Swiss banking software specialist Temenos, together with Ovum, the technology research and advisory firm, share the results of their Corporate Treasurers survey.
The survey, which offers insight at regional and industry level, focuses on larger corporates current challenges and needs around four key areas: cash and liquidity, forecasting and analytics, risk and compliance and cost and efficiency.
The result of the survey offers evidence that understanding both current balances and the impact of future transactions is felt to be critical to enable efficient management of liquidity.
Lack of Real-Time Data
Furthermore, the report highlights the particular importance attached to data analysis in improving decision making, demonstrating an emerging need amongst treasury teams to utilize their data assets to both improve their own efficiency and that of the wider company.
A lack of real-time data and reliance on manual processes were highlighted as the biggest challenges facing treasurers today.
Key findings include:
- Three quarters of corporates in two regions are interested in blockchain to reduce their trading risks
- A high proportion of those surveyed from the U.K. and mainland Europe believe that at least some banking activities will be moved out of the U.K. following Brexit
- Almost a third (31 percent) cite liquidity management as by far the greatest priority over the next 18 months
- Accurate forecasting and a complete view of cash positions come out as a top priority (16 percent and 14 percent respectively)
- 17 percent of respondents name FX risk focus as a number one priority
- 35 percent of all corporates and 42 percent of those with more than $10 billion in revenues cite lack of real-time data availability is a significant operational issue
«This survey highlights the challenges faced by treasurers in managing liquidity. In addition to economic and FX pressures, the impact of regulation in the banking sector (such as Basel III) has forced changes in strategy. At the same time, the retrenchment by some of the largest corporate banking providers from some regions and territories has added to the inherent complexity in managing cash across multiple banking partners,» Darryl Proctor, Product Director, Transaction Banking at Temenos said.
Significant Opportunity
«Corporates want to address this issue over the next 18 months and unless banks are willing to support this requirement, there is a risk of attrition,» he added.
«For corporate banks, addressing these challenges presents a significant opportunity to drive growth and build deeper client relationships,» Kieran Hines, Practice Leader for Financial Services Technology at Ovum, said.