All consultancies have their own methodology for Treasury management system selection. Aite Group’s Digital Treasurer’s Handbook for Treasury Technology Selection offers a framework to corporate treasurers for evaluating technology providers and selecting the right treasury technology solution.

Key components

Aite’s white paper is based on June to October 2018 interviews conducted with international corporate treasurers and research conducted across publicly available material. Aite Group’s market research data points were used to analyze and elaborate on the priorities of corporate treasurers, and to identify the key criteria that characterize treasury technology selection.

The Aite evaluation model has four key components: product features, vendor stability, client strength, and client services:

Source & Copyright©2019 - Aite Group

The main features of the key components are shown in the boxes next to each sector. 

Aite evaluation framework

The combination of these four components creates Aite’s framework for evaluating technology providers:

Source & Copyright©2019 - Aite Group

Aite uses a framework that is a composite evaluation that maps market-leading TMS vendors along with these two drivers:

• Company stability: Combining the scores from the vendor stability and treasury experience evaluation components, this criterion measures the vendor’s overall long-term business viability as a product and service provider.
• Digital product investment: Combining the scores from the product features and investment and client service components, this criterion measures the ability of the vendor to deliver on key product functionality and support.

Conclusions

Aite concludes that corporate treasurers need to:

• Look at cloud-based architecture as the technology springboard to launch the future of TMS innovation
• Select the treasury technology partner by combining the evaluation of the product’s functional capabilities with the assessment of the vendor company’s stability, market presence, transparency in financial statements, predictable pricing structures, and ability to meet complex treasury needs.
• Use a transparent framework to evaluate a technology provider based on assessment criteria that cover all foundational aspects of healthy long-term collaboration.

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CTMfile take: There are considerable similarities between Aite Group’s and Deloitte’s TMS selection methodologies, with both being agreed that as well as product features, it is vital to look at vendor stability, the treasury experience and support services. It really is all about faster selection decisions that pick a vendor and system that suit your business, both now and in the long term.