Data from the Curinos TM Fee Analyzer indicate that treasury management (TM) fees grew only 2.1% last year, with pricing growth exceeding volume growth in six of the top eight product families (see chart).
Banks have been more assertive about pricing post-pandemic to make up for muted pricing events in 2020 and then inflation. Pricing is also being used to offset impacts of shrinking volume in key categories – deposit administration fees, often TM’s top-earning billing code, dropped 18% in 2023.
With stagnant volumes and tepid adoption rates in many product families, banks need to look hard at whether they can keep relying on pricing to generate growth (especially if rates decline). If they feel their pricing power is maxing out, the next move to consider is better TM penetration and cross-sell opportunities among current clients, particularly those with large lending relationships.
Changes in Gross Fees, Volume and Price by
Major TM Product Family Q422 to Q423 YoY
Pricing gains have exceeded volume gains in 6 of 8 product families.
Source: Curinos TM Fee Analyzer
