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Guide to Treasury Technology GUIDE TO TREASURY TECHNOLOGY WWCP GUIDE TO TREASURY TECHNOLOGY WWCP © Association for Financial Professionals, ACT (Administration) Limited and WWCP Limited (except articles by Bloomberg LP), 2016 ACT (Administration) Association for Financial WWCP Limited Limited Professionals No.1 Britten’s Court 68 King William Street, 4520 East – West Highway Clifton Reynes London Suite 750 Olney EC4N 7DZ BETHESDA MK46 5LG UK MD 20814 UK USA ISBN 978 1 899518 47 0 book 978 1 899518 48 7 CD ROM All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the Association for Financial Professionals, ACT (Administration) Limited, and WWCP Limited. © For articles: Bloomberg LP, 2016 All rights reserved. No part of the articles may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of Bloomberg LP. Design and page layout by MJP, Ashbourne, Derbyshire, UK Printed in the UK DISCLAIMER: The material contained in this publication is not intended to be advice on any particular matter. No subscriber or other reader should act on the basis of any matter contained in this publication without considering appropriate professional advice. The publishers, authors, third party information providers, editors, and sponsor expressly disclaim all and any liability to any person, whether a purchaser of this publication or not, in respect of anything and of the consequences of anything done or omitted to be done by any such person in reliance upon the contents of this publication. The information and views set out in this publication are those of the author(s) and do not necessarily reflect the official opinion, views or policy of the Association for Financial Professionals, ACT (Administration) Limited and WWCP Limited. Contents Foreword v Acknowledgements vii Introduction 1 Chapter One: The Development of Treasury Technology 4 Article: The Evolution of the Corporate Treasurer 10 Chapter Two: Drivers for Reviewing Technology 13 Case study: Using Treasury Technology to Support the Wider Business 15 Chapter Three: What is the Purpose of Technology? 21 Case study: Using Technology to Improve Process Quality 29 Chapter Four: Treasury Technology Solutions 34 Article: Treasury Departments Can’t Be Strategic When They’re Stuck in Spreadsheets 55 Chapter Five: Evaluation 57 Case study: Planning Pays Dividends 62 Chapter Six: Selection 80 Case study: Extending Treasury Functionality via SaaS 84 Chapter Seven: Implementation 99 Article: Winning Support for New Technology 108 Case study: Set Aside Enough Time to Prepare the System 112 Chapter Eight: Maintaining the Solution over Time 116 Case study: Maintaining Efficiency in an Implemented System 120 Chapter Nine: Looking to the Future 123 Appendix: Developing a Request for Proposal 129 ACT • AFP Guide to Treasury Technology iii Contents Country Reports 133 Argentina 134 Australia 136 Belgium 138 Brazil 140 Canada 142 Chile 144 China 146 Czech Republic 148 Denmark 150 Finland 152 France 154 Germany 156 Hong Kong 158 India 160 Ireland 162 Italy 164 Japan 166 Luxembourg 168 Mexico 170 The Netherlands 172 Norway 174 Poland 176 Russia 178 Saudi Arabia 180 Singapore 182 South Korea 184 Spain 186 Sweden 188 Switzerland 190 Taiwan 192 Turkey 194 United Arab Emirates 196 United Kingdom 198 USA 200 Venezuela 202 A Glossary of Treasury Technology Terminology 207 About Bloomberg Treasury & Risk Management 218 About 220 Re-order form 224 iv ACT • AFP Guide to Treasury Technology Foreword Welcome to The ACT & AFP Guide to Treasury Technology sponsored by Bloomberg. Since the first AFP edition in 2011, managing treasury has become more complex in the face of global change and an increasingly uncertain market. Treasury practitioners face magnified challenges, as they try to gain more visibility and exercise more control over group activities. Treasury technology helps them to operate more efficiently and also to demonstrate compliance with ever more stringent regulation. In these more complex environments, one of the biggest challenges is to automate processes, for efficiency but also in response to the requirements of financial regulation. This helps treasury departments demonstrate control and shows they are meeting internal corporate and external rules and regulations with full security and all controls in place. At the same time, it helps to avoid treasury spending too much time on daily activity, freeing time to take on a more strategic role adding value for their companies. Technology can help treasury play a more strategic role, automate routines and be compliant within the growing regulatory environment, all while delivering a framework within which the agreed treasury policies and procedures of the organization are embodied This is the first joint AFP/ACT publication and it reflects the volume of technical enquiries we receive from our members. Treasury and finance professionals recognize that technology offers the opportunity to manage treasury more efficiently and effectively; and they are concerned about how to identify the most appropriate solutions for their organizations. This Guide is focused squarely on helping practitioners navigate this process to identify a cost-efficient solution. We hope this is the first of many joint initiatives between our two Associations. We are pleased a new entrant into the TMS market has sponsored this Treasury Technology guide. ACT • AFP Guide to Treasury Technology v Foreword Bloomberg is very excited to sponsor this guide for treasury and finance professionals. We believe a well-informed market place facilitates sound decision-making and empowers treasury departments to be most efficient in the specification, selection and implementation process of treasury technology. We hope treasury and financial professionals are able to make good use of this reference book as they select the optimal technology for their companies. Bruce Manson James A. Kaitz Colin Tyler Global Head President & CEO Chief Executive Corporate Treasury Association for Financial The Association of Product Professionals Corporate Treasurers Bloomberg LP vi ACT • AFP Guide to Treasury Technology Acknowledgements I would like to thank the many people who helped me in writing this book. Andrew Kennedy and Ardem Tutunjian, Capstone Infrastructure, and Royston DaCosta, Wolseley Group, all agreed to share their informative experiences at their respective organizations. Information from other practitioners was provided on an anonymous basis. Ken Lillie, Lillie Associates, provided valuable insight drawn from his experience in the field of treasury technology. He commented on the main chapters of the text. Tom Hunt, Director of Treasury Services, the Association for Financial Professionals, and Peter Matza, formerly Engagement Director, and Steve Baseby, Assistant Director, Policy and Technical, both from the Association of Corporate Treasurers, provided much constructive and insightful advice, as well as invaluable comment on the main body of the text. A vital contribution has been made by the sponsors of the book, Bloomberg. The unstinting support, co-ordination and advice provided by Brandon Harris and his colleagues at Bloomberg has been a crucial part of the production process. On behalf of The ACT, The AFP and WWCP, I would like to extend our thanks to all of the above. Guy Voizey, editor, WWCP August 2016 ACT • AFP Guide to Treasury Technology vii Introduction One of the biggest challenges facing today’s treasurers is identifying and implementing the most appropriate technology solution to meet their organizations’ needs. As in many spheres, the range of technology available to corporate treasurers has become increasingly sophisticated in recent years. Levels of functionality that were unimaginable a few years ago are now standard. As a result, understanding the most appropriate options for a treasury has become significantly more difficult. The purpose of this book is to provide corporate treasurers, finance directors, cash managers and other treasury practitioners with an analysis of the full range of technology available to support their work. In this book, the term “treasurer” is used to refer generally to the person responsible for that task – recognizing that people with a similar role can have different job titles, depending on their employer. The analysis has been designed to support treasury practitioners through the process of evaluating their companies’ existing use of treasury technology and to identify solutions to suit their particular requirements. It does not prescribe a single “best” solution: instead the book provides a framework to support best practice in decision-making. The book has been written to provide support to treasury practitioners to make a decision both from the perspective of someone who has never had this responsibility before and as an aide to someone who has greater experience. It is also designed to help those with oversight responsibility for treasury to understand the actual and potential role of technology in the department and in the wider business. Structure of the book The book is organized into two main parts: the first includes the nine main analytical chapters of the book; and the second consists of a series of reference materials to support treasurers
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