The Future of Corporate Treasury

20 Treasury and Trade Solutions Key Takeaways In its partnership with Citi, Zanders captured the thoughts of corporate treasurers and technology vendors around the world and understand the impact of technological advances. Exponential technology such as artificial intelligence, data analytics, distributed ledger technology and APIs are impacting corporate treasury from both an internal (processes and data) and external (connectivity) perspective. The impact of exponential technology is that treasury, once described as an “ivory tower” is fast becoming a “digital command center” full of data analytics, algorithms and self-improving processes. Figure 8: Five components that underpin an advanced treasury solution Speed — Developments are moving from linear, logarithmic growth to exponential growth . Driver — Treasury “pulling” technology is changing to technology “pushing . ” Response — Treasury’s response needs to be visionary, having a “sense & respond” attitude . Priority — “Wait’n see” won’t work anymore, treasury needs to be proactive and even “pilotive . ” Cost — Affordable new technology with attractive pricing models reduces TCO . The treasury function and processes will be improved, redesigned or replaced. Speed The world around us is changing profoundly. Nowadays the concept of a robot supporting your everyday life is not so far-fetched. We have robots cutting our grass, vacuuming our houses, and driving our cars — so why not have a robot to manage the treasury? Over the last two decades, the treasury technology landscape changed gradually. However, evolution is accelerating. The new wave of technology is advancing exponentially and will change corporate treasury, sooner rather than later. Driver There have always been new treasury system functionalities; treasury technology vendors are currently developing real-time information, data analytics and integrated solutions to support the entire financial supply chain. However, in contrast to the past where business requirements drove vendors to create new functionality, exponential technology is now predominantly driving functionality. Response Corporate treasury lends itself to exponential technology; the function and its processes will be improved, redesigned or replaced. Taking advantage of these new technologies is a key requirement of management. Corporate change is difficult to manage. Some corporates will undoubtedly delay and consequently be left behind; others will embrace change and excel. Priority There are many ideas, thoughts and blueprints outlining how new technology can improve treasury activities. Recently, these have begun to be converted into use cases that add value by improving, redesigning or replacing some treasury activities. All corporates must embrace the opportunities presented by new technology or risk being left behind. Cost Over the past decade, the cost and delivery structure of treasury technology has changed. High priced on-premises models are being replaced with cloud or SaaS solutions with pricing models shifting toward subscriptions. This spreads corporates’ investment and offers a more affordable total cost of ownership (TCO). Corporate Treasury is becoming a “digital command center.”