Treasury Technology
Published  12 MIN READ

How to Ace Digital Treasury

Lessons from Consumer Goods and Retail Leaders

Digitisation is prompting major changes across industries and companies, economies, and societies. Businesses must respond to new business models, disruption by new entrants, and the emergence of virtual infrastructures and new ecosystems. They also need to understand digital trends and the opportunities (and threats) they represent.

For these reasons, Citi has established a new forum for policy advocacy to formulate and share Citi’s point of view on key policy areas related to technology and digital developments, such as crypto currencies, cyber security, AI, data and ESG. This framework seeks to enable all economic participants — such as governments, corporates, financial institutions and households — to use digitisation to create value, achieve sustainable growth and productivity, and mitigate the risk of disruption. Everyone knows that new business models are emerging, but Citi is looking to make it easier for clients to identify the implications of those models — and most especially the opportunities and potential risks they present — early on. This is the first installment in a new series where Citi experts and corporates talk to TMI, examining how digitisation and emerging digital trends are impacting businesses in different sectors.

E-commerce is coming into its own – and it’s no longer just for retailers. By setting up online stores, companies have gained direct access to their customers, and the data that comes with digital transactions. For treasurers in many sectors, not least consumer goods, this shift opens up the chance to significantly enhance data-driven cash management and garner a new level of insight. But to make the most of this new digital ecosystem, treasurers must also plug into other stakeholders in the business, in an advisory capacity.

It’s no secret that the Covid-19 pandemic has accelerated e-commerce capabilities. With global lockdowns preventing footfall in retail stores, the internet became ‘the place to shop’ in 2020 – and beyond. Indeed, e-commerce is expected to grow to $6.5tr. by 2023, effectively doubling from 2019 levels [1]. And the very definition of e-commerce is evolving too: where once it used to refer to sales websites, it now spans multiple points of sale including ‘traditional’ online, in-app, social media, and smart assistants.