TMSWhy treasury management must evolve in the fintech era

Why treasury management must evolve in the fintech era

As we continue to move into the fintech era, treasury departments need to re-evaluate their operational models, writes Marc Beaulande, co-founder and executive director of Login SA.

The global rise in financial regulation and international expansion of financial operations are driving treasury departments in banks to remodel and integrate their activities. This shift is mostly affecting automation and straight-through-processing (STP) in front-to-back office operations, the tools to facilitate regulatory compliance and real-time access to the system anytime and anywhere.

That’s the case for both professional users and clients, who demand powerful dashboards and insightful data visualisations. Delivery models and connectivity options are also changing radically, offering treasury management systems (TMS) as SaaS (Software as a Service) and connectivity through managed APIs. Moving into the fintech era, treasury departments therefore need to re-evaluate their operational models.

So what would banks need to consider when selecting a treasury system?

To successfully address these challenges, treasury departments need to deploy a fully web-based, integrated TMS that provides powerful tools for operational efficiency, control and regulatory compliance, while allowing them to focus on their business and strategic objectives – not merely on IT infrastructure and relevant systems’ operations. A seamless integration with the core banking system and other bank’s systems offers a single point of access to users, while eliminating errors and reducing operational costs in an automated, real-time, STP manner. This robust integrated solution in turn delivers targeted and relevant analyses enabling treasurers to make timely and informed decisions.

Consequently, a modern TMS needs to integrate with any back-office system to deliver a front-to-back, enhanced user experience. Such a solution must also cover the entire spectrum of financial instruments, ranging from forex and money markets, to securities, commodities and derivatives, plain vanilla to exotic and structured products. Deployment and implementation should be as quick and efficient as possible, leveraging out-of-the-box model configurations, including standard management and regulatory reporting as well as compliance rules packages.

Distinguished capabilities include:

  • Full STP and seamless deal flow with all necessary operational and compliance checks
  • A variety of risk monitoring tools for market, liquidity and operational risk
  • Elegant and customisable dashboards enabling numerous views and complex analyses in both tabular and graphical output
  • Flexible and automated limits management
  • Powerful user-defined or ready-to-use reporting
  • Spread matrices ensuring accurate and risk-adjusted valuations across categories of instruments and risk profiles
  • Real-time P&L reporting
  • Profitability calculations under multiple user-defined scenarios
  • MiFID and EMIR compliance
  • SWIFT messaging and GL reporting
  • Easy client access to the platform through a portal
  • Ability to adapt to new trends such as cryptocurrencies and new Cloud technologies (SaaS).

Such characteristics enable the bank’s or corporate’s treasury department to:

  • Automate their processes and reduce manual errors
  • Increase productivity with automatic events generation
  • Deploy dynamic workflows and reporting

 

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