CHERRY HILL, N.J., Jan. 3, 2018 /PRNewswire/
-- Technological innovation and disruption, now commonplace in consumer services, is poised to greatly influence the
investment priorities and business plans of financial executives, according to the 2017 Treasury Management survey conducted by
TD Bank, America's Most Convenient Bank® . For
2018 and beyond, finance professionals cite process automation (31 percent), distributed ledger/blockchain (23 percent) and
artificial intelligence/robotics (15 percent) as the top disruptive technologies that will have the largest impact on treasury
functions and payments over the next two to three years.
The survey collected insight from 340 corporate treasurers and other finance professionals at the 2017 Association for Financial Professionals Annual Conference in San Diego, California. Disruptive technologies are top of mind for these individuals, who cited that they
are preparing for changes in the treasury management industry by:
- Leveraging solutions from fintech providers – 31 percent
- Developing in-house technology to get a leg up on competitors – 23 percent
- Hiring more tech savvy employees to keep up with the trends – 15 percent
Although most companies are taking proactive steps to embrace technology in their finance capabilities, another 29 percent of
respondents said that they are taking a "wait and see" approach. While more than a quarter of executives reported taking a more
cautious road, 10 percent of their peers indicated they will invest in one of the more experimental technologies: artificial
intelligence and robotics.
"It is no surprise that technology and automation factor high in near-term investment plans, as financial professionals and
treasurers – like most functions – are continually challenged with doing more with less," said Chris
Giamo, Head of Commercial Bank, TD Bank. "The capability of these tools to increase speed, accuracy and efficiency could
dramatically streamline workflows."
Need for Speed
While AI and robotics may represent the long-term future of treasury management, more than half of finance
professionals surveyed (52 percent) expect faster or real-time processing to experience major growth in payments innovation in
2018. Despite the industrywide expectation for adopting real-time commercial payment processing, 23 percent of finance
professionals see the ability to adapt to or process faster and electronic payments as their organization's top operational
challenge.
"Treasury management is approaching an inflection point and organizations must adjust accordingly. The potential for AI and
robotics to disrupt and revolutionize payment processing especially should not be underestimated," said Rick Burke, Head of Corporate Products and Services, TD Bank. "Just as the Federal Reserve and other industry
bodies will need to develop a standard to clarify what defines real-time payments in the commercial world, finance professionals
will need to develop and invest in new technologies to meet the demand for real-time payments."
Challenges and Cash Allocation
Along with challenges posed by cybersecurity (32 percent), finance professionals believe that challenges due to
continued interest rate increases (30 percent) and the current geopolitical environment (25 percent) will have the greatest
impact on their organization's capital spending. When asked where their organizations anticipate allocating excess cash, finance
professionals cited:
- Acquisitions – 22 percent
- Information Technology – 22 percent
- Capital Expenditures – 21 percent
Survey Methodology
TD Bank polled finance professionals at the 2017 Association of Financial Professionals Conference held in San
Diego, California, in October. A total of 340 responses were collected from industry
professionals, including business end-users and financial and technology services organizations.
About TD Bank, America's Most Convenient Bank®
TD Bank, America's Most Convenient Bank, is one of the 10 largest banks in the U.S., providing more than 9
million customers with a full range of retail, small business and commercial banking products and services at more than 1,200
convenient locations throughout the Northeast, Mid-Atlantic, Metro D.C., the Carolinas and Florida. In addition, TD Bank and its subsidiaries offer customized private banking and wealth management
services through TD Wealth®, and vehicle financing and dealer commercial services through TD Auto Finance. TD Bank is
headquartered in Cherry Hill, N.J. To learn more, visit www.tdbank.com. Find TD Bank on Facebook at www.facebook.com/TDBank and on Twitter at www.twitter.com/TDBank_US.
TD Bank, America's Most Convenient Bank, is a member of TD Bank Group and a subsidiary of The Toronto-Dominion Bank of
Toronto, Canada, a top 10 financial services company in North
America. The Toronto-Dominion Bank trades on the New York and Toronto stock exchanges under the ticker symbol "TD". To learn more, visit www.td.com.
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SOURCE TD Bank