Cash & Liquidity Management
Published  4 MIN READ

Co-Creating a Digital Treasury: Myth vs Reality

Many discussions around treasury technology focus on the leading-edge developments made by a handful of highly sophisticated treasury functions. Meanwhile, the majority of treasury departments are struggling just to achieve the basics. Could co-creation between banks and corporates offer a simpler path to embracing digital treasury innovation?

Visibility and control remain key for treasurers looking to produce an accurate, timely cash flow forecast. Yet a large number of treasurers – even in centralised organisations – still lack the ability to do this. In fact, for many, even collating a complete list of bank accounts can be a challenge.

Hurdles include a lack of visibility over the company’s payment and collection ecosystem and data which is often fragmented, not to mention inaccurate and out-of-date. And in instances where treasurers are lucky enough to have access to this data, many lack the analytics to use it effectively.

Given these challenges, and often illusive technology budgets, some treasurers are turning to their relationship banks to assist. After all, banks are already required to have a consolidated view of client activity for regulatory reasons, so leading banks are now packaging this data, together with analytics, for their clients. Analytics functionalities might include anything from evaluating STP rates to assessing payment methods in terms of cost and timing, and determining optimal bank account and liquidity structures.