Conquering the Technology Challenge - ACT Breakfast Briefing June 2015
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This document summarizes a presentation given by Chris van Dijl of Cugavadi on technology challenges in corporate treasury. The presentation covered legacy treasury solutions that were expensive and complex, leading many smaller organizations to rely on Excel. However, newer cloud-based solutions are more affordable and intuitive. Technology providers are also responding by offering features like payment portals, report building tools, and social media hubs. While progress is being made, trade finance solutions still need further development from many providers.
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Conquering the Technology Challenge - ACT Breakfast Briefing June 2015
- 1. Consultant Perspective: Conquering the Technology Challenge ACT Breakfast Briefing β The Technology Challenge Dubai | 9 June 2015 Chris van Dijl Managing Director
- 2. 2 Agenda 1. Cugavadi Overview 2. Legacy Treasury Solutions 3. Latest Developments 4. How Providers Are Responding to Corporatesβ Needs 5. Providing More Intuitive & Cost Effective Systems 6. Outstanding Items 7. Closing Remarks ACT Breakfast Briefing β The Technology Challenge | Dubai, 9 June 2015
- 3. 3 Cugavadi Overview Over 16 years of experience in Corporate Treasury Worked in The Netherlands, United Kingdom, United States, and the United Arab Emirates Former Group Treasurer of Easa Saleh Al Gurg Group and the Al Tayer Group, both located in Dubai, U.A.E. Established first In-House Bank for a family group in the Middle East at the Al Gurg Group Al Gurg Treasury department was awarded βBest Small/Medium Treasury Team in the Middle Eastβ by the Association of Corporate Treasurers (ACT) Established Cugavadi, a specialised niche consultancy firm with offices in Dubai and Charlotte, NC Focussing on Treasury and Risk Management consultancy services ACT Breakfast Briefing β The Technology Challenge | Dubai, 9 June 2015
- 4. Highly sophisticated systems Installed on clientβs site Cash Management, Central Database of transactions, Risk Management Pre-defined reports Reports created by IT Department or Software Vendor (at a fee!) At a fairly substantial price Licenses per named users Implementation consultancy fee Annual Maintenance Fee (20% of License) 4 Legacy Treasury Solutions ACT Breakfast Briefing β The Technology Challenge | Dubai, 9 June 2015
- 5. 5 Legacy Treasury Solutions ACT Breakfast Briefing β The Technology Challenge | Dubai, 9 June 2015 Total purchase and implementation cost could be as high as USD 500,000 (AED 1.8m)
- 6. As a result these solutions were mainly utilised by large listed multi- nationals Central or regional treasury hubs With limited number of users (5 to 10 users) For smaller organisations these systems were perceived to be: οΌ Over-priced οΌ Over-complex, and οΌ Over-engineered Hence the continued popularity of Excel 6 ACT Breakfast Briefing β The Technology Challenge | Dubai, 9 June 2015 Legacy Treasury Solutions
- 7. Recent studies: οΌ 40% of Asian companies consider cloud computing as the most important technology platform to consider when they review their treasury system οΌ Most organisations with less than $1 billion in revenues are not using a Treasury System We are seeing change at a rapid pace SaaS-based solutions or Cloud based solutions are growing rapidly New start-ups are focussing on small & medium size companies Example in the accounting world Xero and Intuit are offering cloud based accounting packages for as little as $50 per user/per month 7 Latest Developments: ACT Breakfast Briefing β The Technology Challenge | Dubai, 9 June 2015
- 8. Greater Client Interaction β’ From Annual User Days to interactive Social Media Hubs β’ Creation on online customer social media hubs β’ Voting on new developments, interaction with other clients β’ Improvements will reach the clients faster, and will reach all clients at the same time. Payment Portals β’ Treasury solution are replacing online banking tools β’ With (in)direct built-in SWIFT connectivity β’ Sanction screening of payment before they are released to the bank β’ Electronic Bank Account Management (eBAM) 8 Providers Are Responding to Corporatesβ Needs ACT Breakfast Briefing β The Technology Challenge | Dubai, 9 June 2015
- 9. Providing More Intuitive & Cost Effective Systems β’ Using the latest technology to improve reporting functionality β’ DIY Report Building β’ Drag-and-drop report building β’ Giving real power to the Treasury Solution SaaS / Web-based Solutions β’ Cheap Implementation β’ Faster (same-day) implementations β’ No costly software updates Unlimited Users 9 Providing More Intuitive & Cost Effective Systems ACT Breakfast Briefing β The Technology Challenge | Dubai, 9 June 2015
- 10. 10 Outstanding Items 1. Providers only offering a web-based solution Many local organisations prefer to keep their data close to their chest One-size does not fit all on a global level 2. Lack of Trade Finance solutions Only basic recording of instruments offered Many providers promise developments of this front Wait and see.. ACT Breakfast Briefing β The Technology Challenge | Dubai, 9 June 2015
- 11. 11 Closing Remarks Currently at a cross-road in the Treasury Technology Landscape Systems are becoming more affordable, easier to maintain However, we are still waiting for further developments, especially Trade Finance solutions. ACT Breakfast Briefing β The Technology Challenge | Dubai, 9 June 2015
- 12. Cugavadi Risk Management Services, LLC P.O. Box 941021 Dubai | United Arab Emirates ο¨ +971 (0)50 1755 162 Cugavadi, LLC P.O. Box 78886 Charlotte, NC |U.S.A. ο¨ +1 980 228 9272 12 Thank You info@cugavadi.com | cugavadi.com This presentation is the property of Cugavadi Risk Management Services LLC. It should not be circulated, quoted, or reproduced for any distribution.