17.06.2021 Articles

Thursday, 17 June 2021 | By Pascale Hertzog, Treasury Management Director at Login SA. member of the Profile Group

Treasury practices post-pandemic

Automation and Libor discontinuation remain hot topics in the banking sector, with many treasury professionals eager to automate more tasks ranging from financial planning, reporting, and strategy. CFOs continue to focus on financial analysis and forecasting with paperless office operations. Meanwhile, accounting, a key function in treasury, must provide reliable and unified data using a single source, whilst experiencing high levels of automation.

In need for intuitive treasury management systems

As stated by M&T Bank, treasurers are demanding a superior experience. Technology is fundamental to achieve this goal. When selecting a cash management system it needs to deliver an intuitive design so as to make it easy to navigate.

Furthermore, reporting is also important and needs to be available on an ad-hoc basis, automated or on schedule to deliver a real-time view of the activity and performance.

With an increase in volume and processing operations (e.g., due to discontinuation of Libor), the need for full straight-through processing (STP) and automation in data management has become mandatory. Treasury platforms need to offer much more in terms of user experience (UX) so as to elevate competitiveness in business operations.

Elements to consider when searching for your next Treasury Management Platform:

  • Easy navigation
  • Streamlined dataflow
  • Ease of integration and APIs
  • Reporting
  • Dashboard layout
  • Cloud adoption

The transformation of Treasury

Treasury has evolved from account, deposit and loan management to channel-specific transaction services that create a more agile and dynamic organisation, according to Bank of America’s new Treasury Insights podcast series.

  • Additional treasury trends to consider in 2021 to ensure businesses become more agile, include:
  • New cash forecasting strategies to refine accuracy.
  • Data analytics to ensure visibility.
  • Integrated treasury data to improve adaptation to dynamic changes in market volatility and hedging strategies

In the TMI publication, emphasis is given on using technology to access data analytics, use of APIs, Central Bank’s Digital Currency, AI and ML (usually through partnership with fintechs in areas such as reconciliations to assist corporates in matching invoices) as well as RPA, DLT (Distributed Ledger Technology).

What modern treasurers should expect from their TMS?

  • Experience true automation in cash management across different entities
  • Manage different risk types and recognise segments that are performing and affecting the business Get a holistic view of performance and risk related parameters
  • Comply with local and international regulations with ease (i.e., IFRS 9 etc.)

Treasurers require flexible software that allows them to automate tedious tasks, work more efficiently and collaborate among subsidiaries regardless of location with ease, while also boosting productivity, collaboration, and enhancing their strategic approach. Cloud technology can deliver an efficient and cost-effective solution offering several advantages across various areas, such as ease of implementation, scalability, and mobile capabilities.

Experience advanced dashboards that help you perform your daily work with a superb user experience (UX), with holistic view of the activity and prediction on liquidity risks in a secure and compliant environment whilst safeguard your business using advance models.