The future of treasury is already here

FIRST WORD

As new technology disrupts industries, companies are increasingly compelled to achieve that same level of internal cooperation. Many businesses have organizational silos without enough sharing of information between teams. As the pace of change accelerates, companies are finding they need to break down these barriers if they are to stay at the front of the pack. 

Consider treasury. In thriving businesses, treasury teams are no longer just back-office functions. They partner with groups across their organization to drive the business forward. This includes working with different departments to develop unique go-to-market strategies, data-driven, direct-to-consumer models, and enhanced user experiences. Treasury teams also collaborate in key areas like ESG. Smart, invisible payments are supporting decarbonization initiatives such as green transport—something we explore further in this issue’s feature on sustainability. 

So how should treasurers adapt to this new paradigm?

As the role of the treasurer evolves, new skills are becoming essential. A tech-savvy treasury is crucial. Combining an effective accounts strategy with advanced tools, like intelligent liquidity modeling and automated payments and collections, can propel business growth. Meanwhile, data analytics and machine learning can aid cash-flow forecasting, customer insights, and better visibility of supply-demand curves. 

In addition to technical know-how, treasurers must also develop soft skills, learning to communicate more effectively with colleagues and clients, and translating technical financial or regulatory terms into everyday language. Business and finance functions need to work in lockstep, and understanding partners' concerns and challenges is vital for successful collaboration.   

Finally, treasurers must cultivate a global outlook. Technology is connecting the world, but treasurers must be mindful of regional differences and ways of operating.  For example, innovation in countries like India and Brazil is making real-time payments a reality, giving consumers and businesses access to same-day liquidity. Treasurers at global companies need to adapt to these trends, while maintaining a clear-eyed view of their markets’ digital maturity, cultural landscapes, and strategic priorities.  

In this edition, we explore how real-world treasurers are navigating these shifts. We also examine a number of broader sector trends, including how payments are transforming the fan experience in sports, helping health insurers fight fraud, bringing financial services to underserved populations, and enabling the green economy.  

We hope you are inspired by the possibilities ahead. 

Enjoy the issue.     

BY J.P. MORGAN PAYMENTS

SOURCES: WWW.JPMORGAN.COM/PAYMENTS-UNBOUND/SOURCES

ILLUSTRATION: ADI GILBERT