5 Steps to Developing a Global Treasury Management Strategy

Written by Trovata Team
July 6, 2021

Eliminating the challenges that come with consolidating and normalizing data across your organization’s multiple bank accounts requires an optimized treasury management strategy. For decades, treasurers have relied on treasury management systems (TMS) to manage liquidity, but as their organizations scale, TMS’s rigid reporting and forecasting capabilities have made cash management complex. 

TMS utilize legacy data formats like SWIFT and MT940, which require manual processes and lack detailed metadata. Due to this, treasurers find themselves having to manually collate this data, which can lead to human error. You can make wrong assumptions based on inaccurate data, leading to costly mistakes for your organization. You and your business require a future-proof treasury management strategy that provides you the real-time cash data you need to reduce risk and optimize liquidity.

In this article, we’ll share five essential steps to craft a high-performing, global treasury management strategy. 

Centralize Treasury Management

Enterprises with a global presence utilize a multitude of banks and accounts for their operations. Many organizations manage their multiple divisions’ treasury operations with a decentralized approach. Unfortunately, when your global treasury teams are not working within one unified platform, they do not have an accurate picture of your company’s liquidity. Consolidating treasury functions under a single platform is the first step to eliminating errors and confusion.

This empowers you, your department, and your subsidiaries across the globe with a single source of truth for your cash data. It provides the real-time cash insights you need to make faster, more accurate decisions. 

Open banking platforms, like Trovata, automate the aggregation of your cash and bank data by utilizing industry-first Open Banking APIs. These APIs transform your treasury operations from relying on multiple TMS across global offices, to leveraging a single platform to automate and manage your cash reporting, forecasting, and analysis.

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Improve Cash Reporting & Forecasting Accuracy with Automation

Your cash reports and forecasts are only as accurate as the raw bank data they are based upon. Ensuring data accuracy is nearly impossible when relying on manual processes to consolidate your transaction data. Automating the collation of your bank data is one of the most critical steps when optimizing your global treasury management strategy.

Open banking APIs automate the data consolidation process across your global banking gateways in real-time, empowering you with a complete picture of your company’s cash position and cash flow. Automation serves as a powerful risk avoidance tool by eliminating the potential for erroneous data. You can sleep soundly knowing your cash forecasts and reports are 100% accurate.

Leveraging data analytics to improve the accuracy of cash flow reports and forecasting for your global enterprise should not be a time-consuming process. Optimized treasury management strategies must consider solutions that enable fast and accurate analysis through personalized tagging and search features powered by artificial intelligence and machine learning.

Open banking platforms automatically categorize and segment transactions based on keywords, regions, currencies, and specific accounts, enabling deep drill-downs into historical data in just a few words. This advanced search and tagging functionality empowers you to automatically create reports and forecasts based on these tags in a matter of minutes, instead of the days it used to take with legacy TMS. You truly have the in-depth cash insights you need to make faster, better data-driven decisions.

Strengthen Governance

Eliminating the possibility of fraud and asset mismanagement within treasury departments has become an important task for enterprises with global footprints. Regional differences in protocols and oversight are generally recipes for disaster. 

Strengthening treasury governance involves developing a centralized management process and implementing policies that reduce operational disparities from one region to another. Managing your treasury operations in a single platform not only ensures everyone has access to the same data but ensures everyone throughout your organization is working under the same cash management protocols.

Choose the Right Treasury Management Technology

With the technological advancements occurring in the treasury management industry within the last decade, automating your cash workflows through open banking platforms has never been easier. Cloud computing, AutoTag, and Search+Tag features powered by AI/ML and APIs have empowered treasurers with the ability to eliminate their tedious, manual workflows, so they can focus on strategic analysis that drives value for their organizations. Optimizing your global treasury management processes involves ditching outdated treasury management systems in favor of open banking API platforms and the future-proof features they offer.

Open banking platforms like Trovata empower you to streamline your enterprise’s global treasury management process in a singular, centralized dashboard. Trovata delivers out-of-the-box automation and management capabilities that can be set up in just a few hours.

For proof of how automation can help you manage your cash flow, look no further than CrowdStrike. Their treasury used to spend 95% of its efforts on data collection and 5% on data analytics. Thanks to automation, it now spends 100% of its time on data analysis/strategy.

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