Module 12 Quiz-Treasury Systems

What is the value of having a treasury management system?

Here are 7 values of having a treasury management system:

1. Boost in productivity

A treasury management system excels in streamlining and automating manual

processes and tedious data management tasks, consequently boosting your overall
daily productivity. Automated authorization and payment initiation eliminates
organizational bottlenecks and allows for less location dependence.

2. Real-time and precise data availability

With a TMS, treasurer’s access and view financial data and take advantage of
integrated reporting tools that extract real-time data to make informed decisions. The
key benefit with instant data availability and reporting is that treasurers can optimize
their short term cash management, and view historic cash flows.

3. Reduction in manual entry and calculation errors

With a TMS, users establish digital automation workflows for data entry and data
verification. This ensures manual errors can be caught early.

4. Limit redundant banking and FX costs

TMS quantifiable benefits can be found with the consolidation of payment systems
and banking relationships, leading to a reduction in cross-bank and FX fees. Tools
like multilateral netting and flexible bank account integrations are available to
accomplish those goals.

5. Detailed activity monitoring

Transparency of user activity within a treasury management system allows central

treasury departments to paint A-Z panoramas of any data alteration or payment trail.

Whether you believe in a “4-eyes” or “6-eyes” principle for authorization workflows,

you can generate intuitive audit trails within the system from a pool of all activity for
all users. Additionally, activity trails can be extended to communication with banks
and beneficiaries if needed.

6. Bank and connectivity flexibility

The value proposition of a TMS is typically seen in the bridge to multiple banks and
accounts. One central interface allows corporates to take advantage of the various
emerging connectivity options and switch providers without creating stalls in
productivity. The separation from legacy bank interfaces allows treasurers full control
of their cash and activity.

7. Regulatory compliance and risk mitigation

Establish company-wide compliance with industry regulations within the systems

and take advantage of integrated risk mitigation functionality.

In addition, you can ensure your organization is fully compliant with the emergence
of global & regional Financial Messaging Standards like SWIFT, SEPA, ISO20022.