Digitising a corporate treasury tender

13 December
Illustration of tiny businesspeople wandering around a digitalised desk with finance elements scattered around

The cash management tender is over-reliant on documentation, spreadsheets, emails and unnecessary, lengthy processes. Padraig Brosnan suggests a digital solution

One of the major problems that corporate treasurers face is in the area of conducting a cash management tender. This project has many pain points for the corporate, their advisers and the banks involved in the process. It always takes longer than anticipated, can prove very costly in terms of the amount of resources and number of hours required, and can prove highly frustrating for all stakeholders.

Therefore, a lot of corporates are reluctant to even begin this process, as there are other and more important areas to be managed within the treasury department. The main drawback of this perspective, however, is that the company could be missing out on superior products and services from either part of their core banking group or a new relationship bank.

Banks have and will continue to invest very heavily in technology and, through fintech partnerships, many have enhanced their offerings with a superior selection of digital products and services. Where corporates will really benefit from these digital banking improvements is in the area of operational efficiency.

Fewer hours and in all likelihood fewer resources will be needed across the treasury and finance functions to carry out the current manual processes that may exist within these departments. This could be a huge cost saving for the company, and not only will job satisfaction improve, but it provides treasury and finance personnel with an opportunity to look at more value-added activities for the organisation.

The problem for the banks here is how to communicate, inform and present their innovative solutions to relationship and non-relationship clients given the inertia and problems that exist for the corporate treasurer with regards to cash management activities within the company.


Digitising solutions

There is a way, however, for corporates and banks to conduct this process in a more efficient and cost-effective way for all stakeholders.

Treasury Delta’s platform has digitised the cash management tender process, streamlining the project, removing several friction points and simplifying the customer journey for all parties. A lot of the time-consuming tasks and preparatory work currently carried out by the corporate treasury team are outsourced to the platform provider.

Each company receives a custom-made solution as each corporate has different banking requirements depending on their treasury operations and global reach. In advance of going to market and submitting the relevant information, their selected banks will be notified and can respond with their bespoke offering via the platform under agreed timelines.

From a bank’s point of view, the information is presented in a very structured format so that it’s very clear what the corporate is currently doing with their bank(s) and, more importantly, what they are looking for from the marketplace.

Two of the biggest problems that banks face, which Treasury Delta identified and has worked to eliminate, are:

  1. It is very difficult for banks to understand exactly what the corporate’s specific needs from the tender are; and
  2. Gathering the necessary information from the corporate in advance of a final submission can be very time-consuming and costly for the bank.

The selected banks also receive an overview of the ancillary business that the corporate has with its bank(s) via the platform, a feature that can amplify the business case for the final cash management offering.

The platform provider remains impartial at all times and the business model has a focus around collaboration and facilitating the transaction in the most efficient way for all parties. The platform can also be used to carry out a treasury management system tender; one of these has been successfully completed with a US multinational.

Treasury Delta is one of the selected fintechs presenting at the ACT’s Cash Management Conference in London next February. It was recently selected by PwC Germany as one of 12 European fintech companies for its FinTech Scale Programme.


About the author

Padraig Brosnan is founder and CEO of Treasury Delta


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