Tracy Kantrowitz, VP, US & chief marketing officer, TreasuryXpress

It is widely known that leveraging technology to automate your treasury operations can bring about tremendous cost savings and efficiencies for treasury in the areas of time/staff utilisation, reduce banking costs, mitigate risk of errors, and enabling stronger, more profitable cash utilisation.

But did you know that the type of treasury management solution (TMS) model you decide on for your organisation can in fact increase your return on investment and allow you to derive even greater value from your TMS? Today’s TMS models focus on leveraging lean and nimble digital experiences that create more value for treasury including:

  • Smarter integration with enterprise applications using APIs
  • Improved efficiencies for internal communications and financial process collaboration
  • Greater scalability as digital TMS platforms are generally less expensive to implement, maintain, and grow

To understand how today’s generation of the cloud has further economised treasury technology and why these value points are only now truly achievable, let’s look at the evolution of cloud TMS solutions.

How the evolution of the cloud transformed treasury’s business case

The advent of cloud software brought unprecedented options for treasury teams in the late 2000s and early 2010s. Where prior to the availability of cloud treasury management solutions, their on-premise predecessors, often called “treasury workstations”, were very much considered a luxury item. With expensive hardware purchases and extensive IT labour, implementing, managing and supporting a TMS was extremely difficult. Creating a solid business case and ROI projection for such projects were often difficult to achieve and many treasury teams had to continue to endure the challenges and risk associated with manually managing their cash and treasury operations. Quite simply, the cost could not be justified.

However, when original cloud solutions began to take centre stage, they aspired to bring a new category of treasury management tools that offered more economic value. cloud TMS’ removed dependency on IT resources, eliminated the need for expensive hardware purchases, and reduced the reliance on IT support and improved maintenance through automatic upgrades and updates.

Undoubtedly, cloud TMS platforms forever transformed the way treasury accessed and consumed technology for the better. But did it come without any repercussions?

Cloudy results of legacy cloud

Early mainstream cloud TMS allowed many treasury teams the ability to purchase technology for the very first time. The inherent benefits of cloud removed the previous barriers of automation and treasury teams were able to have more success articulating their business cases to internal stakeholders.

As we now know, two of the biggest value points of cloud TMS were reduced expense and reliance of IT hardware and IT support. Because these solutions could be installed without affecting or disrupting internal technology infrastructures, treasury teams gained independence internally and achieved greater control of the technology they installed.

These core benefits were the lynchpin to many a treasurer’s business case and during this phase of treasury transformation, the adoption of cloud TMS solutions boomed. However, “great power” did not come without a residual consequence. Because of the ease of installation as compared to on-premise solutions, the prevalence of cloud solutions, particularly SaaS models, quickly led to disparate systems within the organisation and it became increasingly difficult for IT leaders to gain comprehensive control around their infrastructures and tech strategies.

Another key benefit of this first generation of cloud was that all users would never be left behind from an upgrade perspective as there was one set of code for all users. However, the value of this benefit began to detract from the overall cloud experience as the inability to customise products and features started to become restrictive for growing companies with expanded financial operations.

Today’s digitally-enabled cloud TMS’ bring greater value through on-demand services

Today, the proposition has changed yet again and even more value can be found in the modern cloud. Where previously, the main benefit highlighted in almost every business case for a cloud TMS was around the IT cost and resource savings, the current generation of cloud offers unprecedented value and ability for enterprise applications and stakeholders to be more cooperative and inclusive with treasury.

For instance, digital tools such as APIs allow companies to easily, quickly and securely integrate all financial and business processing applications – making financial data more accessible across teams. This allows treasury to make more accurate and more strategic decisions around their cash.

In this new digital environment, both treasury teams and solution providers can benefit from advanced digital tools that make cloud solutions more agile, secure, and economic than ever before – creating an open and integrated experience for both treasury and financial users and their IT departments.

Today’s TMS models that are built on digital cloud platforms include all the benefits introduced by the legacy cloud solutions brought about in the late 2000’s and early 2010’s but add greater value and ROI to your treasury transformation project.

This means that using today’s digitally enabled cloud TMS’, leverage APIs to cooperate and integrate with core third party enterprise technologies such as ERPs, accounting systems, banks and CRMs that are required elements of our clients’ IT infrastructure. This model delivers on demand treasury technology services that:

  • Automate ~90% of the deployment process so that clients can access and go live on the solution quickly and faster than any other TMS solution in the space
  • Develop and release frequent client-driven product enhancements and features when clients need them in order to truly impact their jobs positively

Today’s TMS is about smartly enable treasury teams to be more integrated with the rest of the organisation and to more nimbly support financial strategies. By changing how teams interact and work together, digitally powered, on demand TMS solutions have truly become an enabler for enterprise financial collaboration and can economise your treasury transformation project extensively.