As treasury functions become increasingly complex, the pressure is mounting on treasurers to ensure more robust governance over balance sheet management. That includes integrating advanced stress models, improving Net Interest Income (NII) management under non-normal interest rate environments, and managing rate shock scenarios. Additionally, breaking down silos by engaging with functions beyond Finance is critical to enable coordinated responses to evolving conditions across the entire enterprise.

But what if we challenged the traditional perception of a treasurer’s role? What if treasurers didn’t just react to market changes but actively shaped strategic decisions through a nuanced understanding of customer behavior? The question is no longer just about compliance or optimization — it’s about rethinking the very nature of risk management and value creation.

The goal is to build resilience and enhance response capabilities to exceptional events. To do so effectively, treasurers must gain a deep understanding of customer behavior and track how it impacts their financial resources. By doing so, they can help optimize profitability for their banks or credit unions.

Challenges to the Treasury Transformation

However, treasurers face a significant challenge. Many Asset and Liability Management (ALM) and other financial reporting tools have limitations, making it difficult to fully understand the drivers behind portfolio-level results. Key issues include:

• Over-reliance on transformed data compromises the accuracy and reliability of information.
• Analysis and reporting are often macro-level, missing the granular customer-level insights such as:
  • Shifting term preferences
  • ‘Hot’ money inflows and outflows
  • Measuring product substitution to gauge the effectiveness of marketing, sales, and expansion efforts

Imagine if treasurers could pierce the veil of aggregated data and see the motivations behind customer actions in real-time. How might that level of insight transform the approach to risk management, product development, or marketing strategies? Would it change how the institution perceives customer loyalty or price sensitivity?

Even with their existing A&L management solutions, many treasury functions cannot pinpoint what, when, where, and who drives growth within their portfolio. This lack of visibility can mean the difference between reacting to market changes and proactively navigating them.

The Deposit Edge Solution: Uncovering the Dynamics of Customer Behavior

Our solution empowers treasurers by providing a clearer understanding of the dynamics driving their portfolios. Using a patented method to measure product substitution and track money accurately flows at the account level, we help treasurers improve their decision-making. Our FlowTracker’s Deposit Edge reporting suite is designed to allow financial institutions to discover and understand customer behaviors that shape their results. Unlike traditional macro-level risk analysis tools, the Deposit Edge solution offers insights at the individual account level, revealing what customers are actually doing with their money.

Imagine a world where treasurers mitigate risks and actively influence customer behavior through data-driven strategies. What if the role of a treasurer evolved from a behind-the-scenes guardian to a strategic leader driving innovation?

For treasurers seeking to be a valuable partner to business functions, CEOs, and boards, having the ability to provide actionable, precise information is essential. This data helps drive decisions that create enterprise value at the appropriate level of risk while assessing the impact on the balance sheet.

The Expected Outcome: Enhanced Decision Making and Cost Savings

FlowTracker provides deep insight into fund flows, allowing treasurers to:

• Identify pricing, product design, and distribution issues on which management teams can act.
• Complement traditional A&L scenario analysis with actionable insights that lead to better decisions.
• Improve the quality of information, increasing the certainty of decision-making, particularly when assessing liquidity, funding, capital, and interest rate risk.
• View metrics dynamically against targets set by the bank or credit union’s risk appetite and quickly dive deeper to understand the drivers behind changes in these metrics.

If better customer insights can reduce the cost of funds by up to 10 basis points, what could deeper, more predictive insights achieve? Could this intelligence redefine how financial institutions approach growth, deposit stability, and customer loyalty?

Ready to Experience the Difference?

At FlowTracker, we believe your data should work as hard as you do. With our solution, you can gain deeper insights into your customer behavior with minimal risk. We offer a trial using your data in just six weeks at a nominal cost, providing valuable answers to your business questions based on your unique demographics, organization, product hierarchy, and actual customer behavior.

Contact us today to begin the conversation and see how FlowTracker can help you optimize decision-making and enhance the profitability of your bank or credit union.