Over the past several years economic growth has been fueled by expansion into emerging markets. As companies become multinational and expand their footprint, treasury organizations are left piecing together disparate and outdated systems just to stay afloat to meet their daily requirements. Integrating these legacy systems is resource intensive and maintaining them drains your budget; leaving less money for investment and growth.
A 2013 study published by research institute SimCorp Strategy Lab found that at least one in four asset managers worldwide are running their core processes on outdated technology. The potential business costs both tangible and reputational of continuing to use an outdated treasury system are overwhelming; putting you on a dangerous path that creates unnecessary risk and expenses. As mentioned in Legacy Systems: A Ticking Time Bomb by Peter Hill, maintaining a legacy system puts you in danger of:
- Undermining your business goals
- Risk management failure
- Spreadsheet errors
- Slow and inaccurate regulatory reporting
- Time intensive data analysis
- Costly workarounds for fixes and upgrades
It is difficult to bring your treasury department to the next level when you are saddled with manual processes and outdated technology.
How to avoid the dangers of out dated technology
Evaluating the performance of your legacy treasury system may reveal that despite the initial investment for a new solution the savings in time and money will be more significant. The good news is that you don‘t have to look too far for a new solution. With new innovation in Treasury and Risk Management (TRM) technology and the appearance of all-in-one Software-as-a-Service (SaaS) treasury solutions, you can avoid the pitfalls and exorbitant costs associated with legacy TMS technology whose functionality is outdated and its infrastructure is hanging on by a shoestring and some tape. What are your plans to update your treasury technology?