Cash Management
Treasurers are changing the way they work to achieve greater transparency
According to SunGard AvantGard, treasurers are finding new ways to harness technology and of working with banks and their trading partners to increase cash visibility and reduce risk.
Cash visibility and enhanced risk management, whether it is FX, credit, interest rate or commodity risk, are high on most corporate treasurers' agendas. Paul Bramwell, senior vice president, treasury solutions, SunGard AvantGard, says corporations are discovering new ways to harness technology to increase their cash visibility and better manage risk. This entails wholesale changes in the way they deploy technology and in their relationships with banks and trading partners.
"Corporations are finding better ways to work with their bank and trading partners by improving transparency to the financial supply chain and streamlining messaging and communications. They are also increasing deployment of treasury technology in private cloud environments, helping them realise greater efficiencies and reduce IT costs,” said Bramwell.
SunGard has identified 10 trends that are influencing how corporate CFO’s, treasurers and other finance executives operate their treasury departments and manage liquidity:
- Corporations are striving to attain a holistic view of risk and are increasingly modeling multiple risk types such as FX, credit, market, interest rate and commodity.
- There is a greater adoption of payment networks and exchanges.
- Treasurers are looking to improve working capital through improved credit risk analysis and collections automation strategies, resulting in reduced borrowing margins.
- Corporations are looking to streamline and consolidate their payment flows.
- There will be a continued movement towards outsourcing transactional treasury functions.
- More corporations are turning to consolidated technology hubs for multibank connectivity, including embedded services such as eBAM and managed connectivity to the SWIFT network.
- An increasing number of corporations, particularly those in Asia, the Middle East and South Africa, are centralising their treasury operations for increased transparency and efficiency.
- Corporations are becoming more educated about cloud services and security and are increasingly choosing to deploy their treasury technology in private cloud-hosted environments.
- Treasurers are increasingly seeking up-to date, enterprise-wide views of FX and interest rate risk positions with real time debt & investment reporting.
- Corporations continue to review financial messaging standards, such as ISO 20022, CGI and SWIFT’s 3SKey, as well as prepare for SEPA compliance.
SunGard takes a whimsical look at the evolving role of the Treasurer. View the animation here: http://www.youtube.com/watch?v=qT308Ld0y4Y
Date Posted:7th November 2011