STEVE WILEY, VP TREASURY SOLUTIONS

Trends in Treasury Technology

Introduction

 My Background
 Corporate Treasury - > Treasury Consulting - > SunGard AvantGard Treasury

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Agenda

 Treasury Technology Overview

 Treasury Technology Landscape
 Corporate Trends:
 Cloud Migration
 Managed Services
 Managing Regulation with Technology
 SWIFT
 Key Takeaways

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 Treasury Technology Overview and Landscape

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Treasury Technology Overview

Fully Integrated Treasury Management Systems

Enterprise Resource Planning Bank-offered treasury

Third-party (best-of-breed)
treasury management systems (ERP) treasury module management systems

Specialized (single purpose) Treasury Systems

Bank-to-book reconciliation Risk analytics Bank account administration

FX exposure management Multilateral netting Bank fee analysis

Other
Bank online systems Online trading portals
SWIFT Corporate Connectivity
(reporting & payments) (FX and investments)

Transaction matching & Working capital management

Management dashboards
confirmation systems (payments and receipts)

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Treasury Technology Landscape

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Treasury Technology Landscape

The trend of industry consolidation continues to place a spotlight on vendor

counterparty risk

Reval acquires
Ecofinance

Wall Street Wall Street

SunGard acquires Systems acquires Systems / Ion
Integrity City Financials acquires IT2

2005 2007 2009 2010 2011 2013

SunGard acquires Wall Street

XRT Reval acquires Systems acquires
Fxpress Treasura Ion Trading
acquires Wall
Street Systems
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What’s new at SunGard?

 What’s New at SunGard:

 Organic Growth Strategy
 Focused investment in current product set as opposed to acquisitions
 Improving customer experience
 Product Development and Improvement
 Major investment in Quantum Version 6 and Integrity Version 8
 Continued investment in all product lines

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Treasury Technology Deployment Options
Installed: Hardware and software dedicated to the TMS are installed at the data center of corporate
Strengths Limitations

1) Ownership of hardware, software and data 1) Requires significant IT support

2) Control over hardware, software, and data 2) Longest road to implementation
3) Internal risk only 3) Significant upgrade effort
4) Can be cheapest option in long term (post 5 years) 4) High upfront cost
5) Viewed as more secure 5) Sharing of data

Hosted/ASP/Private Cloud: Hardware and software dedicated to the TMS are installed at the vendor
Strengths Limitations Private Cloud:
1) Application ownership 1) Reliance on 3rd party for support (in some We want all the
2) Control over data environments this may be an advantage) benefits of public
3) Reduced IT maintenance 2) Medium implementation timeline cloud with
4) Portable (Can be brought in house at any time) 3) Most costly option greater control
5) SLA with vendor

SAAS/Public Cloud: An entirely web-based platform managed by the vendor

Strengths Limitations

1) Minimal internal IT support required 1) Shared application

2) Faster implementation 2) Limited control
3) Lowest year one costs 3) No ownership - rented software
4) No upgrade effort 4) Difficult to integrate with other internal applications
5) Limited customization options

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 Treasury Technology Overview and Landscape

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 Trend #1: Cloud Technology
The Treasury Migration Vendor Perspective

FBAR
REPORTING
SEPA

REMAINING AHEAD SECURITY

OF THE CURVE

DODD-FRANK
EMIR & MORE

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Trend #2: Managed Services

Managed Service
Offerings Service Delivery Management
Service Operations Guide
Uptime SLA 99.75%
Private 24x7 Service Desk
Cloud
Services

Managed Upgrade Services Application Managed Reporting Services

Interface Exception Management - Risk
Managed Bank Connectivity
Domain - Management
Enhanced Service Desk - Operational
- Incident Management
Managed Managed - Regulatory
- Change Management Application Business
CustomCare Services Services

Service Design Service Transition Service Operation

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Trend #3: Managing Regulation with Technology

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Trend #4: SWIFT

What is SWIFT?
• The Society for Worldwide Interbank Financial
Telecommunication (SWIFT) provides a network that enables banks
and corporates worldwide to send and receive information about
financial transactions in a secure, standardized and reliable environment
• Information reporting
• Payments
• Bank account administration
• Confirmations
• Trade finance

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 Non-Standard Bank Connectivity

VAN
host to host channel
Payables
ERP Leased line
Receivables
e-banking channel
Treasury
TMS
Internet
Other e-banking channel

Dial-up
“fax-banking”
Limitations/Risks
• Bank driven solutions • Technologically inflexible
• Multiple channels • More complex control environment
• Lack of standardization • High change costs
• Limited scalability • Inefficient
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SWIFT Connectivity

Payables
ERP
Receivables
SWIFT
FTP
Treasury ECHOS
TMS E-Banking
Single gateway Other
Other

• Bank neutral
• Service Oriented Architecture
• Standard platform
• Foundation for the future
• Standard communication
• Higher STP
• Standard security
• Improved control /compliance
• Standard messaging
• Reduced risk
• Scalable
SWIFT Benefits

› Security
› 99.999% availability
› Cash Visibility
› Standardization
› Reduce costs and dependency of internal IT
› Compliance

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• Key Takeaways

* Cloud and Managed Services

* Managing Regulation with Technology
* SWIFT

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 QUESTIONS?

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