Treasury Priorities for Multinational Corporations - Middle East and Africa

32 | Treasury Priorities for Multinational Corporations Chapter 6: Future of Treasury The treasury functions inMEA are undergoing a fundamental evolution, moving fromperiodic, batch-based operations to a dynamic, “always-on” ecosystem. This shift to a real-time treasury is no longer a futuristic concept but a present-day reality and a strategic imperative for competitive advantage. In the MEA region, the momentum is clear: over 20% of organizations report that real- time treasury is “already a reality,” and another 42% believe it is “likely to become a reality” in the near future. Real-time treasury Core Components of Real-Time Treasury The transition to real-time treasury is built on a foundation of key technological enablers that provide unprecedented visibility and control over global liquidity. • API-Driven Connectivity: Application Programming Interfaces (APIs) are the engine of real-time treasury. They create seamless, on-demand connections between a company’s ERP or Treasury Management System (TMS) and its bank. This allows treasurers to pull real-time balance and transaction data, replacing outdated end-of-day reporting and enabling truly data-driven decision-making. • Instant Payments and 24/7 Operations: The rise of instant payment networks and digital business models means that commerce no longer stops at the end of the business day. • Dynamic Liquidity Management: Effective liquidity management in today’s dynamic financial landscape requires continuous control over cash flows and the seamless movement of funds across geographies and time zones. • This can be achieved through just-in-time mechanisms such as Citi’s Real-Time Funding that continuously monitor and automatically adjust account balances. These systems enable instant aggregation of surplus funds and immediate allocation of liquidity, ensuring subsidiaries are adequately funded 24/7, thereby managing intraday volatility and supporting critical payments. D espite 63% believing real-time treasury is likely or already reality, implementation remains limited. • Complementing this, advanced blockchain technologies can facilitate instant and transparent global fund transfers. Innovations such as Citi Token Services for Cash allow for immediate settlement of domestic and cross- border payments, ensuring frictionless liquidity movement between entities, regardless of location or time differences. • Together, these advancements empower treasury functions to maintain optimal liquidity, respond dynamically to financial needs, and strategically manage global cash with unprecedented efficiency and control. Real-time treasury Likely to become a reality for my organization Unknown Already a reality for my organization Unlikely to happen for my organization 42% 7% 21% 30%