Treasury Transformation is driving the need for Customer Centricity
The role of treasury is becoming ever more strategic in enterprises thanks to increasing regulation and globalisation. The traditionally “back-office” treasury department is now integral to the functioning of a corporate and playing a crucial decision-making role. Corporate treasurers have become more demanding of their transaction banking partners. There is a strategic imperative for them to deliver more value add to their business.
Let’s take a look at some of the strategic priorities for corporate treasury departments:
- Managing risks in a regulated and dynamic market environment
- Centralizing key treasury operations to obtain a single view of global liquidity positions including intra-day visibility
- Improving cash conversion cycle for working capital optimization
- Financing working capital including supplier finance to enhance working capital efficiency
- Supporting structures like cash pooling to minimize cash traps & idle cash
- Rolling out a comprehensive software system that centralizes operations and packs several functions into one to provide visibility into global operations
- Establishing payment factories and in-house bank structures for multinationals to minimize local cash balances and facilitate inter-company netting & lending
- Enhancing operations efficiency & minimizing risks through routine process automation and straight-through-processing capabilities
- Growing interest in new services like e-BAM (Electronic Bank Account Management), e-invoicing and digital signatures to drive process efficiencies, ensure regulatory compliance & lower transaction costs
- Delivering treasury analytics for working capital optimization, increased agility & competitive differentiation
As corporate treasurers put increasing pressure on their banks to partner with them to tackle these challenges, those banks and financial institutions in return are turning to technology to empower them to respond. Technology can address many of the challenges including providing the much-needed real-time high level view of cash transactions, balances, movement of funds, hedging position and risks.
Catering to the ever-challenging needs of corporate treasurers, transaction banks will need to embrace new digital capabilities (developed in-house or by FinTech partnerships) to deliver customer centricity, sustain treasury loyalty and assist in the on-going transformation of the treasury function.
Nucleus Software’s Integrated Transaction Banking Suite, FinnAxiaTM supports global payments, global receivables, global liquidity management, e-financial supply chain management, business internet banking, and is used by banks and finance companies around the world for managing their cash transactions.