Corporate treasury outsourcing is alive and flourishing. Another example of this is FTI Treasury who have been delivering outsourcing services in Dublin since 1988, and over the last six years has seen year-on-year growth. FTI Treasury is a niche treasury specialist company and the three areas they cover:

• Treasury Outsourcing  services which allow companies to outsource all or selected elements of their treasury function
• Treasury Consulting with their team providing real-world financial and practical operational experience in corporate treasury
• Corporate Services to support ongoing accounting requirements and board administration, manage regulatory reporting and risk and ensuring statutory and tax reporting compliance.

Treasury Outsourcing Services

FTI started over thirty years just providing treasury consulting and intercompany loan administration and corporate services. They now provide a full range of treasury outsourcing services as the figure below shows.

FTI Treasury services

Source & Copyright©2020 – FTI Treasury

 The subsequent development of new services included Regional Treasury Centre set-up and operations, netting,  the delivery of back-office and treasury accounting services over client-side technology

Typical FTI users

FTI Treasury has found that there are four types of users including:

• North American companies requiring a regional or treasury centre in a European time zone
• Companies spinning off operations who need an instant corporate treasury department 
• SMEs who do not have the internal expertise, technology and control structure to meet their operational treasury requirements …
• Companies with complicated funding and derivative balance sheet structures.

They have found that the main drivers for using corporate treasury outsourcing are from:

• Regional treasury expansion
• High growth companies
• Lack of expertise and operational control
• Speed of implementation and set-up
• Cost-benefits of corporate treasury outsourcing.

Pat Leary, FTI Treasury’s CEO, believes that “Many corporate treasurers are driven by the need to primarily concentrate on the strategic and treasury activities that impact on business and corporate objectives, whilst at the same time driving out financial risk management and information flow improvements. Outsourcing downstream treasury processes allow treasurers more time to focus on these key items knowing that operational matters are well in hand.”

Also, they have found that “Operational controls and data confidentiality protections have to be stronger than normal to meet client demands. Importantly, FTI Treasury has again recorded ‘no exceptions’ in its annual SOC 2 SSAE18 Report.”

Treasury technology

FTI Treasury deploys best in class third-party applications to deliver its treasury services where their technology infrastructure is used. Their focus is then on data integration – the extraction of data from banking, trading, market information systems, and the delivery of data to netting, cash flow forecasting, payment, ERP, confirmation matching and other applications – all processed in a streamlined, efficient and secure manner. More recently, FTI started using robotic process automation (RPA) technology to add to the depth of their automated processes, which frees up their expert resources to focus on adding more value to their clients. 

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CTMfile take: FTI Treasury shows that corporate treasury outsourcing meets a fundamental need for all sizes and kinds of companies, and that to do this effectively outsourcing suppliers also need to provide consulting and other services. No wonder FTI Treasury is having a record year.