Current Treasury Trends Fall 2013

26 september, 2013 in Columns-Artikelen door onze redactie

We’ve been meeting and discussing with treasurers, CFO and bankers during spring and summer and condensed what we see as the current trends. The situation is fairly stable for the moment for most companies while many external factors are uncertain; e.g. the economic development, excessive money printing and consequences from the new regulation and banks’ disintermediation from the corporate sector. In fact the companies see the banks withdrawing to such an extent that many have stopped relying on them in the same way as in the past. There are definitely room for many of the new start-ups in the financial services area; e.g. Kantox.

Treasury is continuing to increase its strategic importance getting involved earlier and in more areas. This means for instance treasury has to learn how to cooperate with procurement and the supply chain, which can be challenging since the organizational drivers are so different. In a wider context Treasury Peer has continued discussions with policy makers and continued to highlight our issues.

Counterparty risk and cash investing. The unknown effects of monetary policy have changed the old normal. New regulation might affect the alternatives and tri-party repos might be gaining traction? The concern of the banking sectors true credit rating is considerable and growing.

Securing sources of funding and risk management. This includes broadening the network and adjusting the “bank” relationship strategies to include new and more relations;

Managing the vulnerability of the supply chain. The importance of this issue varies between industries. We have not yet found ubiquitous solutions how to assist financially distressed suppliers and distributors. There are several start-ups and product development in this area aiming to provide solutions;

Improve the treasury tools, particularly the IT support and integration. The IT environment of a treasury is very complex; including accounting, risk management, valuations, sophisticated reporting etc. Further streamlining of processes, analyses, and reporting capabilities;

Adhering to a wall of regulatory change and bureaucratic overhead. No need to dwell more on this here, read more here.

Kind regards,

Magnus Lind

About the author: Magnus Lind

Magnus Lind chairs and is the founder of Treasury Peer™. He has a background as an international business executive in Europe, SE Asia and North America. Magnus has gained exposure to international and multicultural management from having customers and suppliers in more than 30 countries. He has started companies in 7 countries and acted as CEO, board director, investor and entrepreneur for 20 years through the NFS Group, a financial technology consultant divested in 2012. Magnus started in 2008.  Find out more and – click here – to see his website.