How banks can harness technology for the benefit of the corporate liquidity management ecosystem

The second publication of the EBA Liquidity Management Working Group’s discusses the corporate liquidity management ecosystem, starting at core interdependencies between banks and their corporate customers addressed in the group’s previous publication and exploring how banks can harness technology to help improve this ecosystem.

More than ever, technology is a vital tool for corporate treasury departments – regardless of the company size. Larger companies in particular use dedicated treasury management systems, mostly fully integrated into enterprise-wide resource planning (ERP) systems, to support their daily activities. These companies today already rely to a significant extent on bank-provided technology and cash management techniques when managing cash, notably when receiving balance and transaction reports (via electronic bank account statements), initiating payment instructions and using cash pooling solutions. Technology provides operational efficiencies and benefits both for the bank and the corporate side of the liquidity management ecosystem. In the future, also for small corporates, reliance on technology is likely to increase across the whole range of liquidity management tasks.

The report zooms in on key trends in corporate treasury, covering both the day-to-day business, the wider business environment and the main constraints curbing treasurers’ ability to meet their objectives. The focus then turns to the question how banks can help treasurers meet these objectives. The report shows why and how technology is – or should be – part of the answer to this question.

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