By Morne Klynsmith, Head of Treasury Technology, TreasuryONE
Over the past few years, treasury technology has undergone significant advancements, providing treasurers with more flexible and affordable options than ever before. These technological developments have put greater levels of automation, efficiency, and control into the hands of treasurers, enabling them to manage their daily operations with greater ease and accuracy. However, to take full advantage of these technological advancements, it is essential for treasurers to create a robust project plan for choosing and implementing a system.
(In this article we will look at how to select and implement a Treasury Management System)
The benefits of treasury technology are numerous. Treasury management systems (TMS) can help treasurers to automate their daily tasks, such as cash forecasting, payment processing, and risk management. This automation can save treasurers a considerable amount of time and reduce the risk of human error. Additionally, TMS can provide treasurers with greater visibility into their cash and risk positions, enabling them to make more informed decisions.
When it comes to choosing a TMS, treasurers should create a project plan that includes a comprehensive evaluation of their organisation’s needs and objectives. Treasurers should consider factors such as the size and complexity of their operations, the level of automation they require, and their budget. But most importantly, it is crucial to rank what is absolutely essential that the team don’t want to compromise on. Treasurers must ensure they have the buy-in of IT and that an IT resource is part of the selection process. Security in a TMS is of utmost importance, and ignoring internal IT in the beginning of the process, might derail or delay the process.
How to Selecting a Treasury Management System
When selecting a TMS, there are several factors to consider to ensure a successful implementation:
- One crucial element is change management. To achieve a successful implementation, it is vital to have buy-in from all stakeholders, as well as to have a champion on the client side who will support the implementation.
- Complex implementations may require a phased approach, where the best division is chosen to use as a “template” for implementation across all divisions. This approach ensures that the implementation process is streamlined and that all divisions understand the implementation process.
- Another important consideration is local support and local implementation. Having local support is critical – not only because they truly understand the local landscape and challenges, but also are better equipped to ensure there is no disconnect between the implementation team.
- When compiling an RFP, it is common for corporates to include their wishlist for a TMS. however, it is essential to prioritise requirements over the wishlist. Buying a wishlist that is not aligned with the actual needs of the company can lead to delays and dissatisfaction with the new system.
- Finally, it is important to understand that implementing a TMS is not a short-term, easy project. It is a journey that requires ongoing support and continuous improvement. A successful implementation is one that is viewed as a long-term investment and not just a quick fix.
How to Implementation of a Treasury Management System
Once a TMS has been selected, it is essential to develop a plan for implementing the system. This plan should include a detailed timeline, milestones, and resources required for each stage of the implementation process. It is important to engage all stakeholders in the process, including IT teams, finance teams, and other relevant departments. Clear communication and collaboration between these teams will be critical to ensure the successful implementation of the TMS.
One key consideration during the implementation process is data migration. It is important to ensure data is migrated accurately and securely from existing systems to the new TMS. Treasurers should work closely with their IT teams and the TMS provider to ensure that the migration is successful and that data is accurate and up-to-date.
Another important consideration during the implementation process is user training. It is essential to provide adequate training to users to ensure that they are comfortable with the new system and can use it effectively. Training should be provided not only to treasury teams but also to other departments, such as accounting and finance teams, who will be interacting with the TMS.
Finally, it is important to continually monitor and evaluate the effectiveness of the TMS. Treasurers should establish metrics to measure the success of the system and regularly review these metrics to identify areas for improvement. Additionally, treasurers should stay up-to-date with technological developments and consider upgrading or replacing the TMS as needed.
Treasury technology has come by leaps and bounds in recent years, providing treasurers with greater levels of automation, efficiency, and control. By following these best practices, treasurers can successfully implement a TMS that meets their organisation’s needs and helps them to achieve their financial goals.