Center Manager Contact Center Analyst

16 Why Re-Invent Treasury Onboarding and Implementation Processes? Ultimately, you will drive better financial results. Improve incremental revenue - Increase cross-selling and up-selling rates Speed up time to revenue by 20 to 40 percent Reduce ongoing operating costs by 10 to 30 percent Handle additional implementation volume with fewer staff resources Improve customer experience and increase retention rates

17 Q&A Patricia Tripar West Monroe Partners

18 Poll Does your bank rely on paper contracts, wet signatures, and manual processes and data entry to implement treasury products? a) Yes b) Partially, we have some automation c) No, we have a fully automated onboarding process

19 Final Q&A

20 Coming Soon White Paper: Optimizing Treasury Management: How Technology Transforms Treasury Management for the Institution and Its Customers

21 Contact us: Patricia Tripar, West Monroe Partners Lisa Salazar, TCF Bank Jeb Burke, TCF Bank Jonathan Rowe, ncino

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