Latest Centralisation Articles
Treasury centralisation is experiencing continued strong growth, with London emerging as the preferred location for multinationals to base their regional or global treasury centres. At a November 17 briefing in the UK Capital, treasury and trade solutions executives from Citi outlined key global and Europe, Middle East and Africa (EMEA) region treasury trends.
Many multinational corporations are continually seeking to further centralise and optimise their treasury activities. Cash and liquidity management has often been the driver of this trend and with Europe’s implementation of the single euro payments (SEPA) there is a further impetus to centralise payments.
Mergers and acquisitions are opportunities to streamline treasury processes, get budget for new technology and demonstrate leadership. However, it is probably the risk of business failure that motivates treasurers most to implement best practices for global cash, liquidity and risk management in the combined company.
Centralisation of payments and collections, and simplification of bank account structures, have been amongst treasurers’ and finance managers’ objectives for many years. The challenges have often proved insurmountable - but that is changing.