Technology

Commentary

Technology. Treasurers love it – and love to hate it. We depend on it, and appreciate the help it provides. But the treasury technology landscape is complex and changing fast. Treasurers have very different views on the best tools and approaches: it can be a real challenge knowing where to turn.

This call was a departure from the usual discussions on the pros and cons of robots, different TMSs and ERP treasury modules, or how AI can improve your cash forecasting. Instead, we had some very motivated peers who passionately defended the benefits of the second oldest treasury technology (after calculators!): spreadsheets. These peers’ comments bore out the conclusion from our ongoing Treasury Technology Benchmark: spreadsheets are very much alive.

Everyone understands the drawbacks with spreadsheets: they are prone to error, they are often not properly documented and can be changed too easily. They do not automatically provide sophisticated reporting tools, data is often entered manually (and potentially incorrectly), and access control can be a challenge. 

All these issues can be addressed – more below. But the peers stressed that...

Commentary

“In every company, we all share the same objectives and work together to achieve them.” 

This statement is obvious – but we all know that the reality is more complicated: apart from genuine – healthy – differences of opinion, the need to prioritise the use of scarce resources can generate heated debates which do not always end well.

The reality of corporate teamwork is especially challenging for treasurers. We rely on data and input from many sources, and we need IT systems to manage this process. But many treasurers are reluctant to be part of the corporate IT structure: it usually does not provide the functionality we need, treasury is often not a high priority for budgets and investment, and there is a strong feeling IT does not understand our needs. At the same time, as good corporate citizens, we should not be heading off in a separate direction.

So – how do treasurers manage this conundrum?

• Have a specialised IT team in treasury, or rely on central IT?
• Use the treasury module of the major ERP systems, or install a bespoke TMS?
• Download all the data manually and use spreadsheets?
• Where to get the budgets? Where does treasury stand in the pecking order?

There was a surprising consistency in the approach: 

• Whoever they actually report to, everyone felt a specialised IT team was needed
• Whether treasury runs its own IT team or not, treasury’s needs have to be addressed separately
• Most participants agreed treasury is not a top priority for the business or budgets. One took a very different view: using value at risk as an argument, they had obtained “gold standard” prioritisation.
• A different approach is to frame treasury business cases in terms of....

In the CXC Treasury Technology Benchmark we gather unfiltered feedback from treasurers who actively use major TMS platforms. Unlike insights shaped by vendors' marketing materials, our approach is akin to independent product reviews, offering candid user experiences in a confidential setting.

This session focused on Kyriba, one of the most frequently discussed TMSs in treasury circles. Given the sensitivities around corporate relationships with providers, we have taken extra precautions to ensure anonymity.

The discussion provided valuable insights into user satisfaction, areas of strength, and recurring challenges. While some features received consistently positive feedback, perspectives varied widely on others. Certain factors emerged as significant concerns for multiple participants, influencing their long-term outlook on the system.

For those considering a TMS or evaluating their current setup, this report delivers a nuanced view of Kyriba from the perspective of experienced users. The full version contains detailed, practical insights that could be instrumental in shaping treasury technology decisions.

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Commentary

Technology is changing the way many businesses work: with online commerce, many traditionally B2B businesses are moving to B2C. Logistics and supply chains are being transformed. Ride hailing and food delivery services operate real time payment systems. Assets we used to buy are increasingly available as a service, often linked to the internet of things.

Where are our banks in this turmoil? And how are treasurers adapting? We wanted to get a first view. Judging by the response we received, we are clearly not alone in being very interested.

This report is long – even the summary takes several pages, and it does not capture all the nuances. It is well worth reading the detail – it clearly lays out the challenges treasurers are facing.

Business transformation

For the time being, treasurers are adopting a wait-and-see approach to business changes. When the business moves to B2C, or becomes a full asset as a service enterprise, treasury will adapt accordingly. In the meantime, treasurers see no need to get ahead of the business, or even necessarily be a change agent.

On the other hand, CXC members who are in the new, online enabled industries are, of necessity, proving to be early adopters of the new technologies.

Communicating with banks

Over the years, centralised global and regional treasury management has been enabled by online banking tools with balance reporting, remote account management and payment initiation.

This has brought enormous benefits to treasury management. But it is not perfect:

• Mostly, the data is not real time. It is often yesterday’s balance and transactions
• There are many different tools: host to host, e-banking systems, SWIFT reporting, APIs
• Security protocols remain a conce

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