Rapid market growth doesn’t just provide a lot of opportunities for corporations to expand; it also poses a series of challenges to overcome. Rapid expansion often leads to bigger risks, extra strain on the company’s resources, and added financial weight. These challenges have the potential to impact the company’s performance in its home market.
At the heart of a company’s rapid growth lies the need for better treasury and financial performance. Between varied banking regulations and more accounts to manage, failure to set up effective global treasury management can seriously jeopardise the company’s ability to remain competitive; or even efficiently operational.
Treasury Management 2.0
There are answers to the problem of rapid market growth. The financial industry and solutions providers are working side by side in making global treasury management more accessible to corporations. One of the ways to do this is by offering treasury management tools capable of converging multiple accounts in different banking systems through host-to-host and SWIFT.
Convergence is seen as the first strategy to implement. Corporations now opt for early adoption of a unified global treasury management system to further strengthen their core capabilities, especially from a financial standpoint.
Another important point about the new generation of treasury management solutions is their ability to manage multiple banking relationships at a deeper level. Combined with treasury analytics, systems such as BankSense can offer so much more than basic treasury management features.
Automation is a big part of modern systems. Instead of consolidating accounts and updating balances manually, the system handles everything automatically. Instead of waiting for data from multiple sources to be compiled, treasury managers can access comprehensive information from one user interface. Even the creation of reports and analysis of the company’s financial position can be automated.
Data and Analytics
Analytics enable a deeper understanding of a company’s global financial operations. Instead of spending valuable time and resources analysing a vast amount of data manually – and reconciling multiple accounts as well as transactions and financial positions – treasury executives now have access to analysed data in visual form.
This may seem like a small change, but the ability to view statement data from multiple banks as well as a general view of the company’s finances boosts visibility to a new level. As a result, companies can plan better thanks to the more comprehensive – and richer – information in hand. Mistakes can be avoided, and sufficient risk management measures can now be put in place earlier.
The use of data and analytics also enables the visualisation of investment decisions. Access to the company’s balances and positions in visual form opens the door to smarter investment decisions. In a market as competitive as today, this is a valuable advantage.
A clear roadmap is the last piece of the puzzle. Without it, it is difficult for businesses to make cool and calculated decisions, especially when competing in a volatile market. Clear long-term strategies can only be formulated when decision makers have a clear, unobstructed view of the company’s finances.
Highly Personalised Treasury Analytics
There isn’t a single treasury management approach that works for every company, particularly when you consider the different market challenges and obstacles. As a way to fully optimise treasury management, software for treasury analytics is also designed to be immensely flexible.
Treasury risk management, reporting and real-time updates, and different analytical approaches can be added (or removed) according to the company’s specific needs. The same can be said for the scale of the system; a scalable treasury management will remain effective and efficient for longer. The approach even gives companies added benefits, one of which is the ability to better invest the company’s resources.
In the case of AccessPay’s BankSense, for example, smarter investment decisions can be made through the availability of more data in real-time. Using the combination of a map, charts, and other visualisation tools, BankSense is able to provide details based on metrics like region, currency, and more. A faster investment decision-making cycle leads to a more competitive business.
In the end, that is the key: competitiveness. There is no room for traditional treasury management – which often involves doing things manually – in today’s modern world. A comprehensive and automated global cash management system enables businesses to compete at a higher level than before.