Step #1: Map out existing processes
Successful connectivity implementation requires a thorough understanding of your organization’s processes prior to engaging with a banking provider. It is crucial to identify and separate the processes that are becoming automated from those that are staying manual. The type of processes that will be automated are dependent on your company’s needs. For example, if a company is using SAP for their vendor flows but Workday for their payroll flows, they might only choose to implement SAP and not Workday.
In addition, you should take time to identify downstream system dependencies. Making changes to treasury processes can impact other teams, e.g. accounting. Ask yourself: if I change this process, will it break another one? By keeping other team dependencies top of mind, you’ll have a better chance to avoid workflow disruptions.
Step #2: Outline automation needs
It is critical to take a close look at your automation needs before beginning any implementation. Sample questions to ask regarding your business processes that can help you understand the right solutions to consider include:
- What processes are you looking to automate? E.g. is it just the payment initiation? Do you also need to automate the reconciliation? Are you looking to automate the respective journal entries?
- Which of your tasks are repetitive, manual tasks that are tedious and time consuming? By identifying these tasks, it will be easier to determine which flows, once automated, will have a significant impact on reducing the lift and burden on your team and resources.
An example of a manual task that many treasurers want to automate is consolidating bank balance reporting into the treasury workstations. Instead of manually accessing bank portals or using robotic process automation (RPA) for accessing balance retrieval, having a treasury workstation allows banks to send end of day or intraday bank balance information. This provides centralized visibility (which can help enhance risk management and operational efficiency).
Once your team decides which flows to automate, the return on investment (ROI) after implementation can be calculated.
Step #3: Identify risks and conduct a regulatory compliance assessment
Before implementation, it is crucial to conduct comprehensive risk assessments and ensure regulatory compliance is met. It is necessary to verify that the implementation does not conflict with existing regulatory requirements, such as separating maker-checker duties. Daily communication with your team is essential to ensure everyone receives updates on the latest regulatory standards. Lastly, your organization should not omit any previous security measures and continue following all safety procedures.
Step #4: Develop a timeline and implementation plan
When implementing new processes, it is important to develop a timeline and implementation plan to help align all team members on expected next steps. The timeline should include the duration of your implementation, a target end date, and granular project steps and milestones.
A few of these milestone dates should include:
- Legal, tax and compliance review of proposed processes and procedures
- Identification of accounts, entities, payment/collection types, in scope
- Establishment of host to host or API connectivity
- File/payload syntax and schema testing
- Go live timeframe
The individual overseeing the implementation will vary depending on the company’s structure. Typically, a fintech organization has a lead project manager while a treasury project has a treasury assistant or treasury manager.
Step #5: Work towards stakeholder buy-in
Ensuring stakeholder buy-in is an essential final step. Without senior buy-in, you won’t help set your team up for success. As mentioned earlier, treasurers should keep the implementation ROI top of mind. The calculation for ROI differs from bank to bank, but the main goal is to justify the cost of implementation against other competing priorities.
The most common mistake that treasurers make is not clearly communicating their goals. For example, if you don’t fully understand the flows that you’re looking to migrate, and can’t articulate them to your banking provider, it’s very difficult for the bank to develop or suggest a solution.
A two-way relationship with clear expectations can save time and money due to miscommunication. Material changes to a project scope can also impact the overall project timeline. You could find that:
- The bank may not have the ability to support these newly requested features
- These last-minute requests could extend the end date out anywhere from 6-10 weeks, or
- They could negatively affect the budget owing to delays, inefficiencies, and/or improper scoping of tech resources (such as whether they can be used in-house or must be outsourced).
These frustrations and escalations can be avoided with an understanding of the overall end goal and team-wide alignment.
By taking the time to understand your objectives and what you’re looking to accomplish, abiding by a strong risk and compliance assessment, and having a clear understanding of the changes you’re looking to implement and the value that you’re looking to achieve from the processes, you’ll set the foundation for a successful implementation.
