Global currents rewriting finance leaders` priorities to focus on data-driven financial intelligence, liquidity and FX management over the next five years: DBS global survey
Companies are starting to plan for the long-term effects of a shifting global landscape, even as they brace for continued rates volatility and potential supply chain reconfigurations in the near term. A new DBS report titled New Realities, New Possibilities surveyed 800 finance leaders, including Chief Financial officers (CFOs) and corporate treasurers, across seven sectors and 14 markets1, showing that businesses are recalibrating their long-term strategies to strengthen financial resilience over the next five years.
To better understand how finance leaders were steering their organisations, amidst immediate-term developments, respondents were surveyed in two batches – before and after US trade tariff announcements in April. Findings showed that leveraging data-driven financial intelligence to strengthen decision-making remained a top priority for companies over the next five years (Figure 1), with respondents drawn to data visualisation and security monitoring tools to enhance treasury and finance functions. These tools help leaders navigate uncertainty more effectively with sharper sense-making and better threat anticipation, enabling more accurate cash flow forecasting and proactive capital strategies.
Notably, liquidity and foreign exchange (FX) management leapt from seventh place to second. This comes as companies start planning to strengthen financial stability amidst higher upfront costs and potential inventory stockpiling associated with increased market volatility. To do so effectively, over one-in-two said they were exploring more innovative solutions including integrated payments, blockchain-powered capabilities and the setting up of regional treasury centres. Strengthening working capital efficiency rounded up the list of top three priorities as companies recognised the need to optimise financial returns while enhancing financial flexibility.
Technology transformation, cost optimisation and sustainability remain ongoing priorities
Businesses in India are increasingly leveraging AI, automation, and green finance to drive innovation and strengthen operational resilience, supported domestically by structural tailwinds from one of the fastest growing major economies.
Globally, some 69% of leaders said they are exploring Gen AI-powered solutions to optimise inventory forecasting, overcome prolonged receivables collection periods and improve cash conversion cycles. About 79% of Indian CFOs and treasurers believe that Generative AI & AI powered tools will help risk mitigation and enhance treasury operations.
In addition, enabling green initiatives and ensuring compliance with sustainability standards remained a priority for half of respondents. Companies said they were considering various approaches to advance sustainability, including using digital tools to enhance the rigour of ESG reporting (77% of respondents), partnerships with ESG ecosystem networks (64%) and sustainable trade finance solutions (63%). In India, 80% of businesses affirmed that sustainable trade finance solutions like green bonds and ESG-linked loans will support green initiatives and compliance with green standards.
Across regions, approximately 50% of finance leaders said supply chain reconfiguration continued to be a priority to diversify and strengthen their manufacturing footprint to be closer to customers. A similar proportion planned to review their capital costs by optimising the mix of equity and debt financing. Globally, one-in-two companies indicated that trade finance solutions and cross-border payment methods were key strategies for supporting their transformation agendas.
Divyesh Dalal, Managing Director and Head – Global Transaction Services, SME & Financial Institutional Group, DBS Bank India, said: “The new reality is increasingly being defined by uncertainty, and within this context a discernible shift is underway for treasury and finance leaders who are not only strategic enablers for their companies, but also managers of business risk. As the world looks to India to drive future growth, these leaders are assuming enhanced responsibilities as they step up to guide business diversification and linked capital allocation along with building resilient supply chains while keeping their overall institutional ESG principles in mind. This shift has made the role of a trusted banking partner even more critical as companies look for decisioning support to steer transformation and enable long-term resilience. As a leading Asian transaction bank, DBS is glad to play this role and aid organisational growth during one of the biggest trade re-alignments of our time.”
Santanu Mitra, Managing Director & Country Head – Corporate Banking (Large and Midcap), DBS Bank India, added: “Businesses are grappling with the confluence of several larger trends which are accelerating simultaneously – the ubiquity of AI, climate change, geopolitical uncertainty and evolving trade complexities. As financial strategists, the treasury function is proactively looking to modernise as they integrate multiple agendas to unlock smarter, more sustainable growth. DBS works closely with our clients, going beyond banking to support them with advisory and customised solutions, backed by our strong Asian connectivity and advanced digitalisation. This report New Realities, New Possibilities is aimed at providing meaningful, future-focused insights to increase competitiveness in a rapidly changing macroeconomic environment.”
New Realities, New Possibilities is the third iteration of DBS’ ongoing thought leadership series tailored for treasury and finance professionals and builds on the findings of earlier reports. Each report aims to give finance leaders a deeper understanding of the evolving demands on treasury and finance teams and how companies might capture opportunities amid these shifts.
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