Treasury Technology: What Tools Are Used Today? And Tomorrow?

Treasury is changing, says 85 percent of the 200 global finance professionals who responded to Reval´s survey, "How Future-Proof Is Your Treasury". Drivers for treasury transformation are new and changing regulations, inefficient processes and market volatility. Over 80 percent of survey participants say they consider technology as an enabler for treasury transformation. For this reason, it is useful to review the technologies in use today in treasury and the direction the journey to transformation is headed.

Excel is still used by 33 percent of treasury professionals. Although spreadsheets are easy to use and adapt, treasurers should consider the shortfalls of managing cash and risk with these simple tools. In general, spreadsheets are error-prone and not scalable. They provide little transparency and limited analytical capabilities. Still, finance professionals seem to stick to spreadsheets, keeping them from fulfilling their new, strategic responsibilities.

Combination of Specialist Tools
Another 20 percent of survey respondents rely on a combination of specialist tools. They choose different solutions for cash, payments, risk, hedge accounting or commodities to maximise their benefits. What looks like good approach, turns into a challenge when it comes to gaining global cash visibility or netting FX exposures across different asset classes.  Treasurers who do not want to copy data from one system to the other or go back to spreadsheets, will have to invest a huge amount of time and money in system connectivity to overcome the pitfalls of their disparate system landscape.

ERP Systems
The treasury modules of Enterprise Resource Planning (ERP) systems are used by 7 percent of finance professionals. However, ERP systems are not built for treasury´s specific requirements. In addition, they lack flexibility and integration with third party solutions is a challenge.

Treasury Systems
The survey shows that 38 percent of finance professionals are already leveraging professional treasury software: Treasury Management Systems (TMS) and their successors, Treasury and Risk Management (TRM) solutions. TRM solutions are the next generation TMS, combining cash, liquidity and risk management in one single cloud platform. With sophisticated analyses and integrated reporting tools TRM solutions satisfy treasury´s increased risk and compliance requirements.

As technology is considered an enabler for treasury transformation, it is no surprise that 60 percent of treasurers have already started or plan to implement new treasury technology within the next 12 months.  Thus, professional treasury software is continuing to make its way into finance departments around the world.

To find out more about treasury transformation and the role of technology as driver and enabler for change, take a look at our infographic.