Handling multiple transactions in different formats, CFOs and treasurers in Asia need reliable cash management service providers that can help them stay ahead of the curve and anticipate any friction points in their treasury function, such as lack of visibility and reconciliation errors. From cash forecasting and complex liquidity management sweeps to short-term investment solutions, many banks in the region over the past year were proactive in offering treasury advisory services to their clients.

These were some of the observations from Asset Benchmark Research’s annual Treasury Review 2024 ( TR 2024 ), which engaged with over 500 treasury management professionals, including CFOs and treasurers, across the region last year on how they view the current trends shaping finance/treasury and the service providers with which they work.

Service quality, according to TR 2024 respondents, was the main factor in deciding which cash management bank to work with; this was more of a sticking point, in particular, with multinational companies, which, given the scale of their respective businesses, expect a higher level of proactiveness and bespoke solutioning from their service providers.

After service quality, the pricing of cash management services and the credit relationship the bank had with the company were the next most important factors in deciding on a cash management bank. For small and medium-sized enterprises, pricing considerations were on par with service quality, highlighting the pricing sensitivities of smaller responding organizations, which, despite experiencing good quality service, may exit a banking relationship.

Interestingly, a bank’s reputation wasn’t much of factor in choosing a cash management provider, which, in contrast, was the case just a few years ago in 2022 when reputation was a top three consideration. This indicates that most respondents were comfortable with their banking providers and not worried about counterparty risks.

In terms of treasury goals, TR 2024 respondents placed ensuring liquidity within their company as an overwhelming top priority, followed by optimizing finance costs and improving cash flow forecasting – the same results recorded in TR 2023. The focus on ensuring liquidity is something treasury functions learnt to prioritize in the region during the Covid-19 pandemic when several companies struggled to meet their short-term obligations and sound inter-company funding was the key to avoiding costly financing expenses from banks.

Regarding treasury setup, the majority of respondents that had or were looking to setup a regional treasury centre in Asia were already located in or planning to setup in either Hong Kong or Singapore. Factors in choosing a relevant location depended on how advanced the market infrastructure was in terms of regulation and the ease of doing business there. The next most important factors were the proximity of regional treasury centre to the company’s regional headquarters and the available market liquidity in the chosen jurisdiction.

In term of main responsibilities, most respondents used their regional treasury centre to rationalize bank relations, centralize financial risk management and harmonize funding strategies.

Going forward, treasury management professionals have lofty short-term aspirations for their operations to add strategic value to their respective organizations, with 77% of respondents aiming, in the next three years, to not have their treasury setup seen only as a cost centre.

These TR 2024 findings represent just the tip of the iceberg of uncovered by Asset Benchmark Research. Stay tuned for more insights in the coming weeks.

Are you a CFO, treasurer or treasury management professional? If so, please take part in our annual TR 2025 where you can share your views on the trends shaping your profession and rate the service providers you work with.