System Integration: Data and Processing

Within the Treasury Management System, data is automatically exchanged between the modules. This means that all interest and redemption payments are immediately visible in the cash forecast and liquidity planning immediately after a loan has been recorded. Since all information is in a single database, it is available for all evaluations without having to be entered again. For this reason, Trinity TMS is called an integrated system.

However, integration also includes embedding the treasury management system in existing system landscapes at customers, because…

…in addition to financial cash flows (from financial transactions), operational cash flows (e.g. expected incoming sales, outgoing invoices, salary and tax payments) are of course also required in order to optimally control and permanently secure the company's liquidity. A transfer of this data from various sources usually takes place regularly and automatically via interfaces/web services in the background.

However, connecting to systems in one's own company is only one part of the desired connectivity.

The treasury system e.g. produces

payments from treasury transactions via previously defined standing settlement instructions, from daily cash management or internal netting of receivables,
reports or data for other systems and possibly
account statements for intercompany accounts managed in the TMS or
booking instructions as a basis for automated booking in the ERP.

From outside, the finance department primarily wants up-to-date account information, which in practice is already collected via electronic banking solutions. Depending on the industry and the size of the corporation’s turnover, this might include intraday notifications of incoming payments.

The automatic comparison of planning data from own data sources with the account turnover items of the bank statements, which the treasury management system carries out automatically on a rule-based basis, can also be defined as the starting signal for the generation of posting instructions to the ERP. By using the accounting function, account turnover items can be assigned to corresponding G/L accounts in order to achieve a fully automated posting process from Trinity TMS to the corporate’s accounting system.

For the conversion of foreign currencies, to get mark-to-market valuations of financial and commodity deals, for example, foreign exchange and interest rates, yield curves as well as price quotations of commodities are to be imported by the TMS reliably in the background. Valuation formulas that incorporate ratings such as CVA/DVA require suitable credit default swap data. Such information is offered by various market data providers and can even be queried in Trinity TMS on a customer-specific basis via parameterizable codes if required.

Internet trading systems such as 360T or FXall® (Refinitiv®) are being used more and more frequently to map foreign exchange transactions quickly and audit-proof. After conclusion of a deal there, transactions can be downloaded into the treasury system and confirmed immediately via corresponding confirmation matching services such as Finastra, FXall® or also via the cloud-based SWIFT Services platform FinMApp of Broadridge. As soon as the success message comes back, the status of the trade is set to "confirmed" in the Trinity TMS. For clients with a large number of FX transactions, the system even offers a pre-clearing function specifically for the FX area ("FX netting") to minimise the number of chargeable transactions from a corporate perspective.

Straight-Through-Processing and integration with the services of banks and financial institutions as well as specialised financial service providers are continuously advancing. In particular, the discovery of Application Programming Interfaces (API) and the entry of new market participants are creating a lot of movement in the field of digitalisation in financial management.

The EU's second Payment Service Directive (PSD 2) has allowed companies to offer account information and payment initiation services and to use the relatively new API technology for this purpose. This has created an alternative to the well-known EBICS, especially for ECommerce providers. APIs for payment transactions and account information and many other areas are implemented by banks at different speeds and above all individually, so that cross-bank standards as with EBICS or also SWIFT are not guaranteed. The replacement in e-banking will therefore still be a long time coming.

However, Trinity has a meaningful use case to offer for the digitalisation of guarantee management, where our customer can submit its guarantees to the guarantors and have them confirmed directly from the treasury management system via REST API. More and more banks but also credit insurance companies are joining the guarantee platform of our partner Digital Vault Services GmbH (DVS) and are available to accept guarantees and sureties digitally. The process of applying for and amending guarantees is accelerated many times over and the legally valid digital guarantees are securely stored by DVS as long as required. Alternatively, guarantees can also be submitted to banks via EBICS or SWIFT channels.

In terms of reporting and evaluation options, the treasury system has a wide range of possibilities to offer. Nevertheless, treasury management sometimes has to deliver very special reports, e.g. according to the European Market Infrastructure Regulation (EMIR) about over-the-counter derivatives transactions, or just information for a cross-company used BI tool for “big data” analyses. Trinity offers several solutions for this as well.

Your advantages

As an experienced system provider, Trinity already offers many interfaces as standard and has implemented numerous individual requirements in addition.

As an independent company Trinity experts do all the development work themselves. The German company is able to implement both modern and future-oriented technologies as well as solutions that have been tried and tested over many years for integration in different and very heterogeneous system environments.

Process Optimisation and Risk Reduction

safe processing through automation
concentration of all financial data in one database
use of proven and modern procedures (e.g. REST API, web services)
individual adaptations for data exchange (if required)
experience in the integration of numerous surrounding software solutions (electronic banking, market data provision, internet trading, confirmation matching, accounting systems etc.)
automatic account assigning and booking for different ERP

Time and cost savings