Difference between Integrated Treasury and Traditional Treasury management

Difference between Integrated Treasury and Traditional Treasury management:  

Integrated Treasury refers to the integration of domestic and foreign exchange operations. A comprehensive strategy for funding the balance sheet and allocating capital across domestic, international and foreign exchange markets is known as integrated treasury.

Traditional Treasury management is the act of managing a company’s daily cash flows and larger scale decisions when it comes to finances. It can provide governance over a company’s liquidity, establish and maintain credit lines, optimize investment returns and strategize the best use of funds.

Here is a highlighting the major difference between Integrated Treasury and Traditional Treasury:

Aspect	Integrated Treasury	Traditional Treasury Management
Scope	Offers a wider range of functionalities, including cash management, payments, collections, forecasting, risk management, and more	Focuses primarily on core activities like cash management, banking relationships, and short-term investments
Technology Utilization	Utilizes advanced technology and automate systems for real-time data and analytics	Relies on manual process and basic financial software
Liquidity Management	Centralized and optimized liquidity management across multiple entities and currencies	Decentralized liquidity management often siloed by entity or region
Data Integration	High level of data integration across different financial functions and systems	Data resides in separate systems, requiring manual consolidation
Decision Making	Supports informed decision-making with comprehensive, real-time insights	Decisions based on periodic reports and historical data
Visibility	Provides real-time visibility into all financial activities across the organization	Limited visibility due to siloed data and manual processes
Cost Efficiency	May involve a higher initial investment but offers significant cost savings in the long run	Lower upfront cost but can be expensive due to manual processes and duplicated efforts.
User experience	Offers a user-friendly interface for managing all treasury functions.	Requires navigation through multiple systems, leading to a complex user experience.