Oh, how we love our toys. As consumers, I believe we are now utterly sold on the benefits of mobility. Mobile devices, apps and services have pervaded every aspect of our lives including, of course, how we pay for goods and manage our money. But in the workplace, especially in the conservative world of corporate banking and finance, things aren’t quite so far advanced. Granted, most of us bring our beloved devices into the office and, if we’re lucky, connect them to the corporate WiFi and email server. But many corporates still restrict executive mobility by insisting that only desktop PCs may be used to access company confidential applications and databases. This means that for essential and urgent treasury actions, such as approving wire transfer payments, for example, smartphones and tablets remain strictly off limits.
Imposing these restrictions is the mobile equivalent of downgrading your desktop and I believe it is having an obvious negative impact on treasury efficiency. Internal pressure from executives is also mounting; not only do they want mobility, they also want to select their device, or use their own in order to do the work. It therefore seems that the culture of bring your own device (BYOD) is here to stay, so instead of railing against the trend corporates should consider BYOD as an opportunity and take steps to turn it to their advantage.
For IT directors, big questions remain over security: how can they trust that end-to-end security standards are in place? Are the user authentication procedures bullet-proof? What happens to the confidential data if a device is lost or stolen?
The required technology for securing confidential data on a mobile device is already mature, so the IT director’s fears over data leakage, device security and fraud can be assuaged by adopting a modern mobility solution for the corporate treasury. Authentication tools and access control solutions are readily avaialble for those that seek them out.
The constant quest for efficiency will drive corporate treasurers to create a working life where mobility takes centre stage. And when they do, what a difference it will make. As day-to-day treasury operations move beyond the desktop, the use of tailored mobile ‘user profiles’, complete with access rights and tiered powers of authorisation, really starts to make sense. The approval of chief financial officers (CFOs), senior vice presidents (SVPs) and other eminent figures is frequently required in order to process large funds transfers, for example, yet these individuals are hard to pin down; most are constantly moving from one meeting to the next. For international companies it’s even worse. Senior financiers are habitually in transit between offices and countries. Enabling them to stay ‘in play’ via a mobile device when away from their workstation will reduce bottlenecks and improve departmental efficiency no end.
Mid-tier finance managers stand to benefit too. Here, a mobile device integrated with the treasury’s back end systems could be used to quickly authorise or nullify requests for lower level operational expenses from different departments. Agility is the key benefit. Tablets especially, by virtue of their larger screen sizes, are well suited to a treasurer’s need to access and review detailed financial tools, such as budget tracking and forecasting spreadsheets. The development of a user friendly environment through which this kind of work can proceed ‘on the fly’ will have a big impact.
Mobility Benefits for Treasurers
The benefits of mobility to treasurers extend well beyond the engagement and authorisation capabilities given to schedule-stricken senior executives when they are out of the office. Treasurers must be able to monitor and react quickly to changing circumstances. Real time viewing of a large organisation’s cash position, for example, is vital to safeguarding its financial stability and can be enhanced by using the mobile channel. For international firms, this means viewing positions by currency, geography, bank, legal entity and any number of other metrics unique to its structure and global footprint. This is no job for a traditional smartphone, but is perfectly achievable via a tablet, or even a hybrid ‘phablet’ device, which is securely connected to a treasury system via mobile broadband or WiFi.
One useful byproduct of introducing mobility to a treasury or financial institution is that it provides a chance to review and streamline current working processes which may, over time, have evolved to be needlessly complex. The touch screen interface that characterises today’s smartphones and tablets forces application and system developers to create a simple and intuitive user experience. Just by looking at treasury operations through a ‘mobility lens’ can generate ‘eureka moments’, leading to elegantly simple workarounds for notoriously complex procedural issues, which may have dogged operations for years.
In the main, however, corporates can expect mobility discussions in 2013 to centre on resolving problems relating to personal device security and integration. But to write off the topic until these issues are resolved would be a mistake. Change will happen quickly when the tipping point is reached and it will be those that are fleet of foot who will derive the greatest improvements in terms of efficiency and corporate agility, obtaining a competitive advantage over rivals.
Operations in the treasury are no different. Making and approving payments, releasing wire transactions between companies, checking balances, viewing analytical reports, managing corporate accounts, charges and spending limits, can all be catered for on the move via a mobile device right now. It’s strange to think that for most finance professionals, their smartphones and tablets currently offer little more than the water cooler equivalent of ‘show and tell’. Thankfully, change is right around the corner as the world moves beyond the desktop.
Tim de Knegt, treasurer for the Port of Rotterdam, discusses how he is looking to bring more value to the Port's clients using blockchain.
Regulation technology is fast gaining currency by transforming how financial institutions can tackle compliance in a swift, comprehensive and less expensive manner.
Many banks around the world, large and small, continue to experience major security failures. Biometric systems such as pay-by-selfie, iris scanners and vein pattern authentication can help.
The implementation date of Europe's revised Markets in Financial Instruments Directive, aka MiFID II, is fast approaching. Yet evidence suggests that awareness about the impact of Brexit on MiFID II is, at best, only patchy and there are some alarming misconceptions.