The recent AFP guide to “Best practices in treasury connectivity”, underwritten by Kyriba, is for corporate treasury departments. It is a useful starting point for corporate treasury departments. Bob Stark, VP as Kyriba, believes that, “Treasury connectivity – to banks, to ERPs, across treasury systems – has always been complicated. This guide helps break down what is important for treasury teams to understand and offer a variety of expert viewpoints on how to perfect connectivity.”

The guide

The report covers:

    •    Bank connectivity

•     what to know: connectivity protocols - how to connect to banks and file formats
•     what to choose - which varies depending on the number of types of banks used

    •    Keys to connectivity

•     Security
•     Automation 
•     Cost 
•     Reliability

    •    ERP systems and treasury portals

    •    APIs.

It usefully lists the key takeaways on connectivity for corporate treasury departments:

    1.    Understand the protocols used in their connection to their banks

    2.    Determine the most appropriate methods for bank connectivity from your banking profiles

    3.    The four factors that matter most for connectivity are: security, automation, cost and reliability

    4.    Need to understand what data in TMS should be synchronized with the ERP

    5.    APIs offer a much more fluid interaction than FTP or financial networks can.

Connection to everything that matters

The problem is that, in the age of big data and API connectivity, corporate treasury departments are now able to take into account all sorts of different data that can and do influence their liquidity and trading positions. But what matters? What is crucial?

This is where the corporate treasurers’ understanding of the underlying drivers and dynamics of their business is crucial. 

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CTMfile take: Deciding what data matters (not just from the ERP) is the first step in choosing what connectivity corporate treasury departments really need. A new AFP report solely on what data is crucial in corporate treasury departments?