Choosing the Right Treasury Management System

Treasury functions are becoming increasingly more critical to managing liquidity, improving operational efficiency, and navigating a complex regulatory landscape – and that makes selecting a treasury management system (TMS) one of the most important decisions a bank can make.

The decision involves input from multiple internal stakeholders across various departments, including IT, finance, operations, and customer service. As you approach the final stage in the process of choosing a treasury management vendor, internal debates are sure to arise.

Use the following information as a guide to help you anticipate the kinds of questions your teams are likely to raise – and the ones they may overlook – in the key areas of integration, conversion, adoption, training, and rollout. Having clarity about these topics can help you make a more informed decision and ensure a smoother implementation process on your journey to choosing a treasury management solution that aligns with your bank’s operational needs and long-term strategic goals.

integration: ensuring seamless operations

One of the first questions you should ask is whether the TMS you’re considering integrates effectively with your bank’s existing systems.

A treasury management system that integrates effortlessly with existing financial platforms, banks, and other data sources helps enhance visibility into cash flows, improves forecasting accuracy, and strengthens risk management strategies. It’s so important, in fact, that in Deloitte’s 2024 Global Corporate Treasury Survey, 49% of respondents said that creating scalable treasury systems is essential for their organizations’ growth.

Here’s What to Ask:

• Does the TMS seamlessly integrate with other critical functions like accounting, A/P, and A/R?
• Will the TMS integrate with our existing banking networks, remote deposit capture (RDC) systems, and external data sources?
• What are the integration capabilities for mobile treasury management (TM Mobile), particularly for features like RDC?

These questions are essential for ensuring that the treasury management system won’t operate in isolation but rather as part of a cohesive ecosystem. If integration isn’t thoroughly vetted, your bank could face operational silos that hinder efficiency.

conversion: mitigating disruptions and managing data migration

A poorly executed conversion process can lead to significant disruptions in service, creating frustration for both employees and customers. Stakeholders often ask about the technical details of migration and data conversion but may overlook the importance of developing a gradual, structured approach to conversion.

Start your phased conversion by manually moving a select group of clients to the new treasury management system first. This allows you to build experience with the system, troubleshoot any issues, and establish internal procedures before executing a fullscale conversion.

Next, assess what data can be automatically converted – and what data can’t. For example, some vendors may offer scripts or conversion tools that help migrate data and entitlements from your existing commercial online banking solution. Other vendors may not have that capability.

Either way, your vendor should provide clear documentation on what information must be manually moved and advise you on the most efficient way to handle these cases.

Here’s What to Ask:

• What is the vendor’s recommended approach to conversion, and how can we tailor it to minimize disruptions for our customers?
• Does the vendor offer ongoing support throughout the conversion process?

adoption: driving customer engagement

Even after a successful integration and conversion, the real value of a treasury management system can only be realized if customers adopt and use it.

A vendor that offers a robust resource center can provide invaluable support for driving customer adoption, ensuring that customers are aware of the system’s benefits and know how to use it effectively. This could include marketing templates, educational guides, and tutorials that simplify the transition for users.

Here’s What to Ask:

• Does the vendor provide user guides tailored to different audiences, such as our internal teams and customerfacing channels?
• Is there a dedicated customer service team focused on treasury management issues that can offer quicker resolutions and reduce the burden on our in-house staff?

training: equipping your team for success

A smooth rollout depends largely on how well your staff is trained to use the new system. An intuitive, user-friendly platform will help, but comprehensive training is necessary to ensure that your team can confidently operate the system and assist customers as needed.

Therefore, a vendor’s commitment to providing training and service should be a key consideration.

Here’s What to Ask:

• What type of training does the vendor offer to our internal teams, and how extensive is it?
• Are there support materials targeted to different users, such as front-office staff and back-office teams?

rollout: strategizing for success

Rolling out a new treasury management system can be a complex process that impacts both your internal teams and your customers. A well-thought-out rollout plan will minimize disruptions and ensure a seamless transition. IT support, communication plans, and ongoing vendor assistance are all vital elements that should be in place before the TMS goes live.

Here’s What to Ask:

• Does the vendor offer comprehensive IT support throughout the rollout phase? This can help your team troubleshoot any technical issues quickly and avoid downtime.
• Is there a detailed communication plan we can provide to customers outlining the benefits of the new TMS and addressing any potential concerns or questions?
• How will the vendor support ongoing maintenance and troubleshooting post-rollout?

the value of treasury management consulting services

Choosing the right treasury management system is about more than just software. It’s about finding a long-term collaborator – one who understands your bank’s goals and is committed to providing the support needed throughout the integration, conversion, adoption, training, and rollout phases.

Treasury management consulting services can add immense value during the decision-making process. You’ll get expert insights and resources to help you anticipate and navigate potential challenges. With the right guidance, you can confidently select a treasury management system that meets your bank’s operational needs and supports your growth, now and well into the future.