Explore/Academy/Treasury Technology & Systems/Module 2

Module 02 of 6

Treasury Management Systems in Depth

2.1

Key Functionalities

Eight functional areas. For each: what it is, its key components, what the system does, and the technology considerations.

Cash Management and Positioning Bank Account Management Payment Processing Forecasting Capabilities Risk Management Tools Investment Portfolio Management Reporting and Analytics Regulatory Compliance Features

01 / 8

Cash Management and Positioning

DefinitionCash positioning is the process of gathering and organizing balance and transaction information to provide an accurate view of available liquidity across the organization.

Key components

· Bank balance aggregation
· Transaction categorization
· Intraday position updates
· Multi-currency consolidation
· Entity and account hierarchies
· Notional pooling representation
· Physical pooling tracking

System capabilities

· Automated bank statement imports
· Balance and transaction normalization
· Current day and previous day reporting
· Intraday update processing
· Projected position calculations
· Exception identification
· Configurable dashboard views
· Drill-down analytics
· Position snapshots and versioning

Technology considerations

· Bank connectivity options
· Statement format handling
· Reconciliation automation
· Real-time vs. batch processing
· Historical data retention
· Mobile access to positions
· Integration with forecasting
· Decision support analytics

02 / 8

Bank Account Management

DefinitionBank account management (BAM) involves tracking and managing all bank accounts, signatories, and documentation across the organization.

Key components

· Account inventory maintenance
· Signatory tracking and management
· Documentation repository
· Account opening and closing workflows
· Authority matrices
· Fee tracking and analysis
· Covenant monitoring
· Relationship management

System capabilities

· Centralized account repository
· Automated approval workflows
· Electronic bank account management (eBAM)
· Document management
· Expiration and review alerts
· Audit trails and reporting
· Integration with bank fee analysis
· Bank relationship scorecards

Technology considerations

· Bank connectivity for eBAM
· Document storage requirements
· Workflow configurability
· Integration with corporate systems
· Regulatory reporting capabilities
· Mobile approval options
· Multi-jurisdiction support
· Audit and compliance tracking

03 / 8

Payment Processing

DefinitionPayment processing encompasses the creation, approval, transmission, and tracking of payments across various payment methods and geographies.

Key components

· Payment initiation
· Approval workflows
· Format transformation
· Transmission to banks
· Status tracking
· Reconciliation
· Exception handling
· Sanction screening

System capabilities

· Multiple payment format support
· Configurable approval workflows
· Payment template management
· Batch payment processing
· Real-time payment options
· Payment status monitoring
· Repair and return handling
· Secure transmission methods
· Fraud detection tools

Technology considerations

· Bank connectivity methods
· Format libraries and maintenance
· Workflow engine flexibility
· Integration with ERP and other systems
· Security and authentication
· Regulatory compliance
· Mobile approval capabilities
· Disaster recovery for payments

04 / 8

Forecasting Capabilities

DefinitionCash forecasting involves projecting future cash positions to optimize liquidity management, investment decisions, and borrowing requirements.

Key components

· Short-term operational forecasting
· Medium-term tactical forecasting
· Long-term strategic forecasting
· Direct and indirect forecasting methods
· Statistical and driver-based approaches
· Scenario modeling

System capabilities

· Multiple forecasting methodologies
· Automated data collection
· Pattern recognition
· Variance analysis
· Forecast versioning
· What-if scenario modeling
· Visualization tools
· Accuracy tracking and reporting
· Machine learning enhancements

Technology considerations

· Data source integration
· Historical data requirements
· Calculation engine performance
· Statistical analysis tools
· AI and machine learning capabilities
· Forecast collaboration tools
· Integration with cash positioning
· Mobile access to forecasts

05 / 8

Risk Management Tools

DefinitionTreasury risk management tools help identify, measure, analyze, and mitigate financial risks including FX, interest rate, commodity, and counterparty risk.

Key components

· Exposure identification and collection
· Risk measurement methodologies
· Hedging program management
· Derivative valuation
· Scenario analysis
· Compliance monitoring
· Hedge accounting support

System capabilities

· Exposure aggregation
· Mark-to-market valuations
· Value-at-Risk (VaR) calculations
· Cash-Flow-at-Risk (CFaR) analysis
· Stress testing functionality
· Sensitivity analysis
· Hedge effectiveness testing
· Limit monitoring and alerts
· Credit exposure tracking

Technology considerations

· Market data integration
· Valuation model complexity
· Computational requirements
· Integration with trading platforms
· Accounting system integration
· Regulatory reporting capabilities
· Audit trails and documentation
· Simulation engine performance

06 / 8

Investment Portfolio Management

DefinitionInvestment management functionality supports the administration and tracking of short-term and long-term investments across various instruments and counterparties.

Key components

· Investment policy compliance
· Counterparty limit management
· Trade execution
· Portfolio tracking
· Maturity profiling
· Performance measurement
· Interest accrual calculations
· Investment accounting

System capabilities

· Investment database
· Policy and limit monitoring
· Trade workflow management
· Portfolio analytics
· Yield calculation methodologies
· What-if scenario analysis
· Asset allocation tracking
· Benchmark comparisons
· Income forecasting
· IFRS 9/CECL compliance

Technology considerations

· Market data integration
· Trading platform connectivity
· Accounting system integration
· Performance calculation engine
· Compliance rule configuration
· Mobile access for approvals
· Reporting flexibility
· Historical data retention

07 / 8

Reporting and Analytics

DefinitionReporting and analytics capabilities provide insights into treasury operations, risks, and performance through standard and custom reports, dashboards, and analytical tools.

Key components

· Operational reporting
· Management reporting
· Regulatory reporting
· Performance analytics
· Trend analysis
· Exception reporting
· Dashboard visualization

System capabilities

· Standard report library
· Custom report development
· Interactive dashboards
· Data visualization tools
· Drill-down functionality
· Automated report distribution
· Export to multiple formats
· Scheduled reporting
· Alert configuration
· Mobile reporting access

Technology considerations

· Reporting engine architecture
· Data warehouse integration
· Business intelligence tools
· Performance with large datasets
· Historical data access
· Report customization tools
· Dashboard configuration
· Data export options
· Mobile optimization

08 / 8

Regulatory Compliance Features

DefinitionRegulatory compliance features help treasury functions meet evolving regulatory requirements across jurisdictions in areas such as reporting, risk management, and controls.

Key components

· Regulatory reporting
· Audit trail maintenance
· Control documentation
· Compliance rule monitoring
· Certification workflows
· Documentation management

System capabilities

· Configurable compliance rules
· Audit logs and trails
· Segregation of duties enforcement
· Approval and authority matrices
· Regulatory report generation
· FBAR/EMIR/Dodd-Frank reporting
· Sanctions screening integration
· Know Your Customer (KYC) management

Technology considerations

· Regulatory update mechanisms
· Multi-jurisdiction support
· Documentation repository
· Workflow flexibility
· Audit trail comprehensiveness
· Integration with compliance systems
· Report generation engine
· Regulatory change management

2.2

Leading TMS Providers

Vendor names and positioning change through acquisitions and rebrands. Use this as a map of the market, then check each vendor's current offering.

Overview of major vendors

Tier 1 providers

Kyriba

· Cloud-native SaaS solution
· Comprehensive functionality across treasury
· Strong in cash management, payments, and risk
· Robust connectivity platform
· Advanced fraud detection capabilities
· Active acquisition strategy expanding capabilities

FIS (formerly Integrity and Quantum)

· Multiple deployment options
· Strong risk management capabilities
· Advanced cash management features
· Comprehensive bank connectivity
· Integration with other FIS financial platforms
· Both standard and highly customizable options

ION Treasury (Wallstreet Suite, IT2, Reval)

· Portfolio of treasury solutions for different segments
· Particularly strong in complex financial instruments
· Advanced risk management capabilities
· Deployment flexibility across portfolio
· Investment management strengths
· Trading platform integration

GTreasury

· SaaS treasury workstation
· Strong cash management and positioning
· Intuitive user interface
· Visual workflow design
· Integrated risk management
· API-first connectivity approach

Mid-tier specialized providers

Coupa Treasury (formerly BELLIN)

· Strong in collaborative workflow
· Integrated with broader Coupa platform
· In-house bank functionality
· Group-wide payment management
· Multi-regional support
· Netting system strengths

Salmon Software

· Focus on debt and investment management
· Cost-effective deployment options
· Strong in specific regional markets
· Specialized accounting capabilities
· Customization flexibility

Treasura

· Mid-market focus
· Streamlined implementation approach
· Core treasury functionality
· Cost-effective solution
· Simplified user experience

ERP treasury modules

SAP Treasury and Risk Management

· Deep integration with SAP ERP
· Strong in-house banking capabilities
· Comprehensive hedge accounting
· Complex instrument handling
· Extensive configuration options
· Global deployment support

Oracle Treasury

· Integration with Oracle ERP suite
· Strong position management
· Deal management capabilities
· Extensive reporting tools
· Global taxation support
· Multi-entity functionality

Bank-provided solutions

Citi TreasuryVisionJ.P. Morgan ACCESSHSBC HSBCnetBank of America CashPro

Comparison of features and capabilities

Area	Leaders	Differentiators
Cash Management	Kyriba, GTreasury, FIS	Real-time capabilities, forecasting methodologies, variance analysis, visualization tools
Payments and Banking	Kyriba, FIS, ION, Coupa Treasury	Payment hub functionality, fraud prevention, sanction screening, payment tracking, bank connectivity options
Risk Management	ION, FIS, Kyriba, SAP	Derivative valuations, advanced simulation, scenario analysis, hedge accounting automation
Reporting and Analytics	GTreasury, Kyriba, ION	Visualization tools, dashboard flexibility, BI integration, mobile reporting
In-house Banking	Coupa Treasury, SAP, ION	Intercompany processing, netting functionality, internal account management, interest calculation methods

System architecture

Pure SaaS: Kyriba, GTreasury
Multiple Deployment Options: FIS, ION, Oracle
API-First Approach: Kyriba, GTreasury, Coupa Treasury
Mobile Capabilities: Varying levels across vendors

Implementation and support

Implementation Timeframes: Range from 2-3 months to 12+ months
Support Models: 24/7, regional, tiered support options
Professional Services: Range from standardized to highly customized
Training Approaches: Online, in-person, certification programs

Industry specializations

Financial Institutions

Specialized Providers

Wall Street Systems, Calypso

Key requirements

Complex instrument handling, regulatory compliance, trading integration, large volume processing

Large Multinational Corporations

Preferred Solutions

ION, FIS, Kyriba, SAP

Key requirements

Global operations, multi-entity, extensive bank relationships, complex risk management, in-house banking

Mid-Market Companies

Suitable Providers

GTreasury, Coupa Treasury, Treasura

Key requirements

Cost-effectiveness, shorter implementation, core functionality, intuitive interfaces, less complexity

Industry-specific requirements

Manufacturing: Supply chain finance, FX risk management
Retail: Cash processing, forecasting, payment optimization
Technology: Investment management, FX hedging
Healthcare: Specialized payment processing, compliance
Energy/Commodities: Commodity risk, complex derivatives
Insurance: Investment portfolio, regulatory reporting
Real Estate: Debt management, covenant tracking

Selection considerations

Functional Fit Assessment

· Core vs. nice-to-have functionality
· Current and future state requirements
· Gap analysis methodology
· Weighted scoring approaches
· Proof of concept evaluation

Technical Evaluation

· Architecture and scalability
· Security and controls
· Integration capabilities
· Performance benchmarks
· Disaster recovery provisions
· Mobile and remote access
· Upgrade paths and processes

Vendor Stability and Vision

· Company financial health
· Market presence and customer base
· Investment in R&D
· Product roadmap alignment
· Merger and acquisition history
· Executive leadership stability
· Customer retention rates

Implementation and Support

· Implementation methodology
· Resource requirements
· Timeline expectations
· Training approach
· Support model and SLAs
· User community and resources
· Upgrade process and frequency

Total Cost of Ownership

· Initial implementation costs
· Recurring subscription/license fees
· Support and maintenance costs
· Internal resource requirements
· Upgrade and enhancement costs
· Training and change management
· Integration development and maintenance

Reference Validation

· Industry peer references
· Similar-sized organization feedback
· Implementation experience verification
· Support quality assessment
· User satisfaction metrics
· Challenges and lessons learned
· Value realization validation

2.3

System Evaluation and Selection

From defining what you need to signing the contract: requirements, RFP, total cost of ownership, implementation planning and contract terms.

Needs assessment and requirements gathering

Assessment Approach

· Current state analysis
· Pain point identification
· Future state visioning
· Stakeholder interviews
· Process mapping and documentation
· Technology landscape review
· Regulatory requirement analysis

Stakeholder Engagement

· Treasury team (all levels)
· Finance leadership
· IT and cybersecurity
· Accounting and financial reporting
· Tax department
· Business units
· Regulatory compliance
· External auditors (where appropriate)

Requirements Categories

· Functional requirements by process area
· Technical requirements
· Integration requirements
· Reporting and analytics needs
· Control and compliance requirements
· Performance and scalability needs
· User experience expectations
· Support and service requirements

Prioritization Framework

· Must-have vs. nice-to-have categorization
· Business impact scoring
· Implementation complexity assessment
· Risk mitigation weighting
· Compliance requirement flagging
· Cost/benefit analysis
· Phasing potential evaluation

Documentation Methods

· Detailed requirements matrix
· Process flow diagrams
· Use case documentation
· User stories
· Technical requirement specifications
· Integration point mapping
· Data flow diagrams
· Report catalog and samples

RFP development and vendor evaluation

RFP Structure and Content

· Company background and project overview
· Timeline and submission instructions
· Functional requirements by module
· Technical specifications
· Integration requirements
· Implementation approach
· Support and service expectations
· Pricing structure request
· References and case studies
· Response format guidelines

Vendor Research and Selection

· Market research and analyst reports
· Industry peer recommendations
· Preliminary capability assessment
· Vendor financial stability review
· Customer reference checks
· Cultural fit considerations
· Geographic support evaluation
· Initial pricing ranges

Evaluation Process

· Scoring methodology development
· Evaluation committee formation
· Response review and scoring
· Follow-up question process
· Vendor presentation format
· Demonstration script development
· Reference check protocol
· Site visit planning (if applicable)

System Demonstration Guidelines

· Standardized demonstration script
· Company-specific use cases
· "Day in the life" scenarios
· Configuration vs. customization identification
· Mobile capability demonstration
· Integration showcase requirements
· Exception handling scenarios
· Reporting and analytics showcase

Decision Matrix Development

· Weighted criteria establishment
· Scoring scale definition
· Objective and subjective measures
· Total cost of ownership comparison
· Implementation risk assessment
· Strategic fit evaluation
· Team consensus building
· Executive presentation format

Total cost of ownership analysis

Initial Costs

− Software licenses or subscription (year 1)
− Implementation professional services
− System integrator fees
− Data migration costs
− Infrastructure investments
− Additional hardware requirements
− Initial training expenses
− Project management costs

Recurring Costs

− Annual subscription or maintenance fees
− Support costs (tiered options)
− Infrastructure/hosting fees
− Upgrade costs (historical analysis)
− Integration maintenance
− Ongoing training for new staff
− Additional module expansion
− Consulting for optimization

Internal Resource Costs

− IT support allocation
− Treasury staff time for implementation
− Ongoing administration requirements
− Training time investment
− Business-as-usual impact during implementation
− Change management resources
− Internal audit/compliance resources

Hidden Costs

− Customization maintenance
− Integration rebuilds after upgrades
− Performance optimization
− Regulatory change implementations
− Data storage expansion
− Disaster recovery testing
− Security review and enhancement
− Reporting customization maintenance

Cost reduction opportunities

+ Process automation benefits
+ Staff efficiency improvements
+ Error reduction savings
+ Improved investment returns
+ Reduced borrowing costs
+ Better FX execution
+ Fraud prevention benefits
+ Regulatory fine avoidance

TCO calculation methodology

1.5-year projection development
2.Present value calculations
3.Cost categorization
4.Direct vs. indirect cost allocation
5.Hard vs. soft benefit quantification
6.Sensitivity analysis
7.Risk adjustment factors
8.ROI and payback period calculation

Implementation timelines and resource requirements

Typical implementation phases

1Project initiation and planning
2Design and configuration
3System build and customization
4Integration development
5Testing (unit, integration, user acceptance)
6Training and documentation
7Cutover planning and execution
8Go-live and hypercare
9Post-implementation optimization

Basic Implementation

2-4 months

· Standard SaaS deployment
· Limited customization
· Few integration points
· Single entity
· Core modules only

Moderate Implementation

4-8 months

· Multiple modules
· Some customization
· Several integration points
· Multiple entities
· Some process transformation

Complex Implementation

8-18 months

· Full suite implementation
· Significant customization
· Complex integration landscape
· Global deployment
· Significant process transformation
· Complex data migration

Timeline factors

· Solution complexity
· Deployment model
· Customization requirements
· Integration complexity
· Data migration volume
· Geographic deployment scope
· Resource availability (internal and vendor)
· Testing cycles required
· Phased vs. big-bang approach

Resource requirements

Project Sponsor: Executive-level champion
Project Manager: Full-time dedication
Treasury SMEs: Module-specific experts
IT Resources: Integration and infrastructure
Vendor Implementation Team: Various roles
System Integrator: If applicable
Testing Resources: UAT participants
Change Management: Communication and training
Governance Committee: Oversight and decisions

Resource loading patterns

Planning phase: Heavy on treasury SMEs
Design phase: Treasury SMEs and vendor team
Build phase: Vendor team and IT resources
Testing phase: All stakeholders
Training phase: End users and trainers
Cutover phase: All hands on deck
Post-go-live: Support team and power users

Contractual considerations and SLAs

Key Contract Components

· License/subscription terms
· Implementation services scope
· Support and maintenance provisions
· Service level agreements
· Data security requirements
· Data ownership and access rights
· Intellectual property considerations
· Change control procedures
· Termination provisions
· Transition assistance

Pricing Models

· Subscription-based (user or volume based)
· Perpetual license with maintenance
· Tiered pricing structures
· Module-based pricing
· Transaction volume pricing
· Entity-based expansion pricing
· Professional services rate cards
· Training and education pricing

Service Level Agreements

· System availability metrics (99.9%, etc.)
· Performance standards
· Issue resolution timeframes by severity
· Support hours and coverage
· Response time guarantees
· Escalation procedures
· Disaster recovery provisions
· Update/upgrade notification periods
· Release frequency commitments

Data Security Provisions

· Data encryption requirements
· Access control specifications
· Audit and monitoring capabilities
· Breach notification requirements
· Data location specifications
· Data retention and destruction
· Penetration testing provisions
· Compliance certifications required

Negotiation strategies

Benchmark pricing against industry standardsMulti-year agreement considerationsVolume discount structuresBundling of servicesImplementation credit opportunitiesMost-favored-nation clausesPrice increase capsPerformance guaranteesAcceptance criteria definitionMilestone-based payment structures

Alina | TreasuryOS · treasuryease.com