The evolution of the treasury systems landscape

A Q&A with Nomentia

The evolution of the treasury systems landscape

We recently discussed the increasing feasibility of establishing a stable of best-of-breed treasury management solutions as an alternative to utilizing an all-in-one TMS, as published in The Treasurer magazine (December 2020 edition). In this article we sit down with Nomentia, a provider of treasury management solutions, to discuss how they fit into the evolving treasury systems landscape.

In September 2020, two well-known providers of treasury management solutions, OpusCapita and Analyste, merged to create Nomentia. Founded in the mid-1980s, OpusCapita and Analyste have brought cutting-edge Nordic Fintech to the world for over 35 years, so Nomentia inherits a strong heritage of innovation and trust – its products already deliver a wide range of functionalities to satisfy finance function requirements across a strong client base in Europe.

But how does the Nomentia product offering fit into the evolving treasury systems landscape? Is it an all-in-one TMS, is it a cash management solution, or is it somewhere in between? Anna-Lisa Natchev, Chief Growth Officer at Nomentia, explains.

The treasury systems market is consolidating, and in recent times we have seen a number of mergers and acquisitions of treasury systems vendors. What was the driving force between the merger of OpusCapita and Analyste, and what benefits do you feel this will bring in the future?

“In the Nordics, OpusCapita and Analyste have been rivals in the domain of corporate treasury and cash management for decades. The merger has brought clear synergies with complementing portfolio and skills together into one Nordic powerhouse with more muscles to invest in product development.
Nomentia will continue to introduce market-leading innovative cash management solutions for over 2000 existing customers and meet the demand of global prospects to provide unparalleled cash visibility, workflow automation, and risk management solutions for all our current and future customers.”

We have previously seen that these types of M&A activities in the FinTech space result in either a broader product suite, or an altogether new solution to replace the existing platforms. Having merged the two companies, have you also merged their respective products, or do you still offer the two solutions independently?

“As part of the merger, we carefully benchmarked the solutions against each other and combined the best-in-class areas from both to create a new product. Going forward, we will continue to further develop this new Nomentia solution, so that it can benefit global treasury and finance functions and act as a bridge between those.”

The requirements of a treasury function varies between organizations, often driven by the sector they operate in and existing systems they have in place. What functionality does the Nomentia solution offer, and can you give some examples of how the Nomentia platform typically sits within an organization’s treasury systems landscape?

“The Nomentia solution commonly acts as a hub of data between banks and other treasury systems. It complements and further automates processes that are handled in several source systems (such as ERP systems and TMS, for example), offering centralized visibility, control and security over all the cash flows group-wide.

The solution helps CFOs and treasurers in a number of areas, including (but not limited to) centralized cash visibility, forecasting and the payments and receivables process. It also acts as a reconciliation tool for multiple matching processes, produces accounting entries for bank statement entries, assists with bank account management and provides fraud prevention tools. The solution is offered as a service and sits between the companies’ or groups’ multiple backend solutions and the banks, harmonizing and centralizing the process.”

An increasingly common requirement for many corporates is a payment hub service. The need to centralize payment activities is driven by the advantages of cost reduction and increasing efficiency and security – can you tell us more about your cloud-based payment hub service, and how you connect to banks?

“Our solution harmonizes the AP [accounts payable] payment flows from multiple different subsidiary ERPs, TMS, and payroll systems. Interfaces are established from those backend systems and all payment files in various local proprietary or intermediate formats are converted into the Nomentia internal format. We remove the need for maintaining the bank-specific formats in the source system, and allow adding or changing banks without having to worry about compatible payment formats.

Data collection occurs automatically, as a prescheduled job, and the AR [accounts receivable] department will love how the account statements are automatically matched against several AR systems and pre-posted for bookkeeping.

Balance actuals are used for Nomentia cash forecasting, coupled with multi-ERP and format-independent cash flow data imports from AR/AP/TMS and other systems. The solution also includes in-house bank functionality allowing for intragroup transactions, including POBOs & COBOs, and balance management with interest calculations and streamlined reconciliation of virtual accounts.”

In our experience, integration is critical to success when deploying a suite of best-of-breed solutions. Can you provide some examples of the types of platforms you have successfully integrated with, and how you ensure effective communication between the platforms?

“Our strategy has always been to remain system agonistic and it’s in our DNA to integrate with any system no matter if it’s a legacy ERP deployed in-house, or a more modern cloud-based system such as TMS, payroll, travel claim, etc. Our best practice is to integrate source systems with our SFTP platform utilizing PGP encryption, or via APIs where available. Nomentia can handle all types of other file formats, the solution converts and maps all data to our internal proprietary ISO 20022 format. We also have a number of pre-made conversions under our belt.”

We see that the FinTech space is rapidly evolving, and many vendors release new functionality for their platforms on a regular basis. What is on the product roadmap for Nomentia?

“Along with onboarding existing customers to our next generation platform, our roadmap also includes improvements to OCR matching, rules engine based anomaly detection, APIs, alerts, KPIs, analytics and dashboards. Other focus areas include faster onboarding, self-service capabilities and extending the portfolio in certain areas of the treasury. As always, we continue to follow and implement changes in bank connections, SWIFT, security-related aspects, and continue building more bank connections.”

Zanders have previously worked with both OpusCapita and Analyste where the organizations had been engaged by mutual clients. The extent of our collaborative work included assisting with product implementations, jointly hosting events, and delivering FinTech thought leadership. We are excited by the merger of both organizations and look forward to continuing to work with Nomentia and their newly released product.