Finacle Blog:A modular option for treasury implementation

Every treasury worth its stash understands the vital value that derivatives analytics can bring. More so, after the losses suffered by the banking industry in the recent crisis. As banking products get more and more complex, the challenge to get their ‘mark-to-model’ closer to ‘mark-to-market’ is greater. And robust analytics can prove to be the differentiator for banks that aggressively innovate with products but seek to keep their risks manageable.

Treasurers have always known that the best of products will remain unleveraged unless they are priced right. That here’s where robust analytics can make a world of difference. But how geared are banks’ solution vendors to offer treasurers the pricing models they need? Most solution vendors barely offer more than the standard transactional software – which though critical for treasury operations, meets not the need of the hour on the analytics front. This most often results in banks seeking help from additional analytics solution providers. Bringing in the add-on hassles of multiple vendor management and interfaces.

What’s to stop banks’ technology solution partners from bringing in the added value of derivatives analytics in addition to their transactional automation, through strategic alliances with specialist pricing solution providers? This will promise banks the critical edge they need, with the convenience factor that’s critical to ensure the long-term feasibility of a value-partnership.

Few treasurers, I believe, would disagree.

Also read this thought paper - Modular Solution, Modular Implementation: A Stand-out Option for Medium-sized Treasuries