When world-class treasury teams are recognized for their achievements, innovation in streamlining treasury processes and use of modern technology are common themes. This was especially true for Spotify’s treasury team, which won the 2016 EuroFinance Award for Treasury Excellence for its strategic and technology-focused approach to their treasury operations. Here is their success story:
Addressing the challenge of rapid growth
During a period of exponential growth for Spotify, the world’s leading music streaming service, Johan Bergqvist, VP of Corporate Finance & Treasury, was tasked with streamlining banking and treasury for the organization. Bergqvit’s innovative and unconventional approach to selecting banking and treasury partners had yielded significant returns on relationships and time.
“Our goal was to create a solution oriented and agile treasury,” Bergqvist said. “We needed a secure, robust and scalable solution that integrated well with our systems, and we found that Kyriba was best aligned to support our needs.”
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The sound of successful treasury management
Thanks to the collaboration between Covarius, a consultancy supporting Kyriba, and the Spotify IT team, the interfaces for banking and cash management were designed and built within a month, and the first implementation phase quickly launched thereafter. A number of mission-critical benefits resulted from the new, cloud-based treasury solution.
- Reduction of manual processes: Legacy spreadsheet-based cash positioning processes were quickly decommissioned, once automated bank feeds were reconciled to the new process.
- Improved strategic reporting: The prior day reconciliation workflow with cash categorization and transaction matching allowed Spotify to post GL journals for all bank activity to its ERP system on a daily basis.
- Enhanced cash visibility and financial controls: Centralizing cash and payments management dramatically reduced the risk of fraud and human error.
- Reducing FX exposures: The team is better equipped to manage currency volatility and protect shareholder value.
Spotify’s treasury team, led by Bergqvist, rewrote the rule book for addressing the challenges of a fast growth company in a highly competitive space, the digital music industry. Innovative by nature, the team quickly realized their vision to eliminate manual processes, add efficiencies with treasury automation and create strategic value for the organization by controlling losses due to manual error, fraud and currency volatility.
Read the full case study for more details.