Getting the Org Chart Right: Where Treasury Management Should Report

In many community banks, treasury management (TM) is placed under the retail department. This is part 5 of our 8-part series on Why Treasury Management Excellence Matters. While this might seem logical for operational convenience, it often creates confusion, inefficiencies, and missed opportunities.

Treasury management serves a different purpose than retail banking. TM is fundamentally commercial-focused. It supports the business banking team, drives fee income, manages complex customer needs, and deepens business relationships. When TM reports to retail, business customers can be underserved, and TM staff may not have the tools or support they need to grow the department effectively.

There are two best-practice structures for TM reporting:

1. The entire TM department reports to Business Banking.
2. TM Sales reports to Business Banking; TM Operations reports to Deposit Operations.

Either model better aligns TM services with commercial goals, improves collaboration between lenders and TM officers, and strengthens cross-sell efforts. Institutions under $250 million in assets may still rely on retail to open business accounts, but even then, TM setup and support should be managed separately by deposit operations.

Adjusting your reporting structure sends a clear message: treasury management is a strategic, revenue-driving function, not just an operational afterthought.

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