Digital transformation is one of the hottest topics in treasury right now. Although there are many ways that treasury departments can approach digital transformation, whichever path they choose, an important first step is establishing a strong and stable core in the form of a digital backbone.
Anyone who has ever embarked upon a personal fitness regime will understand what it means to have a strong core. It stabilises the body and reduces the likelihood of injury. The same goes in the world of business, and treasury, where the support of a strong ‘digital backbone’ – a cornerstone of a successful digital transformation – can lead to a fitter and, ultimately, more resilient organisation.
There are a number of reasons why a company might pursue digital transformation. But whether it is about improving customer experience, growing revenue, workforce optimisation, risk management or operational efficiency, the development of a digital backbone can be the uniting factor. In fact, without a digital backbone, any transformation risks becoming merely a loose aggregation of technologies. It is a missed opportunity – especially for treasury. Only when a digital backbone is in place to support the entire digital structure can true transformation take place.
Meeting all needs
There are two key aspects of technology that form the digital backbone. The first is access to data that is both fit for purpose and able to flow freely back and forth. This facilitates real-time intelligence, which is critical for correct and timely decision-making. The second aspect is open application programming interfaces (APIs). These are steering the development of modern software towards the formation of scalable and open treasury infrastructures, where core treasury systems can connect to a multitude of internal and external systems.