Top stay in transactions and credits

Corporate treasury departments have been under a lot of pressure. The department is expected to keep companies running with smooth, stable access to credit facilities with banks and insurance providers. And also, there is extreme pressure from audit committees, shareholders and chief financial officers. But it is more difficult for treasuries to continue to use manual. We can see about how treasurers are able to streamline their workflows and streamline communications with their banks.

Mainly by leveraging the banks’ advancing trade digitization. Digitization and consolidating the communication between treasury departments and banks has been very slow. This is because workflows have historically relied on the transfer of paper documents and e-mails. They have also seen the adoption of recent technologies last year itself. But most corporates still can’t manage their transactions across supply chains. Corporate treasuries must stop using paper in transactions. Data from the International Chamber of Commerce (ICC) shows that many treasury departments still rely on sluggish and cumbersome paper-based processes. In industry and construction, they see huge volumes of performance and warranty bonds.

Then there should be reconciliation of all transactions. Advancing technologies and the adoption of digital tools have become a priority for corporates, mainly after this pandemic. Corporates nowadays need digital solutions that provide them with reconciled and consolidated views. of their credit lines, letters of credit, and bank guarantees for every bank they deal with. Treasury departments need to be able to manage and edit their letters of credit, bank guarantees and electronic presentations. Another step is by increasing visibility and control. Banks are increasingly adopting digital trade finance solutions. This enables corporates to communicate with all of their banks.

Due to the pandemic the working habits have been changed and remote working became more common. Hence, the adoption of multi-banking trade finance solutions allows treasuries to manage and optimize their LCs, bank guarantees and credit line relationships with banks. The SWIFT Guarantee messages are changing towards the end of November. The technological landscape for trade and treasuries has paved the way for many advantages building open communication channels with financial institutions.