Key Skills for Treasury Professionals

Treasury is full of improvement ideas. Better systems, cleaner data, automated processes, more control, more visibility.

The problem is not identifying what needs to change. The problem is getting people to actually change it.

Change management in treasury is about turning good ideas into real, working improvements without breaking the day-to-day operation. Which, considering treasury runs payments, liquidity, and risk, is a bit like renovating a house while still living in it.

Why Change in Treasury Is Hard

Treasury sits in the middle of multiple dependencies:

• Banks 
• ERP systems 
• Internal stakeholders 
• External providers 
• Regulations and controls 

Changing one part often impacts several others. That creates hesitation.

Add to that:

• Limited resources 
• Competing priorities 
• Fear of operational disruption 

And suddenly, even obvious improvements get delayed.

Not because they’re wrong. Because they’re inconvenient.

What Drives Change in Treasury

Change usually comes from a few triggers:

• System limitations or legacy setups 
• Growth and increasing complexity 
• Regulatory requirements 
• Cost pressure 
• Need for better visibility and control 
• Digital transformation initiatives 

Sometimes change is proactive. More often, it’s reactive. Something breaks, becomes inefficient, or too risky to ignore.

Typical Treasury Change Projects

You’ll see recurring themes:

• Implementing or upgrading a TMS 
• Centralising cash through pooling or in-house banking 
• Improving cash flow forecasting 
• Automating payments and bank connectivity 
• Standardising processes across entities 
• Enhancing controls and compliance frameworks 

All of these sound logical. None of them are trivial.

The Gap Between Idea and Execution

Most treasury teams know what “good” looks like.

The gap is execution.

Projects fail or stall because:

• Scope is unclear or too ambitious 
• Data is inconsistent or incomplete 
• Stakeholders are not aligned 
• Responsibilities are not defined 
• Change impact is underestimated 

And then there’s the classic:
“We’ll fix it in the next phase.”

There is always a next phase.

The Human Factor

This is where most change efforts quietly collapse.

People are used to:

• Existing processes 
• Known workarounds 
• Personal ways of doing things 

Even if those processes are inefficient, they are familiar.

Change introduces:

• New systems 
• New responsibilities 
• Temporary disruption 
• Learning curves 

Without proper communication and involvement, resistance builds. Not openly. Subtly.

And subtle resistance is the hardest to manage.

Communication and Buy-In

Successful change requires:

• Clear explanation of why change is needed 
• Practical benefits, not abstract improvements 
• Early involvement of key users 
• Visible support from leadership 

People don’t resist change. They resist unclear or imposed change.

Treasury needs to translate technical improvements into business impact:

• Less manual work 
• Fewer errors 
• Better visibility 
• Faster decision-making 

Make it real, or it won’t stick.

Balancing Change and Continuity

Treasury cannot pause operations.

Payments need to go out
Cash needs to be monitored
Risks need to be managed

So change has to be phased:

• Parallel runs 
• Controlled rollouts 
• Testing and validation 
• Fallback options 

Rushing change increases risk. Moving too slowly reduces impact.

Finding the balance is part of the job.

Technology Is Not the Solution

This is where expectations often go wrong.

Buying a new system does not solve:

• Poor data quality 
• Unclear processes 
• Lack of ownership 

Technology enables improvement. It doesn’t create it.

Without process clarity and discipline, new systems simply replicate old problems in a more expensive environment.

Where It Goes Wrong

Some familiar patterns:

• Overestimating what technology will fix 
• Underestimating data and integration complexity 
• Lack of stakeholder engagement 
• No clear ownership of the project 
• Trying to change everything at once 

Most failed projects don’t fail technically. They fail organisationally.

Treasury’s Role in Change

Treasury often leads or heavily contributes to change initiatives.

It brings:

• Process understanding 
• Awareness of risks and dependencies 
• Practical constraints 
• Focus on control and efficiency 

A strong treasury function doesn’t just identify improvements. It ensures they are implemented in a way that actually works.

Because in treasury, a “partially working solution” is just another problem waiting to happen.

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When treasury has excess cash, the instinct from the outside is simple: invest it and earn a return.

From the inside, it’s slightly different: don’t lose it, keep it accessible, and if possible earn something on top.

That order matters. A lot.

Treasury investments are not about chasing returns. They are about preserving capital, maintaining liquidity, and managing risk across different instruments.

The Treasury Investment Objective

Treasury typically follows three priorities:

1. Capital preservation 
2. Liquidity 
3. Yield 

In that order.

If you flip that order, you’re no longer doing treasury. You’re doing something else. Usually with more volatility and less sleep.

The Investment Spectrum

Treasury invests across a range of instruments, depending on policy, risk appetite, and liquidity needs.

Common instruments include:

• Bank deposits (overnight, term deposits) 
• Money market funds 
• Commercial paper 
• Government and high-grade corporate bonds 
• Short-term investment funds 

Each sits somewhere on a spectrum between:

• Low risk, high liquidity, low return 
• Higher risk, lower liquidity, higher return 

Treasury constantly balances where to position itself on that spectrum.

Credit Risk in Investments

Every investment carries credit risk.

Even a simple bank deposit is effectively exposure to that bank.

Treasury evaluates:

• Credit ratings of counterparties 
• Financial stability 
• Concentration of exposure 
• Limits per institution 

The goal is to avoid situations where a single counterparty failure creates a material loss.

Because recovering lost capital is significantly harder than earning a bit of extra yield.

Liquidity Risk in Investments

An investment is only useful if it can be accessed when needed.

Treasury considers:

• Maturity profiles 
• Redemption terms 
• Market liquidity 

Locking cash into long-term instruments may improve yield, but reduces flexibility.

And flexibility is exactly what treasury needs when cash requirements change unexpectedly.

Market Risk

Even low-risk investments can be exposed to market movements.

Interest rate changes can impact:

• Bond valuations 
• Investment returns 
• Reinvestment opportunities 

Treasury typically limits exposure to market volatility by:

• Keeping durations short 
• Avoiding complex or volatile instruments 
• Aligning investments with liquidity needs 

Again, the goal is stability, not speculation.

Diversification

Diversification reduces risk, but adds complexity.

Treasury spreads investments across:

• Multiple counterparties 
• Different instruments 
• Various maturities 

This reduces dependency on any single exposure.

At the same time, it requires more monitoring and control. Which treasury happily accepts, because concentration risk is worse.

Policy and Limits

Treasury investments are governed by strict policies.

These define:

• Approved instruments 
• Counterparty limits 
• Maturity limits 
• Credit rating thresholds 

Without these, investment decisions become inconsistent and potentially risky.

Policies create discipline. Discipline protects capital.

The Temptation of Yield

Low interest environments create pressure.

“Can we earn more on our cash?”
“Are we being too conservative?”

This is where treasury needs to stay disciplined.

Chasing yield often means:

• Taking on more credit risk 
• Locking in longer maturities 
• Using more complex instruments 

Which might work for a while. Until it doesn’t.

And when it doesn’t, the downside tends to outweigh the incremental yield earned.

Where It Goes Wrong

Some familiar patterns:

• Overconcentration in a single bank or fund 
• Extending maturities beyond liquidity needs 
• Investing in instruments not fully understood 
• Relaxing credit standards for higher returns 
• Lack of monitoring of existing investments 

None of these feel like big decisions at the time. They accumulate.

Treasury’s Role in Investments

Treasury ensures that excess cash:

• Remains safe 
• Stays accessible 
• Generates appropriate returns within defined risk limits 

It’s not about outperforming markets. It’s about avoiding losses while maintaining flexibility.

Which, in the world of corporate treasury, is already considered a success.

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Treasury is evolving. Slowly in some areas, rapidly in others.

The core responsibilities remain the same, cash, risk, funding, control. But how those responsibilities are executed is changing.

Technology, data, regulation, and business expectations are all reshaping the role. Which means treasury careers are changing with it.

From Operational to Strategic

The direction is clear.

Less time spent on:

• Manual processes 
• Data collection 
• Reconciliation 

More time spent on:

• Analysis 
• Decision-making 
• Strategic support 

Automation and integration are gradually removing operational workload. Not completely, but enough to shift focus.

Treasury is moving from execution to influence.

The Rise of Data and Analytics

Data is becoming central.

Future treasury professionals need to:

• Understand data structures 
• Work with analytics tools 
• Interpret large data sets 

It’s no longer enough to produce reports.

You need to:

• Explain what the data means 
• Identify trends 
• Support decisions 

Which requires a different skill set than traditional operational roles.

Technology as a Core Competency

Technology is no longer optional.

Treasury professionals need to be comfortable with:

• TMS platforms 
• ERP systems 
• Bank connectivity solutions 
• Automation tools 

Not as developers, but as users who understand:

• How systems interact 
• What data flows look like 
• Where issues can arise 

Because technology increasingly shapes how treasury operates.

Automation and AI Impact

Automation will continue to:

• Reduce manual work 
• Improve efficiency 
• Increase consistency 

AI will:

• Support forecasting 
• Enhance data analysis 
• Improve fraud detection 

But neither will replace treasury professionals.

They will:

• Change the nature of work 
• Require new skills 
• Shift focus towards higher-value activities 

The repetitive work goes first. The thinking stays.

Increased Strategic Involvement

Treasury is becoming more involved in:

• Corporate strategy 
• Investment decisions 
• Risk planning 
• M&A activity 

This requires:

• Broader business understanding 
• Strong communication skills 
• Ability to influence decisions 

The role becomes less technical in isolation and more integrated into the business.

Regulatory Complexity

Regulation is not going away.

It will:

• Increase 
• Evolve 
• Require continuous attention 

Treasury professionals need to:

• Stay informed 
• Adapt processes 
• Ensure compliance 

Which adds another layer of complexity to the role.

Globalisation and Complexity

Companies continue to:

• Expand internationally 
• Operate across multiple currencies 
• Deal with diverse regulations 

Treasury needs to manage:

• Cross-border liquidity 
• FX exposure 
• Local banking structures 

Global complexity will continue to shape treasury roles.

New Career Opportunities

The evolution of treasury creates new roles:

• Treasury data and analytics specialists 
• Treasury technology experts 
• Transformation and project leads 
• Risk and compliance specialists 

The traditional path still exists, but it’s expanding.

The Human Factor Remains

Despite all the technology, treasury remains a people-driven function.

Professionals need to:

• Communicate effectively 
• Manage stakeholders 
• Make decisions under uncertainty 

Technology supports. People decide.

Where Expectations Go Wrong

Some common misconceptions:

• Technology will fully automate treasury 
• AI will replace decision-making 
• Operational roles will disappear completely 

Reality:

• Complexity remains 
• Exceptions always exist 
• Human judgment is still required 

The role changes. It doesn’t disappear.

Treasury Careers Going Forward

Future treasury professionals will need:

• Strong financial understanding 
• Data and system awareness 
• Analytical thinking 
• Communication and influence 

A broader skill set than before.

Which makes the role more interesting. And slightly more demanding.

Treasury’s Direction

Treasury is becoming:

• More data-driven 
• More technology-enabled 
• More strategically involved 

It’s not a revolution. It’s an evolution.

Gradual, sometimes messy, but clearly moving in one direction.

And for people in treasury, that means one thing.

Standing still is not really an option anymore.

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Choosing a treasury system sounds like a technology decision. It isn’t. It’s a business decision with long-term consequences.

Pick the right system, and treasury becomes more efficient and scalable. Pick the wrong one, and you’ve just committed to years of workarounds and frustration.

Why System Selection Matters

A treasury system impacts:

• Daily operations 
• Data quality 
• Reporting capabilities 
• Risk management 
• Integration with other systems 

It becomes the backbone of the treasury function.

Which means changing it later is painful. Expensive too.

Key Selection Criteria

When selecting a treasury system, several factors matter.

1. Functional Requirements
The system must support core treasury activities:

• Cash management 
• Forecasting 
• Risk management 
• Payments 
• Reporting 

If it doesn’t cover your basics, everything else is irrelevant.

2. Integration Capabilities
The system must connect with:

• ERP systems 
• Banks 
• Other financial tools 

Poor integration leads to:

• Manual work 
• Data inconsistencies 
• Reduced efficiency 

Which defeats the purpose of having a system.

3. Scalability and Flexibility
The system should:

• Grow with the business 
• Adapt to new requirements 
• Handle increased complexity 

Otherwise, you’ll outgrow it faster than expected.

4. User Experience
If the system is difficult to use:

• Adoption will be low 
• Workarounds will appear 
• Value will decrease 

User-friendly systems get used. Others get bypassed.

5. Vendor Support
Vendors matter more than people think.

Look for:

• Strong support 
• Training resources 
• Regular updates 

Because implementation is just the beginning.

6. Total Cost of Ownership (TCO)
Costs go beyond licensing:

• Implementation 
• Integration 
• Maintenance 
• Support 

Cheap systems often become expensive over time.

Implementation Considerations

Even the best system can fail if implementation is poor.

Key points:

• Define clear scope 
• Align stakeholders 
• Clean data before migration 
• Test properly 
• Plan for change management 

Most system issues are not technical. They are organisational.

Where It Goes Wrong

Some classic mistakes:

• Choosing based on features instead of needs 
• Underestimating integration complexity 
• Ignoring data quality 
• Lack of user adoption 
• No clear ownership 

Technology doesn’t fix poor processes. It exposes them.

Conclusion

Selecting the right treasury system is critical for long-term success.

It should:

• Support core processes 
• Integrate seamlessly 
• Scale with the business 
• Be usable in practice 

Because at the end of the day, the best system is the one that actually works in your environment.

Not the one that looked impressive in the demo.

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Corporate treasury is one of those functions that quietly sits in the background of a company, until something goes wrong. When cash is tight, markets are volatile, or funding suddenly becomes an issue, treasury moves from invisible to critical very quickly.

At its core, corporate treasury is responsible for managing a company’s financial resources. That includes cash, liquidity, funding, and financial risks. It ensures the company can meet its obligations, operate smoothly, and support its strategic ambitions without running into financial trouble.

That sounds straightforward. It isn’t.

More Than Just Managing Cash

Treasury is often reduced to “managing cash.” Technically correct, but about as complete as saying a pilot “operates controls.”

In reality, treasury sits at the centre of financial decision-making. It connects daily operations with long-term strategy. It translates business activity into cash flow. It ensures that growth plans are financially sustainable.

Treasury answers questions like:

• Do we have enough cash to operate and invest? 
• Where is that cash, and can we access it when needed? 
• How exposed are we to currency or interest rate movements? 
• How should we finance our activities efficiently? 

These are not theoretical questions. They directly impact how a business performs.

The Position of Treasury in an Organisation

Treasury operates between multiple stakeholders.

Internally, it works with:

• Finance teams, including FP&A and accounting 
• Operations and procurement 
• Senior management and the CFO 

Externally, it interacts with:

• Banks and financial institutions 
• Investors and lenders 
• Regulators and auditors 

This positioning makes treasury a connector function. It brings together information from across the organisation and translates it into financial insight and action.

From Back Office to Strategic Function

Historically, treasury was seen as a back-office function. Focused on payments, bank accounts, and short-term liquidity.

That role has evolved.

Today, treasury is expected to:

• Support strategic decisions 
• Provide insight into financial risks 
• Optimise funding structures 
• Improve cash efficiency across the business 

In many organisations, treasury now plays a key role in enabling growth, managing uncertainty, and supporting long-term value creation.

Not everywhere, though. Some companies are still catching up.

The Complexity Behind the Role

Modern treasury operates in a complex environment:

• Multiple currencies and international operations 
• Volatile financial markets 
• Increasing regulatory requirements 
• Rapid technological change 

Managing cash across different countries, dealing with fluctuating exchange rates, ensuring compliance, and maintaining control over financial processes is not trivial.

It requires:

• Strong systems and data 
• Clear processes 
• Continuous coordination with other departments 

And a certain tolerance for things not always going according to plan.

Why Treasury Matters

Treasury does not generate revenue directly. That often leads to it being underestimated.

But its impact is significant:

• Poor liquidity management can disrupt operations 
• Weak risk management can erode margins 
• Inefficient structures can increase costs 
• Lack of planning can delay strategic initiatives 

On the other hand, a strong treasury function:

• Ensures stability 
• Reduces costs 
• Supports growth 
• Improves decision-making 

It doesn’t just protect the business. It enables it.

Treasury in Practice

In practice, treasury is a mix of:

• Operational tasks, such as payments and cash positioning 
• Analytical work, such as forecasting and risk assessment 
• Strategic involvement, such as funding and corporate planning 

No two days are exactly the same.

One moment you’re reviewing liquidity. The next, you’re discussing financing options. Then you’re dealing with a bank, fixing a data issue, or explaining why a forecast changed.

It’s structured, but never static.

Final Thought

Corporate treasury is often overlooked because it works best when nothing goes wrong.

But that’s exactly the point.

It ensures that the financial side of the business runs smoothly, even when everything else is changing.

Not bad for a function most people don’t actively choose, but tend to stay in once they understand it.

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Once risks are identified, treasury has to decide what to actually do about them. That’s where hedging comes in.

Hedging is the use of financial instruments or structures to reduce or stabilise the impact of market movements. It doesn’t eliminate risk. It changes how and when that risk shows up.

The objective is not to “win” against the market. It’s to create predictability in cash flows and financial results.

Which sounds reasonable, until someone compares the hedge result to what would have happened without it.

Why Companies Hedge

Companies hedge for a few key reasons:

• To protect margins from FX or interest rate movements 
• To stabilise cash flows and improve planning 
• To reduce earnings volatility 
• To align with internal risk appetite and policies 

In short, hedging reduces uncertainty. It trades potential upside for reduced downside.

That trade-off is where most debates start.

Types of Hedging Approaches

There is no single hedging strategy. Companies typically choose between:

• No hedging (natural exposure)
  Accepting market movements and absorbing the impact 
• Natural hedging
  Structuring operations so inflows and outflows offset each other, for example matching revenue and costs in the same currency 
• Financial hedging
  Using derivatives or financial instruments to manage exposure 

Most companies use a mix, depending on the type and size of exposure.

Common Hedging Instruments

Treasury has a toolbox of instruments. The most common ones include:

• Forwards
  Lock in an exchange rate or interest rate for a future transaction
  Simple, predictable, widely used 
• Options
  Provide protection against adverse movements while keeping upside potential
  More flexible, but come with a premium 
• Swaps
  Exchange cash flows, often used for interest rate or currency exposures
  Useful for longer-term structures 
• Money market hedges
  Using borrowing and investing to synthetically lock in rates 

Each instrument has different implications in terms of cost, flexibility, and accounting treatment.

Hedging Strategy: How Much and When

The real challenge is not the instrument. It’s the strategy.

Treasury needs to decide:

• What percentage of exposure to hedge 
• Over what time horizon 
• At what frequency (layering hedges over time or all at once) 

For example:

• Hedge 100% immediately 
• Hedge gradually over time 
• Hedge only a portion and leave the rest open 

There is no universally correct answer. It depends on:

• Risk appetite 
• Predictability of exposures 
• Market conditions 
• Business priorities 

And, inevitably, hindsight.

The Cost of Hedging

Hedging is not free.

Costs include:

• Bid-ask spreads 
• Option premiums 
• Credit charges from banks 
• Operational and administrative effort 

Treasury constantly evaluates whether the cost of hedging is justified by the reduction in risk.

Sometimes the answer is yes. Sometimes it’s not. Sometimes it only becomes clear afterwards.

Hedge Accounting: The Technical Layer

This is where things get less exciting and more restrictive.

Hedge accounting determines how hedging results are reflected in financial statements. Without it, hedges can introduce volatility rather than reduce it.

To qualify, companies need:

• Clear documentation 
• Demonstrated effectiveness 
• Consistent application 

Failing hedge accounting doesn’t mean the hedge is wrong. It just means the accounting impact may not match the economic reality.

Which tends to confuse people who only look at reported numbers.

Timing and Forecast Accuracy

Hedging relies on forecasted exposures.

If forecasts are inaccurate:

• You hedge too much 
• You hedge too little 
• You hedge at the wrong time 

All three happen regularly.

This links hedging directly to forecasting quality. Weak forecasts lead to weak hedging decisions.

Where It Goes Wrong

Some classic issues:

• Over-hedging or under-hedging due to poor forecasts 
• Using complex instruments without fully understanding them 
• Focusing on market timing instead of consistency 
• Lack of clear policy or inconsistent application 
• Evaluating hedges based on outcomes instead of objectives 

The last one is particularly common.

A hedge that “loses money” may have done exactly what it was supposed to do.

Treasury’s Role in Hedging

Treasury doesn’t try to beat the market. It creates structure around uncertainty.

It ensures:

• Risks are managed consistently 
• Decisions align with policy and risk appetite 
• Financial impact is stabilised where needed 
• The company avoids unpleasant surprises 

Because in the end, hedging is not about being right.

It’s about being prepared.

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Treasury automation is transforming how treasury teams operate. Less manual work, fewer errors, more visibility. In theory, it sounds like a dream. In practice, it mostly means replacing spreadsheets with systems and then figuring out why the data still doesn’t match.

At its core, automation is about removing repetitive tasks so treasury can focus on actual decision-making instead of copying numbers between files.

What is Treasury Automation?

Treasury automation is the use of technology such as:

• Treasury Management Systems (TMS) 
• Robotic Process Automation (RPA) 
• Artificial Intelligence (AI) 
• Data and analytics tools 

To streamline treasury processes.

It reduces manual intervention, improves accuracy, and allows treasury to focus on liquidity, risk, and strategy instead of operations.

Why Automate Treasury Processes?

Manual treasury setups tend to be:

• Slow 
• Error-prone 
• Dependent on individuals 

Automation improves this by:

• Increasing efficiency through streamlined workflows 
• Improving accuracy by reducing manual input 
• Providing real-time visibility into cash and risk 
• Reducing operational cost 
• Supporting better risk management 

In short, less firefighting, more control.

Key Areas of Treasury Automation

Automation typically focuses on:

Cash Forecasting and Liquidity Management

• Automated forecasts based on historical and real-time data 
• Improved visibility into cash positions 

Payment Processing

• Straight-through processing (STP) 
• Reduced manual approvals and intervention 
• Built-in fraud controls 

FX and Interest Rate Risk Management

• Automated exposure tracking 
• Hedging support and execution tools 
• Real-time monitoring dashboards 

Bank Account Management

• Centralised bank connectivity 
• Automated reconciliations 
• Identification of redundant accounts 

Regulatory Compliance and Reporting

• Automated reporting 
• Audit trails 
• Reduced manual compliance effort 

Implementation Best Practices

Automation is not just about tools.

To make it work:

• Define clear objectives before starting 
• Focus on high-impact processes first 
• Involve stakeholders early 
• Train users properly 
• Continuously monitor and improve 

Automating chaos doesn’t create efficiency. It just creates faster chaos.

The Role of AI

AI is increasingly used for:

• Forecasting improvements 
• Pattern recognition 
• Fraud detection 

It adds value, but only if data quality is strong.

Otherwise, it just produces more confident mistakes.

Conclusion

Treasury automation improves efficiency, accuracy, and control. It allows treasury to move from operational execution to strategic contribution.

But it only works if processes and data are in order first.

Otherwise, you’re just upgrading your problems.

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Banks sit at the center of almost everything treasury does. Payments flow through them, cash sits with them, funding comes from them, and risk is often managed with them.

Which means one thing: if your banking setup is weak, everything else becomes harder, slower, and more expensive.

Managing banking relationships is not about being friendly. It’s about control, access, pricing, and reliability. Treasury needs banks, but it also needs to manage them actively. Otherwise, banks will happily manage you.

The Role of Banks in Treasury

Banks provide a wide range of services:

• Payment processing and collections 
• Cash management and account structures 
• Lending and credit facilities 
• FX and hedging products 
• Trade finance and guarantees 
• Market access and advisory 

Most companies don’t rely on a single bank. They operate with a panel of banks across regions and services. That creates flexibility, but also complexity.

Treasury’s job is to structure that landscape in a way that balances efficiency, cost, and risk.

Bank Selection: More Than Just Pricing

Choosing a bank is rarely about who offers the lowest fee. At least, it shouldn’t be.

Treasury evaluates:

• Geographic coverage and local presence 
• Product capabilities and technical infrastructure 
• Credit strength and stability 
• Connectivity options (APIs, SWIFT, host-to-host) 
• Service quality and responsiveness 

A cheap bank that fails operationally or lacks capability will cost more in the long run. Usually in ways that only become visible after you’ve already committed.

Concentration vs Diversification

This is a constant balancing act.

Too few banks:

• High dependency 
• Increased counterparty risk 
• Limited negotiation leverage 

Too many banks:

• Operational complexity 
• Fragmented cash visibility 
• Higher administrative burden 

Treasury aims for a structure where:

• Core banks handle the majority of activity 
• Secondary banks provide backup and regional support 
• No single point of failure exists 

It’s not about having many banks. It’s about having the right ones, in the right roles.

Pricing and Bank Fees

Bank fees are one of those areas where companies quietly lose money for years.

Payment fees, FX margins, account charges, connectivity costs. Individually small, collectively significant.

Treasury is responsible for:

• Negotiating pricing structures 
• Monitoring actual charges versus agreements 
• Running periodic fee reviews or benchmarks 

The uncomfortable truth is that many companies don’t actively manage this. Banks notice. And they price accordingly.

Negotiating with Banks

Negotiation is not a one-time event. It’s an ongoing process.

Leverage comes from:

• Volume of business 
• Breadth of services 
• Competitive tension between banks 
• Long-term relationship potential 

Treasury needs to:

• Clearly define requirements 
• Run structured RFP processes where needed 
• Compare offers beyond headline pricing 
• Understand where banks actually make their margin 

And then there’s timing. Negotiating when you urgently need something is the worst possible moment. Negotiating when you have options is where value is created.

Credit Facilities and Liquidity Access

One of the most critical aspects of banking relationships is access to funding.

Revolving credit facilities, overdrafts, bilateral loans, syndicated facilities. These provide liquidity buffers and flexibility.

Treasury ensures:

• Sufficient committed facilities are in place 
• Maturities are spread over time 
• Covenants are manageable 
• Headroom is maintained 

Because access to liquidity is easy… until it isn’t.

Bank Connectivity and Integration

Modern treasury relies heavily on automation and data. That requires strong connectivity with banks.

Options include:

• SWIFT connectivity 
• APIs 
• Host-to-host connections 

The goal is simple: reliable, automated, and secure data exchange.

The reality is less simple. Integration projects can be complex, and not all banks are equally advanced. Treasury needs to balance innovation with practicality.

Relationship Management: The Human Layer

Despite all the systems and contracts, banking is still a relationship business.

Treasury interacts with:

• Relationship managers 
• Product specialists 
• Credit teams 

Good relationships can:

• Improve responsiveness 
• Provide early access to solutions 
• Help in difficult situations 

But relationships should never replace structure. Being on good terms doesn’t mean you stop challenging pricing or performance.

Where It Goes Wrong

Some classic issues:

• Too many banks with overlapping roles 
• No clear ownership of bank relationships 
• Lack of fee transparency 
• Over-reliance on one key bank 
• Weak negotiation due to lack of preparation 

Most of these are not strategic failures. They’re the result of neglect over time.

Treasury’s Real Objective

Treasury doesn’t aim to have “good” banking relationships. It aims to have effective ones.

Banks should:

• Deliver reliable services 
• Provide competitive pricing 
• Support the company’s strategy 
• Offer access to liquidity when needed 

Anything less becomes friction. And treasury’s job is to reduce friction, not live with it.

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