Serving the New Corporate Treasurer: Implications for Transaction Banking

April 27, 2012
Industry Trends
Global, Asia-Pacific, EMEA, Latin America, North America

Abstract

REPORT PREVIOUSLY PUBLISHED BY OLIVER WYMAN

This report details the needs of the “new” Corporate Treasurer who is emerging from the economic turmoil, and discusses how transaction banking businesses should orient strategically to best serve this client.

In a new report, Serving the New Corporate Treasurer, Oliver Wyman considers the impact of the financial crisis and credit crunch on Corporate Treasurers. Oliver Wyman believes that it has fundamentally and irrevocably altered their role from a traditionally back office-intensive function, to one that is significantly more visible and highly strategic. The crisis also re-emphasized for many banks the value of transaction banking as a more stable and low-risk source of growth and revenue. We believe that the enhanced role and needs of Corporate Treasury as a client presents new challenges and relationship-deepening opportunities for transaction banking businesses in 2012, as both sides poise for growth.

Axel Miller, a Partner at Oliver Wyman, and co-author of the report along with Elizabeth St-Onge and Michael Wagner, said, “The good news for banks is that the financial crisis has created a corporate customer that has broader, deeper, and more strategic needs. The danger for banks is that the same economic crisis that created stronger customer needs was also tremendously difficult for banks, and many became inwardly focused as they concentrated on their own recovery. Against this backdrop, banks need to make it easy and rewarding for their clients to do business with them. Providing good transaction banking services is a given – clients are looking for value-added services and will reward their bank with a deep and increasing relationship and fee basis. The question for a bank to ask is: Do we have a strategy for increasing and demonstrating our value to corporate customers, while also growing and being profitable?”

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

1. Executive summary

3

2. Background

4

3. The Treasurer’s “top of mind” issues

7

 

A. Fulfilling the organization’s new expectations of treasury

 

 

B. Ensuring adequate cash and optimizing liquidity

 

 

C. Managing risk in a comprehensive and holistic fashion

 

 

D. Implementing and optimizing technology

 

 

E. Understanding and integrating new regulatory requirements

 

Implications of the changing environment on Transaction Banking

16

 

1. Globalization

 

 

2. Integration with customers and within the bank

 

 

3. Regulation

 

 

4. Competition & innovation

 

 

5. Optimization of cash

 

 

6. Altered customer needs and buying behaviors

 

5. Potential Strategies for Transaction Banking in serving the new Corporate Treasurer

19

6. Final thoughts

23

7. Appendix

24

Sign in to download reports and access personalized information