Reval Presents Top 10 Treasury Trends

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PRESENTED BY: Justin Brimfield Chief Marketing Officer Reval Cathy Gregg Partner Treasury Strategies Top 10 Treasury Trends Insights from the Global Treasury Benchmarking Survey 2015

Transcript of Reval Presents Top 10 Treasury Trends

Page 1: Reval Presents Top 10 Treasury Trends

PRESENTED BY:

Justin Brimfield

Chief Marketing Officer

Reval

Cathy Gregg

Partner

Treasury Strategies

Top 10 Treasury Trends Insights from the

Global Treasury Benchmarking Survey 2015

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Today’s Speakers

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Justin Brimfield

Chief Marketing Officer

Reval

Cathy Gregg

Partner

Treasury Strategies

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Agenda

o Challenges Driving Change in Treasury

o Treasury’s Changing Scope and Structure

o Treasury Technology as Enabler for Change

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Survey Methodology & Demographics

o Online survey rolled out by the

EACT, Treasury Strategies and

Reval in 2014/2015

o Responses from more than 600

global treasury professionals

from all industries, regions and

company sizes

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Top Insights

o Challenges Driving Change in Treasury

– Pressures on Corporate Liquidity

– Playing by the Rules & Regulations

– How Strategic Is Treasury?

– Machines over Manpower

o Treasury’s Changing Scope and Structure

o Treasury Technology as Enabler for Change

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Pressures on Corporate Liquidity

o Effective liquidity management

is a major challenge

o FX volatility continues to be a

challenge

o Low/negative interest rates and

payment/bank regulations put

spotlight on bank relationships

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Playing by the Rules & Regulations

o EMIR/Dodd Frank top concern

around the world

o Banking relationships changing

o Regional differences as

expected

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How Strategic Is Treasury?

o Cash forecasting, cash visibility

and financial risk management

are strategic priorities

o Treasurers are focused on

operational challenges

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Machines over Manpower?

o First line of defense is internal

improvements

o Lack of budget is biggest

roadblock for treasury

innovation

o Few companies see adding

headcount as an alternative

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Top Insights

o Challenges Driving Change in Treasury

o Treasury’s Changing Scope and Structure

– Fueling Business Success

– Good News for Treasury Teams

– A Strong Centralization Theme

o Treasury Technology as Enabler for Change

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Fueling Business Success

o Treasury seen as key

contributor to business success

– with importance increasing

o Treasury’s scope expanding

into new areas, e.g.,

commodities, supply chain

finance, insurance

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Good News for Treasury Teams

o Bigger companies have more

treasury staff

o For most, Treasury staff levels

will stay the same; yet, nearly a

third expect an increase

o Many Treasury teams will

become more international

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A Strong Centralization Theme

o Centralized treasuries are most

prevalent

o There is a further push for

stronger corporate functions

o Upcoming changes are

expected to be towards more

centralization

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Top Insights

o Challenges Driving Change in Treasury

o Treasury’s Changing Scope and Structure

o Treasury Technology as Enabler for Change

– Treasury Systems on the Rise

– Stuck with Old Technology

– The Main Roadblock: Budget

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Treasury Systems on the Rise

o 95% of treasurers consider

technology as enabler to

change in treasury

o Treasury management systems

are widespread

o Spreadsheets are still used,

particularly in mid-market

companies

o Treasury uses 3.3 different

tools on average

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Stuck with Old Technology

o Existing treasury technology is

quite old in many companies

o 30% updated their treasury

technology in 2014

– Updating is on the rise

• 2010 –> 5%

• 2014 –> 30%

o Most frequent criticisms are

limited functionality and

integration with peripheral

systems

o Only 22% report “no limitations”

with technology

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Main Roadblock: Budget

o Lack of budget is top roadblock

to treasury transformation and

treasury technology adoption

o It is difficult to win business

case without acknowledging

strategic benefits of technology

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Conclusions

o Today‘s disruptive market and regulatory environment is

challenging treasury

o Treasury must promote its strategic value add to continue to

grow as a useful strategic partner to the business

o As staff and budget are limited, technology is considered the most

effective enabler to transform treasury

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Questions?

Justin Brimfield

Chief Marketing Officer, Reval

[email protected]

Cathy Gregg, CCM

Partner, Treasury Strategies

[email protected]

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