There is “NO” Treasury Management Solution available in the market which addresses all the requirements of today’s new age corporate treasurer. Their demands go beyond the traditional cash and liquidity management; to perform risk management and hedging, managing complex derivative accounting, alongwith adhering to the evolving industry regulations.
A Treasury Management System is a waste of organizational resources unless it seamlessly integrates with the existing third party systems such as ERP systems already installed in the organization. This is one of the major hiccups for an organization to transition over to a TMS.
Next bottleneck is, Cost! All the established solution providers in this domain offer solutions which are highly priced and only affordable by companies with revenue value greater than $10 Billion USD. What about the rest of the organizations? They are either struggling with half-baked versions of TMS or managing it in-house with existing ERP systems or somehow surviving on the archaic management tools such as spreadsheets!
Another major concern within an organization is the transition, how much time it will take, what kind of training it would require, will our resources be enough to understand a tool of this complexity and so on! An ideal TMS should be easy to understand and implement. Though it should be capable of managing complex processes, yet it should be simple enough for the organization to adapt to it.
Adherence to compliances and industry regulations is a primary requirement for a corporate treasurer. Infact, most of the available solutions claim this, but it is important to understand that since the industry is evolving, the regulations and compliances evolve too. So regular updates to such regulatory adherence is important for a robust TMS. It is definite that treasury management systems available in the market today are highly inadequate to suffice the requirements of new age corporate treasurers. This leaves a huge gap in the industry for an integrated and holistic treasury management system.