Thinking About a New Growth Strategy? Invite the Treasurer to the Meeting

Strong executive leadership can make or break businesses, particularly during times of uncertainty.

It doesn’t just need to be the sole reserve of the CEO or board, either. Executive leadership can come from all corner offices, even those traditionally viewed through the lens of support functions, such as treasury heads and finance leaders.

Data from the latest PYMNTS Intelligence, found in collaboration with Citi in the report “The Impact of Misunderstood Treasurers in the Consumer Packaged Goods Sector,” reveals that in sectors like consumer packaged goods (CPG), leveraging the full potential of treasurer leadership can be not just beneficial but essential to competing where operating margins are often thin.

Traditionally, treasurers have been responsible for cash flow monitoring, ensuring liquidity, and managing risks related to interest rates, currency fluctuations and credit exposures.

And make no bones about it: They still are. However, as digital transformation re-vamps back offices with advanced tools and real-time data, the expectations for modern treasurers are evolving beyond operational execution to include financial leadership.

This shift is being driven by trends such as the digital transformation of payments, the complexity of global supply chains and heightened regulatory scrutiny.

What does the rest of the executive team need to be aware of when considering this treasury shift? The key takeaway is that treasurer empowerment can be linked to financial and strategic improvements.

Read more: ‘We’re Not Just Cash Custodians:’ CPG Treasury Chiefs Call for Greater Strategic Integration

Untapped Potential of Treasurers

The PYMNTS Intelligence report finds that by working to align departmental goals with treasury strategies, companies can optimize resource allocation, leading to higher ROI and sustainable growth.​

Yet, despite their critical function in managing a company’s liquidity and financial risk, treasurers in the CPG sector often find themselves on the periphery of decision-making. Per the report, only 43% of treasurers’ colleagues in other departments perceive them as highly influential within their firms.

Most treasurers encounter at least three barriers to collaboration, ranging from a lack of visibility into companywide operations to limited involvement in decision-making. This marginalization undermines the potential contributions of treasurers and hampers the organization’s overall financial agility in an era where liquidity, risk mitigation and strategic investments can contribute directly to corporate strategy.

For instance, proactive treasury management can help firms balance payment terms with suppliers and retailers, ensuring they maximize cash on hand while maintaining strong business relationships. When treasurers are involved in procurement strategies, they can help negotiate payment schedules that enhance liquidity without disrupting supply chains.

Role of Payments Innovation

By evaluating capital structure, funding options and risk exposure, treasurers provide a data-driven foundation for investment decisions. But beyond operational efficiencies, a well-equipped treasury function can unlock growth opportunities by optimizing working capital and leveraging new payment solutions.

Embedded finance is transforming corporate payments, allowing businesses to integrate financial services directly into their platforms. By leveraging banking-as-a-service (BaaS) and embedded payment solutions, treasurers can enhance customer and supplier experiences while also improving cash flow management.

Still, while the benefits of a modernized treasury function are clear, many organizations face hurdles in implementing these changes. Resistance to digital transformation, budget constraints and cybersecurity concerns can slow adoption.

A fundamental challenge treasurers face is a lack of understanding of their role across departments. Implementing cross-functional training programs can bridge this gap, helping finance, operations and supply chain teams appreciate the impact of treasury functions.

When teams understand the connection between treasury operations and broader business performance, they are more likely to involve treasurers in key financial decisions, ultimately driving better business outcomes.

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