Preparing for the next generation of treasury management is more than just about adopting new technologies. What matters is how fintech innovation is integrated into treasury management systems for a seamless experience across trading, market data and financial risk.
- The biggest challenge facing corporate treasurers is how to best leverage, integrate and apply the many fintech products and services available.
- Integration can be poor between treasury management systems, with teams often having to upload data from one system to the next.
- Refinitiv can support the transition to the next generation of treasury management, including through data and analytics to deal with cross-asset financial risks.
One of the biggest challenges facing corporate treasurers is how to best leverage, integrate and apply the many fintech products and services available.
There is a technology application to solve every corporate treasury problem, but the trick is to make these solutions work effectively within your existing system.
Refinitiv was a proud sponsor and participant in the recent Hong Kong ELIFT Forum for emerging leaders in finance and treasury.
Treasury management systems
I joined a panel to discuss next generation treasury strategies and tools, when the key themes of communication and connection were very much in focus.
Integration is poor between treasury management systems and the trading, market data and various service providers that treasurers use.
In some cases, treasury teams must upload data from one system to the next, or even manually enter data that has been taken from a separate database.
Participants said APIs can help minimize that manual work, but the market lacks standard APIs. Open APIs are an improvement, but they have grown in such numbers that managing them becomes a challenge in itself.
The next step in this evolution is to pull a service from the cloud and overlay that service with a treasurer’s workflow before applying data. Refinitiv expects analytics in the cloud, delivered via an API, will change treasury management systems in the not-so-distant future.
FX pricing efficiency
The ELIFT Forum also explored the benefits, and potential challenges, of using eFX.
Trading by phone is still the favored method for many basic treasury functions, but it leaves them without connectivity to bank accounts, settlement desks and their broader treasury management system.
Refinitiv’s eFX solution uses an automated quote and trade process that creates a transparent audit trail and attracts quotes from numerous banks for maximum pricing efficiency.
Corporates stand to benefit from better prices on trades via eFX because they can involve more banks, while the automation reduces human error.
Eikon provides the data and analytics that corporate treasurers need to better manage cross-asset financial risks. Eikon forms a key part of many treasury workflows, from global market insight through to comprehensive derivative calculators and trading solutions.