Companies operating in the mobility sector may significantly enhance their operational efficiency and financial performance if their treasurers were to gain greater influence and involvement within their organisations. According to the PYMNTS Intelligence report titled “The Impact of Misunderstood Treasurers in the Mobility Space,” the majority of treasurers in this sector believe their organisational roles could drive considerable benefits.
The report reveals that 82% of treasurers in the mobility sector, which encompasses both manufacturing and services associated with commuting, expressed confidence that increased participation in interdepartmental discussions could lead to improved cash flow predictability. Additionally, 66% of these treasurers anticipated that their involvement would result in a faster cash conversion cycle, while 54% foresaw potentially higher returns on investment.
When other department leaders were surveyed regarding the treasurer's potential influence, 72% believed that enhanced input from treasurers would expedite the execution of new ideas. Furthermore, 60% noted expectations of optimised business models emerging from such collaboration.
A notable aspect of the report is that 60% of treasurers and 56% of other executives within the mobility space view treasurers as being “highly influential” within their companies. This perception reflects a distinctive standpoint relative to treasurers in other sectors, where opinions of influence vary. For example, among treasurers in consumer packaged goods (CPG), 73% considered themselves highly influential, followed by 60% in transportation and distribution, 56% in healthcare, and 50% in technology.
Moreover, the report highlights the significant difference in adaptability perception among treasurers themselves. An impressive 67% of those deemed highly influential in the mobility sector reported that they believe their firms are “very or extremely adaptable” to changing market conditions. By contrast, only 40% of less influential treasurers echoed a similar sentiment, illustrating a substantial 27-percentage-point gap that underscores the impactful nature of treasurers in this sector.
Ambrish Bansal, global head of Liquidity and Cash Concentration Products at Citi Treasury and Trade Solutions, discussed the evolving function of treasurers, indicating that their roles are becoming increasingly integral to enterprise strategy across various facets — business strategy, growth, expansion, and sustainability. Bansal remarked, “I see the role of treasury becoming more central to [the enterprise’s] business strategy,” during an interview with PYMNTS CEO, Karen Webster, in August. He further stated that “the treasury team plays a pivotal role,” underlining the importance of treasury functions in shaping overall business success.
The analysis underscores an overarching trend: while treasurers are indeed crucial for maintaining a company's financial health, their influence often remains underappreciated. An earlier report by PYMNTS Intelligence, “Why Treasurers’ Influence Matters,” indicated that 77% of treasurers believe other departments would benefit from closer collaboration, yet over half (53%) of non-treasurer executives misinterpret the treasurer’s capabilities.
Bansal emphasised the potential for treasurers to leverage data to navigate complex regulatory and tax environments, which could be instrumental in helping firms achieve their objectives. He expressed that many treasurers are now contemplating how to optimise their financial processes for maximum efficiency.
As businesses in the mobility space continue to adapt to shifting market dynamics and pursue innovative strategies, the evolving role of treasurers may prove to be a critical factor in achieving sustained success.
Source: Noah Wire Services