There has been a renewed focus on regional treasury centres and shared service centres. Ankur Kanwar, Head of Cash Management, Singapore & ASEAN, and Global Head of Structured Solutions Development at Standard Chartered, explores the reasons why, and looks forward to a renewed, efficient, agile and resilient model.
For many organisations, regional treasury centres (RTCs) paired with shared service centres (SSCs) for operations support were once the Goldilocks of treasury structures. However, the limelight shifted away from the model as it became another point of fragmentation, instead of a stepping stone that integrates the headquarters (HQ) with local business units. The problem, inevitably, is not the outposts but the systems, processes, and underlying banking structure that led to poor cash visibility, inefficiency, and risk.
Today we are seeing a renewed focus on RTCs and SSCs. What is driving this change?
Resolving points of fragmentation between regional treasury and HQ
Companies are eliminating longstanding challenges that have impeded the integration of RTCs and SSCs with HQ and local business units. These challenges include the fragmentation of cash balances, the complexity of internal systems, manual RTC processes, and shared access to standardised data sets.