Exploring the TMS Spectrum: From Legacy Systems to Modern Tools

# Treasury Management System (TMS)

# Technology

NeuGroup members talk openly about TMSs, weighing traditional systems against modern, lighter-lift tools.

Treasury leaders committed to transformation face a slew of technology choices, ranging from traditional, fully integrated treasury management systems (TMSs) to newer, lighter-lift solutions from fintechs that may be more flexible and less clunky. Teams must weigh their needs based on size and complexity against the purchase price as well as the time, effort and costs of implementation, maintenance and updates. Some opt for all-encompassing platforms while others seek more nimble and customizable tools.

That compelling context helps explain the high level of interest for a recent NeuGroup virtual session that drew more than three dozen highly-engaged members from companies of varying sizes. They joined to benchmark, share tips, exchange frank feedback about their experiences, and discuss the road ahead.

The lively TMS discussion was led by NeuGroup senior executive advisor Paul Dalle Molle , who runs NeuGroup for Growth-Tech Treasurers . “Emerging companies often don’t have a TMS, but also don’t want to buy a full-blown one,” he noted during the session.

Standalone stalwarts. Many members said they rely on established, standalone TMS platforms like GTreasury , Kyriba , ION’s Reval and Wallstreet Suite , and FIS’ Quantum and Integrity .

“We found that the more established TMS companies were willing to be on-site and help guide us through everything,” one member noted. “The functionality and usability of their systems seemed straightforward and user-friendly.”

Implementation and upgrade challenges emerged as recurring pain points, especially for users of legacy systems. One member emphasized the need for expertise when upgrading: “It requires a team that knows how to manage FX, hedge accounting, risk exposure and cash positioning—and how to configure the system for all these activities.”

The cost of updating systems is another hurdle. Tools that offer periodic upgrades can minimize the need for large-scale changes. “Platforms that include updates in annual subscription fees save significant time and resources,” one member said.

Embracing ERP modules. Many companies are gravitating toward treasury modules offered by their ERP providers, drawn by the promise of seamless integration, improved performance and reduced IT resource demands.

Among these options, the SAP treasury module leads the way, because it connects to its cutting-edge ERP S/4HANA , a system many enterprises are adopting.

One member in the midst of a SAP treasury module implementation shared, “In my company’s financial environment, which is dominated by SAP, the expected benefits are an ease of integration, data visibility and data harmonization.” For some members, these benefits offset any challenges they face with the modules.

Smaller-scale alternatives. Some medium-sized companies and subsidiaries of large multinationals are turning to streamlined, less costly options. Among the tools used by those attending the session are Treasury4 , Trovata and JPMorgan’s Cash Flow Intelligence (CFI) .

Several members discussed positive experiences with Treasury4, whose modules enable data-based decision-making. The most commonly used of the fintech’s tools is Entity4, which focuses on a legal entity management; cash management and payment modules are also available.

One member praised the Treasury4 technology team’s willingness to listen to customer feedback and aid with customization.

Trovata and CFI include proprietary AI models, which aim to improve and automate cash forecasting. Members cautioned that the models don’t get up to speed overnight.

CFI, which is available to existing JPM customers, was praised by some members for its affordability and light lift.

Navigating TMS trends. The session reinforced a fundamental takeaway: There is no one-size-fits-all solution for treasury technology. Companies must weigh their resources, priorities and long-term goals to decide between ERP treasury modules, standalone TMS platforms, fintech tools or combinations.

For more, watch a video recap by Mr. Dalle Molle, the session leader, as he discusses the range of systems members are using, the frustrations they face and how trends like cloud-native ERP treasury modules and fintech innovations are shaping the future of treasury management.