Reaching customers through digital channels has become a priority for organisations during global lockdown. But reaping the benefits of a digital business model requires treasury to be fully connected to the company’s overall digital strategy. Srinivas Kasturi, Head of Mass Payments and Country Product Management, Corporate Banking, Barclays, and Daniela Eder, Head of Payments & Cash Management Europe, Barclays, explain how treasurers can plug in to the potential upsides of digital business models – through tools such as instant payments – while outlining how to manage risks, including increased collection costs and greater foreign exchange (FX) exposures.
It’s no secret that Covid-19 has accelerated the adoption and evolution of digital business models – across almost every industry sector. Supermarkets have seen an explosion in online ordering. Healthcare providers have embraced video consultations. Virtual gyms and classrooms have become the norm for many. And the list goes on.
Perhaps more surprising than the range of digital services now available is the speed at which they have been rolled out. Data from consultancy firm McKinsey suggests that – in the space of just eight weeks – the world has jumped forward five years in terms of consumer and business digital adoption.
With this rapid rise in e-commerce, and reduced footfall in retail establishments, many companies have begun complementing their wholesale models with direct-to-consumer (D2C) sales. Heinz Kraft, for example, is now selling bundles of its most popular products straight to consumers via its website.