What are some of the technology trends you are seeing in Asia-Pacific?
Historically, corporations in Asia have been seen as reliant on paper-based and manual processes. While this is still true, we’re now seeing a shift towards automation, especially in those expanding their focus from a single domestic market to a more international view.
Local Asian corporations are also beginning to demand the same level of integration with their banks as large global organisations operating in the region. The primary requirement of these corporations is that banks help them achieve a better view of their cashflow, balances and loans outstanding.
Are Asian companies ready to leapfrog their western counterparts with technology?
In some ways we are seeing Asia jumping ahead with technological innovation. This is especially true when looking at new platforms, such as mobile. For western countries it is a case of deciding whether it is worth upgrading legacy systems to enable services to be delivered via mobile or web. In Asia-Pacific, on the other hand, many are implementing new back office systems anyway, and it is just a matter of deciding whether to include cutting edge technologies as part of that.
On the consumer-facing side too, mobile solutions are taking off as previously unbanked users, living in remote or undeveloped regions, leapfrog the development of regional bank branches and begin utilising the well-developed mobile networks to manage their money.
What role does technology play in corporate treasury? How can technology help raise the profile of the treasury department of a company?
At the cutting edge, corporations could look at implementing a payments factory – a platform to manage all payments, including bank relationships and vendor supply chain management. This can give treasury greater visibility and control over their cashflow and reduce the risk and internal controls required. Clearly most would look at some quick wins, maybe around payroll for example.
In terms of raising the department’s profile, it is normally more about protecting the reputation. No one notices when all payments are made on time, but one major slip up, such as payroll not being delivered on time can hit the organisation hard. So, developing excellence in payments can have a strong reputational impact, especially by avoiding these types of negative issues.
How can a treasurer of an Asian company make use of up-to-date solutions and services to improve the treasury operations of a company?
Treasurers of large, or growing, organisations can look to consolidate their payments processes into a single unified payments factory. Bringing together all processes and internal divisions, such as different accounts payable units, into a single service in this way will not only mean more streamlined processes and reduced costs, it will also give treasurers greater visibility and control over their cash and reduce risk. This approach also enables stronger control over their banking relationships and may enable some potential regional consolidation.
Is the idea of a centralised treasury migrating to more of a virtual model?
While Asia is a fragmented region, many organisations, following the lead of global multinationals, are starting to take a view from the top in terms of their treasury. This means that they are looking to consolidate their banking relationships, and moving to those who can give them a more international payments service. This is a real opportunity for financial institutions with operations in multiple countries to modernise their payments services into a central hub across the region and enable corporations to take a more global view.
