The Future of Corporate Treasury

9 The Future of Corporate Treasury Treasury Objectives and the Next Maturity Level Across corporate treasuries worldwide there is a widespread trend toward a further professionalization of treasury activities. While in past decades the focus was on outsourcing to lower costs, globalization to centralize activities, and simplification to improve efficiency, the next decade will focus on digitalization with a goal of working smarter. Traditional concepts such as centralization, standardization, and automation remain important drivers. However, the ultimate goals are business integration and value creation. Technology remains a key enabler: so-called exponential technologies, such as artificial intelligence and advanced robotics, can help take treasury to the next maturity level in the Treasury Maturity Model shown below in Figure 4. Figure 4: Treasury Maturity Model requires deeper integration into the business Foundation Developing Established Enhancing Optimized Treasury Maturity Ability to ensure efficiency, quality and value-added services Transcending Treasury Impact Business Integration Transactional Treasury Efficiency and Cost-Focused Treasury Value-added and Strategic Treasury While the traditional objective of centralization remains valid, its concept has changed. The traditional concept of centralization was based on location whereas the new concept is based on a model of virtualization in combination with centralized control and local empowerment. Regulatory challenges and the global tax trend toward substance over form, transparency and documentation are driving a further need for standardization across the global organization. As treasury becomes more mature to improve efficiency, deliver quality and offer more value-added services, business integration will deepen. While current technologies have enabled treasury to add value and play a more strategic role, exponential technologies are taking treasury to the next maturity level, where they begin to transcend treasury. Regulatory challenges and the global tax trend toward substance over form, transparency and documentation are driving a further need for standardization across the global organization.