Global Treasury Benchmarking Survey 2016

Transcription

1 How do North American treasurers stack up against their peers? In association with

2 Speakers Tracey Ferguson Knight Director Solution Consulting, ION As Director Solution Consulting at ION, Tracey manages a team responsible for understanding complex treasury issues and providing treasury and risk management solutions to global corporations. Tracey brings over 22 years of treasury management experience, having held positions as a corporate cash manager as well as a director leading system implementations, training, and product demonstrations. She holds a BS in Economics from the University of Pennsylvania s Wharton School. Cathryn R. Gregg, CCM Managing Director, Treasury Strategies As Managing Director at Treasury Strategies, Cathryn sets the group s strategic direction and manages senior client relationships. Her guidance improves strategies and risk management operations for corporate treasury. She is highly involved in advancing treasury technology applications and has focused on payment systems and banking evolution since founding Treasury Strategies in Cathryn received her MBA from the University of Chicago following a BA in Economics and Psychology from Kenyon College, where she has served on the Board of Trustees. She is a certified CCM, and has served on the advisory boards of a number of Treasury Strategies bank clients. 1

3 Agenda About the Survey Business Challenges Treasury Best Practices Conclusions 2

4 Insights from nearly 1,000 finance professionals Online survey in Q conducted by Reval in association with Treasury Strategies, Zanders, and Standard Chartered Bank 985 respondents from across all industries, regions, and company sizes Insights into priorities, pain points, and processes $10B -$20B 8% More than $20B 12% Less than $500M 26% Americas APAC $1B-$10B 37% $500M-$1B 17% EMEA 3

5 Business challenges

6 Riding regulatory waves Top 10 regulatory challenges in North America 43% 29% 26% 25% 24% 15% 12% 9% 6% 5% 5

7 Growing pains continue Top 5 Treasury and Risk Management challenges in North America Cash forecasting, cash visibility, and FX risk management remain top three priorities 78% M&A activity continues 64% Treasuries not prepared for fast company growth 44% 36% Treasury processes and technology often not scalable 29% Forecasting & Cash visibility and liquidity planning optimization FX risk Payment fraud /management Interest rate risk 7

8 Treasury and Risk Management challenges by region Treasury and Risk Management challenges Americas EMEA APAC Cash visibility and optimization 64% 70% 59% Payment fraud/management 36% 33% 31% Forecasting & liquidity planning 78% 75% 70% Mid- to long-term funding 27% 30% 32% FX risk 43% 58% 57% Interest rate risk 28% 24% 36% Counterparty risk 16% 27% 19% Commodity risk 12% 13% 11% 8

9 The future of treasury 68% Importance of treasury will increase 53% 68% Scope of treasury will increase 86% Importance of treasury increases New responsibilities in commodity and supply chain management Internationalization changes risk profile Sophistication in risk management needs to increase Technology seen as the main catalyst for treasury transformation Internationalization will increase Technology is an enabler for change 10

10 Never-ending story: Doing more with less Team Size (North America) 1 to 2 3 to 5 6 to to to 20 More than 20 Revenue <500M USD Revenue 500M-1B USD Revenue 1B-20B USD Revenue > 20B USD 55% 33% 6% 5% 33% 44% 37% 3% 5% 17% 30% 8% 3% 3% 9% 3% 4% 0% 7% 16% 0% 3% 11% 66% Importance, scope, and complexity in treasury increases Treasury teams are lean 12

11 Never-ending story: Doing more with less and less 14

12 Treasury best practices

13 Treasury organization: Centralizing control Centralization increases transparency and control Centralized operating models preferred by most treasury functions Further centralization expected in next 3 years In-house banks gain popularity 17

14 Digital treasury: Automation for innovation Primary technology in treasury Technology seen as an enabler for treasury innovation ERP 9% System Mix 11% Bank Portal 6% Spreadsheets 30% Each treasury transforms at its own pace Treasury management system (TMS) is the primary technology Most treasury software implemented before 2010 TMS 44% 18

15 Digital treasury: Automation in North America Bank portals or spreadsheets used in half the treasury departments surveyed 19

16 Treasury technology: Connecting the dots Common treasury technology platform used to connect people, processes, and systems TMS mainly delivered as SaaS in North America 20

17 Treasury innovation: Setting up for success 91% of treasuries plan to improve their function Lack of technology is the biggest roadblock to improving the treasury function Treasury teams need to show the value of technology Lack of budget an obstacle in small companies Missing headcount and staff qualification are obstacles in large companies 22

18 Conclusions

19 Key findings and conclusions Volatile markets and new regulatory requirements challenge treasury Fast company growth and new responsibilities add complexity Treasury teams are lean Technology is needed to master rapid change and new challenges Treasury management systems are established as the primary technology 24

20 Contact us Tracey Ferguson Knight Director Solution Consulting ION Cathryn R. Gregg, CCM Managing Director Treasury Strategies

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