11th Jan 2018

5 problems for the modern Treasurer (and how to solve them)

Everyone knows that when it comes to cash and liquidity management, no one does it better than the corporate treasurer. But as focus shifts in a more strategic direction, can the treasury department of the future exert their influence at a higher level?

Over the last few years, we’ve seen substantial change in the responsibilities of the corporate treasurer. Treasury functions have evolved in response to regulatory changes and unstable macroeconomic environments. Even as the dark cloud of the 2008 global financial crisis hangs over like a shadow.

Like true heroes, treasury professionals have responded by embracing technology to become super-efficient and ultra-productive. Albeit after a little persuasion .

They accept the value that Treasury Management Systems (TMS) and other treasury tech provides. Becoming advocates for automation, digitisation and efficient processes along the way.

You could even say they’ve mastered the art of the traditional treasury function.

Staying ahead of the curve as a modern Treasurer…

So, what problems are holding treasurers back from doing the same for their strategic responsibilities?

  1. Financing – Lack of debt finance means treasurers are having to look at alternative options to raise capital.
  2. Cash Management – Real-time data and analysis requirement to ensure long term efficiency.
  3. Risk – Manage exposure to volatile FX market and fluctuating interest rates.
  4. Security – Growing use of technology significantly increases opportunities for security breaches and internal fraud.
  5. Regulations – In response to the 2008 Financial Crisis, there have been regulatory attempts to strengthen governance and improve how organisations manage & report on their financial health.

Treasurers rejoice! A solution has been found

The rate of change occurring in the treasury world is accelerating dramatically .

As roles and responsibilities focus more on strategy, corporate treasurers are turning to FinTech companies, who have entered the marketplace to meet the technological demands of the modern-day treasurer.

Automated Cash Analytics Tool

At its core, an Automated Cash Analytics Tool provides a single point of entry to view a company’s entire banking network. In other words, treasurers can view cash balances in real-time, across multiple banks and in different currencies.

However, its more than just a cash management tool. Automated Cash Analytics Tools allow treasurers to take action.

Enabling treasurers to sweep cash between accounts to truly optimise the value of their cash position. This means treasurers can invest cash overnight in high interest accounts and then return the funds back into the account for full availability, for start of the next business day.

In essence, treasurers can generate additional income overnight using end-of-day balances, with just a few clicks of a button.

What does this mean for a modern day treasurer?

Automated Cash Analytics Tools smash treasury pain points out of the park by helping treasurers:

  • Meet corporate finance requirements by generating additional income
  • View cash balances across multiple banks and currencies in real-time
  • Move money to reduce Forex exposure
  • Move money to take advantage of preferential interest rate
  • Fund other areas of the business through on-demand Interco Loans

In summary; thanks to the advancement of Automated Cash Analytics Tools, it has never been easier for treasurers to gain a real-time, multi-bank view of all their cash balances and use that overarching view to better finance their business.

With this new insight, treasurers can meet board-level strategic demands, and at the same time add business value to their organisation by generating additional income through sweeping.