Custom Treasury Management System: Features, Integrations, Financial Outcomes
In financial software development since 2007, ScienceSoft creates state-of-the-art treasury solutions that help companies boost the efficiency of their cash, debt, investment, and financial risk management workflows.
Treasury Management System in a Nutshell
A treasury management software automates corporate treasury activities, including cash, investment, debt, trade finance, and financial risk management. Custom treasury software can provide advanced financial analytics to ensure high accuracy of treasury decisions, maximize profitability and minimize risks.
A treasury solution integrates with ERP, accounting software, bank accounts, trading platforms, and more.
The implementation of a custom treasury management system of average complexity takes 6–12 months, while building a high-end solution may require a minimum of one year. Average costs for building a custom treasury system vary from $400K to $1M+, depending on the solution complexity.
ROI for the custom treasury management system may reach up to 280%. An average payback period for such a solution is about 5 months.
Treasury Management System: Key Features
Below, ScienceSoft shares a sample feature set that forms the core of a treasury management solution. However, each real-life use case for such software is unique, so functionality should be elaborated on and tailored to the business specifics accordingly.
Essential Integrations for the Treasury Management System
To enhance visibility of treasury activities, streamline reconciliation and ensure accurate and timely financial transactions recording and reporting, ScienceSoft recommends setting up the following integrations:
ERP/accounting software
- Importing real-time data on financial transactions across various treasury activities from treasury software to ERP/accounting software for automated creation of entries in the general ledger, accounts payable and accounts receivable ledgers.
- Uploading general ledger records data within a specified period from ERP/accounting software to treasury software for faster reconciliation.
Bank accounts
- Importing real-time data on financial transactions across multiple domestic and international bank accounts to treasury software for centralized transaction tracking.
- Uploading regular bank reports to treasury software for streamlined reconciliation.
- Uploading trade finance documentation (e.g., letters of credit, bank guarantees) to treasury software.
Trading platform
- Uploading confirmations and settlements of FX trade, investment, and hedging transactions from treasury software to the trading platform.
- Importing real-time data on the open positions from a trading platform to the treasury solution to calculate gains/losses and risk exposures for various investment portfolios and asset classes.
Financial data marketplace
Importing up-to-date and projected asset prices, FX/interest/credit rates, risk exposures from market data platforms to treasury software for investment portfolio valuation and benchmarking, fair value calculation, building data-driven hedging strategies.
Inventory management software
Importing data on current purchase and sales orders from inventory management software to the treasury system for accurate liquidity planning and assessing the need for trade finance activities.
Success Factors for the Treasury Management System
In ScienceSoft's projects, we always seek to cover the following important factors to maximize the value and cost-efficiency of treasury management software:
A high degree of automation
To automate such tasks as, e.g., logging into connected bank accounts and market data platforms, retrieving and reconciliating of relevant financial data, generating financial reports, etc.
AI-powered financial insights
To provide accurate forecasts on future operating cash flow, gains and losses under investing and financing activities for improved liquidity planning, as well as intelligent recommendations on optimal payment, investment, financing, hedging activities.
Embedded BI tool
To enable advanced analysis and reporting on financial data across various treasury activities.
Well-documented APIs
To enable integration between the treasury management solution and the ERP/accounting system, multiple bank accounts, trading platforms, etc.
How to Develop Treasury Software
Treasury software development is a complex process that involves business analysis, solution planning and design, coding, testing, integration, and extensive user training. Implementation of treasury systems with ScienceSoft covers the following important steps:
1
Business needs analysis and eliciting requirements for the treasury system.
2
Introducing the optimal feature set, architecture design, and tech stack.
3
Project planning: scope, deliverables, duration, budget, team composition, etc.
4
Custom treasury software development.
5
Quality assurance in parallel with coding.
6
Financial data migration (from spreadsheets or a previously used treasury tool).
7
Integration with other corporate solutions and relevant third-party systems.
8
User training.
9
After-launch support and evolution of the treasury solution (optional).
Treasury System Implementation Costs and ROI
Based on ScienceSoft’s experience, average costs for building a custom treasury management system vary between $400K and $1M, depending on the solution complexity.
Want to understand the cost of your treasury solution?
Benefits of a treasury management system
ROI for the custom treasury system may reach up to 280%. An average payback period for such a solution is around 5 months.
Off-the-Shelf Treasury Software ScienceSoft Recommends
SAP Treasury and Risk Management
Key strengths
- Straight-through processing of various financial transactions, including money market, FX, derivatives, securities, and debts.
- Native integrations with SAP S/4HANA Cloud ERP, SAP Data Intelligence, SAP Cash Application.
- Self-paced user training.
Features
- Automated import of relevant financial market data from external sources.
- Customizable investment categories and investment portfolio hierarchy.
- Credit risk control based on preset limits.
- Automated calculation of key risk and return metrics, including exposure, future values, sensitivities, and value at risk.
- Automated evaluation of hedging strategies based on simulated transactions and market data scenarios.
Best for
Managing comprehensive investment, funding, credit, hedging activities for large enterprises.
Active Liquidity Platform by Kyriba
Key strengths
- More than 40,000 pre-built bank payment scenarios for more than 1,000 banks.
- Embedded BI providing advanced financial data visualization and payment analytics.
- ML-powered real-time fraud detection based on the pre-set detection rules.
Features
- In-house banking management.
- Centralized eBAM with signatory authorizing and tracking, audit trails, FBAR reporting, and more.
- Automated bank reconciliation.
- Cash flow and FX exposure forecasting.
- Hedging recommendations based on the approved cash flow forecasts.
Best for
Managing liquidity risks, payments, trade finance and investments for midsize businesses.
Reval by ION
Key strengths
- Configurable OOTB bank connectivity service.
- Integrated market data feeds providing accurate derivative valuations.
- Regulatory compliance covering requirements for ASC 815 (FAS 133), ASC 820 (FAS 157), ASC 820-10 (FAS 161), IAS 39, IFRS 7, IFRS 13, IFRS 9, Dodd-Frank, SEPA, FBAR, and more.
Features
- Automated cash positioning and bank reconciliation.
- Support of the centralized payment workflow via cash pooling, payment factory, multilateral netting, intercompany clearing.
- Automated risk exposure calculation for all major asset classes, including FX, interest rates, structured rates, energy, agriculture, metal.
- Financial risk modeling and analyzing based on testing various financial performance scenarios.
- In-built hedge accounting tools for hedge designation, prospective and retrospective effectiveness tests.
- Alerts on suspicious financial data manipulations and fraud attempts.
Best for
Managing cash, liquidity, investment risks and hedge accounting for midsize to large organizations.
When to Opt for a Custom Treasury Management System
ScienceSoft recommends choosing custom development in the following cases:
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You need a treasury solution providing custom calculations of financial risk exposures and fair value or specific features, e.g., intelligent confirmation and settlement workflows for financial deals. |
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You need treasury software providing compliance with specific local regulations in the regions your company operates. |
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You need treasury software with a flexible modular architecture that allows easy functionality extension as your business grows or transforms. |
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You want to avoid costly and time-consuming integration of the treasury management system with your business-critical software, including legacy software. |
Treasury System Implementation with ScienceSoft
With 16 years of experience in building financial software and practical knowledge of 30+ industries, ScienceSoft offers full-cycle software development services to deliver effective treasury solutions.
Treasury system consulting
- Analysis of treasury management digitalization needs.
- Audit of the existing treasury management processes, tools and their integration points (if any).
- Suggesting optimal treasury system features, architecture, tech stack.
- Preparing a plan of integrations with the required systems.
- Implementation project cost & time estimates, expected ROI calculation.
Treasury system development
- Treasury management needs analysis.
- Treasury solution conceptualization.
- Architecture design.
- Treasury system development.
- Integrating the solution with the necessary systems.
- Quality assurance.
- User training.
- Continuous support and evolution (if required).
About ScienceSoft
ScienceSoft is a global IT consulting and software development company headquartered in McKinney, Texas. We help businesses build effective treasury systems tailored to their cash, debt, investment, and risk management needs. Being ISO 9001 and ISO 27001 certified, we apply a mature quality management system and guarantee that cooperation does not pose any risks to our customers’ data security. If you are interested in developing a reliable treasury management system, feel free to turn to ScienceSoft’s team.