by Chuck Colliton, Treasury Practitioner Executive, Global Business Solutions, and Drew Strzepek, Engagement Executive, Global Business Solutions, Bank of America Merrill Lynch
Too often, recognising that their current technology — or lack thereof — is holding them back, corporate treasury managers dive headlong into shopping for a treasury management system. If they fail to do the proper upfront evaluation, however, the results provided by their new system may be disappointing. In this article, we suggest a process for evaluating a company’s treasury technology and needs, so that before shopping begins, companies will have an understanding of their current processes and inefficiencies, and can establish a clear direction for their ideal future state.
Many corporate treasury organisations today are in the market for a treasury management system. Some are seeking to gain efficiency and improve treasury performance by moving from a manual spreadsheet-based process to a more automated environment. Others have a treasury management system in place that may not be meeting expectations — or one they’ve outgrown — and they decide to replace it.
A common mistake many companies make is failing to invest enough time and resources — prior to engaging vendors with requests for information and proposals — in the upfront work that’s needed to select a system which will truly meet the company’s needs.
In some cases, treasury managers select a new system without fully understanding those needs. The managers may then layer new technology on top of existing bad processes and, in effect, automate existing inefficiencies.