In many corporate finance departments, siloed data, systems, and processes hamper communication and hamstring efficiency. Treasury groups that can tear down those silos not only provide better support to the company, but also position themselves to play a more strategic role in the organization.
At DFC Global, an international, non‐bank financial services business, the treasury team played a leading role in an initiative to streamline processes from cash forecasting and financial risk management to reconciliations and accounting. The team also became a strategic partner for business units looking to grow through mergers and acquisitions (M&A) or even develop new product offerings.
Within the broader business, capital allocation is critical to our future success, so treasury partners with the business units to figure out where their opportunities are and how we can best allocate our capital to support the business and their growth objectives. This includes M&A opportunities as well as new product development—such as partnering with financial institutions to leverage their product suite to serve our customer base. A good example is our deployment of remote check capture technology to facilitate and expedite the check cashing process for our customers. Partnering with the business units internally not only allows us to gain efficiencies by re‐engineering processes and systems, but it could also lead to a new product offering for our customers.
Two other modules of Kyriba are important to us, as well. Because we are getting so much transaction detail, we can bring in a point‐of‐sale file and do reconciliations in an automated fashion. Historically, we did them manually, which was very time consuming. We’re also using a payments module. The typical company uses this module to pay vendor invoices, but we use it to automate funding loans to our customers. It also provides a lot of file validation, which ensures that we don’t fund customers in excess of their daily limits, process duplicate payment files, etc.