Following a detailed selection process, STT GDC appointed Standard Chartered Bank as its cash management partner. “We had a clearly defined set of criteria, including technological capabilities,” recalls Ang. “It was also important to choose a bank that was a good match for our existing geographical footprint, as well as our potential growth markets.”
Working with Standard Chartered Bank, the company was able to harmonise its operational workflows – for example, users can now log into a single platform using mobile app face ID, instead of needing to use traditional banking tokens. Moving to a single banking platform has also enabled STT GDC to gain more visibility over its cash and transactions, resulting in improvements to the cash forecasting process. In addition, new cash pooling capabilities have resulted in more efficient cash management, while reducing the need for time-consuming funds transfer requests.
Sustainability was another key focus. As of 2022, 52% of the company’s electricity consumption is derived from zero-carbon renewable sources. “From a treasury standpoint, we have a deep commitment to growing our business in a sustainable manner, and working with our core banking partners on innovative and sustainable solutions,” comments Ang. “For example, we have established a sustainability-linked financing framework, and successfully achieved green financing for many of our data centres.”
As a company that embraces a digital-first mindset, STT GDC was well positioned to implement its treasury transformation project smoothly and effectively. “One key success factor was the strong buy-in and support from senior management, especially the Group CFO and Group Corporate Finance Officer,” says Ang. “This was important both at the beginning stages, when we were seeking budget approvals, and during the ongoing execution when we needed resources and support to get things implemented.” With a relatively lean treasury team, he adds, it was important to make sure that day-to-day operations continued smoothly during the implementation.
As a result of the project, STT GDC has achieved cost efficiencies across its global cash management and working capital activities, and increased visibility and control over treasury operations. The company is also able to harness more valuable insights: “The quality and timeliness of insights that we get from our bank partner is important because we need to make time-sensitive business investment decisions,” says Ang.
Looking forward, Ang says the treasury team’s future goals include adopting a suitable treasury management system and harnessing AI to optimise the FX management process. “One of our company’s core values is to strive for excellence. By challenging assumptions and pushing boundaries through a culture of innovation, we will continuously improve and excel,” he concludes.
