13/09/2018
The Future is Now: How Ready is Treasury?
Changes in technology, regulation and business models demand treasury’s attention. To understand the effect these developments are having on treasury, The Economist Intelligence Unit, on behalf of Deutsche Bank, surveyed 300 senior corporate treasury executives from North America, Asia-Pacific and EMEA between April and June 2018.
This research explored their views on technological developments, business model disruption and disrupters, and what they believe may be driving these changes from a regulatory and compliance perspective.
The survey results indicate a growing divergence between those treasurers possessing the resources that enable a longer term strategic view and those forced to solely focus on traditional tasks, leaving them vulnerable to decisions taken by their more strategic thinking CFOs and CIOs.
Infographic: https://www.eiuperspectives.economist.com/feature-infographic/infographic-treasuries-readiness-change
Research (whitepaper-pdf):https://www.eiuperspectives.economist.com/infographic/pdf/FINALDeutsche%20Bank%202018%20210x270%20WEB%20FINAL.pdf
Abstract: https://www.eiuperspectives.economist.com/financial-services/future-now-how-ready-treasury
Key findings
- Disruption is real and the causes are manifold. More than 55% of treasuries say that their company is changing operational models as a result of sector disruption and that this is having a knock-on effect on treasury.
- Business models are being disrupted from all sides. Treasurers see the most disruptive influences as multi-channel payments (47%), mobile-based solutions (43%) and changes in supply-chain product life cycles (41%).
- Respondents are highly confident that they have the right skill sets in their teams to respond to the rapid pace of technological change. The vast majority (80%) of treasurers believe they have all or the majority of the skills necessary to meet the challenges posed by ongoing technological change.
- Stay with what we know. Treasurers overwhelmingly believe that treasury management systems (TMS) and enterprise resource planning (ERP) systems will remain the core of treasury technology, with 35% and 36% respectively choosing existing TMS and ERP systems as the most useful technologies. Treasury is still hesitant to fully embrace the cloud; however, 31% of treasurers would consider moving in-house systems to it.
- Treasury is behind the open API curve. Although treasury recognises the benefits of big data analytics, with 56% of respondents citing it as one of the most beneficial new technologies, only 13% are thinking about open APIs.
- US tax reforms challenge corporate treasurers. The top regulatory concern for respondents is US tax reform, cited by 28% of respondents. Other regulatory concerns, each cited by 25% of respondents, were anti-money laundering (AML), know-your-customer (KYC) regulations and International Financial Reporting Standards (IFRS)
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