Unveiling the Future of Corporate Treasury: Insights from the EACT Survey 2023

Unveiling the Future of Corporate Treasury: Insights from the EACT Survey 2023

The European Association of Corporate Treasurers (EACT) recently published its comprehensive Treasury Survey for 2023, offering a window into the evolving landscape of corporate treasury management. This article delves into the survey’s key findings, providing a roadmap for finance professionals navigating this dynamic field.

The New Era of Treasury Priorities

In an ever-changing financial environment, the EACT survey identifies several priorities for reshaping treasury management. Foremost among these are cash-flow forecasting and working capital optimisation, highlighting the increasing importance of liquidity management in uncertain times. Additionally, treasurers are focusing on risk management, particularly in areas like foreign exchange and interest rates, reflecting the volatile nature of global markets.

Treasurers major priorities over the next 12 to 24 months

Source: EACT

Embracing Technological Innovations

A significant portion of the survey underscores the role of technology in transforming treasury operations. There’s a marked shift towards data analytics, cloud solutions, and AI-driven decision-making. These technologies are not just buzzwords but are becoming integral to treasury strategies, offering efficiency and accuracy in financial planning.

“Some people call this artificial intelligence, but the reality is this technology will enhance us. So instead of artificial intelligence, I think we’ll augment our intelligence.” – Klaus Schwab, Chairperson of the World Economic Forum

The Rise of Real-Time Operations

One of the standout trends is the move towards real-time treasury operations. This includes real-time payments and liquidity management, as well as automated management of foreign exchange risks. This shift indicates a growing need for immediacy and agility in financial transactions and risk mitigation.

The Challenge of IT Fragmentation

Despite technological advancements, the EACT survey highlights a significant challenge: the fragmentation of IT systems. This complexity not only impedes efficient operations but also elevates the risks of fraud and cyber threats. As a result, there’s a pressing need for integrated, secure treasury solutions.

Centralisation vs. Complexity

The survey also points to the ongoing challenge of centralising treasury operations. While centralisation can streamline processes and enhance control, limitations in budgets and organisational complexity often stand in the way. This calls for innovative approaches to standardise processes across diverse group structures.

Navigating Financial Regulations

Financial regulations, particularly those related to ESG (Environmental, Social, Governance) factors, are increasingly influencing treasury activities. The survey indicates that treasurers are actively involved in initiatives like green bonds and sustainable investments, aligning financial strategies with broader corporate sustainability goals.

Impact of Financial Regulations on Treasury Activities

Source: EACT

Lessons from Global Crises

Recent global events, including the COVID-19 pandemic and geopolitical tensions, have underscored the need for resilience in treasury operations. The survey reflects on how these crises have accelerated trends towards automation and digitisation, ensuring more robust and adaptable treasury functions.

“Despite the significant shift noticed during these recent crises to digitize and automate treasury processes wherever possible, the survey demonstrates the need for taking treasury to the next level.” – François Masquelier, Chair of EACT

Actionable Takeaways

Treasurers should consider these actions:

  • Review and update cash-flow forecasting tools.
  • Explore AI and data analytics solutions.
  • Assess the potential for real-time operations in your organisation.
  • Consider platform solutions for IT integration.
  • Evaluate the impact of centralisation on your corporate structure.
  • Stay abreast of ESG regulatory changes.

Conclusion

As we look towards the future of corporate treasury, it’s clear that embracing innovation and leveraging the power of technology will be key to navigating the complexities of the financial landscape. Fennech Financial stands at the forefront of this evolution, offering a suite of solutions designed to transform your treasury operations. From enhancing liquidity management to automating and digitising financial processes, Fennech’s platform is equipped to meet the demands of modern finance departments.

Our journey through the current trends and challenges in treasury management highlights the critical role of real-time data, the importance of resilience, and the potential of automation to drive efficiency. Fennech’s cutting-edge technology, including AI, machine learning, and a robust API library, provides the tools necessary to tackle these challenges head-on, ensuring that your business remains competitive and agile in an ever-changing environment.

In conclusion, as we unveil the future of corporate treasury, the path forward is clear: embracing the technological advancements and innovative solutions offered by Fennech Financial. Whether you’re seeking to optimise your cash flow, improve operational efficiency, or enhance data accuracy, Fennech delivers the capabilities you need to succeed. We invite you to join the ranks of forward-thinking companies that are already leveraging Fennech’s platform to redefine their treasury operations. Contact us today to learn more about how our solutions can empower your business to navigate the complexities of today’s financial world with confidence. Let’s embark on this transformative journey together, and unlock the full potential of your treasury function with Fennech Financial.

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