From back office to boardroom: the strategic ascendancy of treasurers
Your job has changed significantly over the past decade. The traditional finance career has been redefined and influenced by rapid technological development, regulatory changes and a truly real-time environment. As the landscape continues to evolve, the role of the treasurer has become more crucial than ever to the financial health of an organisation.
Consider the challenge
Treasurers have been navigating multi-faceted challenges for some time. Their role is complex: involving the management of global cash flows, mitigation of payment fraud risks, optimisation of working capital, adaptation to regulatory changes and leveraging of technological advancements.
Additionally, treasurers must have the stamina to keep up with rapidly evolving business models, such as the growth of e-commerce and marketplaces, and the oversight required to manage the accelerating pace of technological change. This demands their full-time focus.
In today's business environment, protecting the core is crucial. How can we drive business growth while operating with a lean team and a “do more with less” mindset? Treasurers must streamline their functions while still supporting the company's growth goals. Positioned at the forefront of these complex issues, they are now required to be strategic thinkers and problem solvers.
Empowering the treasurer
Treasurers have met this challenge head on. At the world's largest multinational corporations, they guide payment strategies and influence the bottom line. Their impact extends across organisations of all sizes, geographies and structures, positioning treasurers as pivotal enablers of liquidity management, risk mitigation and working capital optimisation.
Treasurers are now strategic partners to CFOs and other C-suite executives, providing critical insights that shape broader business strategies. J.P. Morgan’s Global Head of Multinational Corporate Sales for Payments, Lillian Sim, observes this shift at the highest level: “The smartest companies recognise the unique position of their treasury team and equip them with the tools for success. Our strength lies in empowering treasurers with solutions that support their ambitions and can protect and grow your business, adapting as your needs evolve.”
J.P. Morgan Payments is leading the way in automating e-commerce business flows, especially for cross-border transactions, with advanced FX arrangements that meet complex regulatory requirements. The firm is also leveraging the latest technologies to enhance client services.
“We’ve upgraded our traditional treasury services, including payments, receivables and foreign exchange, to a state-of-the-art cloud-based infrastructure,” explained Sim. “We’ve launched our online merchant acquiring service in seven countries in the Asia Pacific region and are already processing a significant volume of e-commerce transactions automatically. As our clients evolve, so do we – our technology is designed with their future needs in mind.”
Tools and talent
Treasury teams have historically been cost centres, as opposed to profit centres, so the pressure for headcount is continuous. This can be especially challenging when fast-growing companies start to see growth slow, or tail off.
In this case, J.P. Morgan advises to focus on the core: talent and technology. Streamlining core functions – real-time treasury solutions, APIs and cash flow forecasting – can maximise productivity and efficiency. Deploying technology and leaning in to a partnership with a bank like J.P. Morgan, provides a proven risk and controls framework that can maximise protection. These are the innovations that keep your business moving.
Crucially, it is the people who drive success. Empowering and building a solid treasury team has been central to PayPal’s achievements, says the company’s assistant treasurer, Kieron Lynch. “Our key priority has been developing talent and many of our senior finance and treasury roles are based in Singapore and other key global hubs. As organisations globalise, having a global mindset is essential.
Added Lynch: “The demands on treasurers have never been higher, and understanding markets, trends and industries worldwide gives us the perspective PayPal needs.”
Sim agreed: “As the role of the treasurer expands across all aspects of business models, it’s vital to build talent from diverse backgrounds and industries. This broadened skill set strengthens treasury teams and drives growth in unexpected ways.”
While the landscape is ever-changing, some constants remain: a strong team, a robust global treasury platform and solid global bank support strengthens the chances of success.
For more information, please visit: https://www.jpmorgan.com/payments/payments-apac
