Through the lens of our clients: Embracing, adapting, and planning for a world of change

Through the lens of our clients: Embracing, adapting, and planning for a world of change

By Michael Botek, Global Market Manager, Citi.

Michael, can you please tell the Risk Insights readers a little bit about yourself, your experiences and what your current professional focus is?

After a brief stint in Markets and Foreign Exchange, I have devoted the majority of my career in Transaction Services across a few global relationship banks.  Much of my time’s focus was on tools and techniques that corporates leverage to improve management of liquidity.  Over the past year, I have been working closely with teams on new technology and the best use of data to drive various bank initiatives. 

What are some of the impacts on liquidity management when planning for governments and providers change?

Tax rulings can increase tax costs to access network liquidity or trigger new expedited corridors, government actions can alter the landscape with knock-on effects to corporate structures, appetite by providers and the products they offer can cause shifts in market dynamics and / or  demand.

What, for you, are the benefits of attending a conference like the “Liquidity Risk Management USA” and what can attendees expect to learn from your session?

It is great that experts across the field coming at the topic of liquidity and risk from their perspective can work towards a more common understanding of the issues at hand.  From that beginning base, solutioning can be more productive within our institutions and across the industry as we solve for client needs.  In my session, I will look to reveal trends we observe.

In your opinion, what are the trends of the non-financial corporates, especially when looking across the spectrum from traditional to digital?

From a corporate trading model perspective, we see shifting of how corporates buy and sell aligned with more “substance” and OECD tax standards.  The availability of real-time data and ability to access + process that information is opening up the doors to corporates being extremely efficient with their liquidity.  Various structures and solutions that banks offer, create more opportunities and options for corporates to meet their working capital needs while surviving on less direct support from banks.  The exhaust of all these examples and more like them are creating dramatic environmental change, increased competition, and pressures on liquidity as well as margins.   Yes, digital companies are pushing the envelope, but the traditional types are advancing more than we have seen in the past.

 Could you please give an insight on how best to plan for the ever-changing world of governments and providers?

What will the future hold?  Honestly, it is difficult to predict exactly, but with strong momentum of changes happening in the near term we need to BE PREPARED.

With the prevalence and thrust in adoption of instant payments to support B2C business, banks and their partners are responding with solutions mandated by local governments and demanded by the corporate community.  The swiftness with which providers relay data to their clients who process and respond without haste are only increasing the demand for speed. These pressures have knock-on effects to how providers manage liquidity and risk.

Reductions in Quantitative Easing and the related actions of central banks together with the combined actions by tax authorities are changing the landscape of how much, where and in what capacity we service client liquidity (and transactional) needs.

New and improved technology as well as improved use cases for artificial intelligence are also creating efficiencies, pressures and opportunities for corporates and their providers.

Together, all of these trends are creating an exciting time in the world of liquidity and risk management.

More about Michael...

What three items would you take with you if you were stranded on a desert island?

a) A classic like Robinson Crusoe so I can learn from the past; 

b) Directions on how to create a sustainable water filter from sticks, leaves and stones; and

c) A good knife and flint. 

If you had not taken the career route to become a financial risk professional. What would you be doing right now?

 Leveraging data and artificial intelligence to improve the world.

What TV show is your guilty pleasure?

No time right now for TV; too many things going on at home and work… but I do get out to play soccer one weekends.

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