Modern treasury and risk management systems (TRMS) that use more flexible SaaS toolsets and open architecture are designed for far longer lifespans than the legacy systems they are replacing, which makes choosing the right system that much more important. Since by their very nature, SaaS systems are constantly updated and retooled to meet the latest industry needs, the TRMS you select will shape the future of your organization for years, if not decades. Choose wisely, and treasury and finance teams are equipped with malleable and scalable treasury and risk management operations. Choose poorly, and those same teams are saddled with daily friction.
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TRMS modernization necessitates checking specific boxes to make sure you’re set up for the long haul:
1) Evaluate the technology stack
The most pivotal role of a TRMS is to serve as a “digital backbone” that can connect and integrate all systems used by treasury and other financial departments to achieve seamless functionality. Businesses must ensure their technology stack can incorporate the latest fintech capabilities, such as API utilization. Each and every layer of the stack must also be optimized for operation across an organization’s entire technology ecosystem. Most of all, the TRMS strategy must enable a digital backbone that’s powerful, scalable, and flexible to adapt to whatever future path your organization’s needs may take.
To evaluate how this transformation might look, first consider your treasury ecosystem in detail. Include all specific components you’d want to attach to the TRMS as a digital backbone, as well as potential future additions as best you know. Verify whether or not each system you consider possesses the capacity and support to facilitate smooth technology integrations and your future ecosystem growth. The right system will grow with your needs, and be ready to match whatever pace you require.
2) Align with your organization’s focus
You have specific areas of business specialization, you have specific pain points you already know you’d want a modernized TRMS solution to resolve, and you have specific goals for the future. Treasury and risk management systems have specific areas of focus of their own. For a TRMS solution and user organization to be successful, those points of focus must align.
It’s likely that you have clear ideas about how a new TRMS can solve your immediate needs. While that clarity is a positive and should be leveraged when making your selection, it’s not the final answer. It is just as essential to consider the long view. Commit to a TRMS strategy that solves the issues of today and prepares your organization for tomorrow. Speaking of tomorrow, an often-overlooked benefit of TRMS modernization is related to attracting new talent. It can be challenging to find technology-savvy treasury and finance professionals, yet they are more likely to be drawn to organizations with modernized toolsets and less interested in working for organizations with old-school technologies.
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3) Verify a given vendor’s longevity and ability to grow
If a TRMS is going to help your organization thrive for decades, the fintech company behind it needs to also be in it for the long term. Getting stuck with an out-of-support zombie solution because a vendor goes under is a nightmare scenario you, of course, want to avoid. The right supplier won’t just demonstrate the resources to remain active in the long term, but will demonstrate a commitment to investing in and evolving its TRMS to ensure its capabilities are at the forefront of what it can offer treasury and finance teams.
Take the time to really vet potential providers, looking for both a credible history of proven success and a clear vision for moving forward. Strong candidates are likely to demonstrate technological updates such as AI enablement, BI reporting, UI investment functionality, UI improvements, static data automation, and management-by-exception (MBE) reporting. Look for detailed product roadmaps and agile development practices. Understand where the company stands in its own growth cycle, making sure that the vendor is incentivized and well-positioned to continue to develop and deliver a strong product.
4) Make sure the vendor is highly responsive to customer needs
A TRMS isn’t a commodity: there needs to be a hands-on collaborative relationship if you’re going to get your needs met. Over time, TRMS providers offering mere transactional relationships will fall out of tune with the solution specifics you require. In contrast, a provider that views its customers as strategic partners will be quicker to tailor its product to solve your challenges. By doing so, these providers simultaneously improve the value of their TRMS to the market at large.
To identify providers interested in mutual strategic partnerships, look for those that have earned the loyalty of long-term customers by putting in the work to keep them. Check vendors’ Net Promoter Scores, and be sure to reach out to peers and colleagues to gain the perspectives from treasury teams that are current users of the TRMS systems you are considering. Review sites such as G2 and FeaturedCustomers that share user reviews of enterprise software solutions can also be a source of valuable and unbiased insights.
5) Find a system that will fit your needs now and in the future
Some organizations may want to implement an all-in-one system offering all the functionality they could possibly need to be set for now and for the future. On the other hand, a modular system may be more appropriate if you have an immediate need for, say, cash management, but foresee needing more robust risk management or hedge accounting capabilities in the future. With a modular system, you can implement and pay for the functionality you need now, and easily add on when you are ready.
Tackling a staggered implementation project while still managing day-to-day treasury operations may be easier for your team to handle, and you find it easier to convince management to approve a new TRMS if you choose a modular system that offers the ability to “pay as you grow.” The right TRMS will meet your core needs in the present with additional functionality you can access that aligns with your plans to scale.
