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Part 1: 25 Must-Know Corporate Treasury Statistics from 2024 to Shape 2025

This is the first of a two-part article series

CTMfile has remained a trusted resource for insights into treasury and payments management. Through our articles, interviews, industry roundups, videos, and podcasts, we’ve delivered content that deeply resonates with a global audience of treasury and payments professionals.

This connection with our audience stems from our understanding of their reliance on accurate and actionable data to thrive in their roles. In the first instalment of this two-part article series, we’ve compiled and presented 12 of the 25 key statistics from select 2024 survey reports and reliable sources that remain highly relevant for 2025. These numbers provide valuable information and are essential for every corporate treasury executive striving to stay ahead in the ever-evolving financial landscape.

Bank relationship management (BRM)

The 2024 Association for Financial Professionals (AFP) Bank Relationship Management Survey Report highlights that:

  • “A bank’s financial stability is of utmost importance to organizations when choosing a primary relationship bank. Ninety-eight percent of Corporate Practitioners consider a bank’s financial stability a critical consideration when choosing their companies’ primary relationship bank.”         
  • Customer service responsiveness is a valuable attribute that 92% of corporate treasury professionals seek in their primary relationship bank.
  • Over 40% of organizations engage with two to five banks, while one in four manages relationships with six to ten banks.
  • Economies of scale, cited by 66% of respondents, is the primary reason driving organizations to decrease the number of banking relationships they maintain.
  • More than half of corporate practitioners (53%) believe their banks could strengthen corporate relationships by streamlining the Know Your Customer (KYC) process.

Bank account management (BAM) - Too little time for BAM

  • According to the 2024 Treasury Perspectives Survey Report, produced by Strategic Treasurer and underwritten by TD Bank, 46% of respondents stated they don’t have time to perform all of their responsibilities. Among them, 33% identified relationship management as a task they lacked time for, while 25% pointed to compliance and bank account management.

Fed cut rates in December 2024, yet corporate America faces higher interest expenses in 2025

On December 18, 2024, the US Federal Reserve (the Fed) reduced the federal funds rate by a quarter percentage point (25 basis points or 0.25%), bringing the range to 4.25%-4.5%. Even though this marks the third consecutive interest rate cut by the Fed in 2024, corporate America is likely to face increased interest expenses in 2025. What’s the reason for this?

  • An article in The Economist proposes that the most important explanation behind the upcoming rise in interest costs for corporate America is “The behaviour of finance directors. American companies borrowed heavily on longer-term deals in 2020 and 2021, after the Fed had cut rates and before the tightening cycle got under way. Low rates were locked in and firms were relatively insulated from the subsequent tightening. Indeed, the unusually strong performance of the S&P 500 index of large American companies, which has risen by 24% since the Fed first raised interest rates, may in part be explained by this protection.”

However, The Economist explains that the tide is shifting, with locked-in deals that began expiring in 2024. Fixed-rate loans usually span three to five years, and over US$2.5 trillion— equivalent to 9% of the US GDP—of fixed-term corporate loans are scheduled for refinancing before the end of 2027. Of this amount, $700 billion is due in 2025, followed by more than $1 trillion in 2026, according to the article.

The article goes on to caution that the sectors most susceptible to refinancing risk are those that gained the most from cheap fixed-rate deals shortly after the onset of the COVID-19 pandemic, particularly manufacturers.

The Economist further warns that “The pain may be considerable. Bonds of the typical American, non-financial, BBB-rated firm due to expire in 2025 have a median interest rate of just 3.8%. On current trends they will probably attract a rate of closer to 6% when reissued. Interest costs will rise just as interest received falls.”

Strategic reshaping of supply chains in the Americas

Companies are strategically reshaping their supply chains in the Americas, as detailed in a report from KPMG titled “The Proximity Premium.” The report examines the impact of strategic shoring, a trend where organizations are relocating or moving their supply chains closer to the Americas to boost supply chain resilience and agility.

“Strategic shoring is defined as changing the geographic footprint of a global supply chain to locations in the Americas, including Mexico, Central and South America, Canada and even within the US itself, to be closer to and better serve the US”, explained the KPMG report.

Not only does The Proximity Premium report support the growing trend of strategic shoring, but it also underscores the increasing importance of proximity, which is helping companies fortify their supply chains and gain a competitive advantage amid market volatility.

The Proximity Premium report points out that:

  • The vulnerability of global supply chains to disruptions, along with geopolitical and economic uncertainty, is pushing businesses to shift their supply chains closer to the Americas in order to better serve the US market, as reported by 76% of survey respondents. This move is designed to shorten lead times, diversify supply sources, improve access to talent, and mitigate risks.
  • The Americas’ share of supply chains to the US is expected to rise by 16%.

That said, while strategic shoring is gaining popularity, it hasn't rendered offshore models in Asian countries, particularly China, obsolete. Instead, the reconfiguration of supply chains will drive more global companies to navigate from a “China Plus One” to a “China Plus Many” approach.

Companies with highly influential treasurers: Key determining factors

The survey report, “Why Treasurers’ Influence Matters,” a PYMNTS Intelligence and Citi collaboration, states that “Companies with highly influential treasurers are more likely to report positive revenue outlooks, predictable cash flows and adaptability to market pressures.”

  • Among treasurers who rate their firms’ cash flows as very or extremely predictable, 72% consider themselves highly influential. In contrast, only 40% of treasurers at organizations with low cash flow predictability share this view, according to the survey report.
  • Furthermore, the level of agility that firms demonstrate in responding or adjusting to market conditions mirrors this pattern. Sixty-eight percent of treasurers who consider their enterprises to be very or extremely adaptable view themselves as highly influential, compared to only 36% at organizations with minimal or no adaptability, as noted in the report.
  • The PYMNTS Intelligence study further reveals that 61% of treasurers at companies with projected revenue increases consider themselves highly influential, whereas just 50% of those at organizations with unchanged revenue outlooks or flat revenue expectations express the same sentiment.

The 12 key statistics presented in this first-part of the series not only underscore the reliance of treasury teams on accurate and actionable data in areas such as BRM, BAM, supply chain reconfiguration, interest rate risk, and the critical role of treasurers in enhancing organizational revenue but also emphasise the strategic importance of adapting to changing circumstances to maintain a competitive edge.

Look out for the conclusion of this two-part series, where we’ll unveil additional data-driven insights to empower corporate treasury professionals in navigating the complex financial terrain of 2025 and beyond.

 

⃰ Disclosure: Strategic Treasurer owns CTMfile.

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