lev-os Managing Treasury Management Services
When To Use
- Evaluating a client's existing treasury management product suite against operational needs and peer benchmarks
- Onboarding a new commercial banking relationship that requires cash management, payments, and liquidity structuring
- Conducting periodic fee optimization reviews on treasury service charges (account analysis statements)
- Assessing cash concentration, disbursement, or collection structures for multi-entity or multi-bank clients
- Coordinating RFP responses or bank relationship reviews involving treasury products
Inputs To Gather
- Account analysis statements — most recent 3–6 months from each bank, showing service volumes, unit prices, earnings credit rate (ECR), and net fees
- Bank account structure — full map of accounts by entity, bank, currency, and purpose (operating, payroll, collections, concentration)
- Cash flow profile — average/peak daily balances, inflows/outflows by channel (wire, ACH, check, card), and seasonal patterns
- Current product inventory — list of active treasury services (lockbox, positive pay, ACH origination, zero-balance accounts, sweep/investment vehicles, commercial card programs)
- Banking agreements — master service agreements, fee schedules, and any negotiated pricing tiers or volume commitments
- Pain points and priorities — fraud concerns, reconciliation bottlenecks, payment timing issues, or technology integration gaps flagged by the treasury team
- Organizational context — number of entities, geographies, ERP/TMS systems in use, and any pending M&A or restructuring activity
Workflow
Map the current state
- Inventory all bank accounts and treasury products across institutions
- Normalize account analysis data into a comparable format (AFP service codes where available)
- Calculate blended ECR, total compensating balances, and hard-dollar fees per bank
- Identify idle balances, redundant accounts, and underutilized products
Benchmark pricing and structure
- Compare unit prices against industry benchmarks (AFP Treasury Benchmarking Survey, peer data) [VERIFY — benchmark source and vintage]
- Flag line items priced above the 75th percentile or showing volume-price mismatches
- Evaluate ECR against current Fed Funds / T-bill rates to assess balance compensation efficiency
- Assess whether the client would benefit from hard-dollar pricing vs. balance compensation given their liquidity position
Analyze product fit
- Collections: Evaluate lockbox vs. electronic (ACH/RTP) vs. card receivables; assess remote deposit capture usage and float implications
- Disbursements: Review check volumes for ACH/virtual card conversion opportunities; assess positive pay and payee positive pay coverage
- Liquidity: Evaluate sweep structures (repo, money market, notional pooling) against yield, FDIC coverage, and operational complexity
- Fraud prevention: Confirm positive pay enrollment, ACH debit blocks/filters, and dual-authorization on wire/ACH origination
- Trade finance: If applicable, review letter of credit, documentary collections, and supply chain finance programs [VERIFY — UCP 600 / ISP98 compliance requirements]
- Commercial card: Assess P-card, T&E card, and virtual card penetration against addressable AP spend
Develop recommendations
- Prioritize actions by estimated fee savings, operational efficiency gains, and fraud risk reduction
- Quantify savings: project annual impact of pricing renegotiation, product migration, and balance redeployment
- Propose account rationalization where redundant accounts or banks add cost without risk diversification value
- Identify technology integration opportunities (ERP-to-bank connectivity, API-based payments, host-to-host vs. portal)
- Outline an implementation timeline with bank coordination milestones
Prepare the management report
- Executive summary with total current cost, recommended savings, and top-3 priority actions
- Product-by-product analysis with current state, gap, and recommendation
- Fee comparison matrix across banks (if multi-bank)
- Recommended bank account structure diagram (if changes proposed)
- Implementation roadmap with responsible parties and target dates
Output
A Treasury Management Services Report containing:
- Current-state treasury product inventory and account structure map
- Account analysis fee summary with benchmark comparisons and savings opportunities
- Product gap analysis covering collections, disbursements, liquidity, fraud, and trade finance
- Prioritized recommendation list with quantified annual impact
- Implementation roadmap with milestones, dependencies, and bank coordination steps
Quality Checks
- All fee figures reconcile back to source account analysis statements — no estimated amounts without [VERIFY] tags
- ECR and balance compensation calculations account for reserve requirements and FDIC assessment pass-throughs where applicable [VERIFY — bank-specific ECR methodology]
- Savings projections use conservative assumptions (e.g., current volumes, not projected growth)
- Product recommendations are validated against the client's ERP/TMS capabilities and bank connectivity options
- Fraud prevention coverage is assessed for every disbursement channel, not just checks
- Multi-bank recommendations address counterparty risk diversification, not just price optimization
- Report distinguishes between quick wins (pricing renegotiation, product activation) and structural changes (account rationalization, bank migration) with realistic timelines