By Rahul Badhwar, Managing Director, Global Head - Corporate Treasury Solutions, Global Markets Corporate Services, HSBC
The economies of various developed and emerging markets look set for a benign period of growth . Leading corporates are already responding by building out their international operations, while also evolving their business models to capitalise on the expanding global consumer marketplace. As a result, many corporates are finding themselves transacting ever more cross-border business, which is driving commensurate growth in their payables/receivables and FX activity. Rahul Badhwar Managing Director, Global Head – Corporate Treasury Solutions, Global Markets Corporate Services at HSBC, explains how in order to deliver the optimum result for a client's corporate treasury in this environment, a bank must be able to offer a holistic approach that combines cash management and FX.
The global consumer marketplace: changing business models
One of the biggest changes certain business sectors have had to contend with in recent years has been the rapid evolution of the global consumer marketplace. The traditional business model for these sectors was to establish a local subsidiary that would sell to local retailers or distributors, who in turn would sell to the end consumer. In a world that has gone online and mobile, that is no longer the only channel that needs to be supported. Making sales direct to the end consumer has also become extremely important - and these consumers have a variety of options when paying for goods and services. Businesses need to ensure they can support consumers' payment choices to make the sale or transaction as smooth as possible – be it via a mobile wallet, credit card, smartphone or any other method.