6 essential steps for RTC onboarding

RTC onboarding is a complicated process that should take place in several stages. Because of its intricacies, it’s important to develop a thorough plan and work with stakeholders throughout the process.

Step 1: Define your scope and objectives
Begin by clarifying the strategic objectives of the RTC. For example, you may want to focus on:

• Facilitating funding and investments by coordinating regional funding needs and deploying surplus cash into approved investments
• Managing foreign exchange and interest rate exposure, using identification and monitoring to protect against market volatility
• Increasing working capital efficiency via regional cash pooling, intercompany lending and supply chain finance solutions

Work with internal and external teams to establish the path forward.

“Engaging senior management and key stakeholders early on can help you not only gain buy-in, but clarify and adjust your purpose, if necessary,” Huiskes said.

Make sure you’re aligned on:

• Corporate strategy
• Centralized functions
• Regions and entities included
• Key performance indicators (KPIs)

You should also leverage legal, tax, technology, banking and other external teams to help you accelerate onboarding and navigate complex challenges.

Step 2: Assess regulatory and tax requirements

Conduct a thorough review of regulatory requirements and tax implications in each jurisdiction, including banking regulations, foreign exchange controls, transfer pricing rules and tax incentives.

Your legal and tax advisors can help you navigate complex regulations and ensure full compliance with national, regional and local requirements. Collaborate with your banking team to gather relevant examples, credentials and connections to key peers.

As a best practice, document processes, policies and decisions to maintain transparency and facilitate audits and reviews.

Step 3: Design your operating model

Define the RTC’s organizational structure, governance framework and processes. Decide which treasury functions to centralize, who will manage them and how. Document all processes and establish clear governance to ensure consistency and accountability.

Make sure your operating model includes:

• Approval hierarchies
• Process mapping, including payments, collections and FX
• Service level agreements

Step 4: Select and integrate treasury technology

Select a treasury management system (TMS), ERP and other technology platforms that align with your centralization goals and collaborate with teams experienced in treasury transformation. In today’s AI-driven environment, data migration is even more critical—ensuring clean, validated data before integration is essential to support advanced analytics, automation and decision-making. Proper data preparation not only prevents errors and delays, but also maximizes the value of AI-powered treasury solutions.

Step 5: Choose your banking and cash management setup

As you establish your banking relationships and cash management structures, follow these steps:

• Identify and evaluate banks: Select banking partners that can support the RTC’s operational needs, considering their geographic coverage, regulatory expertise and service capabilities.
• Negotiate terms and pricing: Discuss and finalize fee structures, service level agreements (SLAs), transaction costs and any bundled service discounts to optimize value.
• Review compliance and regulatory requirements: Ensure your chosen banks meet all local and international compliance standards, including KYC, AML and reporting obligations.
• Establish account structures: Set up the necessary accounts, such as operating, concentration and intercompany accounts, to support efficient cash management.
• Develop an integration plan: Coordinate with banks on system integration, data connectivity and onboarding timelines to ensure a smooth transition and ongoing operational efficiency.

Choose your cash-pooling arrangement

It’s also crucial to carefully consider the most appropriate for your organization—physical, notional or hybrid pooling—as the structure can significantly impact liquidity management, interest optimization and regulatory compliance.

• Physical pooling involves the actual movement of funds between accounts, providing clear visibility and control.
• Notional pooling allows for the offsetting of balances without physical transfers, which can simplify operations, but may have tax and regulatory implications.
• Hybrid pooling combines elements of both, offering flexibility to meet complex needs.

Determine the need for a payment factory

You should also consider the need for a payment factory. A payment factory centralizes and streamlines payment processing across the organization, improving efficiency, control and visibility over cash flows. It can reduce operational risk, enhance compliance and support standardized processes, making it a valuable component of a modern RTC setup.

By thoughtfully selecting your cash pooling arrangement and considering the implementation of a payment factory, you can optimize liquidity, improve control and support the strategic objectives of your RTC.

Step 6: Create an implementation and transition plan

Develop a detailed project plan for shifting to an RTC and manage the transition to centralized operations. Be sure to consider:

• Resource allocation: Assigning the right combination of internal and external resources—including project managers and IT specialists and advisors—helps keep onboarding on track and within scope.
• Stakeholder communication: Keep internal and external stakeholders in the loop during key onboarding milestones, including system integration and policy harmonization.
• Phased rollout and testing: Begin with pilot regions or functions to test processes and systems. Identify and resolve integration issues to refine and scale the RTC.
• Contingency planning: Include business continuity, liquidity and cash management, technology and cybersecurity, operational issues and communication protocols.

Onboarding is not a one-time event. Track KPIs and regularly review and refine processes to ensure the RTC delivers on its objectives and aligns with business goals. Keep the lines of communication open with all involved business units and stakeholders to identify areas for improvement.

The bottom line: For corporate treasurers, understanding and mastering the onboarding process is essential. Thanks to ongoing innovations and collaboration with the right partners, onboarding is now more accessible and straightforward than ever. The rewards—increased efficiency, enhanced control and greater strategic value—are well within reach.

Get more information on regional treasury centers.