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Source: Economist Intelligence Unit survey, July/August 2015
Copyright: © The Economist Intelligence Unit, 2015
Will reduce reliance on traditional banks
Risk‐averse about partnering with FinTech
Biggest barrier to making effective use of technology in treasury departments is that the importance of technology is recognised, but not given enough priority
62 % 65 %
61%
Agree leadership teams increasingly consult corporate treasurers on strategic questions
Agree that treasury departments are well placed to advise senior management on the challenges arising from regulatory change
State that their company’s treasury function fully understands long‐term strategic goals
70 +%
Say their company’s board does not take sufficient interest in the corporate treasury function
67 %
Do not think their treasury departments are well integrated into the wider business
57 %
Key macro risks and risk management strategies
1
Funding and investment strategies2
Technology as a treasury enabler4
The changing role of the treasurer5
FINANCIAL-SECTOR REGULATION
The impact of regulations on treasury operations
3
FINANCING THE FRAGILE ECONOMIC RECOVERYHow global corporate treasurers, CFOs and other finance executives
are navigating new risks and opportunities for growth
Most serious macro risks to company's finances over the next three years are:
EMEA respondents particularly concerned about growth and currency risk:
Sluggish global economic growth
Currency risk
Regulatory risk
59 %
38 %
36 %
See sluggish global economic growth as a top macro risk
Feel they spend a lot or most of their time on managing currency risk
In the Americas
VS
64%
52 % 33 %
Costs will stay roughly the same
Rising costs
Falling costs
CFOs are more willing to explore non‐traditional sources of finance than corporate treasurers: Cash hoarding:
Credit costs over the next 2 years not expected to be a big problem:
CFOs Treasurers
Using new banking partners
Traditional banking partners
Supply chain finance Have no or not much excess cash
Have either fair or large amounts of excess cash
The vast majority say three important compliance developments are worth the costs of implementation:
Dissatisfaction with indirect costs of financial‐sector regulations, such as:
Respondents expect investment in treasury technology in the next 2 years:
Partnering with financial technology companies (FinTech):
Technology not given enough priority:
CFOs recognise the growing strategic role of the treasury:
However, corporate treasurers still see major obstacles:
39 %
27%
35 %
41%
21%
23%
45 %
29 %
26 %
80 %
20 %
67 %
29 %
4%
78 %
70 %
69 %
34%
47%
18 %
1%
New accounting standards
The Payment Services Directive (PSD)
The European Market Infrastructure Regulation (EMIR)
The Dodd Frank Act
Basel III
Solvency II
Anti‐money laundering (AML) laws
Legislation on base erosion and profit shifting (BEPS)
Heavy investment (unprecedented high levels)
Moderate investments (levels they would consider normal/average)
No or little investment
Don't know
Fairly high to very high amount of time
Finance executives spend a lot of time on regulatory change:
Appropriate amount of time
Fairly low or very low amount of time