Study: Treasurers Emphasize Cash Visibility, Technology and Improving Operations

Corporate Treasurers are placing increased emphasis on visibility to cash, mitigating counterparty risk, and investing in technology according to new research released by IDC Financial Insights and Treasury Strategies. The report, "Business Strategy: Key Trends in North American Corporate Treasury Survey Results," details current trends in the North American corporate treasury marketplace.

 

IDC Financial Insights and Treasury Strategies conducted this research to understand how the status quo has shifted – either temporarily or permanently – as a result of the financial crisis.

 

"Visibility to cash and mitigating counterparty risk are the top two concerns of corporate treasurers," said Mike Gallanis, partner of Treasury Strategies and leader of the firm's corporate consulting practice. "We see a growing interest in treasury technology as a result of both these issues as well as a growing need for global treasury organizations to provide value-added services."

 

Corporate treasurers are lobbying for investments in technology and other operational improvements to increase their effectiveness and ensure liquidity for their companies. Visibility is so important that businesses are making these investments despite severe budget constraints.

"When cash is tight and markets are volatile, corporate treasurers need more tools to adapt and manage new risks," explains Jeanne Capachin, research vice president, Global Banking and Insurance Practices at IDC Financial Insights. "This is the time when businesses are investing in treasury."

 

Tightened credit markets and more cautions investment practices are partly responsible for the focus on visibility. "Banks that can quickly innovate and provide clients with new services to mitigate risk, increase cash visibility, and improve efficiency will gain market share," said Dave Robertson, partner of Treasury Strategies and leader of the firm’s Financial Services consulting practice.

 

"There is a great opportunity now for banks to capture a larger portion of short-term liquidity with their deposit and sweep products as businesses focus on short-term investing," says Capachin.

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