Middle East Treasurers Seeking More Sophisticated TMSs

Corporations in the Middle East are moving away from manual processes and bespoke software towards increasingly sophisticated methods of treasury management, according to a study conducted between SunGard, Aite Group and the Association of Corporate Treasurers Middle East (ACTME).

The study uncovered that the top three treasury challenges are to increase productivity and reduce manual processing; to prove that the treasury function generates value and is not an unnecessary cost; and to acquire better risk analytics.

The study also found that 87% of Middle East respondents have a treasury function. However, for cash management nearly half of respondents spend at least 75% of their time using spreadsheets and manual processing.

As treasurers are increasingly tasked with responsibilities beyond efficient and effective cash management, the study shows that organisations in the Middle East are supporting this expanded role with the necessary resources.

“As Middle East treasuries grow in sophistication, many of the challenges that they face need to be addressed through more advanced treasury technology,” said Wissam Khoury, managing director of SunGard Financial Systems Middle East.

“In addition, organisations should review the most beneficial way to deploy and manage that technology. For some that may be on premise, while others would prefer private cloud or a managed services environment.”

Enrico Camerinelli, analyst, Aite Group, said: “Treasurers in the Middle East are facing growing pains as corporations emerge onto the global stage. The continuous developments in information technology highlight the benefit of a specialised treasury management system (TMS); the added value dramatically improves the ability of the treasurer to be strategic.”

Peter Matza, engagement director of ACTME, added: “This study will help underpin the growth and development of the corporate treasury profession in the Middle East, where treasurers are increasingly involved in managing financial and business strategy for their organisations.”

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