| | July 202219CIOReviewCXO INSIGHTSDIGITAL TREASURY TRANSFORMATION IS FULL-STEAM AHEAD By Mayank Mishra, Managing Director, Global Head Digital Channels Treasury and Trade Solutions, Institutional Clients Group, CitibankEven before the pandemic brought far-reaching changes in the way business is conducted, a major digital transformation was already taking place. This digital disruption has swept across nearly every business sector and nearly every aspect of business operations. A recent survey1 found that 47 percent of corporates are advancing digital transformation plans across the enterprise, while 53 percent are adopting new technologies gradually in silosor are exploring more far-reaching changes for the future. This same report found that 93 percent of senior executives are convinced that digital technologies could fundamentally change the way people work in their organization.Factors Driving Today's Treasury Innovation Next-generation technologies are literally recasting treasury processes. There are three primary factors driving this dramatic change. The first is regulation;Central Banks across the world have put in place their own unique regulations that govern innovation around payment systems and platforms. For instance, Open Banking regulations have been established that provide open access to consumer banking, transaction, and other financial data from banks and non-bank financial institutions through the adoption of application programming interfaces (APIs). And in Europe, the Revised Payment Services Directive (PSD2) was issued by the European Union to regulate payment services and payment service providers throughout the EU and European Economic Area.The second is the demographics. As Generation Z gradually begins to dominate the ranks of the workforce, businesses must meet the expectations and preferences of these technology-savvy digital natives. This generation is used to interfacing with technology 24/7, which has brought about a business imperative to embrace next-generation innovation. The third is the competition. Banks are increasingly facing competition from non-financial services providers, who are leveraging the latest cloud-based technologies to introduce disruptive innovations to the marketplace. This has spurred tremendous digital growth, as well as a trend toward partnerships across the industry. These competitive forces are speeding up the cycle of change and introducing exciting new innovations that are transforming the treasury function.Mayank Mishra
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