Communication Skills Gap Identified in Treasury Operations

Exploring the Communication Skills Gap in Treasury

Results from the recent Treasury Benchmarking Survey reveal that treasury professionals, including leaders, managers, and staff, have ample opportunities to enhance their communication skills. This finding underlines the necessity for improved communication capabilities within treasury functions.

Importance of Communication in Treasury

A striking 96% of treasury professionals affirm that effective communication is crucial for leadership in their area. However, there appears to be a contrast in confidence levels; only 81% believe that treasury leaders are successfully executing communication. This disparity highlights a significant disconnect between the perceived value and actual performance in communication among treasury professionals.

Results Indicating Communication Gaps

Similarly, treasury managers and staff reflect on their own communication abilities. While 96% acknowledge the importance of communication at their level, only 79% express confidence in their effectiveness. This data showcases a critical gap between the recognition of communication's significance and the perceived effectiveness in executing these skills.

Interactions and Collaboration in Treasury

Over the past couple of years, many treasury professionals have reported increased interactions with related departments such as accounts payable and the CFO or C-suite. These collaborations are essential for managing payments, preventing fraud, forecasting liquidity, and supporting automation initiatives. Interestingly, the survey indicated that interactions concerning Sustainability and Environmental, Social, and Governance (ESG) have seen a downturn, with 10% of treasury professionals noting a decrease in engagement.

Key Findings from the Survey

Delving deeper into the findings, several key insights emerged:

• Nearly 75% of treasury professionals prioritize cash management and forecasting, indicating a unified focus regardless of their seniority levels.
• More than 60% view cash or liquidity forecasting as their most daunting task. This is followed closely by automating manual processes (57%) and enhancing payment processes (51%).
• Treasury departments scoring highest on the maturity scale leverage automation for over half their liquidity forecasting processes.
• About 60% of senior management from advanced treasury maturity organizations are eager to adopt new technologies.
• A significant 64% of highly mature treasury departments must adhere to enterprise-wide standards and ensure compliance with those standards in their policies and procedures.

The Value of Treasury Benchmarking

Jim Kaitz, President and CEO of the Association for Financial Professionals, emphasized the importance of the Treasury Benchmarking Survey. He noted that it offers valuable insights into treasury operations and allows professionals to compare their department's metrics against industry peers. This benchmarking can provide immense benefits in understanding and enhancing treasury capabilities.

Transformations Within Treasury Operations

Amy Downey, Co-Head of Global Payments and Liquidity at Wells Fargo, expressed the importance of treasury professionals remaining relevant in today’s fast-paced environment. The insights gained from the survey not only guide organizations in improving their treasury practices but also assist in adapting products and solutions to meet evolving business demands.

Conclusion

The 2025 Treasury Benchmarking Survey was conducted in the fall and garnered responses from a diverse group of 523 treasury practitioners, highlighting the varied needs and challenges faced by professionals in the treasury field. The results indicate a significant opportunity for treasurers to focus on improving their communication skills, which can lead to better collaboration and effectiveness across their organizations.

Frequently Asked Questions

Why is communication important in treasury operations?

Effective communication is critical for collaborating with other departments and ensuring successful management of financial activities.

What percentage of treasury professionals feel effective in their communication?

Only 81% of treasury leaders believe they are effective communicators, though the vast majority acknowledge the importance of these skills.

What were the main findings of the Treasury Benchmarking Survey?

The survey highlighted a significant gap between the importance placed on communication and the perceived effectiveness in executing it, along with key operational challenges in treasury.

How do treasury professionals interact with other departments?

Many treasury professionals have seen increased interactions with accounts payable and the C-suite, essential for troubleshooting and collaborative financial management.

What challenges do treasury professionals face?

Key challenges identified include cash management, liquidity forecasting, and the need for automation to improve existing processes.

About The Author

My name is Dylan Bailey, and I am 28 years old. I am an author and an expert on the stock market who specializes in publicly traded companies. Early fascination with the stock market inspired me to seek a finance degree and then delve deeply into the world of stocks. I have developed over the years my abilities to spot investment prospects, assess business performance, and analyze market trends.

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