Thursday, 12 November 2020 | By Pascale Hertzog, Client Support Director at Login SA, Member of the Profile Group
In the post covid era, the need of treasurers to automate their FX processing lead to faster, more transparent, and accurate foreign exchange transactions.
This eliminates human error and treasury professionals are not concerned anymore with filling in FX rates for hundreds of individual transactions but instead focusing on real value tasks. Initially FX updating was done manually, and following the lockdown, many treasurers spent a lot of time manually completing the rates related to payments and working capital in multiple currencies, remotely. This is seen as time wasted when everything turns to digital.
In a recent TMI (Treasury Management) research study conducted in collaboration with Barclays entitled “Is your Treasurer fit for the Challenge,” 42% of respondents state that FX volatility is of primary concern.
The focus of businesses in transactional FX gave a boost to faster deployment of technology tools that can help transform FX payment and improve sales.
Automation in FX allows banks and their corporate clients make transactions safer, faster and more profitable with limited FX exposures and real-time position and profit monitoring.