The Information Age and resulting new technologies have led to a a paradigm shift in the way the world makes decisions. Look no further than professional sports to see how the approach to formulating strategies has changed.
Coaches, who in the past defended their most important decisions using factors like “gut feeling” and “momentum,” are now making calls based on the probability of winning games according to the data. Analytics gives these leaders the opportunity to completely remove emotions from the situation and take an unbiased approach based on the numbers. The underlying statistics have always been there but now, thanks to technology, they have easy and virtually unlimited access to them.
Modernized treasury management within public entities and higher Ed sectors is no different. Cash can be spread out across many accounts at multiple institutions all earning different yields. Combine this with restrictions or limits on withdrawals and required balances, and one’s cash management picture can be a lot more complex.
Treasury officers are eager to get their hands on data and analysis from one central location that enables them to feel both comfortable and confident when making their cash-management decisions. Analytics makes it possible to maximize the potential of public funds without sacrificing safety or liquidity—and save valuable time during the decision-making process.
This type of information and analysis can include time-horizon data, effective rates for all entity funds across different providers, current market rates, and much more. Finance officials who collaborate with threeplusone have this data at their fingertips; that gives them the ability to maximize taxpayer dollars like never before.
Much like coaches in professional sports, finance officials are accountable to a large group of constituents who will not hesitate to voice their opinions if the results are not in line with their expectations.Having the data in hand and an appropriate application of analytics that backs up your decisions can be the difference maker in getting your finance office the hard-earned recognition it deserves!
