The accounting firm PwC has recently published results from its 2019 Global Treasury Benchmarking Study. In this study, input from over 230 treasury experts in 37 countries has been collected, which will be the next step in the Treasury’s digital transformation.
Which topics are the treasurers doing around the world in 2019?
- Cash Flow Forecasting (-)
- Currency risks (-)
- Capital structure (+2)
- Bank Relationships (NEW)
- Working capital (NEW)
- Technology and Digital Innovation (NEW)
Unchanged from the survey two years ago, Cash Flow Forecasting takes the lead. It is interesting that from place 2 the topic cash management optimization was replaced by funding. Currency risks have probably not diminished and remain in third place. The structure of corporate capital has moved up two places to fourth place. Bank relations and working capital are new in focus, which may well be a major issue with funding and capital structure. The topic of technology and digital innovation has become even more important and is now in seventh place in the focus of treasurers worldwide.
From our point of view and from many discussions with customers, we interpret the above results in such a way that the demands on the treasury department, also in collaboration with the CFO, are increasing due to digitization and increasing market volatility, uncertainty, complexita and ambiguity. Increasingly, treasury plays a strategic role in the company and is not only seen by the management as a contribution to value creation, but also committed to it.
Of course, Trinity offers appropriate Treasury Management solutions to all of the above problems. Even for such rather soft factors as improving bank relationships, Trinity provides hard facts to support, e.g. with the Market Data Service. The Market Data Service is an add-on to the Trinity Treasury Management System with comprehensive financial derivatives market data for treasury and other businesses. With Market Data Service, Trinity provides market data and calculations for key-date accurate and more realistic financial derivatives valuations. This key date valuation is required in order to plan and manage own liquidity and risk positions closer to reality, closer to the valuation results of the banks and thus more reliably. If both companies and banks come to the same conclusions when evaluating such financial derivatives, this promotes the relationship of trust and thus the bank relationship. So far, this is usually done manually using a spreadsheet – even with 20 financial derivatives, possibly in different currencies, with three or four data points more a poking in the fog and a true Sisyphus work (you know that Greek guy who was sentenced to roll a stone up the hill each day, and shortly before the top he slipped and the stone rolled back to the bottom), that must be kept up to date.
The Market Data Service is designed as an add-on to the Trinity Treasury Management System. Based on market data of e.g. Bloomberg, Thompson Reuters or vwd and ECB uses a large number of data points to achieve a much more accurate key date valuation, which is much closer to the banks’ values. Communication and billing with banks and accountants is so much easier.