The recent financial crisis has caused a great deal of inward examination by corporations, institutions, and academics. This is a healthy reaction to a crisis that has caused so many problems for global markets and set CFOs, CEOs, and corporate treasurers alike on edge for years. Fortunately, much has been discovered and learned in the years since the crisis hit.
Alex Verbaeten wrote an excellent case study examining the perception and purpose of an integrated treasury platform that is worth reading. Alex Verbaeten is the Senior Vice President of Bank of America Merrill Lynch, and holds several other prominent positions in the industry.
One important point that Verbaeten initially explains is the fact that, “the luxury of lead time to adjust [or react] to … emerging risk, … new opportunity, or expanding market is gone – probably forever.” This is a rather impactful change, given the way treasurers, especially those in banking institutions, had functioned just a few years ago.
Verbaeten is supporting the adoption of the newest and most important changes in treasury management for the future. To him, the world has changed and won’t go back to how things were before. One important and initial point to consider is that the most efficient model “begins with an integrated approach to investment and corporate banking.” No longer can one person or department have all of the necessary information or make the most important decisions; there needs to be integration and communication between decision-makers and their departments.
Involved in this integrated bank model is the focus on interdependencies in, for example, banking treasuries. Verbaeten stresses the importance of focusing on “maximizing the efficiency and accuracy of repetitive” actions in order to create savings as well as greater access to cash.
Much of the case study is directed towards banking treasurers and executives, but there is a great deal of information worth reading for those in other industries. Verbaeten challenges preconceived notions and could serve as inspiration for more creativity in other industries as well. Take a look at the article linked above.