The economic outlook for treasurers in 2023 will be eventful; therefore most corporate leaders should focus on planning and preparation. Corporate FX strategies will be tested to new levels and the effects of increased market risk and economic volatility, and the changing role and responsibilities of the treasury department will have an impact on the sector.

It is now more crucial than ever that treasurers play an active role in assisting in the development of strategic plans as well as updating different liquidity and risk management rules and regulations to mitigate these challenges. Following my review of the sector and learning from 2022, here are five key areas treasurers should think about to ensure a successful year ahead.

Increased innovation and regulation

As 2023 progresses, we hope to see increased collaboration between banks and treasurers. Banks are critical partners for treasurers, and it is essential that both parties take an active role in developing the relationship.

Banks are natural partners for a mutually advantageous relationship in which fintech companies can provide banking products without being required to comply with banking regulatory standards. Banks benefit from these collaborations as well, with increased low-cost deposits and fee income.

Growth sectors

In 2023, we expect to see the most demand from high-growth sectors such as energy and real estate. Real estate is excellent because of its predictable cashflow and lower volatility, which has many advantages over stocks, bonds, and mutual funds.

The energy sector, too, has high volumes of cash movement and a high need for foreign exchange, a critical issue facing corporate businesses and treasury departments in Nigeria. Through our services we can leverage digitisation and next-generation treasury technologies and tools to meet their FX needs.

Furthermore, the energy and infrastructure sectors emerged as the biggest targets for hackers and cyberattacks in 2017, accounting for one-third of all occurrences in 2017.

In Q2/3, there will be an increase in products and services that can protect treasuries from cyberattack. At Ceviant we will introduce a variety of products that corporate treasurers will find useful, particularly those relating to risk management through the use of government security and sovereign bonds.

Economic factors

For corporate treasurers, the pandemic and continued economic uncertainty have made the years 2020 to 2022 difficult and unpredictable. Companies entered 2022 hoping for a return to some semblance of business as usual due to improved economic conditions. However, multiple challenges stayed on the horizon for corporate treasurers, including rising inflation, energy prices, and additional concerns about global economic growth.

Central banks decided to raise interest rates to contain inflation, while increased foreign exchange volatility threatened to make risk management a major challenge for treasurers worldwide in 2022.

We will still face the challenges of a lack of foreign exchange, multiple taxes, and a lack of capacity in 2023 because none of these issues were resolved last year; however, despite the difficult environment, people will continue to trade. Economic activity will slowdown but will continue.

Increased digitalisation, open banking and API

One of the most significant trends in the treasury department last year was the rapid pace of digitalisation. It is expected that digitisation will significantly boost business models over the next three to five years, as it improves cashflow visibility and optimises liquidity across organisations.

It also improves efficiency and lowers costs through economies of scale, allowing for more effective risk management. With the emergence of open banking and the use of APIs, more treasurers will benefit from the ability to track transactions in real time.

Treasurers can gain complete visibility over the status of transactions by integrating this information directly into the treasury management system, resulting in a more dynamic and prudent approach to managing liquidity.

Talent retention

Recruiting and developing top talent has never been more critical for a thriving industry. With the world becoming more tech-focused, it is critical to inspire and train the next generation of talent and provide them with the resources and skills needed to succeed.

More investment in digital skills, as well as entrepreneurship and business skills training will be required to help them discover meaningful careers in the fintech space. This includes launching training programs, organising career fairs and facilitating guest lectures with veterans from the industry.

As we’ve left 2022 behind, we find that 2023 has begun with both high volatility and increased expectations for risk management.

As treasurers examine the environment and how to address it, it is critical to consider FX volatility management strategies as well as data and artificial intelligence, and faster and real-time treasury solutions.

As African markets continue to grow and experience rapid technological advancements, there is still much to be extracted.

About the writer:

Denis co-founded Ceviant along with Kehinde Dabiri, and Idris Alubankudi Saliu in 2014 to facilitate payments and simplify liquidity management for corporates. He oversees Ceviant Nigeria and is responsible for its business development, strategy and growth. Denis is focused on facilitating businesses with their treasury and payments requirements, both regionally and internationally. In 2005 Denis co-founded Vanso Nigeria Limited, a software and telecoms company delivering solutions throughout the financial services industry. Denis led Vanso until it was sold to Interswitch in 2016. Following the sale Denis became Deputy CEO of Interswitch and helped its Pan-African mobile strategy. In 2018 he co-founded SOLAD Powe Group an investment holding company and manager of decentralised energy grids across Nigeria. Denis is one of Africa’s leading digital entrepreneurs and has spent over 20 years working in the telecommunications and payments services sector.

The license permits Ceviant to offer a range of payment services to clients in Nigeria, including electronic fund transfers and payment processing.

This license presents further opportunities to partner with banks and other financial institutions within the payments ecosystem, including API integrations with banks, enabling businesses to manage bank accounts, payments, transactions, cash balances, and more, all through a single portal and API.

Ceviant’s FCA license in the UK also allows access to the UK’s financial services ecosystem, making it easier for businesses to manage payments and transactions through a single platform.

With both licenses, Ceviant is poised to provide a more comprehensive range of financial services to customers across Europe and Africa.

Kehinde Dabiri, CEO of Ceviant, commented, “We are proud to have been granted the PSSP license from the Central Bank of Nigeria. This demonstrates our dedication to providing exceptional payment solutions that meet the necessary regulations. At Ceviant, we aim to provide integrated treasury and trade solutions that give our customers more data transparency, automation, visibility, and control of their payments and treasury operations. Receiving the PSSP license is a major achievement for Ceviant. It highlights our dedication to maintaining the security and accuracy of all payment processes. Our team worked hard to meet the demanding standards set by the Central Bank of Nigeria, and we are confident that our payment solutions will continue to meet the changing needs of Nigerian businesses.”

Ceviant provides Multinational Businesses access to its treasury and trade solutions, which focuses on reducing costs and making global business transactions more efficient. The PSSP License enables Ceviant to securely offer its services in Nigeria with features and capabilities that meet local banking requirements. Ceviant is now well-positioned to capitalize on Nigeria’s growing payments market and meet the needs of businesses seeking secure and efficient payment solutions.

Payments are a critical component of treasury management. Treasurers require real-time visibility of cash balances, stress-free money movement, and safe investment options to preserve liquidity.

Ceviant’s Executive Management team has a proven track record that spans payments, mobile banking and digital solutions. I

ts Co-Founders have established successful fintech businesses, that include ARCA and Vanso [which was acquired by Interswitch in 2016].

Headquartered in London, with offices in Bucharest and Lagos, Ceviant is a member of the SWIFT partner program and is ISO accredited. Currently operating in Nigeria and the UK, the company is expanding to other countries in the EMEA.

Headquartered in London, with offices in Bucharest and Lagos, Ceviant is a member of the SWIFT partner program and is ISO accredited. Currently operating in Nigeria and the UK, the company is expanding to other countries in the EMEA.

Ceviant is a financial technology company that delivers a broad range of treasury and trade solutions to a large and diversified client base, including corporates and multinationals, SMEs, importers, and exporters. 

The company acts as a B2B SaaS (Software as a Service) platform that simplifies liquidity management for corporates. It has developed a proprietary cloud-based treasury management software that enables businesses to aggregate all their banking payments in one place.  

Nigeria is Africa’s most populous country and largest economy, with a GDP of USD 441.5 billion in 2021 according to Statista. 

In the last few years there has been a surge of investment in Nigerian fintech which has birthed multiple African fintech Unicorns. Beyond Nigeria, Ceviant plans to launch across the Continent and the UAE. 

The newly designed website displays the company’s suite of products and services including treasury management, cash visibility, and digitising trade finance.

The website will ensure information is easily accessible for key stakeholders. 

Furthermore, Ceviant is developing the most direct API connectivity to banks in emerging markets which will allow clients to connect with business services and capabilities outside of traditional banking channels. 

The company is FCA regulated in the UK and has also received Approval In Principle licences in Nigeria.

It has also been awarded ISO accreditation and recently was accepted to join the SWIFT partner programme to create real value for customers while streamlining their multi-banking transactions to improve efficiency.  

Ceviant has equally secured four new banking partners in Nigeria and plans to further expand its partner network across Africa and the UAE. The company’s go-to market strategy includes SMEs, large corporates, and intermediaries to these businesses, such as the leading accountancy firms. 

Commenting on the announcement, Idris Alubankudi Saliu, Founder of Ceviant, said: “Corporates of all sizes have many challenges, including being able to manage their cash and access working capital and trade finance solutions to support their operations.

We’re a new but key player in the market, aiming to solve the complexity around the way African companies traditionally manage their banking solutions by providing our integrated services in one place. We simplify processes and facilitate financial inclusion, with compliance and security at the heart of everything we do. 

This is a large and generally untapped market for our products and services, and we are extremely excited for customers to interact with our newly functional website. We look forward to the future and creating value for our stakeholders.”