Why Centralizing Treasury Matters? (Part 2)

Enhance Financing, Compliance, and Talent

Welcome back to our series on centralizing your treasury. In our last post, Why Centralizing Treasury Matters? (Part 1), we explored the top three benefits of centralizing treasury functions— for example: cash management, enhanced risk control, and cost savings. If you missed it, be sure to check it out to get the full picture.

Today, we’re taking things a step further. We’ll examine how to bring a centralized treasury model to life in your organization. We’ll cover how it can boost your financing and investment strategies, improve compliance, and help you build a powerhouse team of talent and expertise. It might seem like a big leap, but trust me, with the right steps, you’ll see incredible benefits.

1. Better Financing and Investment Capabilities

A centralized treasury can really give you an edge when it comes to capital markets, often securing better financing terms. And this isn’t just theory. Companies with centralized treasury functions saw a 15% boost in their financing capabilities.

At Prodktr, we believe that optimizing your financing and investment strategies is crucial for immediate improvements and long-term success. Here are our recommendations:

  • Centralize Financing Strategy: Create a unified approach to effectively manage your company’s capital and leverage its financial strength.
  • Enhance Market Intelligence: Use centralized data for better insights into market conditions and opportunities, leading to informed decisions.
  • Implement Strategic Investment Policies: Align investment decisions with organizational goals through centralized decision-making, ensuring optimal investment choices.

In this blog series, we are going to explore into why a centralized treasury operating model matters and how it can help firms reduce costs and risk.

2. Improved Compliance and Control

Staying compliant with regulations is a must, and a centralized treasury can really simplify this. With stronger governance and standardized policies, you can ensure robust internal controls. How can a centralized model reduce the cost of compliance?

Here our recommended steps to ensure compliance and enhance control:

  1. Create a Centralized Compliance Framework: Ensure all treasury activities follow the same rules and procedures.
  2. Regularly Review and Update Policies: Keep policies current with regulatory requirements to maintain compliance.
  3. Conduct Regular Audits: Perform internal audits to identify and address compliance issues proactively.

3. Talent and Expertise

Centralizing treasury functions lets you bring all your expertise and talent into one dedicated team. This specialized team can focus on strategic activities like optimizing capital structure, managing investor relations, and driving financial innovation. Plus, it becomes a lot easier to attract and retain top talent when everything is centralized. So, how you can concentrate talent and expertise in a centralized treasury:

  1. Define Roles and Invest in Training: Clearly define roles and responsibilities, and provide continuous professional development to enhance skills and knowledge.
  2. Leverage Technology and Collaboration: Use advanced treasury management systems to streamline operations and foster a collaborative culture for knowledge sharing and innovation.
  3. Offer Career Progression: Create clear career paths, offer advancement opportunities, and attract skilled professionals with competitive compensation packages.


Implementing a centralized treasury operating model might seem challenging, but the benefits are significant. By achieving economies of scale, optimizing financing and investment strategies, and ensuring solid compliance and control, you can boost your organization’s financial health.

We support models that streamline operations and enhance financial agility and resilience.

For further advice and tailored solutions, reach out to Prodktr today!



AFP, 2023. https://www.afponline.org/topics/treasury/treasury-management

KPMG, 2023. https://kpmg.com/us/en/articles/2023/2023-global-compliance-risk-benchmarking-survey.html

Deloitte, 2022. https://www2.deloitte.com/us/en/pages/financial-services/articles/the-future-of-treasury-management-operating-models.html

McKinsey & Company, 2023. https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/redefining-corporate-functions-to-better-support-strategy-and-growth

Prodktr, strategies-to-enhance-your-treasury-and-risk-management (prodktr.com)