Foreword As technology transforms how businesses operate, the treasury is still working hard to establish its place in the new organisation. Our 2018 report found those in the treasury expected it to strengthen its position as a strategic partner over the coming years. This year’s research showed that this has yet to happen, but the ambition still remains—76% of respondents expected it to be moderately or highly involved as a strategic partner for management by 2025. This year we expanded our survey to speak to leaders from outside of finance. Their answers confirmed our observations about how the business sees the treasury. It has traditionally been seen as a highly specialised function, with inner workings that are a mystery to many outside of the department. Partly because of this lack of understanding, it’s often labelled as being stuck in the past and afraid of change. As other departments work together more closely and create new data-driven business models, this can mean that the treasury is left out in the cold—only included as an afterthought when they need to check how a project will be funded or payments processed. How can treasuries overcome this and play a more influential role in the organisation? The answer may well be found in automation and other technological innovations. Respondents from within the treasury expect to see a substantial increase in automation by 2025. But not, it turns out, quite as much as they expected when we asked them back in 2018. It’s not unusual for expectations to change, perhaps reality has caught up with expectations. Progress has at best been steady, not disruptive. This may have damped initial enthusiasm. But, to quote a common corruption of Hemingway, change often happens slowly and then all at once. Many technologies are announced with great fanfare, then fade from view as the hard work is done to turn them into practical solutions. Since the 80s artificial intelligence has been said to be just a decade away, but it’s not been until the past five years that it has become mainstream. Now, you probably cross paths with an AI many times per day, and its growth is exponential. Automation of treasury functions could see a similar explosion in the next few years. Perhaps the most positive takeaway from this report is the opportunity new business models give the treasury to earn increased relevance. Digital transformation and the disruption of established pricing, contractual, payment and delivery models will dramatically affect functions traditionally handled by the treasury. Leaders could decide to resist change, but that risks the very existence of the treasury as a separate function. If they instead embrace the change and build the skills needed to actively participate in transformation, they can make the treasury indispensable and demonstrate why they deserve a seat at the table when strategy is being decided. Contents 3 Foreword 4 Key findings 6 Strategic relevance remains elusive 9 Optimism over reality? 12 High hopes for automation 15 Innovation and new business models 21 The skills gap 24 Turning expectations into reality 26 About this report Survey details This year we had over 300 responses to our annual treasury survey from companies across the Nordics and beyond. This year we went beyond the realm of the treasury and the finance department and included respondents from other areas of the business. We also extended the survey to mid-size companies, corporates with annual revenue under 500 m€. Their responses gave us exceptional insight into automation of the treasury, how digitalisation and new business models are affecting companies, how other stakeholders see the treasury, and the role it could play in the future. Find out more about the report authors and the demographics of the respondents on page 26. 11 / 2020 / Treasury 2025 / 3
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