7 Benefits of Treasury System Integration

Why finance departments should opt for a fully integrable treasury and banking platform
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Karsten Kiefer author pictureAuthor: Karsten Kiefer

No corporate finance department could get by these days without software. On top of the search for the right solution, the issues of a treasury system integration into an existing system environment and connectivity to banks present a major challenge. This blog post examines the various options open to finance departments and why a fully integrable, yet independent treasury and banking solution is the best way forward.

Application-hopping with highly specialized stand-alone systems

This type of set-up involves companies using several e-banking solutions alongside each other and a special financial software solution for each task. There may be a separate application for cash management, another for contract management, a third for risk management, and another system for simulating different risk scenarios.

At the end of the day, the highly qualified staff in the finance department are mainly occupied with gleaning and consolidating diverse data instead of actually analyzing it and inferring the right decisions from it. Companies with this type of set-up may arrange for interfaces to be developed to connect siloed applications. However, data quality suffers due to the lack of continuity between systems and the degree of automation remains limited. What’s more, extra time and effort must be poured into reprogramming each interface every time a single system is updated.

An all-in-one ERP system with treasury function: a long and winding road

There are ERP systems that contain treasury features alongside other applications. The problem with such solutions is that either the treasury features are very limited and thus insufficient to meet the requirements of companies or that so much time and money has to be spent on implementation that the various units of a company again find themselves faced with using siloed applications because each unit is at a different stage of rollout. In this case, a “standardized” system seems a long way off. The situation leads to an increase in the time and effort required to consolidate the diverse data from the various system levels.

There are also ERP system providers who are outright ERP specialists in terms of their history and expertise and have subsequently developed treasury features. Their migration projects are akin to reimplementation, given the huge complexity involved. Companies must factor in a rollout phase of at least three to five years.

On top of that, such complex solutions require extensive IT know-how when it comes to administering the system. Companies embarking on this lengthy path will certainly have to employ additional IT specialists just to implement the system and keep it up and running.

The ideal solution: treasury system integration and a banking platform that can be fully integrated into the system environment

There are treasury management systems out there that cover all corporate treasury requirements with a single application and can be fully integrated into the rest of your system environment.  Such systems can also simultaneously handle external communication from within the same application using an integrated banking platform. These treasury system integrations provide perfect interaction with the ERP and other systems within the company and at the same time ensure smooth data transfer to external financial intermediaries such as banks, networks, trading platforms or trade repositories.

A solution of this sort which can be fully integrated and offers a powerful treasury and banking platform provides the following seven unparalleled benefits:

  1. Speedy implementation and quick group-wide rollout
    A treasury system integration which is independent of an ERP system is quick to implement and roll out across your corporate group. Both system implementation and rollout can be perfectly adapted to the resources of your company and can be designed in tune with the company’s strategy. A staggered approach can be taken to introducing the system, e.g. by task, such as cash management first and then payments, or by region or banking partner.
  2. Process reliability and security via dependable, secure, group-wide standardized workflows
    A comprehensive treasury management system that is fully integrated into your system landscape enables you to map company-wide standardized workflows in the system. These standardized processes can be set up in the system with underlying security standards such as multi-level approval or separation of duties to achieve reliability, security and compliance – of fundamental importance, for example, for the many steps involved in payment processes.
  3. State-of-the-art technology
    Systems specifically designed for corporate treasury management and banking will always be at the forefront of the latest technological developments. Whether it involves real-time payment systems such as SWIFT g4C or SEPA Instant Credit Transfer, or the use of artificial intelligence in fraud prevention, a comprehensive treasury management system will make technical advances available faster than highly complex ERP systems with a treasury function tacked on.
  4. Independence from ERP system and IT
    With a treasury system integration, you will be able to communicate data seamlessly with your other systems but operates as a stand-alone solution – it can operate independently of ERP or other systems and independently of IT resources.
    If the system is installed as a cloud solution, the time and effort involved in maintenance and certification, for example to prove compliance with security standards, can be placed entirely in the hands of the provider. Treasury departments do not have to arrange time slots with the company’s internal IT team to perform an update. Being independent of IT constraints not only gives the treasury department greater freedom when planning processes, but also saves on staff costs.
  5. Independence from banks due to flexible bank connectivity
    A treasury system integration with a multi-bank payment platform gives companies the greatest possible freedom in their banking relationships. Users benefit from standardized input methods, authorization processes and payment processing, and a single user interface with the same login details and tokens regardless of which bank connection is involved behind the scenes.
    An integrated payment platform can also effortlessly receive incoming information, such as account statements, confirmations or notifications, in digital form from external sources and process them in the system.
  6. Seamless integration of reliable real-time data
    A web-based treasury system integration enables data to be entered and made available anywhere in the world. This gives your corporate management team an insight into all treasury data in real time, providing unparalleled visibility. Data can be filtered and aggregated from within the system in just a few clicks, giving the management team the tools it needs to steer the ship. The painstaking and error-prone manual transfer of data from one system to another is eliminated. Treasury can make the right decisions based on reliable data.
  7. Reliability, security and time efficiencies by leveraging opportunities for automation
    A treasury system integration that is seamlessly linked to the relevant external systems creates the perfect conditions for automating processes in your finance department. This might involve automated retrieval of worldwide account statements, closed circuits in the field of payments or automated data checks against beneficiary blacklists and whitelists. Using cash flow rules entered in the system, transactions can be automatically assigned to individual entities, which means that treasury is informed more quickly and effectively about the funds required or the surplus funds generated, the overall changes or trends in the finances of each entity and much more. In short, a system that communicates seamlessly with internal and external data processing systems opens up numerous opportunities for automation. In addition to improved efficiency, with manual intervention only required in exceptional cases, automation in the finance department greatly improves fraud protection.

Conclusion:

Are you on the hunt for a solution that gives your finance department the best support possible? Want to free yourself from being tied to banks, internal IT and other departments? Are you looking for system support that equips you for the future? Then it’s best to choose a treasury and banking platform that can be fully integrated into your system landscape, such as BELLIN’s treasury management system. This offers you the most dynamic tool to meet the increasing demands of your finance department, optimal flexibility in relation to financial intermediaries and at the same time the highest data quality and system reliability.

Would you like to learn more about BELLIN’s cash management solutions? Just reach out to us for a tm5 demo, or visit our main tm5 page.

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