Modernizing Treasury: The Hidden Costs of Sticking with Legacy Tools
This article is written by Treasury4 Legacy Treasury Tools get the job done … for the most part. What does it take to get there and what are you missing out on? Is there enough value in modern tools to motivate early adoption? The Long Road of Legacy Technology Legacy treasury tools are built to be flexible, but that flexibility comes at a cost. Setting up a new treasury management system (TMS) involves a long road of blueprinting, designing, gathering requirements, and implementation. The flexibility offered by most legacy systems is powered by blood, sweat, some tears, and often comes at a significant cost. This process also takes numerous months or even years to complete, depending on the scope. For far too long, this has been the norm. The Cost of Implementing a Treasury Management System There are two primary costs typically associated with setting up a TMS: These costs are critical. With the length of these implementations, estimates are rarely fixed bids and often run long and go over budget. Asking for and justifying the incremental cost is always a challenge. This happens because legacy TMS providers have various departments and teams with differing motivations. Their sales teams are motivated to sell the product and often get compensated on the recurring license, while the implementation team is measured by billable hours and utilization. These motivations usually only align when the implementation team has an existing backlog, which is rarely the case. Beyond the costs, implementing a TMS results in a significant toll on the internal treasury team. Doing both their daily work and project work often leads to burnout and multi-phase projects being halted due to the stress or cost of the project. This, combined with the reality that users only begin deriving value from the project after multiple phases of testing and completion, can cause a significant amount of stress. Doubling the amount of work for your treasury team can also lead to delays or cancellation of future phases — often for functionality that you have already licensed but can’t use without further implementations. A Refreshing Approach with Modern Treasury Tools With modern tools, this road is clearer. With banks, there is always some level of uncertainty, as their motivation often depends on who the client is. This deviation, however, is single digit weeks rather than multiple months as seen with legacy platforms. Key relationship banks are often the first to get connected and at the end of the day, these are the banks that bring the greatest value. This means that while the integrations are in progress, treasurers can begin using a modern treasury management system immediately and start getting value. Most users even find that using the new system alongside their legacy processes for the week or two of transition to be interesting and informative as they can clearly see the improvement. Reporting in these modern tools is flexible, allowing for real use of these modern platforms. This flexibility empowers users to embrace modern reporting tools, automating numerous manual processes that used to require periodic downloads and manual manipulation via spreadsheets even with a legacy treasury platform. Furthermore, these modern tools allow for custom reporting owned by treasury users without input from IT, so the business can action adjustments to standard reports and make necessary tweaks to truly embrace these systems and maximize value. Modern treasury tools vary with what functions are live for customers. Often, FX, debt and investment offerings are provided later. Given that these new platforms are typically built to integrate, this information can be integrated from various sources, including ERP, accounting, or treasury systems to provide a complete picture of cash even when source data comes from various sources. Choosing to implement a modern TMS is not an easy decision for many who have dealt with manual processes and numerous spreadsheets to perform treasury operations, particularly those who have been burnt by aggressive timelines and missed milestones with other technologies. Embracing modern technology, growing with the provider as they build out their platform, and being a trailblazer is a leap of faith in many ways. When treasury teams take the leap, however, they can reap the following benefits: Also Read Join our Treasury Community Treasury Masterminds is a community of professionals working in treasury management or those interested in learning more about various topics related to treasury management, including cash management, foreign exchange management, and payments. To register and connect with Treasury professionals, click [HERE] or fill out the form below. Notice: JavaScript is required for this content.
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Treasury Table Amsterdam: Bridging AI, Technology and Treasury
From Treasury Masterminds Last week, on September 11, the Treasury Table Amsterdam gathered a select group of corporate treasurers for an evening of fine dining, great conversation, and meaningful exchange. Co-invited by Treasury Masterminds alongside hosts Gurjit Pannu, Christian Sobkowski, and Rodel van Rooijen from Palm, the table brought together leaders eager to explore one of the hottest topics in our field: Bridging AI, Technology and Treasury – Real-Life Use Cases. Unlike theory-heavy conferences, the Treasury Table thrives on intimacy and honesty. Over dinner, treasurers shared what’s actually working for them, where the real opportunities lie, and what challenges they’re solving with technology right now. Real-life use cases from the table The conversations quickly moved from hype to hands-on: Where (and how) to start – a mini project plan One of the biggest questions of the evening was: “Where should treasurers start with AI and tech projects?” Two practical answers stood out: Mini project plan for treasurers: Why it matters The key takeaway? Technology and AI aren’t abstract buzzwords anymore. They are practical tools treasurers are adopting to improve speed, accuracy, and decision-making. The consensus at the table was clear: those who embrace these innovations now will shape the future of treasury. Looking ahead The evening proved once again that treasurers learn best from each other—sharing real stories, successes, and lessons learned. At Treasury Masterminds, we’re proud to facilitate these conversations, helping the community stay ahead of change while keeping things practical and real. Until the next Treasury Table—cheers to the future of treasury, where data, connectivity, and AI work hand in hand. Also Read Join our Treasury Community Treasury Mastermind is a community of professionals working in treasury management or those interested in learning more about various topics related to treasury management, including cash management, foreign exchange management, and payments. To register and connect with Treasury professionals, click [HERE] or fill out the form below to get more information. Notice: JavaScript is required for this content.