Treasury professionals around the world are struggling with disparate systems. While stuck deep in their day-to-day operations, they often don´t take the time to think about ways to improve software connectivity. However, disconnected processes and systems cost treasury a significant amount of time and money. Here´s why:
Manual work is error-prone and time-consuming
The Global Treasury Benchmarking Survey 2015 shows about 27% of treasury professionals use spread sheets as their main treasury technology. As their operations evolve, these simple tools cannot keep up with their increasingly global structures and complex systems. In the end, treasury professionals spend their days collecting data from their global bank portals and subsidiaries in their spread sheets without ever being sure their financial data and analysis are 100% accurate and up-to-date.
Lack of system integration decreases performance
Many finance professionals have gotten used to working with applications where data is not exchanged smoothly between different modules of the software. Treasurers know their system lacks integration if they need to key in the same data in different modules or receive analysis and reports where data from some modules is missing. Old programing techniques, heavy customization or workarounds can all cause this type of inefficiency. A lack of system integration does not only slow down system performance, but also slows down treasury operations by causing unnecessary manual effort.
Lack of 3rd party connectivity causes inefficiency
The survey also shows that one out of three treasury professionals sees a lack of integration with peripheral systems as major limitation of their treasury technology in place. If a treasury management system is not communicating with its surrounding IT infrastructure, such as bank portals, ERP systems, trading and matching platforms, market data feeds, risk analytics or big data tools, high-qualified treasury staff ends up copying data from one system to the other.
Manual work is not only painful, time-consuming and error-prone, but it also keeps finance professionals from adding value through such tasks as financial analysis and reporting. Thus, you need take a close look at your treasury technology setup. If you are working with tools like spreadsheets that do not support data exchange at all or struggle with system integration or 3rd party connectivity it’s time to evaluate your options.
The good news is there is new technology available to help you. Cloud treasury platforms cover a broad spectrum of capabilities within a single platform, including cash, liquidity and risk management as well as hedge accounting. By reducing the number of interfaces significantly, a lot of connectivity issues are solved upfront. Cloud software providers have a strong focus on client experience. They are continuously investing in system integration and their partner community to offer end-to-end workflows. By improving usability and connectivity, they further reduce human intervention and help treasuries to work in a more secure and efficient way, which also saves money.