The Rising Velocity of Cash and Data: Establishing a Real-time Treasury

As real-time payments and collections gain traction, the velocity of cash is accelerating. In turn, treasurers must move away from outdated systems and batch processing, while exploring the possibilities of real-time investing. They must also learn how to handle and analyse swathes of data ‘on demand’, to make the most of the 24/7/365 environment. Four experts from HSBC share practical insights to assist in building a truly real-time treasury.

Turn back the clock to 2007 – the year that Apple launched the first iPhone and Netflix began its TV and film streaming service called ‘Watch Now’ . In many ways, these two innovations kickstarted the ‘on demand’ consumer mindset, which soon began to change the face of the payments industry. Indeed, the following year saw the launch of the UK’s Faster Payments Scheme , aimed at supporting the growing culture of instant commerce.

Since then, over 55 countries have gone live with real-time payments schemes, and more are in the pipeline – with Canada set to go live in 2021 . Money can now be moved in a matter of seconds, 24/7/365, and with this shift to instant payments has come the notion of real-time treasury.

According to Kee Joo Wong, Managing Director – Regional Head of Global Liquidity and Cash Management, Asia Pacific, HSBC, ‘real-time treasury’ is about “empowering clients to have the digital payment/collection channels, connectivity options, and data reporting to enable them to make fast, efficient and accurate business decisions.”

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