Business Development Director for Continental Europe, Duco
Data Challenges in Corporate Treasury
A conversation with Vincent Him, Duco, Luxembourg.
What challenges do you see now and in the future in corporate treasury?
A key issue across all sectors is the sheer volume and exponential growth in data. Corporate data is doubling every 14 months and growing by a factor of 50 this decade. The ability to manage this is a significant challenge for all firms, regardless of size, and the ability to successfully exploit it will give firms the edge over their competition.
The rise in data has also increased the number of end user controls required within organisations, and this can have a significant effect on treasury departments. Manual controls introduce risk and reduce auditability which can negatively impact performance and reputation.
Conversations with market participants at the ATEL / Wavestone event last month indicate that treasury firms have done well to address key issues with upcoming regulation. This includes Basel III, and the issues of liquidity management that it presents - especially where holding short-term cash is concerned. Those same people believe, however, that these problems are due to hit other sectors hard, especially the buy-side.
"A key issue across all sectors is the sheer volume and exponential growth in data. "
- Business Development Directo, Duco
As with so many regulations, responding to Basel III is essentially a question of data - how can it be collated, presented, and used effectively to meet requirements?
With Basel III, identifying non-operational cash and efficiently directing it where it won’t impact the balance sheet without generating revenue is a particular concern. This is especially true in an age of negative short-term rates. Treasurers have been through this pain and Duco are now working with firms - such as Wavestone - to construct solutions that can help other institutions.
What impact could Duco have in this area?
Duco’s data normalisation product Duco Cube is able to ingest any kind of data, to meet regulatory activity across treasury and other asset classes. Users can apply transformation and matching rules to handle data quality issues in an agile way - enabling fast adaptation to an ever-changing regulatory landscape.
Duco Cube can readily scale to meet the demands of corporates, and across the various segments of the financial services industry. It can be deployed in 24 hours and configured to cover a wide range of treasury and/or other applications. Through our intuitive UI and best-of-breed data normalisation IP we are able to eliminate risk, automate manual processes and introduce operational efficiencies across data processes such as cash sweeping, while offering reliable, scalable solutions to our community.
Duco provides self-service data engineering in the cloud. We empower users to normalize, validate and reconcile any type of data on demand. New clients are live in 24 hours, with results in 7 days and tangible business value in 30 days. Our customers include international banks, brokers, exchanges, asset managers, hedge funds, administrators, service providers and corporates.