TLDR: A recent global survey by DBS, titled ‘New Realities, New Possibilities,’ reveals that companies are strategically recalibrating their financial approaches to navigate increasing global volatility. The report, based on insights from over 800 senior finance executives across 14 markets, highlights a significant shift towards leveraging data-driven financial intelligence, prioritizing liquidity and foreign exchange (FX) management, and enhancing working capital efficiency, with Generative AI playing a crucial role in these transformations.
In an era defined by heightened global uncertainty and accelerating technological advancements, businesses worldwide are proactively adapting their strategies to build long-term financial resilience, according to DBS’s newly released ‘New Realities, New Possibilities’ report. This third edition of DBS’s flagship thought leadership series for finance professionals, based on a survey of over 800 senior finance executives across 14 markets and seven sectors, underscores a pivotal shift from reactive short-termism to structural overhauls in financial intelligence, liquidity strategy, and FX management.
Data-driven financial intelligence has emerged as a top strategic priority for finance teams. Companies are rapidly adopting tools for data visualization, security monitoring, and advanced analytics to enhance decision-making and improve forecasting accuracy amidst uncertainty. This proactive approach is deemed crucial for anticipating threats and deploying capital effectively, transforming finance departments from mere cost guardians into enablers of growth.
A dramatic reordering of priorities saw liquidity and foreign exchange (FX) management surge from seventh to second place among finance leaders’ concerns. This reflects growing apprehension over rising costs and currency fluctuations, exacerbated by geopolitical developments that can disrupt markets overnight. More than half of the surveyed respondents are actively exploring innovative solutions, including integrated payments, blockchain-powered capabilities, and the establishment of regional treasury centers, to fortify financial stability against escalating volatility.
Completing the top three priorities is a sharpened focus on working capital efficiency. A significant 69 percent of respondents are experimenting with Generative AI to optimize various aspects of their operations, such as fine-tuning inventory forecasting, improving receivables collection, and accelerating cash cycles. These technological integrations are making finance functions more agile and intelligent, signaling a broader transformation where treasury functions are evolving from traditional cost centers into digital nerve centers for strategic planning and value creation.
Beyond these top priorities, traditional pillars of financial strategy remain central. Half of the surveyed leaders indicated they are continuing to reconfigure supply chains to bring production closer to key markets. A similar proportion is reassessing their capital structures and deploying trade finance and cross-border payment solutions to drive growth and efficiency.
Sustainability has also become deeply embedded in treasury thinking. Half of all respondents reported that meeting environmental, social, and governance (ESG) standards is a core objective for the finance function. To achieve this, firms are leveraging digital tools for rigorous ESG reporting (77 percent), partnering with ESG ecosystems (64 percent), and exploring sustainable trade finance solutions (63 percent) to meet both compliance demands and investor expectations.
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Han Kwee Juan, Group Head of Institutional Banking at DBS, summarized the evolving landscape, stating, ‘We are entering a new norm marked by greater uncertainty and an accelerating pace of technological transformation. Businesses must proactively adapt across several dimensions to build long-term competitive advantage.’ Lim Soon Chong, Group Head of Global Transaction Services at DBS, further emphasized that treasury and finance teams are stepping into more strategic roles, helping firms not only to weather turbulence but also to shape their future by leveraging new tools and insights in partnership with banks like DBS.
