Treasury Processes
For a very long time the treasuries and financial institutions have put much attention on STP (Straight-Through-Processing). The STP has been focused on treasury’s internal integration and peer-to-peer connections to its counterparties. This limited view of STP is coming to an end. It has opened the way to a new trend of business development using technology as an enabler of improved and faster analytics, reporting and communication. Business Intelligence is getting on the agenda integrating information from all over the enterprise and from external sources.
The next STP trend for corporate treasuries is instead integrating treasury in the overall system infrastructure and developing the company’s business model. From treasury integration to integration of treasury in other words. The last few years have meant that treasury has become much more a part of the whole enterprise and taking on a cross-functional role. We have talked about treasury as driving the financial supply chain.
The financial institutions many times still have a silo based and fragmented process environment providing ample opportunities for streamlining. Maybe the institutions can learn from the corporates legacy on lean production? The corporate legacy of seamless integration of front-, middle- and back-office is possible to achieve also in financial institutions despite the higher level of complexity. The need for real-time business and market intelligence requires common data repositories and processes.
Process development is based on the strategy and vision of the company and its value drivers. We start from the competitive advantage for our clients and consider the business as a whole and its dynamics. We analyze valid data, perform detailed analyses, add an external perspective, and define the root causes. We base our recommendations on best practice and adopt it to the clients’ conditions. We add a dual understanding of the challenges and opportunities from both the buy and the sell side.
Areas of focus:
- defining value drivers
- process design & re-engineering
- consolidations & spin-offs
- technical infrastructure
- risk management procedures
- cash management procedures
- working capital management
- control & compliance
- implementation of KPI
- business intelligence
- market intelligence
NFS has developed the
Treasury Excellence® framework to guide our clients in the design and implementation of new working principles and value drivers.