But the reality of today’s corporate treasury department may bring pause to some corporate FinTech innovators eager to transform the treasury department.
According to Paul LaRock, director of Treasury Strategies, a division of Novantas, treasury departments in 2021 are less eager to overhaul their payment operations through cryptocurrency and instead are simply continuing their effort of migrating away from paper checks.
“It surprises me that in 2021, we’re still having this discussion,” he told PYMNTS in an interview.
Yet the continued use of paper remains a major roadblock to corporate treasurers interested in embracing innovations that could transform the way they operate and bring value to the enterprise. As LaRock explained, the migration away from checks may be an old, seemingly never-ending story, but it continues to drive changes in the way treasurers think about their strategic role within their organizations.
“It’s a conversion issue,” he explained. “Corporates have to allocate the resources, the people, the time. They have to call vendors, get bank account data, set up ACH payments in their systems. It’s easy, but it’s tedious and takes a lot of time.”
“Treasury is more than just positioning and payments,” said LaRock. “It’s also the management of expenses in the whole value chain of treasury and non-treasury activities.”