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The Best Way To Boost Commercial Profits: Own The TM Relationship

With rates expected to stay higher for longer, balance rotation from non-interest-bearing (NIB) to interest-bearing products is keeping pressure on bank interest expense and net interest margin. But beneath the aggregate trend lurks meaningful behavioral differences between client segments.  

According to Curinos’ Commercial Analyzer, clients with material treasury management (TM) relationships exhibit significantly higher levels of NIB balances (43%) than non-TM clients (11%), a much lower portfolio cost of funds (1.98% vs. 3.46%, respectively) and higher fee-based revenue. Taken together, it adds up to better economics for the bank. 

Winning the operating relationship is key to achieving sustainable, profitable growth in today’s margin-tightening environment. To chalk up that win, banks need to take a holistic approach that includes evaluating cross-sell and upsell opportunities within the existing portfolio, and aligning priorities to ensure accountability within the organization. 

A primary TM-led relationship is key to growing stable, low-cost operating deposits.​
Source: Curinos' Commercial Analyzer
Note: “Primary Clients” defined as clients with more than $12K in annual TM Revenue​

June 6, 2024

AI’s Value Prop: A Cheaper Path To Customer Primacy

The various product lines at banks are in constant competition for customer attention. But uncoordinated messaging comes with a high cost: Curinos analysis shows that the typical FI leaves $70 per customer on the table because relationship nurturing is poorly orchestrated across channels.
READ TIME: 1 MIN

June 4, 2024

DAF Levels Are Down. What Can Be Done?

As commercial deposits shift away from DDA, the loss of deposit administration fees (DAF) is a key impact. DAF are the largest single charge in treasury management, totaling more than 15% of fees at most TM banks.
READ TIME: 1 MIN

May 30, 2024

Defining Personalization Is The First Step Toward Greater Adoption

There’s a lot of talk about personalization in banking these days and a lot less action. In Curinos’ new Personalization Benchmarking Study, most of the responding FIs say less than 25% of their marketing is personalized.
READ TIME: 1 MIN
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