The Evolving Role of Treasury

Embracing Centralisation for Enhanced Efficiency and Strategic Impact

By Pieter Cronje, Head of Cash & Liquidity at TreasuryONE


The role of treasury has undergone a significant transformation. Traditionally focused on cash management and risk mitigation, treasurers now find themselves at the center of strategic decision-making processes. They are expected to serve as trusted business partners, providing critical data and insights that can drive financial success and support long-term growth. 


However, treasurers also face mounting pressure to work more efficiently and achieve higher performance levels with limited resources. As a result, many organisations are turning to centralisation as a strategic imperative for their treasury operations. 


The Changing Landscape of Treasury:

Treasurers have traditionally been responsible for managing liquidity, mitigating financial risks, and ensuring compliance. While these core responsibilities remain vital, treasurers are now expected to go beyond their traditional role and actively contribute to strategic decision-making processes. They are being called upon to provide real-time financial insights, optimise capital allocation, and support the overall financial health of the organisation. This shift has elevated the importance of treasury as a strategic function and has increased the need for treasurers to have access to accurate and timely data.


Challenges Faced by Modern Treasurers:

Amidst evolving expectations, treasurers face numerous challenges. They must navigate the complexities of global markets, adapt to regulatory changes, and contend with disruptive technologies that have reshaped the financial landscape. Additionally, treasurers often operate with limited resources, making it crucial to find innovative ways to enhance efficiency and drive performance. In such an environment, centralisation emerges as a compelling solution.


The Case for Centralisation:

Centralising treasury operations offers a multitude of benefits for organisations. By consolidating treasury activities, organisations can achieve greater visibility into their cash positions, streamline processes, and enhance control over financial risks. Centralisation also promotes standardisation, enabling treasurers to establish consistent policies, processes, and reporting frameworks across business units. This consistency reduces operational complexities and facilitates efficient decision-making.


Where to Begin?


TreasuryONE’s Expertise:

Embarking on the journey toward centralisation can be a daunting task for organisations. However, with TreasuryONE, this process can be streamlined and optimised. TreasuryONE is a leading provider of treasury management solutions, offering a comprehensive range of services to help organisations establish and optimise their centralised treasury functions.


Assessment and Strategy Development:

The first step toward centralisation is to assess the current state of the treasury function and define the desired future state. TreasuryONE works closely with clients to conduct a thorough evaluation of existing processes, systems, and resources. Based on this assessment, TreasuryONE collaborates with clients to develop a tailored strategy that aligns with their unique business objectives and positions them for success.


Technology and Systems Integration:

Centralisation requires robust technology solutions to enable efficient cash management, risk mitigation, and reporting. TreasuryONE leverages its deep expertise to identify and implement treasury management systems (TMS) that integrate seamlessly with existing enterprise resource planning (ERP) systems and your banks. By harnessing the power of technology, treasurers gain access to real-time data, enabling them to make informed decisions and improve overall operational efficiency.


Cash Pooling and Liquidity Management:

One of the key advantages of centralisation is the ability to pool cash resources, optimise liquidity, and reduce borrowing costs. TreasuryONE assists clients in designing and implementing cash pooling structures that align with their cash management objectives. By consolidating cash, treasurers can gain better control over working capital and maximise investment opportunities, ultimately generating value for the organisation.


Risk Management and Compliance:

Effective risk management is a cornerstone of any treasury function. TreasuryONE helps clients establish comprehensive risk management frameworks, encompassing areas such as foreign exchange, interest rate, credit, and operational risk. Furthermore, TreasuryONE stays up-to-date with evolving regulatory requirements, ensuring clients remain compliant and well-prepared for any regulatory changes that may impact their treasury operations.


Training and Support:

Centralising treasury operations involves a significant shift in processes and responsibilities. TreasuryONE provides comprehensive training and ongoing support to treasurers and their teams to facilitate a smooth transition. By equipping treasury professionals with the necessary skills and knowledge, TreasuryONE enables organisations to maximise the benefits of centralisation while minimising disruptions.


As the role of treasury continues to evolve, treasurers are increasingly expected to be strategic business partners, delivering valuable data and insights for decision-making. Centralisation emerges as a viable solution to enhance efficiency, optimise risk management, and drive performance. With its expertise and comprehensive suite of services, TreasuryONE empowers organisations to establish and optimise centralised treasury functions. By partnering with TreasuryONE, treasurers can navigate the complexities of centralisation and position their organisations for sustainable growth and success in the ever-changing business landscape.