Treasury and Cash Management services include the automation, settlement, and reconciliation of financial transactions. An operationally-efficient Treasury and Cash Management function responds to many of the current issues facing the financial managers of major corporations, including, importantly, enabling true end-to-end straight-through processing of payments between banks and their corporate customers.
Treasury services refer to bank solutions to assist corporate treasurers in managing liquidity, optimizing cash flow, monitoring risk, and forecasting.
Cash management refers to the set of bank solutions to assist corporate treasurers to accelerate collections, manage disbursements, make and redeem short term investments, and maintain connectivity with counterparties and networks.
Working Capital optimization is critical in today's financial climate. Uninterrupted, low latency movement of information about incoming and outgoing payments is the cornerstone of any liquidity management program.
Banks are the major providers of treasury services to corporations and are engaged in significant competition for greater shares of the fee income that ensues. From the bank standpoint, providing the most efficient and widest service offering is crucial in order to grow and maintain customer relationships.
Corporations manage multiple accounts and process large numbers of payments, creating significant complexities. Chief among these are granting and monitoring permission rights, consolidating and tracking multiple currencies across multiple time zones, and managing functionality across disparate internal systems. In all of these the cost of failure is high.
Treasury services value chain
Microsoft's focus for treasury services and cash management is to increase efficiency and improve integration between the bank and its corporate customers.
Address mission critical processes sensitive to automation
At the treasury desk
- Electronic payment authorization
- Relationship management with counterparties and customers
- Cash forecasting
At the trading desk
- Monitoring individual traders
- Valuation and risk monitoring
- Market data interface with outside feeds
At the risk and compliance desk
- Compliance with new Financial Accounting Standards
- Calculation of various metrics for analysis of siloed portfolios
- Compliance with regulations, such as AML
Treasury to bank integration
- Via SWIFT using FIN, MX or ISO20022
- Via EDI X12 and EDIFACT
- Using domestic or proprietary formats
