What will treasury look like in 2030?
In this latest Citi GPS report, we try to answer this important question. More specifically, we focus on what treasury should look like in 2030 based on where the function is today, what experts are saying, and the opportunities we see.
It’s clear that technology will continue to be one of the major catalysts for change. We discuss new technological advances and how they will provide a platform for treasury modernization.
Equally important will be tighter partnership and collaboration, within firms and with technology and banking providers. And a talent strategy focusing not only on ensuring the right skillset, but also the right mindset-- one that embraces change--across the treasury organization.
Ultimately, the most important catalyst will be the appetite of treasurers to make the tough choices needed to drive change.
That won’t be easy. Treasurers are already busy performing a challenging role. They ensure the company has adequate liquidity, minimize financial risks, and contain net financing costs so they do not materially impact cash flow. They have the vital mission of supporting the CFO in capital strategy.
That said, treasurers are also always striving to do better and often ask us what best-in-class treasury looks like. And they wonder how they stack up.
A year ago, we published our study Citi GPS: Treasury Leadership: Does it Matter? This examined what differentiates best in class treasuries from the rest. We found that companies that have nurtured treasury teams to be leaders also enjoyed better financial performance.
Recently, many treasurers are asking more forward-looking questions. “What will treasury look like in the future? How should we plan to adapt?" This Citi GPS report sets out a picture of the potential road ahead.
The nature of predictions is that we will likely be wrong in terms of precise outcomes. But this report lays out what we believe to be the thrust and direction of how treasury will and should evolve by 2030.
We hope the vision we present here serves as a call to action for companies, tech providers and banks to take the steps necessary now to ensure treasury remains relevant and indeed vibrant in the coming years.
