Data has the potential to change the role of the modern corporate treasury by providing actionable insights allowing treasurers to manage their functions better.
The spike in digitisation has positioned data as the epicentre of success for companies no matter which industry they belong to. It is changing the face of the world, helping to cure a disease, make a building more efficient, boost a company’s revenue or for those targeted ads you keep seeing every now and then.
A close analysis of data in the form of customer behaviour helps the company’s intuition to take smart and constructive decisions. While data can be diverse the pattern remains the same and interpreting that trend help companies to be more efficient and agile.
The monitoring of data continuously has become a critical aspect for companies to focus on factors that matter the most.
Companies are beginning to identify and recognise that the insights garnered from data can help them switch to the concept of real-time financial analysis, especially when combined with internal data from traditional data-management systems.
As more and more of this information, today is made online due to the digital transformation analysts can start to decipher and use it as useful data. Advancements in analytics such as AI and machine learning are proving advantageous for companies with data-driven decision-making, targeted marketing and problem-solving addressing the most significant challenges and pain points businesses face in the process.
Data As An Asset
In essence data as an asset refers to companies understanding where all the data is and then be able to make it available when it is needed by the audience who needs it, such as customers, internal functions like service, operations, compliance, finance, risk, sales and business decision-makers.
Access to vital data enables companies to analyse clients’ journeys to understand their pain points and help anticipate their needs. For instance, financial transactions, including receivables and payables daily and some of these payments involve the same people consistently regularly. Specifically, the visibility into the business and flows help treasury spot opportunities to improve the company’s interaction with suppliers, customers and other partners.
Leveraging data also helps to improve operations and build better, smarter products by scanning clients’ transaction flows in real-time and identify outlier behaviour and activity that might be further investigated by the client.
The reason for choosing the path of the data-led transformation over the traditional treasury role is evident with new data intelligence transforming capital-market raising, customer retention strategies, business planning and much more.
Supporting The Business
Advanced corporates have transitioned onto centralisation with access to a wide variety of information, in addition to improving efficiency enabling treasury to become proactive in its support for the business.
This is because the treasury team can shift the data now at its disposal for well-informed decision-making. Working capital management optimisation initiatives, which require buy-in from the business, become more productive. In contrast to the earlier stage of digitisation, which was primarily about improving control and efficiency, leveraging data is to position the company for growth.
Marching Towards Data Treasury
Corporate treasury has long been ignored as an investment option and with business and treasury processes integrated, updates by the business now automatically feed into treasury systems and vice versa. The integration of external platforms in companies does not affect the existing data but instead can help in creating an excellent platform for optimising business and investment prospects. Treasury has greater visibility and plays a more strategic role by working with the business. It can aggregate exposure across the group, net it and cost-effectively hedge outstanding risks with the banking system.