Today, technology is everywhere, from your bedroom to your office workspace. So, why not in treasury management? Advanced technology and automated systems have enabled finance teams to streamline and centralise an organisation’s financial operations, related to cash, liquidity, and risk management.
As a Single Account Treasury Management (SATM) platform, FinStream aims to enhance transparency, financial control, and optimise fund utilisation by providing real-time cash visibility and sweeping to regulatory compliance and payment processing.
Why do we need a Treasury Single Account?
CFOs, finance controllers, and treasury banking heads always look for a suitable treasury single account for the following reasons:
- Real-Time Cash Visibility: A comprehensive dashboard with a consolidated view of all accounts across multiple banks and entities is necessary for enhanced liquidity control and informed strategic decision-making.
- Automated Cash Sweeping & Pooling: Intelligent fund consolidation and automated transfers optimize working capital, reduce idle cash, and maximize returns.
- Cost Savings & Operational Efficiency: All manual reconciliation efforts and significant operational overhead must be replaced with smart, automated solutions that enhance financial efficiency and governance.
- Compliance & Governance Risks: Decentralized treasury structures often lead to challenges in regulatory compliance and audit readiness, a concern for a significant percentage of CFOs.
- Lack of Integration: Disconnected ERP and banking systems cause delays and inefficiencies across financial operations.
FinStream, as a single account treasury management automation solution, addresses these pain points by providing a unified, efficient, and secure framework for financial operations.
How Do We Automate the Treasury Single Account with FinStream?
The Treasury Single Account (TSA) Finstream is an expert in centralizing cash management and automating key treasury functions through advanced technology and seamless integration by:
- Centralized Account Linking & Hierarchy: FinStream links physical bank accounts from multiple banks and entities into a unified platform. It allows for the creation of a multi-tiered virtual account structure that mirrors the corporate hierarchy, enabling better fund segregation and management (e.g., creating virtual accounts for revenue, expense, or subsidiaries).
- Automated Cash Sweeping & Pooling: The platform intelligently consolidates funds and performs automated transfers to optimize working capital, reduce idle cash, and maximize returns across accounts and entities.
- Real-Time Cash Visibility: FinStream provides a 360° unified dashboard offering a consolidated, real-time view of all accounts across multiple banks and entities. This enables superior liquidity control and supports strategic decision-making.
- Seamless ERP & Banking Integration: The Single Account Treasury Management platform offers plug-and-play connectivity with existing ERP systems, core banking platforms, and payment networks through API integration (REST or SOAP XML), ensuring a smooth and automated treasury workflow.
- Support for All Payment Methods: FinStream is compatible with a wide array of payment systems, including ACH, RTGS, NEFT, SWIFT, and other local and cross-border methods, enabling seamless transactions across geographies. It also supports virtual accounts and card-based payments for expense management.
- Automated Approval & Authorization Workflows: The system features multi-level authorization rules based on user roles, amount thresholds, and transaction types. It allows for dynamic approval configuration and auto-escalation mechanisms, ensuring robust financial controls and compliance.
Single Account Treasury Management Implementation Considerations
SATM is ideal for organizations looking to simplify treasury operations, optimize liquidity, and enhance financial control. Check out the steps before implementing a TSA:
- Bank Selection: Partnering with a global bank capable of supporting single-account operations across multiple jurisdictions.
- Treasury Systems: Implementing a TMS or Enterprise Resource Planning (ERP) system to monitor and control cash flow in real time.
- Regulatory Compliance: Understanding and addressing local and international banking and tax regulations.
- Intercompany Agreements: Establishing clear agreements for subsidiaries or divisions to access funds from the centralized account.
What Are the Advantages Derived by Adopting the TSA?
Finance controllers, treasury banking heads, group CFOs can gain an endless lists of benefits by adopting Single Account Treasury Management:
- Centralized Cash Management: Customers gain a unified view of their cash positions across multiple accounts, facilitating informed decision-making.
- Improved Efficiency: Automation of treasury functions reduces manual processing, leading to increased operational efficiency.
- Enhanced Risk Management: Customers can better identify and mitigate financial risks, including foreign exchange and interest rate fluctuations, through integrated risk management tools.
- Compliance and Security: TSA solutions assist customers in adhering to regulatory requirements and enhance financial security by providing real-time transaction monitoring.
- Flexibility & Scalability: Cloud-agnostic deployment (AWS, Azure, GCP, or on-premise) and a service-oriented, API-driven architecture ensure adaptability and future-proofing.
Who can use FinStream?
TSA platform FinStream can be used by the following sectors:
- Governments & Public Sector Organizations
- Centralized fund management
- Improved fiscal discipline
- Ensure compliance with transparency regulations
- Large Corporates & Business Conglomerates
- Consolidated cash visibility
- Optimization of working capital
- Improved control over intercompany transactions
- Banks & Financial Institutions
- Efficient management of liquidity
- Reduction in operational risks
- Value-added service for corporate clients
- Multinational Companies (MNCs)
- Simplified multi-currency fund management across different regions
- Improved FX risk management
- Holding & Investment Companies
- Enhanced control over dividend distribution and intercompany lending
- Better risk management through efficient fund allocation
Transform Your Treasury Today with FinStream
The future of Single Account Treasury Management is moving away from manual processes towards sophisticated systems. FinStream is continuously enhancing its capabilities to meet the dynamic needs of modern treasuries.
Its Service-Oriented Architecture (SOA), with a modular and API-first design, guarantees seamless integration with evolving external systems and future-proof treasury operations.
FinStream stands as an essential partner in empowering governments, large corporates, and financial institutions to centralize cash, optimize liquidity, and gain unparalleled financial foresight.
Achieve complete financial clarity across your entire organization with us. Reach us at this website: https://teknospire.com/
Frequently Asked Questions
How does FinStream support Single Account Treasury Management?
FinStream supports Single Account Treasury Management by:
> Centralized Account Linking & Hierarchy
> Automated Cash Sweeping & Pooling
> Real-Time Cash Visibility
> Seamless ERP & Banking Integration
> Support for All Payment Methods
> Automated Approval & Authorization Workflows
What is the TSA system in finance?
In finance, a Treasury Single Account (TSA) system centralizes cash management to enhance transparency, improve financial control, and optimize fund utilization by providing real-time cash visibility, enabling automated cash sweeping, ensuring regulatory compliance, and streamlining payment processing.
How do treasury accounts work?
Treasury accounts, particularly within a Treasury Single Account (TSA) system like FinStream, work by:
> Centralized Account Linking: Physical bank accounts from various banks and entities are linked together into a single, unified platform.
> Multi-tiered Virtual Account Structure: A hierarchy of virtual accounts can be created within this unified platform, mirroring an organization’s internal structure (e.g., for different departments, revenue streams, or subsidiaries).
> Automated Cash Sweeping & Pooling: Funds are intelligently consolidated and automatically transferred across these accounts to optimize working capital, reduce idle cash, and maximize returns.
> Real-Time Visibility: A comprehensive dashboard provides a consolidated, real-time view of all funds across these linked accounts, enabling better liquidity control and strategic decision-making.
What are the different types of treasury accounts?
The various types of treasury accounts are: operating accounts, concentration accounts, and disbursement accounts. Other types include investment accounts, escrow accounts, foreign currency and treasury single accounts.
What is the main role of treasury management?
Treasury management refers to the process of streamlining and centralising an organization’s financial operations, specifically related to cash, liquidity, and risk management to enhance transparency, improve financial control, optimize fund utilization, and process payments efficiently.