Top 4 Benefits From Digitally Transforming Your Treasury

Written by Trovata Team
July 15, 2021

As our world becomes ever more globalized and digitized, treasury management becomes increasingly complex. The volume of treasury data increases exponentially as your organization grows, making it more challenging to get the cash insights needed to make data-driven and accurate decisions. While many technologies in the consumer space have provided instant access to ‘always on’ services, the same can’t be said within treasury operations. 

The treasury management systems still utilized today have been around since the 1980s. While these legacy systems promise to automate bank and cash data consolidation and normalization, cash reporting, and cash forecasting, manual intervention is often required to overcome the software’s limitations.

You shouldn’t have to spend hours on end compiling cash insights from multiple spreadsheets to create cash reports and forecasts based on yesterday’s data. Incredible technological advances have occurred within the treasury space over the last few years, empowering treasurers to better automate their cash reporting, analysis, and forecasting. By digitally transforming your treasury by eliminating tedious manual processes and establishing a single source of truth, you can too. Let’s start from the beginning and discuss what it means to digitize your treasury.


What It Means to Digitize Your Treasury

To better understand what it means to digitize your treasury, it is best to explain the technological advances that have empowered the automation of many traditional treasury management tasks possible, like Direct-To-Bank APIs.


1. Establishing a Financial Big-Data Pipeline with Direct-To-Bank APIs

Manually consolidating and normalizing your cash and transaction data from multiple, disparate spreadsheets not only takes time away from accomplishing objectives that provide your organization value, but it also creates a cash visibility gap. By the time you perform this manually, you are making predictions based upon yesterday’s data. Through the utilization of Direct-To-Bank APIs, treasurers can automate the data consolidation and normalization process to achieve a real-time view of their cash position and cash flow.

Modern Direct-To-Bank APIs connect directly to banking partners and send detailed transaction information in real-time to your enterprise, empowering you with a big-data pipeline that provides up-to-the-hour transaction and cash balance details in one secure platform. By eliminating the time traditionally spent manually consolidating your banking information, you are empowered to focus your efforts on discovering and analyzing cash insights that drive incredible value for your organization.


2. Ensuring Your Tech Stack Empowers Quick In-Depth Analysis Through Modern Data Architecture

Custom reporting requests shouldn’t take substantial manual lifts or time waiting for reports to process and generate. With many legacy TMS handling data processing on-premise, you are limited based on your computer or local server space. Modern cloud-based infrastructure paired with Direct-To-Bank APIs enables Natural Language Search, which allows you to find and reference historical data with a few words in milliseconds. API technology also enables dynamic cash reporting capabilities on-demand. No matter if you are on a desktop or mobile, you can view your cash position and cash flow in real-time at any time and anywhere. 

For the first time ever, your decision-making is not restricted by your tech stack. Modern data architecture makes it possible to analyze your banking data with dynamic reporting that can be generated in just a few clicks. 


3. Embedding the New Technology Into Your Company Values

Utilizing new technology is not the only step in digitizing your treasury. That new technology has to be embedded throughout your organization’s values. If you still have other teams working in different platforms that do not integrate, your organization still won’t have a real-time view of their cash position and cash flow. 

Building a business case and gaining internal support is critical to realize a digitized future. Showing leadership how digitizing your treasury will drive better data-driven decisions and efficiency is a great way to gain internal backing and begin digitizing your treasury.


Top 4 Benefits From Digitally Transforming Your Treasury


1. Gain a No Penalty Environment for Exploring and Personalizing Your Data

Modern cash management platforms consolidate and normalize your cash and transaction data from your multitude of banks and bring it together into a ‘Data Lake.’ This data is then fed into a dashboard capable of generating automated reports and forecasts based on custom filters and tags. This technology enables you to create any number of cash reports and forecasts without ever manually changing your raw cash and transaction data. No more having to manually set up data in spreadsheets to get the reports you need. You can truly personalize your reporting dashboard with automatically generated reports and forecasts, empowering you to explore your data the way you see fit.


2. Utilize Tags to Automatically Segment Groups of Transactions to Create Usable, Customizable Data Sets 

Natural Language Search and AutoTag™ opens up a level of dynamic, and real-time reporting treasurers have never had access to before with legacy TMS. With just a simple search, you are provided transactions from key vendors, institutions, transaction types, and more within milliseconds. These custom searches can be saved as tags, which can be leveraged for any future cash reporting, analysis, and forecasting. Tags transform cash reporting and forecasting into an incredibly delightful experience due to how easy it is to discover in-depth cash insights in minutes.


3. Better Scenario Plan to Strengthen Your Treasury Management Strategy

With how easy and quick it is to generate automated forecasts, scenario planning has never been so delightful. Modern cash management platforms, like Trovata, gives you the flexibility to apply growth rates and variables to your automated forecasts, empowering you to quickly and accurately forecast around different scenarios, business decisions, and potential investments. Seeing how these scenarios affect cash enables you to design contingency plans that explain why cash flow is changing and how your organization can best respond to it. This way, you are prepared for any disaster scenarios and growth opportunities that arrive at your organization’s door. 


4. Make Better Data-Driven Decisions Based Upon Real-Time Data

By digitizing your treasury through a cash management platform built with Direct-To-Bank APIs, you can achieve a real-time view of your cash position and cash flow for the first time. No more making predictions on reports and forecasts created from yesterday’s data. You can be confident knowing you are making informed decisions backed by accurate, real-time data.


Conclusion

You don’t have to digitally transform your treasury operations alone. Trovata, our open banking platform built upon a cloud-based, modern architecture, automatically collates your bank and transaction data into a single dashboard, empowering you with a comprehensive suite of automated real-time cash reporting and forecasting functionality. 

Download our Building Tomorrow’s Treasury Guide to gain a 10 step plan on how to digitize your treasury. Learn how you can empower your organization with instant, in-depth cash insights that drive better and quicker business decisions.

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