Four external forces are providing opportunities for corporate growth and expansion as an outgrowth of globalization: economic uncertainty, geopolitical conditions, regulatory environment, and technology evolution.
According to a Celent report commissioned by HSBC, treasury plays an important role in a corporation’s globalization efforts, especially in the areas of cash management, banking, foreign exchange risk, and investments.
The report says treasury departments must address challenges with managing liquidity distributed across markets, currencies, and businesses, especially the need to keep up with regional liquidity nuances and regulatory issues.
Patricia Hines, a Senior Analyst with Celent’s Banking practice, comments that key banking partners act as trusted advisors to globally active companies in times of uncertainly and volatility. Universal banks leverage their global network to support clients across regions to ensure a consistent approach, cash management infrastructure, and customer experience.
“To successfully take advantage of opportunities arising from globalization, firms must understand critical factors affecting growth prospects, regional differences, and business models,” commented Hines.
“Universal banks understand geographic differences and nuances, and are in a unique position to advise firms seeking to expand their businesses globally,” Hines added.