Industry Guide to Bank Account Management Best Practices in 2023-2024

What is Bank Account Management (BAM) & Why is it Important?

Within the context of corporate treasury, bank account management (often referred to as “BAM” or “eBAM” for electronic BAM) is one of the most fundamental responsibilities of modern practitioners.

Traditionally, bank account management refers to the strategic and operational processes involved in effectively overseeing and controlling a company’s bank accounts, including all functions related to opening, maintaining, and optimizing bank accounts to achieve financial efficiency, security, and compliance. It also covers the process of systematically managing the transactions and cash balances that flow through these accounts, as well as any data related to bank addresses, IBAN and routing numbers, the “signers” with approval rights over each account, and so on. Today, a significant portion of these tasks can be performed using a variety of software tools, ranging from Excel and e-banking portals to ERPs, TMSs, and other Fintech solutions.

Why are Bank Account Management Operations Typically Entrusted to Treasury Teams?

Over the past decade, industry data from the consulting firm Strategic Treasurer has consistently shown that the vast majority of treasury teams hold primary responsibility over bank account management operations at their respective companies. This is, of course, with the help of HR, legal, and other finance groups to perform various related tasks surrounding account compliance, reconciliations, and reporting.

In large part, corporate treasurers are the ideal department to manage the company’s banking operations due to their unique blend of financial visibility, operational control, and risk management oversight. As the natural stewards of payments and liquidity and with a deep understanding of company cash flows, treasury professionals are perfectly positioned to analyze and allocate funds across various banks, manage the associated account structures and bank relationships, and monitor account activity to identify fraud, maintain compliance, and report on balances and transactions.

Because most treasury teams are already working to foster strong banking relationships, negotiate favorable service terms, and stay abreast of regulatory changes that impact banking activities, their holistic perspective on the organization’s financial landscape enables them to naturally align bank account management with their other existing responsibilities.

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