Published : 8 years ago, on 27/09/2016

• 75% of corporates in two regions interested in blockchain to reduce their trading risks
• Respondents cite liquidity management, cash visibility and FX risk as top priorities
• Over one third of all corporates name lack of real-time data as biggest challenge faced
• Report available here: https://www.temenos.com/en/market-insight/2016/understanding-todays-corporate-treasurer/

Temenos (SIX: TEMN), the software specialist for banking and finance, together with Ovum, the technology research and advisory firm, today shared the results of their Corporate Treasurers survey, which canvassed the opinions of 200 corporate treasurers across the globe.

The survey, which offers insight at regional and industry level, focuses on larger corporates current challenges and needs around four key areas: cash and liquidity, forecasting and analytics, risk and compliance and cost and efficiency.

The result of the survey offers evidence that understanding both current balances and the impact of future transactions is felt to be critical to enable efficient management of liquidity.  Furthermore, the report highlights the particular importance attached to data analysis in improving decision making, demonstrating an emerging need amongst treasury teams to utilize their data assets to both improve their own efficiency and that of the wider company. A lack of real-time data and reliance on manual processes were highlighted as the biggest challenges facing treasurers today.

Key findings include:

• Three quarters of corporates in two regions are interested in blockchain to reduce their trading risks
• A high proportion of those surveyed from the UK and mainland Europe believe that at least some banking activities will be moved out of the UK following Brexit
• Almost a third (31%) cite liquidity management as by far the greatest priority over the next 18 months
• Accurate forecasting and a complete view of cash positions come out as a top priority (16% and 14% respectively)
• 17% of respondents name FX risk focus as a number one priority
• 35% of all corporates and 42% of those with more than $10bn in revenues cite lack of real-time data availability is a significant operational issue

Darryl Proctor, Product Director – Transaction Banking, Temenos says: “This survey clearly highlights the challenges faced by treasurers in managing liquidity.  In addition to economic and FX pressures, the impact of regulation in the banking sector (such as Basel III) has forced changes in strategy. At the same time, the retrenchment by some of the largest corporate banking providers from some regions and territories has added to the inherent complexity in managing cash across multiple banking partners.”   Darryl adds:‘”Many banks have tried to change the commercial terms around cash balances and notional pooling strategies, making this a more complex issue. The survey highlights that treasurers are facing real challenges and complexities in getting the cash position information they need to manage liquidity, a particular issue where there are multiple bank and other third party relationships in play. Corporates want to address this issue over the next 18 months and unless banks are willing to support this requirement, there is a risk of attrition”.

Kieran Hines, Practice Leader for Financial Services Technology at Ovum, added: “Corporate treasurers face an increasingly complex and challenging operating environment, one that is creating a clear need for greater access to real time account information and more sophisticated forecasting services”. He adds: “At the same time, it is clear that treasurers are also looking for financial services partners who can deliver products and services tailored to the specific needs of their businesses. For corporate banks, addressing these challenges presents a significant opportunity to drive growth and build deeper client relationships”.