So much has changed in treasury in the last decade. The banking landscape continues to shift significantly and while volatility and risks remain front of mind, this time offers tremendous promise and opportunity for treasurers who are willing to reconsider and reform their structures.
Significant changes in regulation and technology are driving huge structural changes in treasury.
|BE AWARE, BE VERY AWARE|
At the same time, increased digitization is leading to increased cyber security threats. Treasurers, as managers of risk, need to be leaders within their organizations, ensuring that threats are being addressed and investing in prevention and detection. To protect the organization from fraud, treasurers need to have a robust platform and extremely well-trained employees. Treasurers must also make sure they are using the new flows of data to provide 'early warning system' visibility into potential threats and breaches.
More aspects of our everyday personal and corporate lives are becoming digitized, representing an immense opportunity for both corporates and their banking partners. Treasurers need to work with their business units and banking partners to understand, and respond to, emerging payments needs. They should be aware of changes to clearing systems as well as consumer-related digital payments initiatives currently gaining ground. Treasurers have a strong role to play in creating awareness of and leveraging, where appropriate, these new technologies.
One area in particular that is emerging as an opportunity for treasurers is big data. The surge in data flows means that good data management is therefore becoming increasingly important.
In this new environment, flexibility is key:
The landscape is evolving at a rapid pace. Treasury should have visibility and central control over accounts to enable quick decision-making and to minimize the impact of change to the business. To effectively adapt to ongoing change, corporates must ensure that their bank accounts and liquidity structures are flexible.
The amount of change in the banking environment affords treasurers a great opportunity to optimize their structures. An understanding of the key drivers of change will allow treasury to better:
Please contact your J.P. Morgan representative to discuss how we can help you make the case for change.
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