In the real economy, where trading activities come face to face with real-world pressures, business strategies and models need to evolve sustainably. Michael Spiegel, Global Head of Transaction Banking, Standard Chartered discusses the evolving environment.
At the heart of every treasury is the understanding that cash management, trade and working capital financing and related foreign exchange transactions are not abstract financial concepts. Instead, they are essential components of a business’ approach to the real economy, where goods and services are traded. It is why, against the backdrop of supply chain disruptions and geopolitical developments, focusing on delivering solutions that enable the production and movement of products, services, and human capital to support the real economy has never been more critical, says Spiegel.
“We believe that globalisation – powered by the exchange of goods and services, and the division of labour – will continue to drive prosperity, albeit the dynamics and corridors are changing. In these times, corporates need strategies that enable them to be resilient and face headwinds, ranging from geopolitical shifts to the sustainability of their supply chains.”
In addition to the challenges posed by adjusting to the shocks and delays witnessed in the global supply chains, Spiegel acknowledges the need to identify future avenues for growth and capture opportunities in a way that is increasingly compliant with ESG criteria. These issues have become a competing priority among many corporate clients, with a need to strike a balance between efficiency and resilience. An approach able to tackle these issues head-on bears the hallmark of ‘smart treasury’.