Companies are preparing for the long-term effects of a changing global landscape, while also dealing with ongoing rate volatility and potential supply chain changes. A new report from DBS titled "New Realities, New Possibilities" shows that businesses are adjusting their strategies to enhance financial resilience over the next five years. This involves focusing more on liquidity and foreign exchange (FX) management and using data-driven financial intelligence to improve organizational performance.
DBS gathered insights from over 800 finance leaders, including chief financial officers and corporate treasurers, across seven sectors and 14 markets for the report. Respondents were surveyed in two batches before and after the US trade tariff announcements in April to understand how finance leaders were guiding their organizations amid immediate-term developments.
The findings indicate that using data-driven financial intelligence to strengthen decision-making is a top priority for companies over the next five years. Companies are interested in data visualization and security monitoring tools to enhance treasury and finance functions. These tools help leaders navigate uncertainty more effectively by improving sense-making and threat anticipation, allowing for more accurate cash flow forecasting and proactive capital strategies.
Liquidity and FX management have become increasingly important as companies plan to strengthen financial stability amidst higher upfront costs and potential inventory stockpiling due to increased market volatility. Over half of those surveyed said they were exploring innovative solutions such as integrated payments, blockchain-powered capabilities, and setting up regional treasury centers.
Strengthening working capital efficiency is also a key priority as companies aim to optimize financial returns while enhancing flexibility. About 69% said they are exploring Gen AI-powered solutions to improve inventory forecasting, overcome prolonged receivables collection periods, and improve cash conversion cycles.
Amid an increasingly complex business environment, companies are seeking agility, operational resilience, and sustainability. Approximately 50% of finance leaders stated that supply chain reconfiguration continues to be a priority to diversify manufacturing footprints closer to customers. A similar proportion planned to review capital costs by optimizing equity-debt financing mixes. Trade finance solutions and cross-border payment methods were identified as key strategies supporting transformation agendas.
Enabling green initiatives remains a priority for half of respondents who consider various approaches like digital tools for ESG reporting (77%), partnerships with ESG networks (64%), and sustainable trade finance solutions (63%).
Han Kwee Juan, Group Head of Institutional Banking at DBS said: “We are entering a new norm marked by greater uncertainty... For businesses... achieving long-term competitive advantage.”
Lim Soon Chong, Group Head of Global Transaction Services at DBS added: “As stewards of capital... They are stepping up... drive sustainable value creation.”
"New Realities, New Possibilities" is part of DBS’ thought leadership series aimed at treasury/finance professionals providing insights into evolving demands on teams capturing opportunities amid shifts.