Citi Perspectives Fall 2023: Transforming Treasury

Steve Elms Global Head, Corporate, Commercial and Public Sector Sales, Citi Treasury and Trade Solutions | 5 In this edition of Citi Perspectives , we explore the trends, challenges, and solutions that are transforming treasury as we know it. In the process, we’ll take a deep dive into the ways treasurers can help their organizations adapt to doing business in an always-on world. Enabling growth in the digital economy The rapid adoption of e-commerce has led to the proliferation of new B2B and B2C business models. With consumers now able to quickly transact at any time of day regardless of geography, corporates have had to pivot to always-on, 24/7 operating models that simply did not exist until a short time ago. In response, treasurers have had to abruptly adapt their strategies to this new way of doing business. Now widely viewed as more than just risk managers, treasurers must play significant roles in supporting their organizations’ always-on payments flows. While the goal of a 24/7 payment flow is operational efficiency, the process of implementing such a structure on a global scale is monumental given the complex regulatory environment. The responsibility largely falls on treasury to navigate the global payments landscape to ensure their organizations can reach more consumers and operate in more markets. Understanding the future of treasury In the same way companies have rethought their business models in response to consumer demand, treasurers must now adapt their processes to help their organizations keep up in an always-on, 24/7 world. The rise of e-commerce and direct-to-consumer models have led to alternative payment methods like digital wallets and instant payments. But for a business to adopt these new payment methods, treasurers need to first set up adequate cash management structures to accommodate high volumes of instant payments. Amid ongoing economic uncertainty, treasurers need quick access to transaction and market data to make better decisions around cash management. This has opened the door for exciting new use cases for artificial intelligence-powered models that can analyze data in real time and produce the most up-to-date cash flow forecasts possible. Where does treasury go fromhere? While emerging technologies and shifting macroeconomic conditions continue to cause industry-wide disruption, working with a global bank can help organizations simplify their treasury workflows and scale their operations. Citi has a proven track record of working with our clients to help them achieve their growth ambitions. Our scalable global platform combined with on-the- ground presence in 95 countries have helped companies of all sizes reach more customers and establish themselves in newmarkets. While the road ahead for treasury is exciting, it is certainly not straightforward. As you continue to help your organization navigate the future, we hope you find the information and expertise shared in this edition of Citi Perspectives insightful. As always, we value your feedback and suggestions for future coverage around the state of treasury.