Innovation in Treasury boosting the digital economy

FREMONT, CA: In the digital economy, businesses are constantly seeking new ways to stand out from their rivals by offering innovative data-enabled services to their customers. These businesses, known as digital economy businesses (DEBs), rely heavily on their finance and treasury teams to enable the business models that are key to their success.

One reason finance and treasury teams are crucial to the success of DEBs is that service-based business models require a reimagining of the traditional buying process. Customers expect to have the agency manage digital transactions at their convenience and expect their payment details and buying history to be available at the point of sale. This shift towards service-based business models also means that businesses are increasingly buying digital services directly from other businesses through the internet of things (IoT) without the need for any human intervention.

As traditional industrial companies shift towards providing everything-as-a-service business models, treasury teams play a critical role in enabling this exchange of services and payments within an IoT-powered economy. However, this also means that treasury teams need to develop new skills and competencies to keep up with the changing landscape.

A recent DBS research showcases how many DEBs believe that their finance and treasury teams have an opportunity to take on a more prominent role in the strategic direction of digital transformation. However, many DEBs also believe that they have an urgent need to update the skills profile of their treasury teams to play a wider role in growth and transformation. Additionally, talent gaps have stopped some organisations from making more progress on digital transformation.

To attract and retain the brightest talent, DEBs need to create a culture of empowerment and delegate more responsibility to their treasury teams. In the DBS research, DEBs were more likely than traditional companies to say that delegation and empowerment of teams is a key element, from a corporate culture perspective, of supporting digital transformation.

DEBs are also exploring distributed ledger technologies and embedded finance, which may be attractive to recruits who want to experiment with these technologies. The increasing strategic importance of treasury also promises more engaging and purposeful work for those who join treasury teams at DEBs.

In conclusion, finance and treasury teams play a vital role in enabling the business models that are key to the success of DEBs. As these businesses continue to unlock new value from digital technology, treasury teams need to develop new skills and competencies to keep up with the changing landscape. DEBs that create a culture of empowerment and delegate more responsibility to their treasury teams are more likely to attract and retain the brightest talent, enabling them to stay ahead of the curve and continue to innovate. Traditional businesses exploring the opportunities of digital technology should learn from DEBs and ask how their treasury functions can play a deeper role in transformation.