Treasury technology www.mobilemoviesite.com

1. TREASURY TECHNOLOGY

2. Common Treasury Technology
• Cash Forecasting
• Collection of Bank Balances & transactions
data
• Automated reconciliations
• Collection & Disbursement of Cash
• Sale and Purchase of Securities
• Derivatives including analysis of hedge
effectiveness

3. Treasury Technology
• Management Reporting
– Daily, weekly, monthly, quarterly, annual
• Portfolio Analysis & Marking to market
• Trade Finance Documentation
• Straight-through processing from transaction
initiation to settlement

4. Time sensitive treasury activities
• Cash Management, reconciliation, payments,
trading, reporting to support these activities
• These activities tend to be reactionary and
arise from
– Market movements in case of trading
– Cash management
– Cut-off time in case of payments
– reconciliations

5. Time sensitive treasury activities
• Treasury technology is not a substitute for
proactive risk management
• In some cases technology may introduce new
sources of risk
• In most cases there are no flash bulbs or bells
to alert the user
• The best technology systems are useless
without adequate monitoring and supervision

6. Spread Sheets
• Most common technology tool today
• Popular because they enable the user to
create formulas
• Users conduct analysis rapidly without any
programming knowledge
• Used for cash forecasting, pricing, and
financial analysis
• Easy to use and flexible

7. Spread Sheets
• They have potential weaknesses
• Erroneous calculations may and have actually
resulted in significant losses
• Reliance on spreadsheets, combined with lack
of controls can create unexpected operational
exposure, resulting in an increase in risk
• Counterchecking of results of spreadsheet
against alternative pricing systems

8. Spread Sheets
• Spread sheets are often used for cash
forecasting
• When information is organized in a particular
format
• It can be inconvenient to re-arrange the
spreadsheet data to view the cash flow data
differently
• It can be time consuming
• It can introduce opportunities for errors

9. Reporting Software
• Reporting tools are used to access data from a
database
• Users can create new custom reports
database
• On each run, the report reads the latest data
from the database, which is updated at
regular intervals
• Reporting software allows users to access
these data in different ways

10. Data Services
• Reuters, Bloomberg, provide REAL TIME
information in the shape of prices, volume
• They also provide analytical tools and pricing
and technical analysis, charting services
• They also provide historical price and volume
data
• If real-time data is not necessary or not
available, then delayed data may be provided
– Intraday, or end-of-day

11. Pricing Models
• Simple/complex pricing models are also
supplied by vendors as part of tr. Software
• Models developed by vendors
• Licensed from other sources (3rd part)
• Can be used as add-ins in the reporting
software
• Also available as add-ins for spread-sheets

12. Banking Services
• E-services provided by FIs generally include
– Acct. Balance & transaction reporting
– Payment initiation, wire transfer, ACH initiation
– Viewing account balances, Inter Acct Transfers
– Monitoring incoming payments
– Initiating borrowing/investing transactions
– Initiating Forex transactions
– EDI which permits both data and payments to be
transmitted between EDI enabled organizations

13. Electronic Bill Presentment
• Permits companies to send bills and invoices
electronically and securely
• Receipt of the invoice is acknowledged
• Payment is made electronically

14. Treasury Workstations & Software
• Specialized Treasury Software
• Assists in managing many treasury tasks such
as cash forecasting and reporting
• Possibility of integration of pricing models
• Solutions based on institutions servers
• Subscription (web)based service solutions
• No new IT professionals/hardware/software
• Cost of WEB-based < cost of server-based soln

15. Benefits of new treasury system
• Efficient market access for pricing & liquidity
• Better CF forecasting; min. idle cash investing for
longer periods-better yields, borrowing for
shorter periods
• Portfolio analysis tools and reporting
• Better record keeping & audit trail
• Risk management tools and reporting
• Enforced controls for approvals, confirmation,
segregation of duties
• Compliance of regulatory framework;SECP,IFRS