It’s hard to find the optimal treasury structure. Treasurers must achieve visibility over cashflows whilst navigating through an abundance of treasury concepts, solutions and ideas. They must also consider what solutions are permitted locally by the regulators, as well as various tax and legal requirements.
This all takes time; treasury must spend hours with its bankers, poring through spreadsheets and product specifications. And after all that, there is no guarantee that the solution will prove to be optimal in practice.
It doesn’t have to be this way any more. Treasury Prism is a free, bank agnostic, online, treasury diagnostic tool, designed by DBS. It allows treasurers to analyse their cash management processes across Asia Pacific. Treasury can also easily discover what solutions will achieve cost savings, improve operational efficiency, and optimise liquidity and yield, all at the click of a button.
Treasury Prism is built to solve real world treasury challenges, says Andrew Farnhill, Head of Sales, Global Transaction Services, DBS London. “Our research found that the majority of treasurers face three big challenges,” he explains. “They struggle to keep up with regulatory change, to find optimal treasury solutions, and to quantify the business case for change. Treasury Prism helps solve these issues.”
Solving real problems
What stands out is how easy it is for a company to upload its data into Treasury Prism and visualise the balances and flows, as demonstrated by Farnhill. Treasurers can discover what benefits will result from adopting different treasury structures, and obtain insights into solutions suggested by Treasury Prism. For example, it prompts the treasurer with insights concerning regulatory approvals when modelling Chinese cross-border pooling structures. The tool also reveals untapped opportunities, such as tax incentives for particular markets and solutions.
With a treasury structure selected, Treasury Prism’s Benefit Optimser quantifies the potential monetary benefit. This provides treasurers with a real-world figure to present to management when making the business case. “The optimiser works by calculating the expected interest yield and debt cost, withholding tax for interest paid including tax exemptions, and bank fees and implied corporate costs,” explains Farnhill.
These are powerful features. And Treasury Prism goes further. By using complex proprietary algorithms, it scores the selected solution against other options. “This allows treasury teams to quickly understand what solution will deliver the optimal benefit,” says Farnhill. “So with the click of a button, treasurers can find out what previously took hours. It is revolutionary.”
Finally, to help treasury build a business case for change, Treasury Prism creates a ‘management friendly’ report. “This outlines the benefits the solutions can deliver and breaks these down so senior management can quickly consume the information and make more informed decisions,” says Farnhill.
Given the power and simplicity of Treasury Prism, it is already receiving rave reviews from the corporate treasury community. Farnhill provided testimonials, including one from the treasurer at Isuzu who said: “What takes a week today can be done in two minutes with Treasury Prism. This is the most innovative solution for corporate treasury I’ve seen this year.”