33
Citi Perspectives
| Q1/Q2 2015
Fortunately, enterprise resource
planning and treasury management
platforms now make it relatively
straightforward to achieve visibility
of cash across multiple countries.
Such platforms also make it possible
to manage regional treasury activity
from outside the region, for example,
in London. By being physically closer
to the markets where they operate,
however, treasury professionals
can more easily stay in touch with
regulatory and market changes.
They can also respond more rapidly
to them.
Working with the right partner
The Middle East and Africa offer
enormous opportunities. The
region remains challenging from a
regulatory and market perspective,
however. So it is essential that
corporates work with a bank that
is committed to the region — some
have scaled back their presence
in recent years. Corporates
should select banks with local
infrastructure and experts on the
ground to interpret regulations
(and maintain relationships with
regulators) as well as to facilitate
control and risk management.
Banks’ local knowledge should be
combined with global technology,
capabilities and connectivity to
enable companies to put in place
in-house banking arrangements and
regional re-invoicing, for example.
Many corporates in the region
have high capital expenditure
requirements so effective cash and
liquidity management capabilities
are also important to optimize
working capital. Similarly, supplier
finance capabilities with robust local
onboarding can give companies
operating in the region a
competitive advantage.
By working with a global bank,
corporates can ensure that regional
structures are integrated at a global
level and that consistent platforms
and solutions are used worldwide.
Global banks have the technology
budgets to develop technology that
meets treasury’s needs, including
smartphone and tablet apps for
treasury management or commercial
cards, for example. Similarly, banks
with an international presence
are better placed to support local
companies as they expand globally.
