Pretty much since the dawn of time there has been a simple fact about business: if you haven’t got any cash, you won’t have a business. The overwhelming reason for business failure is running out of money. And that means real money, not hoped for money, not might be money and certainly not ‘the cheque’s in the post’ or, ‘will next week do?’ money!
What has changed though is the way in which the people responsible for making sure business survives -that’s us as treasurers – have used the tools and techniques of finance to ensure survival. That’s equally true for those businesses that have accumulated cash in response to business or political uncertainty. In the contemporary world of cash and liquidity management I believe that there are two primary drivers: regulation and technology. Other factors are of course involved (e.g. demographics and economic development in emerging markets) but they are less specific and impactful.
Regulation is felt in the way the banking sector has looked at capital or operating constraints leading them to offer new solutions for payments, trade finance and managing banking information. Some change driven by consumers, some by regulators. Not all of it positive for business – KYC anyone?
Technology has provided transparent access to cash and banking transactions, to collapse time and tide. We can see and feel the blood of our businesses – and who knows where behavioural banking and AI will take us
The role of the ACT in driving the cash management agenda is clear. We have to deliver on professional development via training and qualifications and in addition provide the environment for informed discussion and peer debate based on those professional standards. And that’s precisely what we do with ACT Smart Cash. This event is filled with unrivalled insight and relevant content allowing you to hear from your peers and industry experts about their success stories as well as challenges they have faced through a series of case studies, panel discussions and interactive workshops.
For more information on the upcoming event Smart Cash taking place in London on 8-9 February, click here.
