For treasurers, this may seem like the age of perpetual disruptive innovation. Continual changes to international markets and regulations may require treasurers to develop strategies that help corporations keep their financial feet under them while encouraging growth. The following is a three-part consideration of how treasurers may approach disruptive innovation.
Get a Grip on Regulations
The current financial atmosphere has treasurers working hard to keep abreast of new and emerging regulatory requirements. Banks are operating under tighter constraints; corporates are feeling the effects in increased credit margins and higher loan fees, as well as lower rates on shorter-term deposits. Companies may now look forward to a more intense level of scrutiny regarding financing, as banks may be choosing to focus on maintaining only their most profitable client relationships. In the face of changing banking relationships it is key for treasurers to understand how much money they have with which bank partner and what risks are inherent in their bank portfolio.
Review Your Treasury Organization
These days treasuries may be seen as intrinsic to business success. Departments are often reaching beyond traditional activities such as cash, liquidity and risk management to address commodity risk, supply chain financing or insurance. Even with these added tasks and responsibilities, staff increases are not forecasted for treasuries across industries. In order to stay relevant and high-functioning, treasury departments may need to look toward more efficient operating practices while utilizing stable or fewer resources.
Boosting Productivity Through Technology
While treasury operations are not typically viewed through a technology lens, tech may play a significant role in improving the way a department functions. Technology that improves operations and data gathering may enter into the spotlight when limitations on staffing and the budget grow more consequential. Tools that automate operational processes may measurably reduce task time, opening up more hours that may be dedicated to creating strategies and forming analysis.
A smaller team need not necessarily mean less power. Treasuries may play a critical role in the success of international corporations, especially when they are set up to take full advantage of the talent and expertise of their treasurers. Understanding regulations, streamlining the organization and incorporating relevant technology may help treasuries function at their highest level.
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.