Driving Blind: Managing Finances Through the Rear-View Mirror
This article is written by HedgeFlows Picture this: You’re driving down a busy highway, but instead of looking ahead at the road, you’re making all your steering decisions based solely on what you can see in your rear-view mirror. Sounds terrifying, right? Yet this is exactly how most small and medium enterprises (SMEs) manage their business finances. The Great Divide: Compliance vs. Planning In large corporations, there’s typically a clear organisational split that addresses both aspects of financial management: This division makes sense—both functions require different skill sets, mindsets, and priorities. Compliance is about accuracy, adherence to standards, and meeting deadlines. Planning is about analysis, strategic thinking, and managing uncertainty. The SME Reality: Stuck in Compliance Mode For most smaller businesses, the finance function is heavily weighted toward compliance activities. This isn’t necessarily by choice—it’s often driven by necessity: Why compliance dominates: The people hired to handle these functions naturally develop expertise in compliance. They understand the value of accurate bookkeeping, timely tax submissions, and proper audit trails. They know what goes wrong when these fundamentals aren’t managed correctly. The Growth Challenge: When Looking Back Isn’t Enough As businesses scale, however, the need for forward-looking financial management becomes critical. This is where many SMEs hit a wall. The typical evolution: Where the System Breaks Down Even when businesses recognise the need for better financial planning, execution often falls short. Here’s why: Competing priorities plague finance teams: Meanwhile, critical forward-looking activities get consistently deprioritized: It’s human nature—when you’re overwhelmed, you default to what you know and what has immediate consequences. The Hidden Cost of Financial Myopia Operating primarily in “rear-view mirror mode” creates severe, measurable business impacts: Missed opportunities that directly hit the bottom line: Financial risks that create cash flow volatility: Strategic limitations that compound over time: The Modern Solution: Integration and Expertise The good news? Today’s technology and advisory landscape offer practical solutions for SMEs ready to balance their rear-view and forward-looking capabilities. Leverage modern treasury tools: Partner with specialized advisors: Build hybrid capabilities: The Path Forward: Balanced Financial Vision The most successful growing businesses don’t choose between compliance and planning—they excel at both. This requires: Cultural shift: Recognising that planning activities are as critical as compliance tasks Process integration: Making forward-looking analysis a standard part of financial operations Technology adoption: Implementing tools that make planning as straightforward as reporting Skill development: Building teams that can handle both backward and forward-looking responsibilities Taking Action If your business is stuck in rear-view mirror mode, consider these immediate steps: Remember, effective financial management requires both clear vision of where you’ve been and where you’re going. In today’s fast-moving business environment, companies that only look backward will find themselves falling behind competitors who have learned to drive with their eyes on the road ahead. The question isn’t whether you can afford to invest in better financial planning—it’s whether you can afford not to. After all, if you’re always looking backward, who’s driving your business forward? Also Read Join our Treasury Community Treasury Masterminds is a community of professionals working in treasury management or those interested in learning more about various topics related to treasury management, including cash management, foreign exchange management, and payments. To register and connect with Treasury professionals, click [HERE] or fill out the form below to get more information. Notice: JavaScript is required for this content.
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Ripple Acquires GTreasury: What It Means for Corporate Treasury
From Treasury Mastertminds When Ripple announced its $1 billion acquisition of GTreasury, reactions across the treasury community ranged from curiosity to cautious optimism. For some, it marks a watershed moment — the convergence of digital-asset infrastructure and traditional treasury management. For others, it’s a long-term experiment whose practical impact will take years to unfold. Either way, it’s a move that deserves attention. The Big Picture Ripple is known for its blockchain-based payment and liquidity network. GTreasury, by contrast, is one of the most established Treasury Management System (TMS) providers, supporting corporates with forecasting, payments, connectivity, and compliance. By combining forces, Ripple positions itself not just as a payments player, but as a provider of enterprise liquidity infrastructure — bringing blockchain into the mainstream of corporate finance. As Jessica Oku, Treasury Mastermind board member, put it: “This isn’t just about a fintech acquisition but a structural shift in how corporates may manage cash, liquidity, and digital assets.Ripple’s $1Bn buy of GTreasury puts it squarely in the game of thrones — sorry — treasury operations.” From Excitement to Realism When the news first broke, many treasurers — including Patrick Kunz, founder of Treasury Masterminds — reacted with excitement at the possibilities. “When I first heard the news I thought: ‘wow this is cool,’ and started to imagine the end state — a TMS fully integrated into blockchain or stablecoins for almost instant global payments in any currency.” But, as Patrick reflects, the reality check followed quickly: “Thinking about it longer, I realized this end state will take years to achieve — if it even will. And is that really Ripple’s goal? I had more questions than answers.” That mix of curiosity and caution captures how many in the treasury world feel. As Jessica noted, the deal “signals that Ripple is positioning itself not just as a payments enabler, but as a full-stack infrastructure provider for liquidity and capital.” Patrick adds that regardless of how quickly integration happens, the move is already shaking up the TMS market: “It brings a bit of noise and challenges the status quo — which is always good in a competitive environment. It also makes treasurers think about the possibilities of using crypto or blockchain in treasury. Which, in my opinion, is not a matter of if but when.” The Promise: Smarter, Faster Liquidity Ripple and GTreasury’s shared ambition is clear — to enable faster, smarter liquidity management by merging digital-asset rails with deep treasury functionality. Jessica outlines the potential: “Combine GTreasury’s cash forecasting, FX, and compliance logic with Ripple’s blockchain infrastructure, and you get a platform that could move value instantly across fiat, stablecoins, and tokenized deposits.” Tanya Kohen adds that tokenized deposits may be the real breakthrough: “They open the possibility of using on-chain benefits without leaving fiat currency. You can embed logic, automate liquidity, reconcile in real time, and move cash dynamically instead of letting it sit idle.” For treasurers, this could mean a shorter cash cycle, automated movement of funds, and programmable payments — if, and only if, regulatory and operational foundations catch up. The Caution: Real-Time Comes with Real Risks Bojan Belejkovski offers a grounded counterpoint: “Treasurers aren’t losing money because payments take 30 minutes instead of 3 seconds. Their value lies in liquidity forecasting, risk mitigation, and visibility. Real-time only matters if it brings measurable improvements — reduced FX risk, freed working capital, or better yields.” He warns that 24/7 liquidity isn’t free of cost: “It means continuous monitoring, more automation, tighter risk controls, and possible regulatory friction. Many treasurers actually prefer predictable batch cycles that align with reporting and governance windows.” In short, blockchain brings potential efficiencies — but also complexity. Pros and Cons at a Glance Potential Benefits Key Challenges Broader access to liquidity and markets via blockchain rails Integration complexity between legacy TMS/ERP and on-chain systems Faster settlement and real-time visibility Continuous monitoring, audit, and risk-control overhead Ability to earn on idle balances and unlock trapped cash Regulatory uncertainty and compliance requirements Opportunity to explore tokenized deposits and programmable cash Conservative adoption curve — treasurers value reliability Strategic synergy: Ripple’s network meets GTreasury’s enterprise reach Execution risk from merging different technologies and cultures What Comes Next In the short term, adoption will remain slow. Treasurers are pragmatic — they’ll wait for proven use cases, clear regulation, and seamless system integration. As Jessica notes, “Adoption won’t happen overnight. Treasuries are conservative. Integrating blockchain with compliance, risk, audit, and visibility will matter more.” In the medium term (2–5 years), we’ll likely see experimentation — Ripple bringing new liquidity tools to GTreasury clients, and other TMS vendors accelerating their own innovation agendas. Bojan foresees this evolution: “Treasurers will operate within increasingly intelligent, connected ecosystems — powered by AI-driven forecasting, API-linked liquidity, and modular TMS platforms that deliver end-to-end visibility.” And over the long term, as Tanya points out, tokenized deposits could bridge the gap between fiat and digital — giving treasurers programmable liquidity without leaving traditional banking infrastructure. Final Thoughts Ripple’s acquisition of GTreasury is bold — and possibly transformative. It’s not about making payments faster; it’s about redefining the infrastructure of corporate liquidity. It will challenge the status quo, force vendors to rethink their roadmaps, and push treasurers to imagine what digital liquidity could mean for their organizations. The big question isn’t whether treasurers will use blockchain or tokenized cash — it’s when, how, and through whom. And on that, as Patrick Kunz summed up: “Exciting times ahead — but we’re only at the beginning.” Also Read Join our Treasury Community Treasury Mastermind is a community of professionals working in treasury management or those interested in learning more about various topics related to treasury management, including cash management, foreign exchange management, and payments. To register and connect with Treasury professionals, click [HERE] or fill out the form below to get more information. Notice: JavaScript is required for this content.