Tech giant Facebook is playing catch-up in treasury systems – launching a new liquidity management initiative, exploring automation and creating treasury operations capacity for its forthcoming digital wallet Novi.
Hammered by low interest rates, transaction banking revenues at the top US banks fell to a three-and-a-half-year low. They're now depending on treasury digital transformation and surging investment banking fees to offset the trend.
Treasurers at consumer goods multinationals have adopted divergent strategies for managing commodity risks. Facing a $4 billion spike in raw materials costs this quarter, companies like AB Inbev with extensive hedging are better placed than those that shun the practice like Procter & Gamble.
Rapid advances in financial technology are revolutionizing treasury management. These are evolving from treasury management systems that plug into cloud-based ERPs, to the rapid emergence of APIs, matched with robotic processing, which will allow increased use of artificial intelligence and machine learning. But the transition from legacy systems will, as ever, be a challenge.
Risk management has become a more complex exercise for treasurers in Africa. FX volatility and regulatory risk are making forecasting harder and hedging more expensive, while travel restrictions force a greater reliance on local banks for on-the-ground intelligence.