In their fifth annual Corporate Cash Investment report, SunGard provides an insightful look into how regulation affects how treasury professionals view cash investment, investment policies and transaction execution.
The survey revealed that in 2015, corporate cash balances continued to rise and it became apparent to 26% of those that noticed an increase in cash balances that they had grown by more than a third. Alongside this, a trend that SunGard has become aware of after conducting these surveys for the past five years is that 24% hold cash for working capital financing.
This has had an effect on the number of companies that are holding cash in order to complete capital investment or mergers and acquisitions. The proportion was 27% in 2013 and grown to 35% in 2015. However, SunGard explains that while on one side, there are high cash balances; there has also been a year-over-year decline in how many companies holding cash as a buffer.
With newer technology and different ways of cash management such as money market funds emerging, “trapped” cash becomes a problem for treasury. Since the adoption of Basel III, finding a suitable location for corporate cash is now of most importance for 43% of participants.
60% of US treasurers predict that they will invest in money market funds once SEC reforms are put in place next year.
On a positive note, treasurers have become more confident in separating their cash into short-term, core and strategic cash, which in turn, provides more choice of investment instruments so that higher returns are generated.
Far and away, the largest financial market on the planet is the foreign exchange currencies market, where on average individuals and organisations trade more than $5 trillion daily. In the FX world, the ability to master the market isn't considered a luxury for treasury officers–it's a necessity.
APIs may be a solution to MT940 challenges, says Karen Fagan, treasury operation manager, for British television company, ITV.
With the end of 2017 fast approaching, many finance professionals might be counting down the days with some degree of dread. Year End is just around the corner and with it comes the many long hours accountants will spend going over balance sheets and profit and loss accounts, investigating account irregularities and chasing sign offs.
Using data for predictive analytics is the future of banking success, argued Jean-Laurent Bonnafé, CEO of BNP Paribas, in his session on how the bank is reinventing its approach to innovate with and for corporates.