In today’s rapidly evolving financial landscape, corporate treasurers are navigating a profound shift in their responsibilities, transitioning from traditional roles as mere stewards of cash and risk managers to becoming pivotal strategic contributors within their organizations. This transformation is fueled by mounting expectations from senior finance leaders and a broader recognition of the treasury function’s potential to drive business success. A recent EY survey, encompassing nearly 1,000 treasurers and 249 senior finance leaders worldwide, sheds light on this dynamic change, revealing that 79% of treasurers anticipate their roles will evolve significantly or somewhat over the next five years, from 2025 onward. Such a statistic underscores a growing consensus that treasurers must step beyond conventional tasks like liquidity management and compliance to focus on value creation and organizational growth. This shift not only redefines their purpose but also positions them as indispensable partners in shaping the future of their companies.
The Shift from Operational to Strategic
Evolving Perceptions and Expectations
The perception of corporate treasurers has undergone a dramatic overhaul in recent times, moving away from the image of operational custodians focused solely on safeguarding cash reserves and ensuring regulatory adherence. Instead, they are increasingly viewed as strategic allies capable of influencing broader business outcomes. According to the EY survey, an impressive 80% of treasurers recognize the importance of regularly identifying opportunities for value creation, a sentiment echoed even more strongly by CFOs, with 84% expecting their treasury teams to uncover new growth avenues. This alignment in expectations signals a shared vision for the treasury function as a driver of organizational success. Furthermore, the confidence in treasurers’ abilities is evident, as 93% of CFOs believe their teams are equipped to meet these elevated demands, highlighting a trust in their potential to adapt and excel in this expanded role over the coming years.
This evolving perception is not merely a passing trend but a fundamental redefinition of what treasurers are expected to contribute. The emphasis on value creation marks a departure from routine financial oversight to a more proactive role in shaping business strategies. Treasurers are now tasked with looking beyond immediate cash flow concerns to anticipate future financial needs and opportunities that align with long-term company goals. The EY findings suggest that this shift is anticipated to intensify over the next five years, pushing treasurers to develop new skills and adopt a mindset geared toward innovation. As they navigate this transition, the challenge lies in aligning their day-to-day activities with these strategic imperatives, ensuring that their expertise in financial management translates into tangible benefits for the entire organization. This reimagined role positions treasurers at the heart of decision-making processes, setting the stage for deeper integration into corporate strategy.
Balancing Responsibilities
Despite the clear push toward strategic involvement, many treasurers find themselves tethered to traditional responsibilities that consume a significant portion of their time. The EY survey reveals that approximately 25% of their workload is dedicated to managing liquidity flow and the cost of capital, while 18% focuses on handling cash and bank relationships. In contrast, only 16% of their time is allocated to strategic decision-making, indicating a stark imbalance. This limited engagement in high-level initiatives—evidenced by just 41% of treasurers being extensively involved in such activities—suggests that many organizations have yet to fully harness the strategic insights treasurers can offer. This gap between current duties and desired contributions poses a risk of underutilizing critical perspectives on cash positions and risk exposures that could inform broader business decisions.
To bridge this divide, treasurers are sharpening their focus on key areas that serve as stepping stones to greater strategic impact. Notably, 37% of survey respondents highlight an increased emphasis on strengthening cash flow forecasting, a skill that provides actionable data for planning and investment decisions. Similarly, an equal percentage points to managing financial risk as a priority, reflecting the need to mitigate uncertainties in a volatile economic environment. These areas not only reinforce the treasury’s core expertise but also position treasurers as vital contributors to organizational resilience and growth. By enhancing their capabilities in these domains, treasurers can gradually shift more time and energy toward strategic initiatives, aligning their daily efforts with the broader expectations of senior leadership and paving the way for a more integrated role within the company’s decision-making framework.
Building Visibility and Influence
Strategic Integration and Board Engagement
The transformation of the treasury function mirrors a larger evolution within the finance ecosystem, where roles like CFOs and financial controllers are also expanding to encompass strategic dimensions. Treasurers are no longer confined to behind-the-scenes operations; their insights on cash management and risk mitigation are increasingly critical to enterprise-wide planning. EY recommends that CFOs elevate the treasury’s visibility by ensuring treasurers present their strategies directly at the board level, a move that fosters greater recognition of their value. This direct engagement not only amplifies their influence but also integrates their financial expertise into high-stakes discussions, ensuring that decisions around investments, mergers, or market expansions are informed by a robust understanding of liquidity and risk. Such exposure marks a significant step toward redefining the treasury as a cornerstone of strategic leadership.
Beyond boardroom presence, strategic integration requires treasurers to be woven into the fabric of organizational decision-making at all levels. Their unique perspective on financial health can offer a competitive edge in navigating complex market dynamics, yet this potential remains untapped in many firms due to limited visibility. Encouraging treasurers to collaborate with other departments—such as operations or marketing—can further embed their insights into cross-functional strategies, breaking down silos that often hinder holistic planning. The EY survey underscores the urgency of this shift, as the next five years are poised to demand even greater alignment between treasury functions and overarching business objectives. By positioning treasurers as active participants in shaping corporate direction, companies can unlock new pathways to innovation and stability, leveraging financial acumen to drive sustainable growth in an unpredictable economic landscape.
Collaborative Leadership and Proactive Involvement
Fostering a collaborative environment between CFOs and treasurers is essential to fully realize the strategic potential of the treasury function. CFOs play a pivotal role in this dynamic by involving treasury teams in commercial and strategic decisions, creating opportunities for their input to shape key business outcomes. This partnership goes beyond mere delegation; it requires a cultural shift within organizations to view treasurers as equal contributors to high-level planning. EY emphasizes that such collaboration can bridge the current gap between operational duties and strategic aspirations, enabling treasurers to apply their expertise in cash visibility and financial risk to broader initiatives. As this relationship strengthens, it paves the way for treasurers to influence policies and investments that align with long-term organizational goals, enhancing overall financial agility.
Equally important is the need for treasurers to proactively seek greater involvement rather than waiting for invitations to the strategic table. By demonstrating their capacity to deliver value-driven perspectives, treasurers can carve out a more prominent role in decision-making processes. This proactive stance involves not only refining technical skills but also honing communication and leadership abilities to effectively articulate financial insights to non-finance stakeholders. EY’s recommendations highlight the importance of succession planning within finance teams, preparing treasurers for future leadership roles through board interactions and skill development. Looking back, the efforts made in recent times to empower treasurers with such opportunities have laid a strong foundation. Moving forward, organizations that continue to nurture this collaborative spirit and encourage proactive engagement will find that their treasury functions become indispensable drivers of strategic success, navigating complexities with newfound influence.
