Inevitably, next-gen tech will form part of the toolkit for the treasurers of tomorrow. This is needed as finance teams look to mitigate risks and make the best use of their cash.
For example, Tan highlighted three key areas in which treasurers typically look for support from their banks:
To correctly predict cash positions – to shorten or optimise the cycle
To enhance tech efficiency – not just in terms of solutions at the front end, but also connecting and providing support for transactions in a digitised and automated way
To provide security – given that every new digitised solution with a customer involves a governance process to protect the customer against cybersecurity or fraud
“Efficiency and security are key areas for us to consider,” added Yang. “Tech can really help us with cash flow forecasting accuracy and visibility.”
The responsibility for this falls on banking partners like HSBC. “We need our banks to help us with secure system integration, and then to detect any cash anomalies combined with insights to help us address them,” he explained.
This reflects a broader trend among corporates – that ‘Banking as a Service’ is on an upward trend. “By leveraging APIs and through ‘embedded finance’, an organisation can offer valuable banking services to its ecosystem of buyers, customers and suppliers through existing digital channels,” said Tan.
From Amcor’s perspective, it is working on embedding banking services within its ERP, but it is looking to enhance it to cover its FX cash flow too. “The key issue for us is knowing the business demand based on the growth strategy, and therefore how finance and HSBC can help to support that strategy. Managing our cash better is very important."