New Study: Treasury Role Taking On More Strategic Importance; Growth and Globalization Require New Skill Sets

Traditionally, Treasury operations have focused largely on the conversion of collections into cash; today, the Treasury function has become much more involved in the management of the entire business process and is being called on to become more of a strategic advisor to the business.

That’s the conclusion of two studies conducted by CFO Research and underwritten by SAP, a business software company. The full reports, “The Next Generation of Treasury: From Cash Manager to Strategic Advisor” and “What Corporate Treasuries Want from Their Banks” are available for download at

Based on an online survey of 661 finance executives and managers at companies in North America, South America, Europe and Asia Pacific, the research finds that as companies look for new sources of growth, Treasury is becoming a valuable partner in the process. “Treasury has moved from a transactional service provider to a strategic adviser with strong execution capabilities,” declared one CFO.
Companies are looking for the Treasury aspect of their business to be less insulated, and to become a more inclusive corporate activity reaching across non-traditional lines, such as operational efficiencies, investor relations, and even employee benefits.

Globalization has played a major part in the changing role of the Treasury. In order to expand, companies need the ability to track cash flows and anticipate revenue flows from multiple geographies. This will “require new skill sets within the Treasury function,” says a director of finance in the study, attuned to the greater complexities of cross-border finance.

To make faster decisions on a global scale, Treasury functions also need enhanced banking relationships, and upgraded banking technology that allows real-time access to multiple accounts on a consolidated basis. More than ever companies, are looking to “cloud”-based banking as necessary to increase visibility into their financial position and to forge better partnerships and communications with their banks.

Source: CFO, available online at


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