Treasury management system (TMS)
Treasury management system (TMS) refers to software that gathers bank and payment data to show cash positions. It also supports forecasting, payments, bank account management and financial risk management.
How it works
The Association of Corporate Treasurers describes treasury systems as software, hardware and data sources that collect and format treasury information and run routine calculations. Kyriba describes a TMS as software for processing cash flow and managing bank relationships. Core functions include real-time cash visibility, payment tracking and forecasting.
A TMS also helps manage foreign exchange, interest rate and credit risk. Bank connectivity, often through APIs, feeds in daily balances and transactions. J.P. Morgan notes such feeds can automate daily cash positioning.
Cross-border payment firms need views a standard TMS may not provide. Prefunded partner balances, funds in flight, safeguarding pools and corridor runway sit outside ordinary bank feeds. Pitfalls include relying on end-of-day statements and keeping partner balances in spreadsheets.
Example
Illustrative example: A firm's TMS shows $18,000,000 across 12 bank accounts. Partner portals add $7,000,000 of prefunded balances, and $2,000,000 is in flight. The full liquidity picture is $27,000,000. Only $18,000,000 of it is visible in the TMS alone.
Frequently asked questions
Do payment companies need a TMS?
Most need its core functions: consolidated balances, forecasting and payment control. Whether a packaged TMS fits depends on how much liquidity sits with partners and wallets outside bank feeds.
Can a TMS move money automatically?
Many systems track and manage payments across domestic and international rails. Automated moves still need approval workflows and limits. Agentic treasury tools extend this by deciding within set policy bounds.
Related terms
Sources
- Treasury management information systems · ACT Wiki, Association of Corporate Treasurers
- What is a treasury management system? · Kyriba
- How to create cash flow forecasts and projections · J.P. Morgan
Know where all your money is.
Polynopsis gives cross-border payment teams one live position across every bank, payout partner, exchange and wallet, including money in flight, and warns before a corridor runs dry.