The development of the TMS market continues with three main trends driving development: the move to cloud for most TMS solutions; organisation change driving adoption; and smaller TMS solutions being adopted by global MNCs.
Move to cloud
Providing cloud based solutions for ‘mission critical’ functions is now an accepted part of business models in both banking and corporate treasury, e.g.:
- in April 2017, UBS announced that they had moved their risk management platform to the Microsoft Asure cloud technology was the ultimate proof that cloud technology was really accepted.services
- in May 2017, OpenLink launched their Cloud platform which is, they claim is, “the world’s first and most comprehensive enterprise Cloud platform for trading, treasury and risk management.” Interest in this new OpenLink is “unprecedented”
- Treasury and Risk report that, “A recent survey of almost 1,000 finance professionals around the world conducted by Reval, consultancies Treasury Strategies Inc. and Zanders, and Standard Chartered Bank showed that 60% of companies in North America have adopted cloud treasury software.
Almost all TMS installations can be cloud based, even FIS’s Quantum.
Organisation change driven TMS installations
Another vital role for TMS solutions is in coping with major structural changes in organisations. Some of the most common reasons for installing a new TMS are:
- Splitting divisions
- M&A: Acquisitions of a company where the new requirements are way beyond the capabilities of the old TMS.
Smaller solutions can cover large MNCs
Cloud based solutions are enabling smaller TMS solution providers to offer solutions for global MNCs. Size of TMS provider is no longer a barrier. Indeed the flexibility and new business models of the new TMS providers is opening up new markets for TMS solutions.
A good example is the recent TreasuryXpress installation of their solution at Group Fawaz A. Alhokair & Co., a retail giant, for streamlining their treasury, banking, and payments in the Cloud.
FAH, the largest franchise fashion retailer in the KSA, MENA, Central Asia, and Caucasus regions, has selected the firm’s enterprise treasury management solution, C2Treasury™ to provide:
- integrated straight-through processing with the firm’s multiple ERP systems
- real-time bank communications and centralize cash visibility which is some achievement given FAH currently represents 116 fashion brands including Aldo, Banana Republic, Clarks, Marks & Spencer and more. FAH trades in more than 2,100 stores across 100 shopping malls in 17 countries.
“My goal was to implement one software across all of our international businesses. From cash visibility to centralized bank reconciliation and reporting, I wanted a treasury management system that could communicate with my ERPs, my banks, and my market data providers,” says Ziad El Khoury, Treasury Director at FAH. “I will now be able to do this with TreasuryXpress. With a higher developer-to-sales ratio than any other TMS provider in the space, they are truly committed to making technology that works for treasury.”
“Treasury is witnessing an evolution. Today, treasury technology needs to be highly cooperative with other platforms – quickly. Long, drawn out custom integrations are just not acceptable. Leveraging current Cloud technology, we have structured TreasuryXpress to be nimble and fully responsive to the needs of growing businesses,” say Anis Rahal, CEO and Founder of TreasuryXpress. “FAH is setting the standard for other retail treasuries to streamline their technology infrastructure and we are honored they have chosen us as their partner for treasury innovation.”
CTMfile take: TMS solutions are evolving fast. The advent of operationally effective APIs and cloud based solutions is changing the options for the corporate treasury department.
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