Summary

Corporate treasury departments used to have little visibility within companies—and were not always well understood by their colleagues. What treasurers actually did, which included managing corporate liquidity and interfacing with capital markets, was important and required considerable skill. But despite the nature of the contribution they were making, treasurers themselves were rarely seen as true business partners. “Oh yeah, you’re treasury,” said one person who entered the profession more than a quarter century ago, recalling the hazy understanding he often encountered when meeting colleagues for the first time. “You’re the guys who open and close bank accounts. You write the cheques.”

While this sort of pigeon-holing hasn’t disappeared entirely, it is decidedly less common today. Increases in M&A and in overseas business have meant a more central role for the people who understand the intricacies of intercompany and crossborder payments, borrowing from credit facilities, investing excess cash and working with credit-ratings agencies. Furthermore, technology and automation have created a sea change in the information treasurers have and in how they are able to spend their time. Treasurers today are able to devote more attention to how their companies use both bank- and non-bank systems, reassess payment strategies and instil discipline in the use of cash. These developments don’t mean there’s been a wholesale redefinition of the treasury function. But they have created an opportunity for savvy treasurers to play a more strategic role, especially for the growing number that recognise the importance of the new data that’s available and the power of relationships.