The role of a treasurer has been changing. In addition to performing control and governance functions, treasury is becoming a strategic partner to the broader enterprise. Treasury leaders today are expected to drive liquidity optimization, support growth, manage risk, improve forecasting accuracy and help their organizations navigate a rapidly evolving technology landscape.
At the same time, advances in data, analytics, automation and artificial intelligence are creating new opportunities to enhance visibility, accelerate decision-making and unlock efficiency across the enterprise.
For some perspective on what that future may look like in practice, Mark Ipek, Managing Director and Head of Canadian Diversified Industries, Treasury and Payment Solutions, recently led a panel discussion with four BMO leaders:
Eric Kurs-Lasky, Head of North American Commercial Deposits
Benjamin Lambert, Managing Director and Head of Global Liquidity Solutions
Katie Oresar, Head of U.S. Treasury and Payment Solution Sales
Stephanie Petti, Director of Corporate Sales and Structuring
They shared their perspectives on treasury priorities, where they see the greatest opportunities for clients and how organizations can position themselves for the next chapter of treasury leadership.
Listen to a Markets Plus podcast based on insights from this panel discussion.
A summary of the conversation follows.
Treasury as a competitive advantage
When managed strategically, treasury and payments can become a powerful lever for business growth. “If you make it easier for customers to pay, provide more frictionless payment options and speed up reconciliation, you can potentially accelerate revenue growth because the customer experience is so positive,” Oresar said.
Strategic liquidity management can also provide a competitive advantage and help organizations navigate uncertainty. Lambert noted that client conversations have expanded beyond how much cash a company holds and where it should be invested. Increasingly, clients are also considering how much liquidity they should preserve, how much they can put to work, and whether they have the right sources of liquidity available.
“If a company has confidence in its liquidity position, it can make decisions faster, act quickly when opportunities arise, and remain resilient when conditions change,” Lambert said.
Data-based decisions
Data could also be leveraged as a source of competitive advantage. Against this backdrop, companies may find it advantageous to develop a more strategic relationship with their banks.
“Banks sit in a unique position,” Kurs-Lasky said. “We see payment flows, liquidity trends, working capital patterns and broader market dynamics every day. While every company's business is unique, we can often help put their data into context. Not every company needs a massive ERP transformation to gain insight. Sometimes it's simply about improving visibility and leveraging the information already available through strategic banking relationships.”
Leveraging data insights to enhance visibility is providing organizations with new ways to approach cash flow forecasting and risk management. As Petti pointed out, that visibility has significant implications for both liquidity planning and risk management.
“Companies can use predictive analytics to forecast seasonal cash flow fluctuations, identify customers who may be at risk of paying late, optimize inventory levels to reduce excess working capital, and model the impact of interest rate movements on future liquidity,” Petti said. “Instead of spending time pulling data together and trying to understand what happened previously, they can focus on what's likely to happen next and what actions they should take as a result.”
Best-in-class treasury in 2030
As Ipek noted, uncertainty has become the new normal, which means treasury teams spend a lot of time on their heels while trying to balance their priorities. That includes driving operational growth, improving efficiency, mitigating fraud and incorporating leading-edge technologies. But all the panelists agree that the most successful treasury departments will not necessarily be those with the most sophistiquâtes tools. Instead, success will depend on how effectively teams combine technology, security and strategic thinking.
“Not every company needs a best-in-class treasury organization,” Kurs-Lasky said. “What every company needs is a treasury function that's fit for purpose. When I think about what good treasury looks like in 2030, it comes down to visibility, forecasting, automation and agility. I think treasury will spend less time gathering information and more time helping management make strategic decisions.”
The next five years
Treasury teams will likely continue to look for ways to incorporate AI. For Kurs-Lasky, the treasury teams that create the most value will use the technology to identify patterns, stress-test scenarios and anticipate risks.
Lambert believes scenario-based decision-making will become more important in treasury teams. “I think the real differentiator over the next five years will be the ability to assess several possible outcomes quickly and understand what each one means for liquidity,” he said. “Technology and AI will certainly help support and accelerate that process, but the real value will come from combining the data with sound judgment and a strong understanding of the business.”
As companies navigate an increasingly complex market environment, Petti believes the use of financial risk management strategies will become increasingly important over the next five years. She noted that developing well-defined financial risk management strategies for foreign currency, interest rate, and commodity exposures will be critical to protecting margins and cash flows.
Oresar said the successful teams will be the ones that are able to operate on an always-on, real-time basis.
“The ones that build real-time visibility and decision-making capabilities now will be best positioned to capitalize on faster settlement, improved working capital efficiency, and new forms of digital commerce over the next five years,” Oresar said. “Given the innovation that will continue to happen, the status quo is not going to cut it.”