The role of banks in transforming corporate treasury

Corporate treasuries are undergoing a rapid transformation, driven by the digitization of commerce, shifts in global supply chains, and the rise of advanced technologies. As businesses face these changes, HSBC is stepping in to provide critical support. From helping companies streamline operations to enabling real-time decision-making, HSBC is at the forefront of this transformation.

Growth of Digital Commerce

E-commerce is growing faster than ever. In 2023, global e-commerce spend reached $3.1 trillion, and it’s expected to grow to $5.4 trillion by 2027, according to a report from WorldPay¹. This explosion in digital sales is changing how companies operate, pushing them toward direct-to-consumer (D2C) models and new economy platform models like the gig and green economies.

Companies are realizing the benefits of these shifts. D2C models offer firms more control over customer data and experiences, and businesses that adopt this approach are outperforming their peers. According to a McKinsey report², D2C companies have seen 30% higher year-on-year share price growth and 15% higher revenue growth over the last decade. Furthermore, the emergence of new economy platform models is shaping new behaviours, such as the adoption of real-time payments, instant payouts, and digital wallets.

Shifts in Global Supply Chains

Global supply chains are undergoing a significant recalibration. Businesses are rethinking where and how they source goods, with many opting to bring operations closer to home or diversifying into new regions. In HSBC’s 2023 Global Supply Chains – Network of Tomorrow survey³, three drivers of this shift were identified: counterparty risks, regulatory changes, and geopolitical tensions.

Countries like Mexico, a nearshoring location for the U.S. market, ASEAN nations with attractive free trade agreements, and India, a global hub for innovation and services, are benefiting from this trend as companies explore nearshoring and market diversification strategies.

The Power of Technology

Technology is key to transforming treasury operations. Advanced technologies like artificial intelligence (AI) are changing the way treasurers manage their day-to-day activities. Real-time data, advanced analytics, and API-driven services are empowering companies to make smarter, faster decisions.

HSBC has been at the forefront of this technological shift, leveraging AI for over a decade to respond to client needs. Today, treasurers demand more than just traditional banking services—payments are becoming more on-demand and available 24/7, with API-enabled services playing a critical role. Governments and multilateral bodies are recognizing this rapid change, upgrading payment infrastructure to include services such as QR request-to-pay and real-time direct debits on real-time payment rails.

Unlocking Treasury Transformation

To adapt to these shifts, corporates will benefit from simplified banking, stronger financial resilience, and a more strategic approach to transformation.

The complexity of banking relationships can slow companies down, particularly in a move towards a 24/7 environment. Corporates demand an end-to-end payment experience between themselves and their buyers and suppliers, ensuring a client-centric relationship, with integration into treasury workflows being critical.

Challenges like cybersecurity and geopolitical risk make building financial resilience and strengthening risk management frameworks a priority for corporates. As technology advances, clients are increasingly looking at new tools to manage risks, alongside a foundational approach that includes risk diversification, talent development, upskilling, and updated business continuity plans.

Treasurers today play a larger role in strategic decision-making. According to HSBC’s Corporate Treasury Risk Management Survey⁴, over 64% of CFOs at large companies reported that treasurers are now part of the executive committee or C-suite. Treasurers are not only overseeing traditional functions like liquidity management—they are also actively involved in driving their companies’ digital transformation. This shift means treasurers are looking to their banks for more than just financial services. They want reliable, production-grade technology that fits seamlessly into their business operations. Treasuries are increasingly being centralized and are making data-driven decisions to become a stronger strategic piece of the broader organization.

HSBC’s 3I Approach

HSBC is addressing these needs by focusing on three key areas: actionable insights, international expertise, and innovative solutions.

To meet clients' demands for insights, HSBC set up the Treasury Solutions Group. This team works closely with clients to provide thought leadership, share best practices, and offer data-driven recommendations that help businesses navigate complex treasury transformations. The bank has up-tiered its global sales managers to handle complex multi-geography deals and has deepened their understanding of clients’ treasury transformation journeys, particularly for high-growth international businesses.

HSBC understands the challenge of operating a complex business internationally. As such, it is investing in digital service experiences, simplifying and building consistency into solutions, and offering a truly end-to-end payment experience across various parts of the bank via collaboration. This includes simplified onboarding, reduced client documentation, and standardized products to deliver a more consistent global client experience.

HSBC is using innovation to drive transformative change for its clients through:

1. Simplification: Solutions like Omni Collect, a one-stop service that supports multiple payment options (cards, e-wallets, bank transfers, and QR codes via e-commerce, m-commerce, and over-the-counter), are simplifying banking. Smart Transact provides non-complex clients with the tools they need for payments, while Global Wallet offers SMEs a multi-currency digital wallet for secure, simple international payments from a single account.
2. Efficiency: HSBC has introduced virtual cards-to-digital wallets solutions, in collaboration with Mastercard in Australia, enabling clients to make secure, on-demand purchases. The bank’s automated collections for eCNY, which settle eCNY in real-time, help future-proof capabilities for emerging payments in the new economy.
3. Treasury Transformation: HSBC is helping clients build a future-ready treasury, offering core solutions “as-a-service” via APIs and deploying AI for smarter payments. In 2023, HSBC processed 823 million client API calls across all payments-as-a-service APIs, including open banking and embedded finance. The AI-enabled FX Prompt solution empowers clients to make better decisions in real-time during cross-border and cross-currency payments.

Driving the Future of Treasury

The forces of digital commerce, supply chain recalibration, and technological advancements are transforming the corporate treasury landscape. As treasurers respond to these changes, HSBC is committed to providing the support they need—whether through simplifying banking operations, strengthening financial resilience, or driving strategic influence within their organizations.

By offering actionable insights, international expertise, and innovative solutions, HSBC is helping companies transform their treasury functions and position themselves for future success.

This article and video is part of HSBC’s The Payments Revolution series. To view previous videos in the series click on the links below:

Treasury transformation: digital and platform business models

Pursuing the real-time treasury opportunity

A new payments paradigm