US Corporate Treasury Services Industry Looks to Grow
The corporate treasurer’s function has evolved over the past decade, opening up opportunities for banks and technology providers to help empower treasury to spend more time on strategic treasury management issues, according to a report from Aite Group, which examines the evolution of corporate treasury departments in large US companies.
The report looks at the staffing, banking needs, bank treasury services spending and product usage. It also explores the reasons behind which treasury groups select banking partners and what implications these factors hold for the treasury management industry at large.
Treasury is tasked with understanding financial systems and markets around the globe to support the local, regional and global strategy of their organisation. Eighty-six percent of the 35 respondents to the survey said that all decisions involving the selection of banks in foreign countries is typically centralised in corporate treasury.
“Large corporate treasury groups face myriad challenges, including limited staffing, increasing responsibility, multiple banking relationships, and a greater strategic role in the success of their organisation,” says Judson Murchie, analyst with Aite Group and author of this report. “Opportunities abound for banks and technology solution providers to assist. Providers need to focus on solutions that empower treasury to spend more time on strategic elements of treasury management and reduce time spent on task-focused responsibilities and manual processes.”