Dusseldorf, March 2017
At the start of last year’s ACT Europe Conference, we asked delegates about Brexit. Overwhelmingly they wanted the UK to stay in and didn’t want anyone else to think about leaving. Well, like the Rhein that inexorably flows through this city on its way to the North Sea, a lot of water has passed under quite a few bridges since then! Treasurers though must be prepared to help their businesses prosper in all circumstances and for that they need to understand the issues that really matter.
@PeterMatza testing the level of optimism. Everyone is slightly equivocal after the signing of Article 50 in the UK @actupdate #acteurope
Outside of political developments (!) this year’s theme quickly became apparent: process automation and technology will drive efficient and effective financial and business strategy. Delegates heard from a range of corporate speakers including Merck, Swiss Federal Railways and Airbus on their substantial investments of time and resources in digitising treasury operations (a project with a 2025 horizon!), liquidity challenges in cash and pensions in an environment of negative interest rates and running huge (>$100bn) fx risk management programmes respectively. A key point in all presentations was that treasurers must enhance their understanding of their businesses using data as much as numbers.
Rando Bruns from Merck - how #digitalisation is changing #treasury. Better analysis, finance robotics, efficiencies & cost saving #acteurope @actupdate
@michellehprice introducing topics @ the forefront of treasurers' minds - cash, tech, ethics, talent, fraud... to name a few! #acteurope
Case study: Finance robotics replaces 3 full time treasury employees. Implemented in 1 wk and costs €10k pa. @actagenda #acteurope
From a deeper appreciation of the nuts and bolts of a business a treasurer should be able to craft the financial strategy that supports overall business development. A financial strategy panel gave clear advice that treasurers should engage with stakeholders and their boards in clear, concise and definitive terms that make plain the relationship between risk assessment and value creation. A fascinating presentation on cybercrime came to much the same conclusion – treasurers need to be clear about the risks they see and what they can and cannot address within their roles.
cybercrime is on the rise and CEOs are becoming concerned, definitely time to get a response plan in place! @actupdate #acteurope
Perhaps not surprisingly Brexit was an undercurrent to the day. Much of the comment directed to your correspondent was of a regretful nature hoping that British relations with Germany (and the rest of the EU) would remain positive and substantive – dissatisfaction being addressed to politicians on all sides! The ACT at least is still seen as a positive voice in the profession and appreciated by German corporates.
Treasurers should talk to their banks & fin tech companies to understand the evolving payment landscape @actagenda #ACTEUROPE
Overall the message for treasury was bright but the challenges of automation, robotics, data management, regulation and the changing nature of financial services remain formidable. Comfortingly so do the meat courses served in Dusseldorf brauhauses! I’m sure we’ll be back for more next year.