Survey: Corporate Treasurers Diversifying Debt Structures, Extending Credit

As corporate treasurers pivot in response to the coronavirus pandemic, nearly half of them on net are planning to diversify their debt and capital structures, according to a new survey released today from TD Bank and Strategic Treasurer.

Meanwhile, 40% on net are seeking to extend the duration of their loan facilities and 28% on net are renewing credit facilities ahead of schedule. A third of corporate treasurers expect their revenues to decrease in the next year as the COVID-19 recession continues, while 44% expect them to rise and 22% to stay the same.

Regarding technology adoption in treasury management:

  • More than six in 10 corporates are currently using mobile banking apps and cloud-based fintech solutions.
  • Nearly four in 10 are using APIs, and another 30% plan to in the next two years.
  • About 15% of treasurers are using predictive analytics or other AI-powered tech, with another 32% planning to adopt in within two years. (The shares of treasurers adopting or near adoption of APIs and AI nearly doubled from 2019 to 2020.)
  • While just 15% of treasurers are using same-day ACH or real-time payments now, another 32% plan to deploy faster payments within the next three years.

Roughly four in 10 treasurers ranked better cash management pricing, better customer service and access to high-quality advice as their main considerations for choosing a bank for treasury management. A quarter of firms said they were increasing the formality of their bank relationships (with written plans, bank scorecards and other mechanisms), while 10% said they were reducing the formality of these relationships.

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