Challenges of Treasury Management
Regulatory changes
In response to the market conditions, there have been regulatory attempts to strengthen governance and improve how organisations manage & report on their financial health. Constantly changing laws and regulations can make compliance a difficult to ensure
Tedious manual and error-prone processes
The physical execution of the individual tasks can lead to entry errors and a lot of time wasted. Consolidating, inputting and checking the validity of data often takes up a large majority of time, leaving scraps of time left to allocate toward strategic endeavors.
Stress test on the European banking system
One of the responsibilities of the European Banking Authority (EBA) is to ensure the orderly functioning and integrity of financial markets and the stability of the financial system in the EU. To this end, the EBA is mandated to monitor and assess market developments as well as to identify trends, potential risks and vulnerabilities. The primary supervisory tools to conduct such an analysis is the EU-wide stress test exercise
Market conditions
The combination of the fluctuating interest rates, excess liquidity and limited credit demand is severely limiting the opportunity for banks to generate expected level of net interest income and is making harder to respect the investment limits
Data processing
As companies scale and new units spring up globally, system and bank volume tends to continue to increase. Enormous volumes of data being created by financial institutions require specific technology.
Cloud solutions
More treasury systems are being implemented in the cloud, either as a pure SaaS application or as a private cloud on dedicated client databases. This trend has been driven by cost and security. Outsourcing IT infrastructure and security to dedicated vendors is cheaper and more efficient than installing systems in-house.
APM as a treasury and portfolio management system
Pre-built integrations
We offers extensive prebuilt integrations and data compatibility with hundreds of third-party systems, powering agile implementation processes.
Custom-built connectivity
APM provides further custom-built connectivity that can accommodate proprietary systems and unique workflows.
Save more time for strategy
With process automation, APM can enable treasurers to improve cash forecasting and advanced cash management. By reducing the number of errors and time that manual processes demand, treasurers can free up more time for strategy
Use advanced tools
APM combines a complete list of portfolio management tools including the display of the main statistical indicators, the monitoring of investment limits based on the market risk policy of the bank.
Enjoy smart workspaces
The user can configure smart workspaces where instrument and market data are always at his fingertips.
Reporting
Foster customer transparency.
Main features of the APM
Perform potential trades
The portfolio manager can see in real time how hypothetical transactions will affect the bank's portfolio, performance indicators, future income and yield, as well as whether the risk limits are met with the respect to the EBA guideline.
Risk structure
Analyze how the portfolio’s characteristics and risk structure would change based on the potential trades. Quickly evaluate potential trades or edit existing positions by using the Pre-deal Simulation functionality.
Optimize your workflow
Cash flow forecasting is the bedrock of treasury
Based on the best practices in cash flow forecasting we implemented pricing models for bonds and derivatives to estimate the future cashflow with the greatest accuracy.
The combination of the excess liquidity and limited credit demand is severely limiting the opportunity for banks to generate expected level of net interest income
APM provides an up-to-date Net Interest Income Calculation so that portfolio managers can assess marginality and adjust the portfolio to achieve longterm NII goals.
Custom configurations
The user can configure customized workspaces where instrumental and market data are always at hand
High performance
Pre-deal simulation
The portfolio manager can see in real time how hypothetical transactions will affect the portfolio of the financial institution, performance indicators, future profitability, as well as whether risk limits are respected.
Risk structure
Analyze how portfolio characteristics and risk structure would change based on potential trades. Quickly evaluate potential deals or modify existing positions using the pre-deal simulation functionality.
Cash flow forecast
Based on the best practices in cash flow forecasting we have implemented pricing models for bonds and derivatives to estimate future cash flow with maximum accuracy
Calculation of the NII
The combination of excess liquidity and limited credit demand is severely limiting the ability of banks to generate the expected level of interest margin. APM provides up-to-date interest margin (NII) calculations so portfolio managers can assess margins and adjust the portfolio to meet long-term NII goals.
Reporting
Reporting has always been a problem for treasury and portfolio management systems. Databases have complex table structures, and vendors typically provide basic reporting tools through proprietary reports. Reporting requirements change all the time, which is why self-service and on-demand reporting is the preferred reporting methodology.
The functionalities
Microservices
The platform leverages micro services technology that is scaling over time to guarantee high levels of robustness and performance.
Backups
The APM is set up with a protection and anti-intrusion systems from external events. Furthermore, the energy continuity is guaranteed by primary and secondary connectivity flows with backup services.