View from relationship banking In times of volatility, relationship banking assumes even greater importance. The Treasurer asked two relationship bankers how they work with treasurers M IKE RIGBY is head of UK Cash Management, Corporate Banking, Barclays. change their business models through API real-time payment instructions. On liquidity management, we have seen treasurers increasingly use automatic sweeps to liquidity portals where their treasury policy is enacted MR: The banker/treasurer instantly. On reconciliations, we can relationship is a key relationship see more treasury software providers point at any point in the economic offering solutions that automate cycle. When we have one of the most more and the arrival of ISO 20022 interesting economic backdrops (an ISO standard for electronic for more than two decades and we data interchange between financial have huge pace in technological institutions) will only accelerate development, the relationship adoption to enhance the becomes critical to management information successfully navigating available. So, technology a path through choppy is changing the role waters. of the treasurer, The economic taking them closer backdrop has been to the client journey relatively benign for and elevating their well over a decade. strategic influence over Inflation has been low their business. and controlled. Global These two external central bank rates have factors have meant that been low and predictable. the banker and the treasurer Global economies have been Mark Rigby have more reasons to talk than growing, wage inflation has ever before: to understand how the been controlled and supply chains strategy of their client is adjusting have been reasonably robust. This has to the market; to share how the all changed in the past 12 months. bank is investing to keep pace with At the same time, we have seen technological change; to share market some significant technological commentary on economic metrics and changes to challenge treasurers to how these impact the client; to discuss consider new ways of managing regulatory change and understand customer interactions as well as the its impact and any opportunity it cashflows through their business. presents; to understand even better On their client journey, we have seen how cash flows through their business companies use treasury solutions to and where it sits and collects; to share experiences from technology providers and how real-life adoption has progressed, as well as how they connect to bank systems; to share thoughts on treasury policies and how to ensure compliance to them. WHATS ON THE AGENDA? So how should bankers acclimatise to this and what will be on the agenda to talk to their clients about this year? Bankers should be talking to their clients regularly and that interaction should, wherever possible, be face to face. This is the time for open, honest discussions about what their clients priorities are. Be that driving greater efficiency of their treasury function, a cost focus, or greater control of available cashflows. The likely topics that make the agenda will be: Greater adoption of APIs to drive efficiency of payment journeys and improved reconciliation Liquidity management to reduce working capital balances and drive revenues (real-time visibility of cash), including consideration of alternative solutions such as money markets A focus on the management of physical cash to reduce cost Innovation/leveraging technology and how it connects to bank systems. How do the best bankers and treasurers achieve this? By having a relationship build on trust, understanding, honesty and delivery. 30 ISSUE 1 2023 treasurers.org/thetreasurer TT ISSUE 1 23 pp30-31 View from.indd 30 23/02/2023 09:19