Moving to a Cloud-Based Treasury Management System: Key Advantages

Benefits of Moving to a Cloud TMS Solution

There are several benefits of moving towards a cloud-based Treasury solution for a corporate treasury department, including increased flexibility and scalability, delivered best practice treasury business processes, and more. Previously, we’ve highlighted the growing trend towards shifting from an on-premise treasury solution to a software-as-a-service (SaaS) treasury management system (TMS) in our July 2020 post “The Benefits of Moving towards a Cloud-Based Treasury Management Solution”.We gave brief introductions to some of the benefits and questions to consider before transitioning. Here we will dive a little deeper into some of the benefits organizations can see through transitioning to cloud-based TMS.  

Vendor Hosted Servers  

On-premise treasury solutions are installed locally on the organization’s own servers and computers, meaning that they are in complete control of the system. This may seem like a benefit, but in reality, it means that a dedicated and well-trained team is required for the system to maintain optimal efficiency. This in-house team is in charge of all troubleshooting and upgrades when they are released, which need to be installed manually and generally requires a lot of dedicated time and resources. The process is rarely painless and therefore tends to be pushed off over and over again, which leads to organizations running on outdated systems.   

A SaaS TMS completely removes these hiccups as the system is hosted on the vendor’s own servers. They work with the organization to convert all treasury processes into their TMS, which once completed, minimizes the organization’s involvement in troubleshooting and upgrading. The vendor is responsible for keeping them on the most up-to-date system that can be accessed through a web browser. A team will still need to be trained on how to use the system, but they no longer need to worry about how to upgrade it or whether or not their processes will be disrupted during maintenance. The vendor takes care of virtually everything on their end and is available for support typically 24/7.   

Flexibility & Scalability  

Organizations that currently utilize on-premise treasury technology have likely faced the harsh truth that they don’t offer much flexibility in what they can do within the system. They are often packaged deals that don’t match up with organizational demands quite right and don’t allow for customizations with the initial installation. They often have many robust customizations that can be added after, but they come with additional fees and long installation times. They also lack scalability for organizations that are rapidly growing and expanding their reach. Typically any organization that rapidly expands or reduces its size will require a complete redesign of its existing systems, which may disrupt daily workflow.   

Switching to a cloud TMS solution provides organizations with increased flexibility by allowing them to pay for what they use. After working through what processes are being utilized, the vendor will present a best practice solution that eliminates unnecessary configurations. Instead of paying for each individual application or upgrade, a TMS is offered through simplified regular licensing and support expenses, typically in one or two lump sums that can be paid annually or monthly.  

A cloud TMS solution also provides robust scalability to meet the demands of organizations, whether they are expanding or reducing their reach. For organizations that operate domestically but are seeking to expand internationally, vendors will work with them to configure the system to their new requirements.   

Mobile Capabilities  

The world has become heavily reliant on mobile technology, and organizations need to find ways to keep up with the trend. Currently, on-premise solutions have yet to adapt to this and require dedicated resources to work within the system, on-site. Some solutions offer the ability to work remotely via desktop, but there are often limits to this too, depending on the process.  

Cloud-based TMS solutions, however, are actively working towards utilizing mobile technology. Some even have applications built out already for testing and usage. Since the servers are hosted through the vendor, employees working within the system are able to access them from virtually anywhere. The future of treasury technology is leaning towards being able to manage processes with the click of a button through their phone, and cloud-based TMS solutions are leading the pack in this.   

Treasury Process Improvements  

Most organizations face the issue of having too many manual components within their processes. Managing these requires dedicated resources and time, and yet, they are still prone to human error. Switching to a cloud TMS solution will help streamline treasury processes and eliminate those errors through automation and optimization. Treasurers will also have increased transparency and visibility within their treasury processes, including cash management and deal management, that make reporting and data analysis readily available. They will have access to integrated tools for reporting that provide real-time cash visibility and improved cash forecasting.  

The benefits of a Cloud TMS are clear and worthwhile, but it’s important to note that before beginning the transition, organizations need to perform a thorough analysis of their treasury operations. Conducting a current state assessment with process maturity analysis will help answer some of these questions and provide insight into whether or not moving to the cloud is the right move right now and what the transition would look like.   

For more information on Cloud Treasury Management Systems and digital treasury transformation, check out our library of blog posts and webinar recordings from the Elire Treasury Experience.