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Treasury Maturity Assessment

Treasury Maturity Assessment

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Some survey questions were left unfilled . Please fill them to submit the survey.

Before you begin

Techcombank, with the consultation of PwC Vietnam, developed this assessment questionnaires to evaluate the maturity level of of a corporate cash and treasury management. Your responses will help Techcombank define opportunities to provide solutions to enhance your cash and treasury management capability. All your responses are held with our strictest confidence and only for the purpose of developing solutions to corporate clients.

There are 25 questions across 6 sessions:

1. Treasury governance

2. Organization structure

3. Cash and liquidity management

4. Funding management

5. Risk management

6. Digitalisation and technology

Please select the most appropriate statement which matches with your company's current situation.

General information

Full name

Phone number

Business name

Business tax number

Business's average annual revenue *

< 20Bn VND (<0.87Mn USD)
20 - 200Bn VND (0.87 – 8.7Mn USD)
> 200Bn VND (> 8.7Mn USD)

Top 3 criteria to determine your main transaction banks (select exactly 3 options)

Provision of credit facilities Professional banking services Main collection account Convenient transaction channels Main payment account Other criterias Best interest/FX rate/transaction fees

Please select exactly 3 options

If you have a different criteria, please specify

I have read and understood the details about privacy and data security on Techcombank's website

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1. Treasury governance

1. To what extent are Treasury processes and procedures documented?

Treasury processes are not clearly documented. Only a few Treasury processes are documented. All Treasury processes are recorded and stored in a central drive that is only accessible to relevant personnels. The processes are reviewed and updated regularly to ensure that they are in line with the actual operations of the business. The Treasury department provides regular training sessions on key Treasury processes, including guidance on how to handle liquidity incidents.

2. To what extent are the commitments in loan agreements monitored?

Covenants are not monitored, only reporting is done at the required time on the loan agreement. Covenants are monitored in the quarterly report of the Treasury department. Covenants in loan agreements are monitored on a financial data analysis system (E.g., BI tools, ERP, TMS) Covenants in loan agreements are automatically monitored on the system. There is an early warning process for risks of violating these commitment thresholds. Covenants in loan agreements are automatically monitored on the system. There is an early warning process for risks of violating these commitment thresholds. When the company implements long-term financial plans such as annual planning, mergers, then the commitments in loan agreements will be reviewed and reconsidered.

3. To what extent are bank relationships managed?

There is no clear policy on the selection of relationships with banks or the procurement of banking services and products. Banking relationships are implemented and managed by the business's senior management. Banking relationships are managed in accordance with Treasury policies. New relationships with banks, new account opening, and new banking services must be approved by the Board of Directors. There is a clear and specific strategy for managing critical and non-critical banking relationships. Critical banking relationships are reviewed at least annually with the bank.

4. How many banks are the business using and how are the agreements with the banks being evaluated for suitability?

The bank agreements and account structures are scattered across many banks. Multiple bank accounts are opened for the same purpose. Main operating banks are identified. Main operating banks are identified. Most credit limit agreements are only signed with the main bank. All bank service agreements are done with banks on a list approved by the Board of Directors. All bank agreements must be reviewed at least annually and must have evidence retained for subsequent review.

5. What is the current level of demand for transaction banking services at the business?

The business maintains multiple accounts at multiple banks for the purpose of payment and collection. The number of bank accounts is reasonable and consistent with the commitments in the credit limit agreement. The number of accounts is limited, using one or two accounts for collection and one account for payment. The business has an interface connected to the bank for automatic payment and collection. The business consolidates its payment and collection accounts at the Shared Service Center.

6. How does the business manage bank fees and register for bank services?

Bank fees are automatically deducted from the account. Bank fees are recorded in the general ledger and only analysed when necessary. Bank fees and services are the responsibility of the Treasury Department. Agreements are reviewed at least every 3-5 years. Bank fees are reconciled to ensure that they are in line with the fee schedule or to identify the cause of abnormal fee increases. Bank fees are automatically reconciled (by TMS) and the report of abnormal fee increases leads to a review of the fee schedule.

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2. Organization structure

1. Who is responsible for performing Treasury operations at the business?

Treasury operations are performed by staffs without professional training. Finance and Accounting staffs perform treasury-related activities Treasury staffs have experiences and skills in the field of corporate treasury. Dedicated treasury staffs have the required knowledge and skills at the time of recruitment or are trained in a systematic manner on the job. There are dedicated Treasury staffs, in addition, these staff have the opportunity to work in sales departments to expand their practical professional knowledge.

2. How does the company divide responsibilities between the front office and back office?

There is no clear division of responsibilities. Only a few tasks have clear responsibilities assigned. All activities are clearly divided between the front office and back office. Authorization is applied through a combination of manual workflows and system login rights. Task assignment is fully automated through the system.

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3. Cash and liquidity management

1. To what extent is the business’s cash balance visible?

Bank balances are not generated regularly. Balances of all bank accounts are generated at the end of the year. Balances of all bank accounts are generated at the end of the month. Balances of main accounts are generated daily, while balances of less-used accounts are generated at the end of the month. Balances are automatically downloaded to ERP daily.

2. How does the business reconcile its bank balance?

Transaction statements are collected manually, and bank balance reconciliation is also performed manually on a monthly basis. Any differences in the reconciliation process will be tracked promptly and the reasons will be recorded. The balance reconciliation of the main accounts is performed weekly, and the remaining accounts are reconciled at the end of the month. Transaction statements through bank accounts are received and reconciled automatically within the day. Changes in debt balance are notified by the bank in real time so that reconciliation of transactions through bank accounts can also be performed in real time.

3. How does the business invest its surplus funds and does it have an investment management policy?

The company primarily keeps its surplus funds in bank accounts and does not have any processes or systems in place to enable investment. Surplus fund management is coordinated by the Treasury Department within the limits of risk tolerance. There is a specific investment strategy for surplus funds, which is coordinated by a dedicated Treasury Department. Investments are made strategically and are regularly monitored and adjusted to optimize returns. When making investment decisions, the Treasury Department considers the impact on asset/liability management and balance sheet structure to optimize investment effectiveness.

4. How is the automation of payment transactions being implemented at the company?

All payments are processed manually, including confirmation calls, faxes, and signature confirmation of transactions on payment orders. Payments are manually uploaded to the bank system for approval. There is an interface connecting to the bank. Payment approval is performed on the bank's system. Payments are sent through a direct secure protocol. Payment approval is performed on the bank's system. Payments are created and approved on the company's Treasury Management System (TMS) software and are sent automatically to the bank through a direct secure protocol.

5. What is the business's payment cycle and frequency?

There is no payment cycle. Bills are paid on the due date. Bills with similar due dates are sometimes grouped together for payment on the same day, but there is no formal payment cycle. The ERP system automatically performs a payment cycle for bills that are grouped by date and supplier. The payment cycle for bills is automatically performed and officially communicated to suppliers and other relevant parties. The payment cycle is officially announced for the entire year and is reflected in the payment terms of purchase contracts.

6. To what extent is accounting transaction processing automated at the business?

There is no automated system. All calculations and accounting entries are manually entered into the accounting system. All calculations and accounting entries are prepared in Excel and then uploaded to the accounting system. There is an interface between the ERP and the Treasury Management System (TMS), and most transactions are automatically transferred to the ERP. All accounting entries, including adjusting entries, are automatically transferred from the Treasury Management System (TMS) or other specialized transaction systems into the ERP with a full audit trail for subsequent audit activities. Accounting transaction processing is fully automated through the interface between the Treasury Management System (TMS) or other specialized system and the ERP.

7. How often does the enterprise perform cash flow forecasting?

There is no cash flow forecast. Cash flow forecasting is performed on demand when needed to raise capital. Cash flow forecasting is performed regularly. Cash flow forecasting is performed regularly, with short-term, medium-term, and long-term forecasts in line with the budget plan and financial statements. Cash flow forecasting is performed regularly, with short-term, medium-term, and long-term forecasts in line with the budget plan and financial statements. The difference between actual and forecast and budget plan is analyzed.

8. How does the business forecast cash flow?

There is no tool to support cash flow forecasting. Business units forecast cash flow on Excel spreadsheets based on their understanding of cash flow or historical data and then compare it with the Treasury Department. Data is connected from multiple sources such as ERP and other internal sources to forecast cash flow on Excel spreadsheets. In addition to the centralized data from ERP, businesses also use external data sources to forecast cash flow. ERP is used as the basic data source in basic cash flow forecasting. Market data is used to analyze different scenarios in cash flow forecasting. Cash flow forecasting is supported by the system to be carried out at the times in the future that the business wants.

9. How does the analyse the difference between forecast and actual to validate the accuracy of cash flow forecasting?

There is no cash flow forecasting activity. The difference at a general level to identify significant deviations is analysed. A difference analysis report is generated with proposed adjustment solutions for deviations beyond the allowable limit. The difference to adjust the cash flow forecast is analysed, thereby increasing the accuracy of the forecast for working capital and funding needs. Bank statements are used to increase the efficiency of variance analysis. In-depth root cause analysis is performed to improve the accuracy of the forecasting model.

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4. Fund management

1. How diverse is the business's source of capital?

Capital is raised from a centralized source. The enterprise does not have a reliable forecast or model to determine the amount of capital needed. Capital is raised from a few sources, mainly from banks. There is a basic cash flow forecast and it is only done when required. Capital is raised from a few sources, mainly from banks based on a regular cash flow forecast (E.g., monthly/quarterly). Capital is raised from a number of main sources and is managed centrally. The capital raising model uses the results of long-term business forecasts combined with diverse scenario analysis. An advanced capital raising model is applied to optimize the amount of capital raised with diverse terms and interest rates.

2. How is the business monitoring the use of its credit limit?

The use of the credit limit is not monitored and reported regularly (e.g., quarterly). The use of the credit limit is monitored in the monthly report of the Treasury Department. The business calculates the remaining credit limit to be used based on cash flow forecasts. The business calculates the remaining credit limit to be used based on cash flow forecasts under various analysis scenarios, stress tests, to identify potential liquidity risks. The support system provides forecasts, scenario analyses, stress tests to identify potential liquidity risks, and recommends credit limits to be opened to mitigate liquidity risks.

3. How does the business carry out internal loans with affiliated companies or shareholders?

Internal borrowing is very limited. There are internal loans and they are tracked using a manual spreadsheet (Excel). A framework contract with general interest terms is used in internal borrowing transactions. Debts are reconciled between the relevant parties at the end of the period. Loans are made on a case-by-case basis, with interest rates that are competitive with bank rates, depending on the needs. In addition to the above, the company tracks internal loans like a loan from a bank. The loans are based on projected cash flow on a monthly/weekly basis.

4. How is the business managing its working capital?

There are no reports on working capital performance or proactive working capital management. There are reports on key working capital me (E.g., days sales outstanding, days inventory outstanding, days payable outstanding). There are policies and objectives for working capital management, including standard payment terms, allowable payment discounts, and partner risk limits. There are policies and objectives for working capital management, including standard payment terms, allowable payment discounts, and partner risk limits. Working capital requirements are analyzed thoroughly and reported to the company's management levels. The Treasury Department works with the Finance and Accounting Department to implement initiatives to improve working capital efficiency (e.g., factoring).

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5. Risk management

1. How does the business receive exchange rate quotes?

No quotes are received. FX quotes are received via email or other means. FX quotes are received via email and other means. There is also reference to online quotes on e-Banking. FX quotes are primarily received via online platforms. FX quotes are primarily received via online platforms. There is also a system for storing FX quotes for later review.

2. How does the business receive interest rate quotes?

No quotes are received. The bank sends the interest rate after confirming the promissory note. Interest rates are received via email or other means. Interest rates are received via email and other means, with reference to online quotes on e-Banking. Interest rate quotes are primarily received through an online platform. Interest rate quotes are primarily received through an online platform. Interest rate quotes are stored in the system and reviewed later.

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6. Digitisation and technology

1. Is your business interested in a specialized Treasury Management System (TMS)?

It is not necessary. It is possible, but it has not been included in the budget for this year. There is a plan to invest in a Treasury Management System (TMS), but the cost needs to be considered. We want a solution that can see results immediately at a reasonable cost. There is a plan and budget to implement a Treasury Management System (TMS) The business has used a Treasury Management System (TMS).

2. What system does the business use to connect to the bank?

There is no direct connection system with the bank. Bank statements are sent via email/mail/fax. Payment orders and bank statement retrieval are performed manually through the online banking system. Some bank account services can be used on the online banking system. There are still a few payment orders and bank statement retrievals that must be performed manually. Payment orders and bank statement retrieval for some accounts are performed through direct connection systems. An online connection system is established with all banks to transmit payment orders and retrieve bank statements.

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Survey result on corporate treasury maturity

EVALUATION CRITERIA	TREASURY MATURITY RATING*
EVALUATION CRITERIA		Level of goal completion

Red indicates scores below the mean, while green indicates scores above the mean.

*Treasury maturity rating is scored on a scale from 1-5

Treasury Maturity Assessment

Before you begin

General information

Business's average annual revenue *

If you have a different criteria, please specify

1. Treasury governance

2. Organization structure

3. Cash and liquidity management

4. Fund management

5. Risk management

6. Digitisation and technology

Survey result on corporate treasury maturity

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