Communication Gaps in Treasury Roles Highlight Need for Improvement

A recent survey conducted by the Association for Financial Professionals (AFP) unveils a concerning disparity between the perceived importance of communication skills and the actual effectiveness of communication among treasury professionals. The findings from the 2025 AFP Treasury Benchmarking Survey, supported by Wells Fargo, reveal that while an overwhelming 96% of treasury personnel recognize communication as a critical skill for effective leadership, only 81% believe that treasury leaders effectively communicate.

Furthermore, the survey also highlights that treasury managers and staff are not exempt from this shortfall; only 79% rated themselves as effective communicators, despite 96% acknowledging that communication is essential to their roles. This stark contrast indicates a significant gap that exists within treasury departments, which can impede collaboration and efficiency in an increasingly complex financial landscape.

Increased Interactions with C-suite Level Officers

Over the past two years, more than half of treasury professionals have reported heightened interactions with Accounts Payable and C-suite executives. These interactions underscore the essential need for effective communication, especially when dealing with issues such as payment fraud, liquidity forecasting, and supporting automation projects. Ironically, the survey notes a decline in engagement with Sustainability and Environmental, Social, and Governance (ESG) efforts, indicating a potential area for improvement in strategic communication.

The survey results indicate that approximately five full-time employees (FTEs) are dedicated to the front office functions, with over six FTEs supporting back office operations in most organizations. This structure exemplifies the growing complexity and necessity for seamless communication across departments.

Key Findings from the Survey

Among other noteworthy findings, nearly three-quarters of treasury practitioners highlighted cash management and forecasting as their top departmental priorities. Despite this focus, over 60% of professionals found that cash or liquidity forecasting is one of the most challenging tasks they face. This challenge is compounded by the need to automate manual processes, identified by at least 57% of respondents, and improve payment processes, cited by 51%.

Interestingly, organizations positioned at the higher end of the treasury maturity spectrum, often referred to as “strategic/optimized,” employ automation for over half of the processes involved in liquidity forecasting. Moreover, a majority within these departments comply with enterprise-wide standards, enforcing these guidelines on treasury policies and procedures. This compliance is critical in ensuring effective communication and operations throughout the organization.

The Call for Empowering Treasury Professionals

Jim Kaitz, President and CEO of AFP, stated, “The Treasury Benchmarking Survey provides financial professionals with a fuller understanding of treasury operations and helps them compare the metrics of their organizations’ treasury departments against their peers.” This emphasis on benchmarking underscores the need for treasury professionals to cultivate communication skills not only for their benefit but also for the overall function and success of their departments.

In today's dynamic environment, treasury professionals must remain relevant, efficient, and effective in their roles. As highlighted by Amy Downey, Co-Head of Global Payments and Liquidity at Wells Fargo, “Wells Fargo is proud to sponsor this study and use these insights to help our clients transform and grow their businesses.”

The 2025 AFP Treasury Benchmarking Survey was conducted in fall 2024 and garnered responses from 523 treasury practitioners from organizations representing various sizes across the U.S. Full survey results can be found on the 2025 AFP Treasury Benchmarking Survey page, underscoring the critical insights into the evolving treasury landscape.

In conclusion, the findings emphasize the urgent need for treasury departments to focus on enhancing communication skills. With effective communication, treasury professionals can better navigate challenges, collaborate across departments, and maintain their vital role within organizations amid evolving business demands.