Treasury Strategy & Transformation
Published  7 MIN READ

Roadmap Towards a First-Class Group Treasury

As the perennial debate continues around the pros and cons of a centralised treasury, this article plots a route to an efficient and streamlined group treasury function – emphasising the importance of empathy, communication and engagement at all levels.

In recent years there have been numerous articles, discussions, and seminars, debating to what extent a corporate treasury department should be centralised/decentralised. And there are plenty of arguments on each side. Individual corporations will choose a model that fits their business plan, strategic vision, and geographic reach.

More often than not, businesses have either a decentralised treasury, with central control and reporting function, or centralised treasury functions, which have more visibility and involvement in treasury management.  But between those two types, some hybrid set-ups are emerging to adapt to companies’ needs and particularities, enabling an optimal balance between local knowledge, agility, corporate control, and economy of scale to be reached.

Regardless of how centralised/decentralised a corporate treasury is, one major challenge facing group treasurers is the management of a virtual treasury organisation, globally. As a result, it is crucial that people working across the business are engaged in creating and sustaining a first-class treasury.