By Ted Howard
Navigating treasury technology, corporate banking and career are the topicscovered in the September issue of iTreasurer. Also in this issue is a summary ofthe first-half meeting of The NeuGroup’s Assistant Treasurers’ Group of Thirty (AT30)as well as discussion of MMFs and FX hedge strategies.
Starting we dwelve into one aspect of what goes into a world-classtreasury management system. The consensus is that having that person whoknows the “languages” of both treasury and tech can go a long toward helpingsupport the smooth running of the technology. Add to this a team of expertsversed in the broader mission of how technology supports the treasury function.At Cargill, whose process is featured in the story, this is in the form of a “Center ofExpertise.” This COE “creates, delivers, and sustains value by honoring existing processes,focusing on global needs, ensuring clear and defined roles, and maintaininga base level of treasury knowledge.”
We explore how money continues to flow out of money market fundsahead of the October implementation of Securities and Exchange Commissionrules. “Fund providers have been aggressively marketing that these changes willmake MMFs better but people are realizing this isn’t true,” said Brandon Semilof,managing director at StoneCastle Cash Management. However, global moneymarket products provider ICD, argues that widening spreads between prime fundsand treasury and government funds means prime funds will actually be moreattractive and bring money back to the beleaguered assets post-implementation.
In this month’s meeting summary, AT30 members discuss acquisitionsand their aftermath, hedging currency risk amid volatility, funding strategies andstaff development. One of the major takeaways from the meeting concerns thefirst topic, acquisitions. That’s because following 2015—a record year for M&A—“members are still digesting their targets and prepping for a possible next wave,”according to Bryan Richardson, who leads the group. “Some are stepping back toreview their companies’ organizational structures, such as shared service centers,and how treasury fits in. Similarly, Mr. Richardson writes, “several [members] arereviewing their technology infrastructures, with some extending treasury systemsto other regions and others replacing key modules as vendor offerings improve.”
In “The Changing Landscape of Corporate Banking,” Joseph Neudiscusses how the current environment of regs and low interest rates is putting stresson corporate-bank relations. What’s interesting is corporates are either not aware ofthe situation or are putting things off until new rules come into play. However, writesMr. Neu, that companies aren’t putting a high priority on corporate bank relationships“may not last… however, as the trends impacting corporate banks start to bite.”
In “Cracking the Career-Path Conundrum” contributor John Hintzedelves into how treasuries face the challenge of keeping talent engaged and, moreimportantly, in treasury. So the question is do you further those executives’ careerpaths and dissuade them from seeking that next step forward at another compellingfunction within the company or worse, a competitor?,” writes Mr. Hintze. Oneanswer could be special projects, according to Tim Hird, Robert Half ManagementResources. He says there is opportunity for organizations “to identify specialprojects and initiatives that they’re running, and encourage people to work outsidetheir technical areas on those projects.”