Technology in Treasury

Treasury management systems, ERP integration, bank connectivity and ISO 20022, e-commerce and payment card systems, automation and AI, technology security concerns, phishing and cyber risk, and implementing treasury products and workstations.

5 minutes 5 Questions

Technology in Treasury, as covered in the Certified Treasury Professional (CTP) body of knowledge, refers to the systems, platforms, and digital tools that enable treasury professionals to manage liquidity, risk, payments, and financial information efficiently and securely. At the core is the Treas…

Concepts covered
Treasury Management Systems: Functions and SelectionArtificial Intelligence Risks in TreasuryReal-Time and Cashless Payment RisksMerchant Services Security ControlsERP Integration and Straight-Through ProcessingE-Commerce and Payment Card SystemsBank Connectivity: SWIFT, Host-to-Host and APIsPhishing and Social Engineering AttacksPayment File Formats and ISO 20022Bank Product Implementation and OnboardingSystem Access Controls and EntitlementsTreasury Automation: RPA and AI AnalyticsTechnology Change Management and TrainingTreasury System Implementation LifecyclePayment Security: Encryption, Tokenization and MFACyber Incident Response and Fraud Recovery
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CTP - Technology in Treasury Example Questions

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Question 1

A company will send 12,000 real-time payments a year, averaging $8,000 each. It expects 0.05% of payments to be fraudulently redirected. It recovers 10% of redirected funds on real-time rails and 60% on ACH credits. What is the added annual expected loss from real-time payments?

Correct Answer: $24,000

Annual volume is 12,000 x $8,000 = $96 million, and 0.05% of that is $48,000 redirected. Real-time rails lose 90% of it ($43,200) and ACH credits lose 40% ($19,200), so the added expected loss from real-time payments is $24,000.
$19,200 is the expected loss on ACH alone, not the difference. $43,200 is the total real-time loss with no comparison to ACH. $28,800 is the amount recovered on ACH (60% of $48,000), not the incremental loss.
Key concept: incremental expected fraud loss from the irrevocability of real-time payments.

Question 2

Which merchant card pricing model passes the card network's interchange and assessment fees through at cost and adds a processor markup charged per transaction?

Correct Answer: Interchange-plus pricing

Interchange-plus pricing passes the card networks' interchange and assessment fees through at actual cost and adds a disclosed processor markup on each transaction, usually a percentage plus a fixed fee. This makes it the most transparent pricing model.
Flat-rate blended pricing charges one combined rate for every card type, so the true interchange cost is hidden. Tiered bundled pricing sorts transactions into qualified, mid-qualified and non-qualified buckets at bundled rates, which hides the underlying costs and often adds extra markup. Subscription pricing also passes interchange through at cost, but the processor earns mainly from a fixed monthly membership fee rather than a per-transaction markup.
Key concept: merchant card processing fee structures and cost transparency.

Question 3

Bank portal rules require each wire to be initiated, approved and released by three different users. Any user may hold all three rights but performs only one role per wire. What is the minimum number of entitled users so wires still flow when any one user is absent?

Correct Answer: 4 distinct users

Each wire needs three different people, and any user can perform any of the three roles, so four fully entitled users guarantee that three distinct people remain available when any one is absent.
Three users would leave only two people during an absence, which is not enough to initiate, approve and release separately. Five or six users exceed the minimum. Because every user holds all rights, a single spare covers any one absence, and there is no need to back up each role separately.
Key concept: dual or triple control (segregation of duties) combined with N+1 staffing redundancy for payment continuity.

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