A brief look at what’s on International Treasurer’s radar screen this week.
Several stories came out of this week’s International Treasurer editorial meeting, including a look at the age-old debate about separate accounts, corporate mobile banking and payment cards.
Separately managed accounts.
One of the lessons corporate treasurers learned from the financial crisis is that, despite their appearance of safety and liquidity, pooled liquidity vehicles, including money market funds, are susceptible to lapses in investor confidence that may lead to runs.
Whether to use a commingled asset pool like a money market fund or an investment manager in a separate account format is an age-old debate for corporate cash investors. Few would dispute the benefits of a constant $1 share price and the daily liquidity offered by a money market fund; however, a separate account investor with specific investment guidelines might have avoided the collateral damage and anxiety from some of the poorly conceived investment strategies in commingled vehicles.
Corporate mobile banking. Corporate mobile banking is revolutionizing cash management as mobile solutions and devices continue to mature. One of the driving forces of this trend, according to consultancy Celent, are banks that have realized that retail banking isn’t profitable; therefore they have switched their focus to corporate clients.
And the technology is gaining traction among treasurers as security protocols improve. Remote approvals, balance reporting, check scanning capabilities are today available via a variety of hand held devices, and the horizon for their continued adoption by treasurers is almost boundless. Bankers and treasurers alike agree that it is not a matter of if but when mobile banking will catch on.
P-cards. Purchasing card is a product that has been around for over two decades and continues to be a winner for those companies that have fully embraced it. Yet, it is surprising that some large multinational companies have yet to implement a purchasing card program and that some of those that have, don’t structure them to maximize their potential.