Trends in Cash, Liquidity, and Working Capital Automation

April 3, 2009
Industry Trends
Global, Asia-Pacific, EMEA, Latin America, North America


Milan, Italy 3 April 2009

Trends in Cash, Liquidity, and Working Capital Management Automation

The treasury function is becoming more strategic.

In this report, Trends in Cash, Liquidity, and Working Capital Management Automation, Celent examines how the treasurer’s duties are expanding to reach across the entire company.

However, the current dramatic economic conditions are slowing down what seemed a natural evolution of the treasurer's role, forcing corporate treasury to take care of more tactical and day-by-day activities. Among the many matters that fall under the corporate treasurer's responsibility, the synchronized management of cash, liquidity, and working capital are the means by which corporate treasurers can weather the storm hitting their companies’ business.

"Technology plays a significant role in supporting each of the initiatives orchestrated by treasury in its daily activities," says Enrico Camerinelli, senior analyst with Celent's Banking group and author of the report. "Once the technical environment is capable of supporting a high level of secure, ‘hands free' straight-through processing, the perspective for treasurers is that they will be enabled, eventually, to focus on the more valuable portion of their professional duties."

The report examines what corporations expect from a treasury management system (TMS), identifying a number of key competitive features. It then looks at what the supply side (i.e., banks and software vendors) is currently offering.

The lucrative opportunity for TMS vendors of increased sales volumes can be clouded by their incapacity to reshape their go-to-market strategy. Traditionally focused on selling to banks, they must now revisit their strategy on how to provide solutions to corporate clients.

Corporate clients will be all demanding more functionality, more service, and lower response times. Vendors must show the capability to meet the cash management needs of not only their largest corporate customers but also the middle market and small and medium enterprises.

Most likely, banks will have to form closer relationships with vendors to provide customers with the best integrated solutions, and have a wide knowledge of ERP and TMS tools.

The model Celent foresees is one where the bank’s application software partner provides an IT platform that aggregates the bank's value-added services, typically financial in nature, with a significant amount of advisory and consulting.

This 50-page report contains 24 figures and two tables. A table of contents is available online.

Members of Celent's Corporate Banking research service can download the report electronically by clicking on the icon to the left.  Non-members should contact for more information.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
Tel: +1 212 345 1366

Europe (London)
Chris Williams
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
Tel.: +81 3 3500 3023

Table of Contents

Milan, Italy 3 April 2009

Trends in Cash, Liquidity, and Working Capital Management Automation


Executive Summary 3
The Changing Role of Treasury 6
The Presence of Technology in a Corporate Treasurer's Day 20
Introducing TMS 22
The Demand Side 29
The Supply Side 35
Conclusions 46


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