A well-executed Proof of Concept (POC) is critical when evaluating treasury technology solutions, serving as the bridge between vendor promises and operational reality.
When assessing complex treasury systems, the POC process is far more than a vendor beauty contest. It’s a strategic exercise that validates technical capabilities, assesses organizational fit, and lays the groundwork for shaping the future treasury operating model.
As treasury operations grow more sophisticated, supporting diverse products, managing complex risk, and enabling cross-functional workflows, the stakes of system selection rise accordingly.
Based on our experience with a leading development bank, we have identified five clear steps that transform standard evaluations into strategic learning opportunities, creating lasting value beyond the selection phase.
1. Scoring Isn’t the Destination
In treasury system POCs, scoring provides valuable data points, but treating scores as the ultimate decision-maker misses the bigger picture. When evaluating vendors across multiple cycles and business areas, the numbers tell only part of the story.
A vendor might excel on paper but struggle with integration challenges or lack alignment with your operating model. Effective POCs look beyond the scorecard to assess how solutions perform across front-to-back workflows, how they integrate with existing systems, and how vendor teams respond to change requests over multiple test cycles.
The most successful treasury teams use scoring as a compass, not a verdict. They evaluate how each solution performs in their specific environment and how adaptable vendors are to their unique requirements. This approach ensures selection based on real-world readiness, not just theoretical .
Visual 1:POC Performance
Shows how scores changed across 3 cycles. Scoring trends are more telling than snapshots.
2. Define Success in Practical Terms
The most effective treasury Proofs of Concept (POCs) are rooted in the realities of daily operations. Instead of concentrating on generic features, center your evaluation on the workflows and reporting needs that encompass the front office, middle office, back office, and accounting functions.
A well-defined POC should clearly outline:
- What success means within your specific environment
- What elements will (and won’t) be tested
- How the findings align with future operational goals
- Which stakeholders must approve of the scope and outcomes
By emphasizing how solutions operate within your unique context rather than in isolation, you create a practical assessment framework. This approach evaluates both functional requirements (trading, risk, and settlements) and non-functional requirements (integration capabilities, reporting flexibility, and scalability) essential for long-term success.
Visual 2: Performance by Business Unit
Highlights front-to-back performance across business units, reinforcing practical workflow testing.
3. Avoid the Illusion of Readiness
Some vendors showcase impressive demos that don’t translate to fit-for-purpose delivery. This is where a robust POC proves invaluable: by surfacing hidden gaps in both vendor capabilities and your internal readiness.
A comprehensive POC reveals:
- Gaps in functionality under real pressure
- Misalignment with internal workflows
- Integration issues with current systems
- Delays or unclear ownership in processes
By testing real-world scenarios, including edge cases and stress situations, you can spot risks early — before full commitment. It’s also a chance to check product coverage, reduce manual steps, and ensure data flows correctly from end to end.
4. Collaborate Across Departments from Day One
A successful Proof of Concept (POC) adopts a structured, cross-functional approach—an essential best practice for evaluating complex systems. Instead of operating in silos, the treasury, IT, risk, and accounting teams should collaboratively own the process from the outset.
Effective POCs enable teams to:
- Engage in all evaluation cycles
- Provide timely and structured feedback
- Align on testing criteria and priorities
- Validate outcomes using their domain expertise
This collaborative approach prevents misalignment, minimizes rework, and highlights key risks and opportunities early in the process. Furthermore, it ensures that non-functional requirements—such as integration readiness, scalability, data quality, and reporting flexibility—are assessed with the same rigor as core .
5. Success Criteria
A robust Proof of Concept (POC) enables your team to assess whether a system is truly suited for their daily operations, not just in theory.
Here are key indicators to consider:
- Support for real treasury use cases and products
- Comprehensive end-to-end process coverage with minimal manual intervention
- Seamless integration with existing systems
- Reliable performance and scalability
- A clear implementation plan backed by the right expertise
- Accurate and timely outputs for reporting and informed decision-making
The objective extends beyond merely testing features; it’s about ensuring the system aligns with your team’s needs and is prepared for practical use.
Conclusion
A well-executed POC is more than just a vendor selection tool—it lays the groundwork for successful treasury transformation. By viewing scoring as a reflection of operational reality rather than an endpoint, you create momentum that carries far beyond the evaluation phase. The insights gathered during a thoughtful POC process help align stakeholders, clarify implementation challenges, and foster a shared vision for treasury evolution that delivers lasting value.
At Prodktr, we are dedicated to enhancing treasury and risk management operating models for successful investment firms.
Contact us for further suppport.