Marguerite Burghardt shares with us her vision of the Corporate Treasury Insights 2018 and the two key themes of the study – trust and delivery excellence
The Corporate Treasury Insights 2018
is a study created
by BNP Paribas and the Boston Consulting Group
based on a proprietary
cross-industry survey of corporate treasurers and CFOs from around the world.
Two prior editions were carried out in 2015 and 2016. This new 2018 study
focused on two important topics: trust
and delivery excellence.
was it important for BNP Paribas to initiate and carry out the 2018 Corporate
Treasury Insights study?
: The study is important for BNP Paribas on two
levels. First in terms of thought leadership, having our brand up on this major
study that investigates what treasurers except from their transaction partners
in general (not just from banks) is a way of keeping BNP Paribas very visible
as one of the leading banks in transaction banking. Secondly we are going to
use the results of the survey to understand how we can improve our own services
to treasurers. It is particularly interesting to be already at the 3rd
edition as we can capitalize on several years of results.
did you interview for this study?MB
: The study was developed based on a
proprietary cross-industry survey of 700
corporate treasurers and CFOs from
organizations around the world with consolidated annual revenue of more than
million. The study also included interviews with approximately 20
treasurers and CFOs from multinational organizations to bring more depth and
details to the findings.
year the study focused on two major themes, delivery excellence and trust. Why
did these 2 topics seem particularly important?
is a very contemporary topic, and so is delivery excellence. We have discovered
that to gain treasurers' trust there is a balanced equation to find that includes
inherent trust, delivery excellence and relationship excellence. Banks are
naturally well positioned in terms of inherent trust as they are highly regulated
entities. Furthermore, treasurers tend to trust someone that trusts them as
well: by committing their balance sheet, banks show their trust to a company.
But if banks just count on their inherent trust without developing delivery
excellence and relationship
excellence they are going to loose momentum.
are treasurers expecting from their partners in terms of delivery excellence? MB
excellence is an absolute prerequisite nowadays, not a nice to have. We are
well aware of that at BNP Paribas and are focused on delivery excellence. In order
to improve our services and therefore comply with our clients' expectations on
the matter, we recently developed a new Connexis Trade platform.
"Delivery excellence is an absolute prerequisite nowadays, not a nice to have."
Additionally, it has become clear over the recent
years that delivery excellence is critical
at 2 levels, first in the day-to-day transactions, cash flow and liquidity
related operations (so the large volume operations), but also for the custom-made
services such as ad hoc supply chain solutions. On these tailor-made services, the
treasurer also expects delivery excellence from its transaction partners.
also talked about relationship excellence, what does this mean for treasurers? MB
treasurers' view, relationship excellence must be based on proactivity
. They expect their transaction partners to know their business intimately. In my
view this expectation from treasurers converges with a bank's natural business
model based on managing credit risk. To be able to take the right risks, a bank
needs to know and understand its clients' business models in great detail. So
all in all, what treasurers expect from
their transaction partners is very much in line with what a bank should fundamentally
the study show some significant differences between companies?MB
: Yes, in terms of geography
in particular. While there is an explicit call for
more proactivity in all regions, treasurers in North America and Latin America
put greater emphasis on service level, whereas treasurers in Asia Pacific put
emphasis on strong IT systems, and treasurers in Europe and Middle-East consider
a customized relationship to be more important. Therefore, it requests a
focused and tailor-made approach to actually address treasurers' real issues
"[...] treasurers tend to trust someone that trusts them as well [...]"
What were the significant changes or evolutions compared to the previous
: I would say that there were 2 major evolutions in 2018 vs 2015/2016: firstly the
emergence of the need to use mobile devices
to execute transactions (versus
consult data up to now); and secondly cyber security
that has become omnipresent.
is BNP Paribas going to use the results of this report?MB
: We will
analyze the results of the report to improve our own services to treasurers. We
are planning to go even further than with the previous reports in the analysis by
geographic area, by industry and by company size. As an example, we believe
that co-designing products and services with our clients
is critical and the
best way to improve on the relationship excellence factor. This study confirms
how important relationship excellence is. For example, we are currently co-designing
with our clients a tool called « Trade Bot ». It's a chat tool based on
artificial intelligence to automate the emission of standard guaranties. I
think the study confirms that we need to multiply this type of initiative and aim
to be a leading partner in co-designing transaction tools and services.