As more and more corporations pursue global expansion objectives, treasury and finance professionals are under increasing pressure to achieve improved efficiencies in cross-border payment and collection activities. Treasury must deal with the many challenges of globalization, such as opening and maintaining a growing number of bank accounts as worldwide supplier networks expand. In addition to the higher costs associated with cross-border payments, treasury also faces a lack of visibility and control when managing multiple banking relationships.
Further challenges include the potential for lost or truncated payment information as payment messages are relayed between banks, which in turn makes reconciliation more difficult. And, as businesses are compelled to maintain a growing number of foreign currency accounts, treasury must deal with increased exposure to foreign exchange (FX) risk, as well as the costs related to making supplier payments in different currencies. As business models change to adapt to global priorities, innovative cross-border trade solutions have emerged that can increase efficiency and control, while mitigating risks.