Corporate treasurers bring new pressure to banking relationships

Bernard Kellerman
Regional corporate treasurers are likely to start expecting more from their transactional bankers. This is the conclusion drawn by BNP Paribas and The Boston Consulting Group after surveying 500 corporate treasurers and chief financial officers from multinational organisations.

They came up with these two pointers to future developments in corporate banking relationships:

  • The role of corporate treasurers has expanded since the financial crisis and become "more strategic" with an increased focus on total balance sheet management; 

  • Sales transaction banking partners need to adapt their models to better cater for treasurers' new needs.

"What was considered a supporting role before the financial crisis has definitely evolved into a position of significant stature focused on strategy, with the treasury mandate now encompassing a complete oversight of balance sheets," Chye Kin Wee, head of transaction banking for Asia Pacific at BNP Paribas, said.

"In APAC in particular, over two thirds of treasurers are now involved in trade finance, which is their second most important activity."

Given the new remit and responsibilities for corporate treasurers, new ways of working have emerged. The three most important aspects identified by BNP and BCG were:

  • Centralisation of activities: over 80 per cent of treasurers globally are moving to a centralised decision making model for their strategic decisions. In APAC, corporate treasurers have also adopted this model to their operational decisions.

  • Improved efficiency and quality of service: generating cost efficiencies and reducing the complexity of processes, as well as labour-intensive administrative tasks, are top priorities for treasurers in Asia Pacific.

  • Compliance requirements: treasurers have to meet new regulatory requirements around Know-Your-Client or Anti-Money Laundering regulation, and see banks as well positioned to help them adapt to their new regulatory environment. Corporate treasurers also "clearly stated" that they expect more consideration from banks on compliance and more support with regards to administrative tasks.