This is where Unified Treasury Management, also known as Treasury Management System (TMS) or Treasury Management Software comes in. TMS is a comprehensive financial solution designed to streamline and optimize various Treasury and cash management operations. It integrates various financial and operational activities, including cash management, payments, liquidity management, risk mitigation, and financial reporting. This provides a centralized platform for effective financial control and decision-making.

With unified Treasury Management, treasury managers can streamline their day-to-day work and benefit the business in a variety of ways:

Visibility: A holistic view of cash positions across the entire business, all currencies and financial institutions.

Control: Enhanced control over cash flow and spending.

Confidence: The ability to rely on accurate data for insight, forecasting and planning.

Stability: Protection of assets in the face of volatile markets and the capability to manage unexpected financial situations, ensuring business continuity.

Flexibility: The capacity to plan beyond the short term and adapt to market shifts.

Speed: The ability to make quick decisions to seize market opportunities.

The Unified Treasury Management system is not just a tool, it brings tangible results. According to a recent survey of finance professionals conducted by the Global Treasury Benchmarking group:

95% of respondents reported that unified treasury management improved their organization's cash visibility.

90% found that it led to better decision-making in volatile markets.

85% credited unified treasury management with reducing banking-related costs.

Complete visibility of cash positions is the bedrock of successful treasury management. Multiple and outdated systems prevent many global businesses from getting a real-time picture of cash positions and spending data across the entire organization. Due to a delayed identification of available cash, many opportunities are lost, and in the worst-case scenario, business continuity may be at risk.

A perfect example of this was the beginning of the pandemic. Cross-border businesses were concerned with ensuring smooth operations despite disruptions, lockdowns and staff shortages; however, lack of global visibility into cash across all entities prevented them from timely distribution of funds to where they were most needed.

With a centralized dashboard you also gain real-time visibility - the ability to see the status of your cash positions across all your businesses and funds, including cash outflows and inflows, at any given moment. One of the critical advantages is the ability to swiftly and seamlessly transfer funds between your subsidiaries or capitalize on favourable FX rates or early payment discounts.

A Treasury Manager must navigate the turbulent waters of modern economic markets. Interest rates are rising, the foreign exchange market is unstable, inflation is on the rise, and political conflicts further fuel the situation. Additionally, there is a growing distrust of fintechs following recent failures of Volt Bank and SVB, and a reluctance to deal with traditional banks. These factors combine to present treasury managers with the challenging task of ensuring long-term and short-term business health. Unified Treasury makes this easier.

Long-term financial health of the business depends on diversifying liquidity risks. This strategy acts as a safety net, providing stability and resilience in the face of potential financial disruptions. With access to multiple financial institutions and currencies in one place, a TMS streamlines the process of spreading financial assets across different currencies and accounts. With that you reduce your company’s dependence on a single source of liquidity, thus mitigating the risk of sudden cash shortages.

Furthermore, a Unified TMS allows you to maintain local bank accounts and seamlessly transfer funds between your accounts at a favourable rate, minimizing foreign currency exposure. You will also find that most Treasury Management Systems have built-in notifications and controls to help you mitigate risks and prevent fraud.

Choosing the right unified treasury management provider is crucial to success. Consider the following factors when evaluating treasury management solutions:

Cash management: Look for a system that provides real-time visibility into cash positions across different banks, currencies, and all your entities. Look for features such as forecasting and liquidity management across all of your banks

Diversification: Ensure the provider offers a network of financial institutions, support for multiple currencies, and an environment where your funds are secure with the underlying operator.

Banking capabilities: Ideally the Unified Treasury provider would also equip you with integrated baking. This would mean you’d be able to easily bank and open new accounts as you grow from the same place, saving you time managing multiple banking relationships and reducing banking fees.

Scalability and Global Reach: Consider the scalability of the solution, its compatibility with cloud adoption, and its ability to provide robust customer service for business continuity.

Reporting Capabilities: Assess the reporting capabilities, including customization and automation when aggregating data from multiple sources.

Integrations and connectivity: Make sure the solution can seamlessly integrate with your existing banking relationships, workflows, and accounting tools.

Accounts Receivable (AR) and Accounts Payable (AP) Capabilities: Opt for a combined approach that provides a holistic view of cashflow.