Adopting a managed-services strategy makes treasury modernization less of a risk

Until now, the treasury has been notoriously resistant to change.

However, in a digital-first world, technological modernization is no longer optional. Of course, modernizing something as complex as the treasury has its challenges. But a managed-services partnership enables treasurers to streamline the transformation process while accelerating time-to-market and time-to-value.

As a reliable treasury managed-services partner, DXC has first-hand knowledge of what makes digital transformation work in treasury and how managed services can de-risk the process.

Five benefits of treasury managed services

Adopting a managed services strategy means entrusting a provider, like DXC, with implementing your treasury solution and ensuring it works as intended. Your provider manages upgrading, maintenance, hosting and application changes, removing the need to allocate in-house resources to those tasks. Here are just five of the benefits treasury managed-services adoption brings:

1.     De-risking operations: As professionals take care of run, maintenance and upgrade duties, their expertise minimizes the risk of downtime and operational issues. The vendor identifies and addresses irritants before they become problematic, taking preventive measures such as timely updates and deploying cybersecurity best practices, etc.

2.     Solution-specific expertise on demand: Your treasury managed-services provider can be certified as an official software vendor partner; a badge of trust, signifying that its employees are well-versed in every aspect of the solution. Genuine experts safeguard your treasury management system, minimizing risks and downtime while optimizing the TCO and performance.

3.     Industry, domain and technical expertise: A suitable partner (e.g., DXC, an official Finastra managed services and global systems integration partner) will have extensive experience in banking, finance and capital markets, enabling it to:

o   Seamlessly ensure compliance and data security

o   Pinpoint the most suitable technology solutions to address the organization’s unique challenges

o   Design and deliver innovative solutions with tangible business value

4.     Cost efficiency and better resource allocation: In addition to relieving the pressure of running a treasury system, managed services can help you with cloud migration, optimizing cost efficiency so you can adapt to changes in business needs faster.

5.     Improved focus and agility: Having a bespoke, scalable solution and team of partner experts ensures your in-house treasury team can concentrate on core competencies, including regulatory compliance, customer experience, risk management, strategy and planning, etc.

Technology challenges

Deploying advanced treasury systems or upgrading legacy technology often represents a considerable challenge. Success requires a sound business case that clearly details both quantifiable and inestimable benefits. According to a recent report, the primary motivations for automation are to minimize manual processes, reduce risks, enhance visibility and reporting, and deliver continuous performance, speed, quality and operational efficiency.

What impact is generative AI having on treasury?

The lion’s share of treasury organizations are still busy identifying practical GenAI use cases or outlining potential solutions. And while implementation offers significant advantages, obstacles persist. Challenges include a lack of talent with in-depth knowledge of GenAI integration, and the need for resilient data sources and infrastructure.

Utilizing GenAI carries risks, particularly regarding its likely influence on sensitive content, such as financial statements and bank accounts. Cross-functional leaders are pressing for change, while CFOs are having to square getting to grips with the impact of GenAI on business lines with championing organization-wide efficiencies.

To address these issues, innovative organizations are creating centers of excellence, determining multi-disciplinary GenAI strategies to de-risk deployment and maximize business value.

Source: Deloitte

Choosing the right treasury managed-services partner

Finastra’s Kondor treasury solution helps corporate and commercial banks to manage their treasury operations efficiently. With Kondor, you can:

• Increase treasury transactions tenfold
• Accelerate new-product launches by 75%
• Gain 30% growth in customer-driven transactions

DXC is a time-tested Finastra partner. Together, we manage Kondor integration, run, upgrade and change tasks for clients. Clients enjoy the following benefits:

• Risk management. From credit and market to liquidity and operational risks, Kondor provides all the necessary tools for assessment, control and mitigation.
• Real-time views. Track P&L, positions, exposures and other treasury-critical data in real time. This enables accurate forecasting and better-informed decision-making.
• One-stop shop. Comprehensive cross-asset, front-to-back platform with a reduced TCO (compared to running multiple systems). Kondor supports all standard asset classes, as well as non-standard instruments and local market requirements.
• Compliance. Fully compliant with current and upcoming regulations. Provides a complete governance and compliance tool for enforcing policies and preparing regulatory reports.
• Flexibility. Tailor the platform to your specific needs. Create and trade new products promptly, reducing time-to-market by up to 75%.
• Future-proof architecture. Kondor is built on an open, API-first framework that allows seamless integration with internal and external tools and applications. Its microservices architecture ensures you can quickly introduce changes or add capability to the system without unnecessary disruption.

Let’s discuss your treasury potential

To learn more about keeping on trend with future technology developments while modernizing your treasury with DXC’s managed services, visit DXC Financial Services. Or, if you’d prefer to talk over a particular digital challenge you’re faced with, speak to a domain expert now.