The Role of Today’s Treasurer

by Claudio Camozzo and Ernst Ohmayer, Co-heads, Global Transaction Banking, UniCredit

The two co-heads of GTB discuss the challenges faced by treasurers every day

What is the environment treasurers have to cope with today?

Claudio Camozzo: More than ever before, treasurers have to operate within a challenging and complex environment. Certainly, they have to work under pressure: on the one hand aiming to reach ambitious personal goals while helping their companies compete at a global level. They therefore need to carefully follow developments in their own sector. On the other hand, they are highly dependent on global economic developments, as well as the ever-changing regulatory backdrop, in all their relevant markets. A treasurer’s role is to be on top of all of these various environments, and to source concrete answers to often complex questions.

You mentioned regulations – SEPA, Basel III (LCR) and PSD 2.0 is still to come – which one has the most important and mutating impact on treasury?

Ernst Ohmayer: All of the quoted regulations have an impact on treasury. Their significance differs depending on the size and purpose of the company. Of course, SEPA is probably the most time- and money-consuming. It is also a game changer. Corporates need to plan the migration well ahead and must take into consideration various aspects, such as IT and customer communications. They need an expert by their side – a partner able to manage, together, such a demanding project. UniCredit is a SEPA bank. We have successfully accompanied many clients through the required SEPA migrations. Of course, this is also an opportunity for treasurers. Tackling these regulatory issues comes with a review of the monitoring and reporting landscape and helps them find further synergies within their operations. 

What are the synergies treasurers are looking for?

Claudio Camozzo: Our clients are in a highly competitive environment. Success requires quick decisions they can have faith in. Treasurers must have the right information available immediately. The tools they seek, therefore, are the ones that can help them efficiently meet regulatory requirements as well as manage their processes and resources in a way that adds transparency to their operations. One way of achieving this is through centralising their treasury and cash management operations – for instance, through payment factories or shared service centres. Furthermore, treasurers need near-time information to get a real-time overview on liquidity at any moment and in any location. And of course, risk management is essential. Be it credit risk or operational risk, the treasurer must be able to manage their risks properly.

And which solutions are available for treasurers here?

Ernst Ohmayer: Global Transaction Banking can offer many solutions that help optimise working capital management. For instance, in order to meet the requirement to rationalise bank accounts we have developed an innovative solution that helps account structures benefit from a reduction in bank accounts and increase matching rates and STP at the same time. Also, treasurers preferably want to access information from their mobile devices in order to gain an overview of a company´s liquidity – worldwide – at any one moment. Apps or other mobile eBanking tools solutions using the latest technology – relying on global ebanking interfaces – can be the solution here.[[[PAGE]]]

Supply chain finance works by allowing the supplier access to an agreed percentage of the due payment, up front, from the bank - leveraging the buyer’s (usually better) credit rating. In return, the buyer is able to extend out payment terms, or benefit from early settlement discounts. Certainly, supply chain finance is an area becoming more important for many corporates.

What roles can transaction banks play in helping clients to grow and achieve their strategic and operational objectives?

Claudio Camozzo: Transactional banks can play a strategic role across many operational areas of a company’s treasury operations. Let’s take the example of a multinational European corporate expanding into Central and Eastern Europe. This client will immediately face the need to optimise its treasury activity. It may also need to manage an additional FX risk and ensure that the supply chain management is supported by an appropriate trade finance solution. Unless it has a reliable partner bank, such needs can be a challenge. It needs a bank capable of understanding that corporate’s business model and therefore its implication in terms of (i) supply chain management/supply chain finance, (ii) cash flow and cash management needs, (iii) interest rate and FX risk.

Certainly, the choice of banking partner is crucial in this respect. Mistakes can be expensive, so treasurers need to choose the right bank to support them in their strategic projects.

UniCredit is one of most successful transaction banks in Europe. What is your approach to supporting your clients?

Ernst Ohmayer: UniCredit has a client obsession. We take the time to sit down with our clients – listening to them and their needs. This is the starting point. Every solution we develop is the result of the feedback we get from our clients. Furthermore, we have a holistic approach. What’s interesting is that, while the clients sometimes initially request various solutions there may well be a single solution that impacts several areas: sourced thanks to the joined-up thinking we’ve employed across the client’s various areas. Certainly, it’s our job to be the handle of the door to success.