The disruption of COVID-19 is being followed by waves of uncertainty including conflict in Europe, rising interest rates and inflation, and problematic supply chains – not to mention the looming threat of recession in many economies. Bank of America argues technology is the best risk mitigator in a challenging world.

The pandemic and its continuous aftershocks have fundamentally changed the way corporations think about their global operations. ‘Deglobalisation’ has become the collective noun for this retreat from globality. Elsewhere, commentators speak of the ‘end of optimisation’ as corporations are no longer willing to accept supply chain fragility to pursue better shareholder returns. Fluctuating supply chains and ensuring cash available to invest in onshored production isn’t the only potential liquidity call.

Other concerns have not gone away; improving corporate performance against environmental, social and governance (ESG) criteria is still a priority.

Most of all, treasurers need to forecast as accurately as possible to help the business anticipate and plan for events. Armed with the right data, they can support predictive and proactive decision-making across the organisation.

Treasurers need the right technology to understand their global position and manage change at speed with:

• A global view of cash, on time and 24/7.
• The ability to manage cash and make payments regardless of location.
• A robust cash forecasting system to anticipate bottlenecks.
• Resilience in combating fraud and cybercrime.
• Data to support decision-making around ESG objectives.

Today’s technology can help deliver insights beyond the traditional treasury benchmarks around working capital, such as DSO, DPO and the cash conversion cycle. With CashPro^® connected seamlessly via APIs to an Enterprise Resource Planning (ERP) system or Treasury Management System.

With TMS and other internal and external data sources, treasury can see a comprehensive dashboard of operations that, only a few years ago, might have required significant investment in time, money and technology resources to achieve.

For treasurers already battered by two years of pandemic pain, it might be tempting to return to ‘business as usual’ and to old ways of doing business. However, the new world that is emerging has challenges to rival even those of COVID-19, and no treasury can afford to slip back into a pre-digital ‘comfort zone.’ The businesses that thrive in the coming decade will be those that best adapt to the era of deglobalisation, and that means being ready for anything, anywhere.

It may be difficult to predict what will happen next to global economies, but with Bank of America as a banking partner and CashPro® at the heart of the tech stack, corporate treasurers can have the right tools and advice for whatever the future brings.

Keep an eye out for next month’s Thought for the Month.