What’s new?

There are a lot of treasury system solutions to choose from. So be smart!

by | Jun 20, 2017

Investment in treasury technology used to be seen as the obvious answer to many issues surrounding treasury and liquidity management. A need to introduce better risk management, to introduce a more efficient and controlled transaction management model, and access to more sophisticated management reporting could be solved at a stroke by implementing a fully integrated treasury management system. But things are changing. Today, a treasury management system need not necessarily be seen as a driver of change in itself, but more as a catalyst for improvement. The result of this introspective review often leads to the development of a new model which may introduce significant new ways of working, for example, or identify the need for more, or less, treasury centralisation. The review may, of course, conclude that all that is necessary is perhaps to introduce a different transaction processing model, changes being relatively less disruptive. Once the new model has been identified, Treasury can then focus on the best way to implement the required changes.

A more technological solution will often be the answer. But this may not require the implementation of a fully functional treasury management system. If transaction volumes are low and risk management is relatively straight forward, for example, perhaps only certain functions need to be automated, particularly if the automated solution replaces a spreadsheet based operation. In some cases the only technology required may be to invest in a payments system, or a reconciliation solution, to add improvement to those parts of the Treasury function that are in need of improvement.

Of course, if the Treasury operation is significant in terms of its remit to manage cash and liquidity on a global basis, or to provide a centralised treasury function in support of regional treasury operations, then implementation of a fully integrated treasury management can be justified and a business case put forward.

The key is to implement the system that you need and that can add real improvement and benefit.