What You Need to Know About Pursuing a Career in Treasury
The treasury field is changing fast, especially with technology improving financial operations. Automation, AI, and machine learning are becoming central to how treasury professionals work. Despite this, many people still end up in a career in treasury by chance, not by choice. Today, we will explore why that happens and how we can make treasury a more visible career option.
Kemi Bolarin, a seasoned chartered accountant and treasurer, shares her insights in this article. Kemi has led important transformations in the field with her role as Head of Treasury at GXO Logistics, Inc. and her recognition as TreasuryToday EMEA Woman of the Year. Her work uses technology to boost efficiency and improve processes, making her a key figure in the treasury world.
In this article, we will explore the steps needed to promote treasury as a career. We’ll cover how mentorship, education, and new technology can attract more people to the field. You’ll also learn about the skills required for success in the treasury today and how companies can retain top talent in this important profession.
Why Do People Often Stumble into a Career in Treasury?
Treasury is not a widely known career path like accounting. Many professionals find themselves in the treasury by accident rather than through planning. This happens because treasury isn’t a visible option during academic studies.
Unlike accounting, which is commonly taught, treasury doesn’t get much attention in schools or universities. Most people only discover the field after starting their careers. While treasury is beginning to gain more recognition in some university courses, many current treasury professionals entered the field by chance rather than by design.
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Steps To Promote Treasury as A Career Path
Several steps can be taken to make treasury more visible and to encourage young people to consider it as a career option:
1. Engagement with Schools and Universities
Treasury professionals should work with schools to introduce the field to students early. Programs like “Inspiring the Future” allow professionals to visit schools and share career insights, raising awareness before students enter the corporate world. Universities should also include treasury in their curricula.
2. Treasury Boot Camps and Apprenticeships
Programs targeting 16 to 18-year-olds, such as treasury boot camps, offer young people an introduction to the field. These initiatives provide a structured way for non-treasury individuals to explore and learn about treasury. Short-term apprenticeships are another practical way to give newcomers hands-on experience in the field.
3. Mentorship Programs
Mentorship can help bridge the gap between experienced treasury professionals and newcomers. Pairing seasoned professionals with those entering the field offers guidance and insights. It highlights that treasury is not just about numbers but also involves strategy and impact.
4. Leveraging Technology to Attract New Talent
Another way to attract younger generations, especially Gen Z, to the treasury is by emphasizing its technological aspects. Treasury is increasingly driven by technology, including AI and automation. Highlighting how treasury professionals engage with cutting-edge technology can make the profession more appealing to tech-savvy individuals.
Recommended Studies for an 18-Year-Old Pursuing a Career in Treasury
There isn’t a specific degree for treasury, but related fields like business, finance, and accounting provide a solid foundation. Many treasury professionals start with these degrees and later pursue treasury-specific qualifications, such as those offered by the Association of Corporate Treasurers (ACT).
Apprenticeships also offer a path into treasury, though structured programs for 16 to 18-year-olds are still limited. Creating more apprenticeship opportunities would give young people practical experience and a chance to enter the treasury without attending university. Treasury professionals should collaborate to develop such programs and nurture early talent.
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The Evolution of Treasury into a More Strategic Role
The Treasury is shifting from a focus on cash management to a broader, strategic role. Traditionally, treasurers managed liquidity and cash flow. They are vital in major business decisions, including mergers, acquisitions, and financing strategies. This shift, “Treasury Plus,” highlights treasurers’ increasing influence on overall corporate planning.
The Role of Technology in Transforming Treasury
Technology is transforming the treasury by automating manual tasks and improving efficiency. Automation allows treasurers to focus on strategic thinking. Treasurers can analyze data, model business scenarios, and make better decisions by leveraging technology.
However, adopting technology that aligns with specific business goals is important, like improving cash flow forecasting or accuracy.
Key Skills Needed for Treasury Plus
To meet the demands of the evolving treasury landscape, teams need to develop a specific skill set:
- Analytical Skills:
Treasurers must be adept at analyzing complex data and extracting actionable insights. Advanced analytics and financial modeling are crucial in making informed business decisions. - Strategic Thinking:
Treasury professionals should think beyond daily operations. Understanding how treasury impacts broader business goals is essential, especially in cash flow forecasting and financial planning. - Communication and Collaboration:
Clear communication is critical, particularly when explaining treasury’s value to non-financial professionals. Effective collaboration with other departments, especially finance and operations, ensures the treasury’s role is well understood and integrated into business strategies.
By developing these skills and investing in team growth, treasury departments can shift to a more strategic, value-adding role within their organizations.
Transitioning Between a Career in Treasury and Data Analysis
It’s often easier to turn a treasurer into a data analyst because they already understand how to use data for decision-making. By learning tools like data mining and automation, they can turn raw data into useful insights. For example, platforms like Power BI can improve their analysis skills.
While it’s possible to train data analysts to become treasurers, it’s harder due to the industry-specific knowledge treasurers have.
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Improving Data Skills for a Career in Treasury
To effectively leverage data, treasurers must start by clearly defining their objectives. Whether the goal is improving cash flow forecasting, liquidity management, or risk assessment, having clear goals is essential.
Here’s a systematic approach treasurers can take:
- Define Clear Objectives:
Understand what you want to achieve with data, whether it’s more accurate forecasting or improved liquidity management. - Cleanse and Standardize Data:
Ensure the data is accurate and consistent. Without clean data, the insights you extract will be unreliable. - Leverage Technology:
Use tools like Power BI or advanced platforms like AI, machine learning, or robotic process automation (RPA) to process data and produce actionable insights. - Create Dashboards:
Visualize data in easy-to-understand dashboards. This helps team members and executives quickly grasp key metrics and trends. - Continuous Improvement:
Regularly refine your processes, collaborate with other teams, and seek feedback to ensure your data strategies remain effective.
By following this structured approach, treasurers can turn their data into a powerful resource for strategic decisions.
Using Data to Influence CFO Decisions in Treasury
Treasurers are key in helping CFOs make informed decisions by providing insights on balance sheets and cash flow. They can use financial modeling tools to simplify complex data and unlock value.
By focusing on balance sheet efficiency, treasurers can find ways to make capital more liquid and reduce costs. Using predictive analytics, they offer projections to guide decisions on investments and risks.
Additionally, real-time dashboards give CFOs easy access to critical financial data, improving cash flow management. Through these approaches, treasurers become essential partners in strategic decision-making.
Strategies for Companies to Retain Top Talent in Treasury
Attracting top talent is just the beginning—keeping them requires effort. Companies must ensure employees feel valued and supported. Regular check-ins on career goals and well-being help build strong connections, while continuous learning keeps employees engaged and growing in their roles.
A few strategies for retaining treasury talent include:
- Professional Development Plans:
Implement annual professional development plans outlining seminars, courses, and certifications that employees can pursue. This helps ensure teams stay updated on trends and maintain industry relevance. - Clear Career Advancement Paths:
Talented individuals need to see a clear path for growth. Without visible opportunities for advancement, employees may seek opportunities elsewhere. Providing cross-training or cross-departmental transfers can also foster growth and retention. - Positive Work Environment:
A collaborative and inclusive work culture is critical. Employees are more likely to stay when they feel engaged, supported, and appreciated in their work environment.
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Increasing Representation of Women in Career in Treasury
While there are no formal barriers for women entering treasury roles, the industry still lacks equal representation in senior positions. Increasing visibility for women in the treasury is essential to changing this. Mentorship programs, corporate initiatives, and public recognition can all help promote diversity and inclusion within the profession.
Key actions to support women in treasury include:
- Mentoring Programs:
Senior women in the treasury should mentor newcomers and junior professionals. This offers guidance and shows younger professionals a clear path to success. - Corporate Diversity Initiatives:
Many organizations already focus on diversity, equity, and inclusion (DEI), but more needs to be done to actively recruit and retain women in treasury roles. - Visibility and Role Models:
Women in the treasury should be visible and share their success stories. When women see others thriving in the profession, they’re more likely to aspire to similar roles. - Building a Database of Women in Treasury:
A dedicated database or platform where women in treasury can connect and network with one another would increase visibility and access. This would provide aspiring professionals with role models and networking opportunities, clarifying the path to success.
By focusing on these strategies, companies can increase the visibility of women in treasury and ensure they are supported at every stage of their careers.
Conclusion
In conclusion, building a successful treasury career requires strategic thinking, technical skills, and continuous learning. The evolving role of treasury professionals, driven by technology and data, offers new opportunities for those entering the field.
The industry can attract and retain top talent by promoting treasury as a viable career option early on and providing mentorship, professional development, and clear advancement paths.
As we’ve seen, a treasury career involves managing finances and plays a vital role in shaping a company’s long-term success. The treasury profession can continue to grow and innovate by supporting diversity and fostering inclusive practices.
FAQs
What is the main difference between a career in treasury and accounting?
A career in treasury focuses on managing a company’s liquidity, financial risk, and strategic cash flow while accounting deals more with recording financial transactions and preparing reports.
Do I need a specific degree to start a career in treasury?
No specific degree is required. However, finance, accounting, or business degrees provide a strong foundation for a career in treasury.
Is certification necessary for a career in treasury?
While not mandatory, certifications like the Association of Corporate Treasurers (ACT) qualifications can enhance your skills and career prospects.
What kind of companies typically hire treasury professionals?
Treasury professionals are hired by large corporations, banks, government agencies, and non-profit organizations where financial planning and risk management are critical.
Can I switch to a career in treasury from another finance role?
Many professionals transition into treasury from roles like finance, accounting, or data analysis due to overlapping skills.
How important is technology in a modern career in treasury?
Technology is crucial. Tools like AI, automation, and data analytics are transforming treasury operations and improving decision-making.
