Build effective technology partnerships
Once you understand the problems you need to solve, be honest with any potential suppliers or partners about your requirements. And do your due diligence about what they can realistically provide. “Ask them for references and case studies of similar work they’ve done,” advises Holm. “Enquire about the onboarding process and how long it takes them to get their clients up and running.”
It’s also a good idea to consider your future needs, and how much agility you need in a partner. “Always look to the future; not just overcoming immediate problems,” says Holm. “If your treasury goes through changes, will the partner’s system be agile, modular and flexible enough to support you? Customisation and necessary adaptations can be surprisingly expensive and time consuming, especially in less modern systems.”
Many treasuries choose to work with partners of varying sizes. And each type of partnership can yield different benefits. “It’s important for large corporates that they have the skills to work with a range of partners, including smaller start-ups and scale-ups,” says Holm. “This can really help you get the most from new technology.”
For example, fintechs are agile and innovative. They don’t have legacy issues, and can offer very effective niche products for specific solutions. But treasuries with more complex challenges may prefer to work with a scale-up of a similar size to their own. “It’s a lot like a hiring process,” explains Holm. “Look for the candidate with the right qualities and solutions, rather than judging them on external appearances.”
Review your own cybersecurity practices
Part of selecting a partner should be an audit of cybersecurity measures. Your cybersecurity might be up to scratch, but what about that of your vendors and the partners you’re working with? Check they’re following the same guidelines as you and make sure your security objectives are aligned.
Of course, you should also look within your own treasury. There are a lot of simple things you can do to improve your cybersecurity and data protection. Implement robust data privacy and segregation policies, especially when using APIs. Make sure all treasury employees understand these policies and the importance of following them — and refresh their knowledge with regular training sessions and workshops. If your business doesn’t have one already, suggest an Information Security Management System (ISMS) to formalise your security rules and processes.
What’s next?
There’s always a certain level of risk in digitalisation, but by planning carefully, understanding your own needs and choosing the right partners, treasuries can smooth the transition. And in the future, it’s possible that new forms of insurance will become available for companies looking to innovate heavily. For example, cyber insurance and M&A insurance weren’t common solutions 15 years ago, but now they’re gaining traction. It’s possible that we’ll see new types of insurance emerging to protect companies on their digital transformation journeys.
“When it comes to digitalisation, you might not be making a conscious decision to stand still. But you still have to live with the consequences of inaction,” says Holm. “It’s important that treasuries and corporates push forward. Seize the opportunities presented by new technologies — because if you don’t, other companies will.”