From the June Special Report issue of Treasury & Risk magazine

Evolutions in Treasury Centralization

By Elyse Weiner, Managing Director & Global Head of Liquidity Management Services, and Michael Fossaceca, Managing Director & North America Region Head for Corporates, Citi Treasury and Trade Solutions

Structural shifts in the global economy and the growing importance of emerging markets are reshaping the business landscape. With rapidly globalizing supply chains and changing market forces, along with increasing financial regulation and choppy economic growth, Treasurers have new opportunities to partner with the business and create greater value for the firm.

Expanding Roles to Create Value

Treasury departments are increasingly going beyond traditional core functions to take broader roles in the enterprise. As business operating models evolve, Treasurers are becoming strategic partners to the business, helping identify optimal strategies and factoring in risk considerations, all the while proactively realigning their own organizations to the needs of the business.

Global In House Banking to Streamline Liquidity

The Challenge

A Fortune 100 global technology company had complex commercial and intercompany flows, the latter often with poor coordination. Treasury had management functions spread over numerous locations, multiple cash pools, and stand-alone bank accounts with no overarching liquidity structure. The result was poor cash access and utilization, added to eroding interest margins and process inefficiencies.

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