Key factors to consider when choosing your TMS

Undeniably, the treasury function of any business is vital. Corporates need to report on and understand their global cash position and their portfolio of financial instruments, and manage all risks accordingly. But as the complexity of businesses evolve and treasury needs expand, simple tools such as spreadsheets are falling short. Relying on the wrong technology leads to a heavy dependence on emails, manual data capturing, and inadequate reports.

If you have outgrown spreadsheets, it’s time for a switch to proper treasury technology. A treasury management system (TMS) is a centralized hub where all your treasury and risk operations can be performed and managed effectively. No stone is left unturned and no transaction is missed. It helps perform complex calculations and provides reporting tools for critical business decisions.

One size does not fit all

Every business has a unique structure and set up. So inevitably, no two organizations have the same technology requirements. Looking for a new TMS is not a decision to be rushed; many different considerations must be made. As a starting point, here are a few key factors to think about:

• Functional requirements: TMS solutions vary in complexity. When you look for new treasury technology, it’s about balance. You must serve the needs of your Treasury team, without any unneeded complexity getting in the way.
  • Think about the future: Perhaps a merger or acquisition is on the horizon, or a divestment strategy is in the cards. Consider your evolving needs and make sure to choose a provider that can support you now and in the future.
• Volume: Of course, your new treasury solution needs to cater to your volume of banks, accounts, and trades. Whether it’s 50 accounts or 5,000 accounts, there is technology to help you manage them efficiently.
• Deployment method: Perhaps you’d prefer a SaaS solution to ensure your system is always on the latest release. Alternatively, many providers offer a fully supported cloud environment, giving you the choice of when to upgrade to the latest version.
• Price: Cost is important–varying from product to product, and impacted by your business and technical needs. Establishing your needs, wants, and nice-to-haves can help you eliminate unsuitable options and develop a shortlist quickly.

At ION, we like to present our clients with multiple product options, giving clients the power to decide exactly what works for their business and budget. We have seven treasury products that can cater to varying needs.