Implementing Treasury Tech: Key Steps for Leadership Buy-In

Written by Sergio Garcia
June 21, 2024

In today’s dynamic financial landscape, treasuries are under increasing pressure to optimize cash flow, mitigate risks, and ensure regulatory compliance. Legacy systems and manual processes often hinder these goals, leading to inefficiencies and bottlenecks. Implementing a new treasury system can transform your workflow and evolve into a strategic pillar of your organization. However, securing leadership buy-in is crucial for successful implementation. This can prove challenging with limited budget and internal resources.

We previously covered how to evaluate treasury software in our blog post Evaluating Treasury Software: Features You Need & Pitfalls to Avoid. To quickly recap, we highlighted modern tools to help you overcome common challenges (and mistakes to avoid during the evaluation process):

  • Accurate, real-time banking data with API bank connectivity
  • Scalable and flexible data infrastructure with cloud-native tech (not cloud-based, an important difference)
  • Enhanced reporting and forecasting with AI and machine learning

Once you’ve identified the right platform that meets your unique needs, and delivers modern solutions that empower you to be a strategic powerhouse for your organization, the next step is making the case to leadership to adopt new tech. 

Explore key steps to convince leadership of the value a new treasury system can bring to the company. We’ll delve into the benefits, address potential concerns, and provide a roadmap for building a compelling case for investment.

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Implementing a New Treasury System: A Compelling Value Proposition

Treasury tech encompasses a wide range of software solutions designed to automate and streamline core treasury functions. These solutions can offer significant advantages, including:

  • Enhanced Efficiency: Automating manual tasks like bank reconciliations, payments, and cash forecasting frees up valuable time for strategic initiatives. Traditional workflows often involve repetitive tasks that consume significant resources. A modern treasury platform like Trovata automates these processes, allowing treasury professionals to focus on higher-value activities such as risk management, strategic planning, and optimizing cash flow.
  • Improved Visibility and Control: Real-time access to data empowers treasurers to make informed decisions regarding cash flow management, risk mitigation, and investment opportunities. A modern solution like Trovata offers an easy to use interface with centralized dashboards and reporting tools, providing a holistic view of financial activities. This empowers treasuries to make data-driven decisions and react to changing market conditions swiftly. Furthermore, this will drive further alignment between treasury and the CFO. According to a recent survey from Sage, 60% of CFOs state data analysis and insights are essential to overall business strategy.
  • Reduced Risk: Treasury tech can help mitigate operational risks associated with manual processes and human error. Manual processes are prone to errors, which can have significant financial consequences. Trovata incorporates automated controls and security features, ensuring adherence to regulations and mitigating the risk of data breaches.
  • Strategic Insights: Data analytics capabilities within a platform like Trovata provides valuable insights into cash flow trends, liquidity positions, and forecasting accuracy. Trovata offers advanced search capabilities and more robust data that allow treasurers to gain deeper insights into financial data. This empowers you to make data-driven decisions regarding cash flow optimization, investment strategies, and risk management.
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These benefits translate into tangible improvements for your organization. By implementing Treasury tech, you can expect:

  • Reduced Costs: Automation can significantly lower operational expenses associated with manual processes. Automating repetitive tasks reduces the need for manual labor, leading to significant cost savings. Additionally, improved efficiency can streamline workflows and minimize errors, further reducing operational costs.
  • Improved Cash Flow Management: Enhanced visibility into cash positions allows for better forecasting and optimization. With real-time data and insights into cash flow, you’ll be able to make more informed decisions regarding investments, funding strategies, and working capital management.
  • Stronger Risk Management: With enhanced visibility and forecasting you’ll be able to take a more proactive approach to risk mitigation, ensuring financial stability. 
  • Time Savings: Many of our clients save approximately 10 hours a week on reporting and forecasting with Trovata. Treasurers spend less time wrangling data because bank data is already normalized in our intuitive dashboard. Furthermore, machine learning automatically updates reports and forecasts as data updates in real-time. That means you can spend more time on analyzing reports and forecasts to glean strategic insights that add value to your organization. 
implementing a new treasury system

Addressing Leadership Concerns

While the benefits are clear, leadership may have concerns regarding the implementation of a new platform. Here’s how to address these potential roadblocks:

  • Cost: Frame the investment as a cost-saving measure. Highlight the potential for reduced operational expenses and improved financial performance. Focus on the long-term return on investment (ROI) of a modern solution. While there will be an initial investment, emphasize the potential for significant cost savings through improved efficiency, reduced errors, and optimized cash flow management.
  • Security: Emphasize the robust security features offered by leading Treasury tech solutions. Data security is a paramount concern for any organization. Research Treasury tech vendors that prioritize data security and offer robust features such as encryption, access controls, and intrusion detection systems.
    Resources for Implementation: Develop a well-defined implementation plan that minimizes disruption to existing workflows. Change management is crucial for successful implementation. Develop a clear plan that outlines the implementation process, training procedures, and communication strategies. This will minimize disruption to existing workflows and ensure a smooth transition for the treasury team.
  • Onboarding: Address employee concerns by providing comprehensive training and support throughout the transition. A successful implementation requires buy-in from the entire treasury team. Develop comprehensive training programs that equip employees with the skills and knowledge necessary to utilize the new technology effectively. Provide ongoing support throughout the transition to address any questions or concerns that may arise.
  • Managing Bank Connectivity: Connecting with banks, integrating your financial systems, and managing transactions and data is a complicated, time-consuming process. A treasury tech provider like Trovata manages your bank connections, onboarding, and maintenance for you. This saves you valuable time so you can focus on what’s important, like optimizing cash flow for your organization.
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5 Key Points to Build a Strong Case for Implementing New Treasury Tech

To secure leadership buy-in, present a compelling case that addresses both the strategic benefits and practical considerations. Here’s a roadmap to guide you:

1. Identify Pain Points: Start by conducting an internal assessment to identify the specific challenges hindering your treasury department. This could include inefficiencies with manual processes, lack of visibility into cash flow, or limitations with forecasting. Gather data to quantify the impact of these pain points. This could involve metrics such as the time spent on manual reconciliations, the number of errors identified during the closing process, or how far out you’re able to forecast for.

2. Quantify the Impact: Don’t rely solely on qualitative arguments. Research industry benchmarks and quantify the potential impact of a modern treasury platform. This could involve estimates of cost savings, improved forecasting accuracy, or reduced risk exposure. Use industry reports, case studies, and vendor data to support your claims. Quantify the potential benefits in terms of real numbers. This will make your case more persuasive to leadership.

3. Benchmark Against Competitors: Demonstrate how a modern solution can help your organization keep pace with industry trends. Showcase how similar companies are leveraging technology to gain a competitive advantage. Research how your competitors are utilizing modern treasury tech to optimize their financial operations. Highlight how implementing similar solutions can help your organization stay ahead of the curve.

4. Develop an Implementation Plan: Outline a clear and well-defined implementation plan. This should include timelines, resource allocation, change management strategies, and training programs. A well-defined implementation plan is crucial for a smooth transition. Outline the key milestones, resource allocation strategies, and communication protocols. Develop a comprehensive change management plan that addresses employee concerns and ensures user adoption.

5. Showcase Vendor Solutions: Research leading Treasury tech vendors and highlight solutions that address your specific needs. Prepare demos and presentations that showcase the capabilities and user-friendliness of the proposed technology. Schedule demos with a vendor and showcase the functionalities that directly address your identified pain points.

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Trovata: The Modern Solution to Gain Leadership Buy In

While a well-presented case is key to securing leadership buy-in for implementing a new platform, choosing the right solution is equally important. Trovata’s cloud-native treasury platform is the ideal choice for gaining leadership approval. Trovata offers a unique combination of features designed to address the specific concerns raised earlier.

  • Time Savings: Trovata’s focus on automation and streamlined workflows minimizes operational expenses, delivering a strong ROI.
  • Quick and Easy Implementation: With Trovata, you can get connected with your banks in weeks, not months. The best part? No IT support required. 
  • Managed Bank Connectivity: Once connected, Trovata proactively maintains all your bank connections. We monitor for any changes or disruptions and address them swiftly, ensuring an uninterrupted flow of financial data.
  • Robust Security: Trovata is SOC-1 and SOC-2 certified, which means that we maintain a high level of information security and are a trusted solution for managing financial data. 
  • Seamless Integration: Trovata’s APIs allow for seamless integration with external platforms. Integrate with your ERP to streamline the flow of bank data. Additionally, Trovata integrates with Morgan Money’s trading platform allowing you to manage investments directly in the platform. 
  • User-Friendly Interface: Trovata’s intuitive design empowers teams to adapt quickly, minimizing the need for extensive training and change management resources.

By implementing Trovata, you can address leadership concerns and empower your treasury team to unlock its full potential. Schedule a demo today to see how our innovative platform can transform your financial operations!

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