Next-gen Treasury: Still a relic in the eyes of the Next Generation
Next-gen Treasury … Even the title is an oxymoron. The evolution in treasury has managed to forge forward, but is it enough to appeal to the next generation? In the latest edition of Treasurer magazine, François Masquelier highlights why the evangelisation of corporate treasury is necessary, especially for a younger demographic. This blog will discuss key takeaways from his article addressing the challenges and solutions to make treasury roles more appealing to the younger generation.
In the face of rapid and transformative changes within the business landscape, treasury functions find themselves in a unique predicament. While their role has broadened significantly, becoming more dynamic and tech-oriented, the treasury sector has paradoxically lost its appeal for young talent, thereby hampering its growth. The task at hand is to recast the image of the next-gen treasury profession, making it more enticing for the emerging workforce.
The Dilemma of Treasury Roles
The treasury function has always been a critical part of any business, overseeing financial planning, investment, and risk management. However, as our economies have grown more intricate, the treasury role has broadened to incorporate advanced technology, cryptocurrencies, compliance with ESG regulations, M&A transactions, and more.
Despite this expanded scope and the associated excitement, there is a distinct lack of resources and enthusiasm for treasury. The profession’s image, which young talent perceives as less glamorous and attractive, primarily causes this dilemma.
The Vocational Crisis
The vocational crisis in treasury is evident in the declining number of students enrolling in treasury courses and master’s programs at universities. This crisis is further exacerbated by competition from banks and fintech companies. So, what’s the solution?
Revamping the Image of Next-gen Treasury Roles
Transforming the image of treasury roles is crucial. It’s vital to spotlight the profession’s scope, diversity, and significance. Highlighting elements that appeal to the younger generation, such as incorporating technologies like AI and data mining, could be a significant turning point.
With the rise of digitalisation and ESG practices, the treasury function has never been more thrilling. Treasury professionals now grapple with various issues, from cryptocurrencies to private equity and IPOs. This diversity should be marketed as a significant selling point.
Addressing the Skills Gap in Next-gen Treasury
However, simply revamping the image isn’t the full solution. The skills gap must also be addressed. Future finance professionals must be “extraordinarily inquisitive, ” possessing technical and interpersonal skills. Skills in coding, analytics, critical thinking, and excellent communication are increasingly crucial in the current treasury role.
In the era of big data, the ability to analyse and interpret massive amounts of information is paramount. Thus, treasury departments are now searching for individuals who can critically examine data and convert it into actionable insights for the organisation.
Making Treasury Appealing to Young Talent
It’s incumbent on treasury associations and their members to better advocate their profession to attract young talents. They must emphasise the aspects that resonate with the younger generation: the use of advanced technology, the importance of ESG practices, and the opportunities to be part of exciting ventures such as IPOs and M&A transactions.
The treasury function is one of the most dynamic, evolving sectors with substantial financial significance. This message needs to be clearly and convincingly communicated to the next generation.
Conclusion
The next-gen treasury function is no longer merely about managing cash resources. It’s a multi-faceted role that offers exciting opportunities for those bold enough to dive in. By redefining the image of the treasury role and addressing the skills gap, we can draw in the talent needed to propel the treasury function into the future.
