Citi Perspectives Fall 2019

Citi Perspectives  | 31 30 | Treasury and Trade Solutions To facilitate the shift from the current semi-automated treasury status to the fully-automated version, one ingredient is essential: the right “culture.” Often, those who work in treasury don’t have the time to consider how best to innovate treasury and its processes, despite having the in-depth knowledge required to envision such a change. Hence, the overlaying framework and organization in which they operate are critically important. A company culture fostering advancement will be the “secret ingredient.” The expectation is to have treasury converging toward a more automated organization. To achieve this status, treasury teams will need to evolve accordingly (and this includes development of new specific skills). Working on this assumption, it is likely that a radically different set of skills — such as those of the data scientist, developer or IT professional — will be as prominent as a traditional grounding in economics and finance. However, while the emerging technologies will deliver actionable intelligence and predictive analytics, with the potential to significantly reduce the manual overhead, there is still no expectation that machines will replace people, as human oversight will still be required. Before embarking on a digitization journey, there are many things that treasury organizations must consider. These include which technologies to invest in, and how the organization will approach the implementation process. It is critical that organizations adopt a well-balanced approach, matching the benefits of any new technology with the readiness of the business to adopt them. Understanding external factors, such as regulatory requirements and the evolution of the banking infrastructure in specific contexts and/or geographies, is another important consideration when making decisions about technology. There is no doubt that we are living through some of the greatest changes in business; not for nothing has our time been dubbed the “fourth industrial revolution.” The most likely effects of this period on treasury are twofold. There is the growing relevance of treasury in the core- business decision-making process, thanks to the bandwidth created by process automation. But there is an increased risk that treasury’s shift toward automation may bring about an uncontrolled “revolution.” With the pros and cons in mind, it is clear that careful planning, a balanced approach and a future- oriented culture, alongside closer partnerships with key banks, is the solution to a smooth transition into the treasury of the future. This article was featured in the July/ August 2019 issue of Treasury Today Asia. It is critical that organizations adopt a well-balanced approach, matching the benefits of any new technology with the readiness of the business to adopt them. WEAREPROUDTO RECEIVETHESEAWARDS. BUTEVENPROUDER OFTHEPROGRESSWE HELPOURCLIENTS MAKEEVERYDAY. World’s Best Bank for Transaction Services Africa’s Best Bank for Transaction Services Asia’s Best Bank for Transaction Services citi.com/progress © 2019 Citigroup Inc. Citi and Citi with Arc Design are registered service marks of Citigroup Inc.