Top-Priorities-for-2020

5 Top Priorities for 2020: Time to Future Proof Treasury Re-engineer technology An underlying theme across the challenges facing treasury and the broader organization is the need — and opportunity — for treasury to advance its technology. Most large companies have well-established and deeply-embedded, if often complex, treasury technology topologies. This usually includes high levels of integration between the treasury management system (TMS), the corporate enterprise resource planning (ERP) solution, and standardized connectivity with a consolidated set of banks. This landscape is now rapidly changing and boundaries blurring. The TMS market is consolidating; established technology providers and new entrants are delivering new, digital treasury services; and banks are investing to embed value-added financial services within the corporate infrastructure. The new benchmark is becoming full automation of operational treasury and digital augmentation of human action. Treasurers of large corporates with mature treasury departments are grappling with the question of should they invest now, or should they wait until the fast-evolving technology landscape normalizes? Companies at earlier stages of treasury maturity have a different challenge: Should they follow the well-trodden path of established companies toward “best-in-class treasury,” or does changing financial services and technology landscape offer new approaches? We believe that, while there are no shortcuts, the emergence of new solutions offers opportunities to make significant advances in treasury maturity and capability at all companies. Treasurers should take a strategic approach to identifying requirements for the coming decade, based on forming well- defined views of anticipated changes in the business and its financial services requirements. Many newer and midsized companies will have the opportunity to leapfrog, rather than follow the gradual evolution of past models. A combination of one-off and recurring themes calls for companies to revisit established treasury operating principles and centralization structures.