As buy-side firms grow, internalizing treasury functions has become a smart way to cut costs and gain control. Australia’s superannuation funds are leading this trend, with North American pension funds and Middle Eastern sovereign wealth funds following suit. Globally, firms see in-house treasury as key to staying agile and aligned with today’s demands.
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1. Key Benefits of Internal Treasury
- Cost Efficiency: Managing treasury internally helps firms avoid high external fees, especially as assets grow.
- Revenue Generation: In-house securities lending and collateral optimization offer valuable revenue opportunities.
- ESG and Regulatory Compliance: Firms can oversee ESG commitments and meet regulations like the EU’s SFDR directly, without depending on external parties.
2. Innovative Solutions for Modern Treasury
Tokenized collateral and advanced asset management tools are making treasury more efficient and adaptable. With these innovations, firms can keep their liquidity flexible and ready, which is essential for staying agile in a changing financial world.
Why?
For treasury leaders, bringing treasury functions in-house isn’t just about saving costs—it’s a strategic move for sustainable, efficient operations. As global assets expand, internalized treasury strengthens resilience and aligns with future-focused strategies that add lasting value.
Reach out to Prodktr for insights on optimizing your treasury operations. We’re here to help!
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Further Readings
Australian Prudential Regulation Authority (APRA) (2023) Superannuation in Australia: A timeline.
Deloitte Actuaries & Consultants (2024) Dynamics of the Australian Superannuation System: The next 20 years to 2043.
McKinsey & Company (2021) Creating a Reliable Future for Canadian Retirees Through Maple 8 Pensions: Case Study.