IBS Journal September 2016 TREASURY KEY INFLUENCERS ON TECHNOLOGY TRANSFORMATION:


• Automation of banking: Most banking functions are supported by sophisticated technology


platforms, so it is imperative for treasury functions to be automated. Also, banks require integration with core banking and ERP systems to improve data management capabilities


•


Globalisation: For example, treasury systems require integration with SWIFT to support high volume transactions


• Outsourcing: Due to increasing levels of complexity, banks are upping outsourcing of


non-core treasury functions. This is leading to EVOLUTION OF TREASURY SYSTEM FUNCTIONAL REQUIREMENTS


increased workflow and document management requirements. For instance, there has been a trend toward using SaaS/ASP solutions


• Regulations: New regulations are impacting a treasury department’s compliance activities. FBAR


and FATCA are two such examples of this


• Need for analytics and decision-making: Banks are developing data warehouses to improve


analytical reporting on their businesses. This has resulted in higher expectations on the data management capabilities of the TMS


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In addition, technical factors such as scalability, performance, security and product roadmap must be considered.


Execution is key


Selecting the right TMS is key for successful technology transformations, but is by no means the final step. Successful Program Management is equally important.


Integrated planning: TMS implementations invariably coincide with other technology transformation projects. TMS has dependencies with both upstream systems (e.g. core banking) and downstream systems (e.g. Business Intelligence). Therefore, it is necessary to ensure integrated planning of all transformation initiatives


Well-defined scope: Successful IT implementations


require close involvement of functional users, but treasury departments are usually small in headcount, and so a well-defined scope is necessary


Effective program governance: Enterprise functions such as finance and risk management need to be engaged in the governance of the TMS implementation


Effective change management: The transition to a more structured way of working is a challenge for most business functions, particularly for a non- standardised function such as treasury


To successfully achieve technology transformation, banks should ensure the


following three enablers: Alignment with the bank’s overall operating model, effective prioritisation of requirements and effective program management of the TMS implementation.


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