AI Gives Account Analysis a 21st Century Makeover

There’s a change underway in treasury management at financial institutions.

As money and assets increasingly operate across and within digital-first contexts, treasury professionals are turning to account analysis as a strategic lever to optimize cash management and enhance organizational liquidity.

“The market is evolving, and institutions need tools that can evolve with it,” Norman Marraccini, senior vice president of products and services at FIS, told PYMNTS.

While long regarded as a back-office function, account analysis is now a central tool for enterprises aiming to maximize returns on cash while minimizing costs and risks, he said.

Account analysis statements, typically provided by banks, serve as detailed roadmaps of an organization’s banking activity. These statements summarize transaction volumes, service fees and compensating balances, giving treasury teams a granular view of cash flow and cost structures.

As the digital transformation of treasury functions continues, technology is reshaping how account analysis is performed. By embracing account analysis software, financial institutions are discovering a pathway to deeper client relationships, operational efficiency and revenue optimization, Marraccini said.

Building Strong Relationships Through Smarter Tools

For financial institutions, success hinges on understanding and meeting the nuanced needs of commercial and small business clients.

“Effective account analysis ensures institutions are not only placing customers in the right accounts but also offering fair rates on lending products and correctly applied earned interest credits,” Marraccini said.

This tailored approach doesn’t just satisfy clients; it builds loyalty. Despite the promise of advanced account analysis, however, many financial institutions remain tethered to outdated systems and manual processes. These inefficiencies are more than inconvenient — they’re risky.

“When you rely on manual tools or incomplete product catalogs, you open the door to errors in pricing and billing,” Marraccini said.

These mistakes can lead to revenue leakage and customer dissatisfaction, undermining growth and innovation.

For treasury teams, legacy systems pose an additional hurdle. Without the support of modern analysis tools, they struggle to identify their most profitable customers or evaluate opportunities for optimized account management. This lack of insight can result in missed opportunities to provide competitive rates or extend credit lines that match client needs.

Acquisition costs for commercial clients are high, and losing customers due to outdated systems compounds the problem, Marraccini said. Meanwhile, manual processes not only drain resources but also introduce the potential for costly errors in monthly repricing exercises.

“If institutions fail to adopt modern tools, they risk overbilling clients, offering subpar lending rates, or losing customers to competitors with more sophisticated offerings,” he said.

Still, many financial institutions have been slow to adopt advanced account analysis tools. Marraccini described the industry’s current approach as “lukewarm,” with many organizations relying on piecemeal or homegrown solutions. However, he said he believes the tide is turning.

“The next generation of account analysis tools will showcase how these platforms can expand the footprint of commercial and small business banking,” he said.

The Competitive Advantages of Advanced Solutions

One of the most significant advancements in account analysis is the integration of artificial intelligence, Marraccini said. FIS’s own new platform, set to launch in 2025, aims to harness AI to eliminate inefficiencies and optimize revenue.

“With an AI-powered tool, institutions can identify their top-performing clients, evaluate deposit behaviors and adjust pricing models to ensure competitive and fair rates,” he said.

By automating data-driven insights, AI also empowers treasury teams to focus on strategic decision-making rather than manual data crunching.

“It’s about taking the guesswork out of pricing and ensuring clients are matched with the most suitable accounts and services,” he said.

Adopting state-of-the-art account analysis software offers more than operational efficiencies — it provides a competitive edge, he said. Understanding client behavior at a granular level is important.

“If I know a client’s cash flow patterns, lending needs and deposit behaviors, I can offer tailored solutions that other institutions can’t match,” he said.

By streamlining processes and offering real-time insights, banks can turn middle-tier customers into enterprise-level clients, maximizing wallet share and reducing client attrition.

For institutions looking to make the leap, Marraccini outlined several benchmarks for success. First, ease of implementation is critical.

“Every day without a new tool is a missed opportunity,” he said.

Providers must offer seamless transitions, including the ability to run old and new systems in parallel to avoid disruptions.

Second, usability is paramount.

“Dashboards should be intuitive, and teams should be able to access and interpret data quickly,” Marraccini said.

Finally, robust support from software providers ensures institutions can maximize the tool’s potential and adapt to future needs.

“This is the next evolution of account analysis, and we’re just getting started,” Marraccini said.

For all PYMNTS AI coverage, subscribe to the daily AI Newsletter.