Fragmented vs Centralized Treasury Model

Why Treasury Providers Need Ecosystem Partnerships

Benefitting Centralized Treasury Operating Models

In our previous discussions, we’ve talked about why centralized Treasury operating models are so important for investment firms. A central operating framework fuses data accuracy, enhances risk management, advances product capabilities, and ensures compliance. Essentially, centralized operating models have become the foundation of efficient and effective treasury operations, tackling the many challenges posed by fragmented systems and manual processes.

But let’s be honest—achieving and maintaining a centralized operating model isn’t a walk in the park. The ever-changing financial landscape, along with evolving regulatory requirements and new technologies, demands a flexible approach. And that’s where ecosystem partnerships come into play.

Ecosystem partnerships are crucial for treasury platform providers, asset services and investment firms to truly unlock the benefits of centralized operating models. By capitalizing on these partnerships, treasury players can tap into a wide breadth of technologies, innovation, service capabilities and expertise, creating a smooth and cohesive operational framework for their customers.

In this blog, we’ll discuss the key role that ecosystem partnerships play in supporting treasury centralized operating models and how they can revolutionize treasury.

Addressing the Core Problem: Fragmented Treasury

Problem: Treasury players often struggle with fragmented operating models that lead to inefficiencies, data silos, and compliance risks. This fragmentation prevents a holistic view of financial operations, making it difficult to manage liquidity, forecast cash flows, and respond to regulatory changes promptly.

Solution: Ecosystem partnerships provide a seamless integration of front, middle, and back-office functionality and services, ensuring a cohesive and efficient treasury operation.

Treasury providers collaborating with the best-of-breed fintech firms, specialist providers, and regulatory experts, can easily access integrated solutions that offer real-time data connectivity, matching, automation, and compliance tools.

These partnerships not only streamline workflows but also enhance decision-making processes by providing up-to-date, accurate financial data. Additionally, they help mitigate risks associated with non-compliance and operational inefficiencies, leading to a more resilient and adaptable treasury function.

Key benefits of this integrated solution:
  1. Real-time Data Connectivity: Immediate access to up-to-date financial data for informed decision-making.
  2. Enhanced Data Matching: Automated reconciliation reduces errors and improves accuracy.
  3. Increased Automation: Streamlines routine tasks, saving time and costs.
  4. Compliance Tools: Ensures adherence to regulatory and transaction control standards with real-time monitoring.
  5. Improved Risk Management: Better identification and mitigation of risks.
  6. Scalability and Flexibility: Adapts to growing transaction volumes and complexity.
  7. Cost Efficiency: Reduces manual processes and improves overall cost management.

Fragmented vs Centralized Treasury Model

Visual 1: A fragmented treasury model vs. An integrated ecosystem model, illustrating the flow of data and processes in both scenarios.


Enhancing Operational Efficiency and Real-Time Data Connectivity:

Problem: Manual processes and lack of real-time data connectivity can lead to delayed decision-making and increased operational risks. Treasury leaders need timely and accurate data to manage liquidity, mitigate risks, and ensure compliance.

Solution: Ecosystem partnerships enhance data connectivity and operational efficiency by integrating various best of breed Fintech and third-party providers.

According to PwC’s report in 2022, automation in treasury operations can reduce processing time by up to 50%, allowing treasury teams to focus on strategic tasks rather than routine operations. This enhancement enables treasurers to achieve up to a 30% increase in efficiency for real-time cash management, streamlining workflows and improving decision-making capabilities.

Additionally, this integration facilitates real-time data exchange, improving cash forecasting and liquidity management.

Ensuring Regulatory Compliance:

Problem: Keeping up with regulatory changes and ensuring trading compliance across all operations is a significant challenge for treasury leaders. Non-compliance can result in hefty fines and reputational damage.

To illustrate the potential damage, EY’s 2023 report on navigating regulatory changes highlights that non-compliance with regulations can result in substantial fines. For instance, global regulatory fines exceeded $10.5 billion in 2023, emphasizing the stringent enforcement actions and the severe consequences of failing to comply with regulatory standards​.

This underscores the critical need for treasury leaders to stay abreast of regulatory developments to avoid such financial and reputational repercussions.

Solution: By partnering with a leading centralized treasury provider with front to back operating capabilities firms will have access to a wide range of compliance solutions from risk, regulatory to ESG and trade reporting , treasury leaders can stay abreast of the latest regulatory requirements and implement necessary changes promptly. Well known providers such as Nasdaq Calypso, SimCorp, Murex and Finastra provides these central Treasury technology capabilities.

Partnership with third-party compliance solutions can significantly reduce the risk of non-compliance and associated penalties. These best of breed partnerships provide access to advanced compliance technology and expert guidance, ensuring all operations adhere to current regulations.

Treasury platform providers often work with leading compliance solution providers introducing their capabilities to their clients, making sure these compliance solutions fit seamlessly into existing treasury operations. By offering these partnerships as part of their service, providers can help clients maintain a strong compliance framework. This not only protects against regulatory risks but also enhances overall operational integrity.

For decision-makers in the finance sector, for example understanding and addressing the root causes of cash breaks is crucial. By leveraging the latest technologies in data reconciliation and analytics , financial institutions can achieve greater accuracy and efficiency in their cash reconciliation processes.

Driving Innovation and Agility:

Problem: The financial sector is rapidly evolving, and treasury leaders need to adopt innovative technologies to stay competitive. However, integrating new technologies can be daunting without the right expertise and support.

Solution: Proven Treasury providers with the best ecosystem partnerships enable treasury business units to leverage cutting-edge technologies such as block chain, AI, and machine learning.

These technologies enhance security, improve predictive analytics, and enable smarter decision-making. Treasury providers should take an active role in facilitating these partnerships, making it easy for clients to adopt and implement innovative solutions.

For instance, treasury providers leverage Prodktrsegue to improve data migration and reconciliation for their clients. By successfully integrating specialist solution partnerships, providers can ensure a smoother transition to new technologies, boosting the agility and competitiveness of their clients’ operations.


Visual 2: The benefits of front-back support/integrated solution from ProdktrSegue

Practical Tips for Building Effective Ecosystem Partnerships:

  1. Identify Key Partners: Focus on best of breed partners who can address your specific challenges and align with your strategic goals. Look for fintech companies, software providers, and regulatory experts who offer the necessary expertise and technology.
    Head of Partnerships has quickly become a significant and crucial role for leading treasury providers. Wearing both a strategic and relationship hat!
  2. Leverage APIs for Seamless Integration: Ensure your treasury operating model supports API connectivity to facilitate real-time data exchange with your partners. This connectivity is crucial for maintaining up-to-date financial data and improving decision-making.
  3. Prioritize Data Security: Data security should be a top priority. Choose partners who adhere to strict security protocols and provide robust cybersecurity measures to protect your financial data.
  4. Continuous Evaluation and Adaptation: Regularly assess the performance of your ecosystem partners and make adjustments as needed. The financial landscape is constantly changing, and continuous evaluation ensures that your partnerships remain effective and beneficial.
  5. Work with Front-to-Back Platform Providers: To really benefit from ecosystem partnerships, it’s essential to team up with treasury providers that offer complete front-to-back solutions. These platform providers allow for seamless integration across the entire treasury operation, from front-office trading to back-office settlement and accounting.

Proven leading treasury providers embed ecosystem partnership for specific service capabilities, like ProdktrSegue for data integration and reconciliation, ensures consistency, reduces operational silos, and boosts data accuracy. Plus, these platforms usually come with built-in API capabilities, making it easier to integrate with other ecosystem partners and maintain a cohesive operational framework.


Ecosystem partnerships are essential for modern treasury systems and service providers to address the core problems of fragmented operations, inefficiencies, and compliance risks. By fostering these partnerships, treasury leaders can achieve greater integration, efficiency, and agility, supporting comprehensive front-to-back operating models. As the financial landscape continues to evolve, those who embrace ecosystem partnerships will be better positioned to navigate challenges and seize opportunities.

Contact us for support or to get hands-on experience with our ProdktrSegue data integration platform. Additionally, enjoy a complimentary treasury advisory service from Prodktr to enhance your treasury operations.



Deloitte. (2023). The future of treasury management operating models.

EY. (2023). Navigating regulatory change: Compliance in the modern treasury.

EY (2024). How financial firms can prepare for the 2024 regulatory landscape.

PwC. (2022). Automation in treasury operations: Efficiency and beyond.

Prodktr (2024). Why Centralizing Treasury Matters? (Part 1).

Prodktr (2024). Why Centralizing Treasury Matters? (Part 2).