Citi Perspectives Fall 2019

Elizebeth John EMEA Head, Market Management, Treasury and Trade Solutions, Citi Czeslaw Piasek EMEA Head, Liquidity Management Services, Treasury and Trade Solutions, Citi New technologies will enable treasurers to reinvent how they manage capital, liquidity and risk — and solidify their role as strategic business partners — if they plan accordingly. The emergence of real time transactions, the growing complexity of cross-border flows, and automation of treasury processes promise to profoundly change how corporate treasurers do their jobs. The burning question, though, is: How and when will emerging technologies fostering these trends permeate treasury operations and impact treasurers’ daily lives? To address operational challenges, treasurers need to understand which technologies will solve specific treasury problems — and where various treasury innovations are on a commercialization trajectory. This means stepping back and aligning current and imminent developments on the technology front, with a treasury roadmap for the future. Technologies that are tackling emerging innovations and marketplace trends might see adoptions in the next three to five years, while others will not deliver enterprise-wide benefits for at least five years. Next three years: Consolidate control and gain efficiency In the short term, most corporate treasuries should remain focused on consolidating control and improving efficiency — using standard technology, such as enterprise resource planning (ERP) or treasury management systems (TMS) and electronic banking, to optimize processes. For companies in a mature state of optimization, the biggest immediate opportunities reside in the automation of operating processes and of low-value transactions. That said, according to a recent report published by Citi and Zanders titled, The Future of Corporate Treasury, only 10% to 15% of large corporations operate in an advanced state of optimization. These companies are well-positioned to look at new technologies, such as application programming interfaces (APIs) and robotic process automation, for example, that can take their treasuries to the next level. 56 A Look at the Future of Liquidity and Risk Management