The Enduring Appeal of Treasury- My move from banking to treasury buy-side
The enduring appeal of treasury: from banking to asset management
In this edition we speak with Bill Elliott, EMEA Treasurer at Columbia Threadneedle Investments.
Starting his career when treasury was still an emerging skillset, Bill has worked at RBS, Deutsche Bank, Nomura and Wells Fargo. Restoring confidence, challenging perceptions, changing workplace culture and managing the balance sheet through severe market turbulence are just some of the challenges he has faced along the way.
Here he shares insights for anyone looking to start or progress their career in treasury
Tell us about your career
I started at RBS just over 20 years ago, initially in core finance roles – product control, financial control and FP&A – becoming a qualified accountant (CIMA) and, then later, a corporate treasurer (ACT). I was fortunate to get some good exposure to our Global CFO through a cross-divisional leadership development programme, which resulted in a unique opportunity to lead the Global CFO Office and Business Management team. A wide-ranging role, tasked with supporting the administration of the CFO and delivering the Finance function of 2,000+ people across EMEA, US and APAC regions. This was quite different to a standard line role and a real stretch at that point in my career, helping to develop communication, leadership and team building skills.
While an excellent experience, the CFO Office role was not a long-term fit – I was keen to regain a more technical role, where I could have real impact and, following the financial crisis, it was clear that treasury was the place to be. As well as needing to better understand their financial risks, banks also needed to be more efficient in managing their scarce financial resources, against a back-drop of tougher regulatory standards; the Bank Treasury function was set to become critical in helping to restore trust in the industry and in shaping strategic decisions around products, clients and countries.
This led to my next role as Head of liquidity management and balance sheet strategy for the investment bank. I already knew a lot about the business and its products, but very little about liquidity management, regulation, or stress testing. That proved to be a steep learning curve, but one that paid off. There was high demand for people with a treasury skillset. And fortunately for me, there were more knowledgeable, experienced members of my team on hand to answer my questions and help me get up the curve.
The role captured all aspects of bank liquidity management. We launched the first Internal Liquidity Adequacy Assessment Process and rolled out funds transfer pricing (FTP) for all major lines of business – a particular challenge, as this re-defined the firm’s view of business profitability across products, clients and countries. And the challenges weren’t just technical, I also had to engage senior business leaders through this period, learning to manage conflict and difficult conversations, while supporting balanced, objective decision making.
By 2014, the role expanded to become Head of Balance Sheet Management and Deputy Treasurer for Markets & International Banking, dealing with all balance sheet related risk, financial planning and funding execution, as we continued to de-risk and re-focus the IB strategy.
In June 2014, I moved to Deutsche Bank as Group Treasury’s Head of Liquidity Framework and Strategy, covering all divisions of the universal bank – retail, wealth, asset management, corporate and a large, full-scope investment banking division. A global role, my team was primarily based in London, but with individuals located in New York, Frankfurt, and Singapore. The remit was to develop the overall liquidity risk management framework for a complex, global organisation; advancing its understanding of the risk generated by businesses, developing effective levers for management, and supporting well-informed commercial decisions, both strategically and at point of trade.
In June 2017 I moved to the Japanese Securities firm, Nomura, as Head of Liquidity Management and Deputy Treasurer for the EMEA region, reporting to the Regional Treasurer and collaborating with the PRA with respect to all liquidity risk and funding matters. Here, I found a real sense of mission in enhancing the liquidity risk management framework and communicating across key stakeholders; critically, retaining alignment to well-developed Global practices but ensuring that the PRA and local Board had a sound understanding, and regional lines of business were able to operate effectively. It was a mission of three parts: making changes from a technical perspective, including enhancement to the recognition of liquidity risk across key components of the Global Markets business; building personal credibility with regulators and business heads; and creating a more integrated approach to liquidity management across the team, connecting regulatory liquidity with internal management.
After 3 enjoyable years with Nomura I then moved to Wells Fargo, as Deputy Treasurer for their international investment banking division, which was a much broader Treasury role across a smaller but growing business. The knowledge and skills developed in my previous roles enabled real impact, both in supporting business expansion plans but also in advancing overall balance sheet management, including leadership of ALCO delivery across EMEA and APAC regions.
You’ve broadened your skillset over your career. How hard is that to achieve?
As part of personal development planning, I think it’s important to drill down into what really motivates you. I know lots of individuals that have enjoyed careers in highly technical roles at big banks, progressively working their way to more senior positions and being recognised as an expert in their field. I have always enjoyed the technical challenge but know that I get more satisfaction from bringing that knowledge and experience to a smaller organisation, where you collaborate with partners to drive commercial outcomes.
Whilst I appreciate my time in large financial institutions, operating within a smaller organisation requires you to access different skills – notably collaboration, influencing and communication, including engagement with Regulators and NEDs. I would encourage Treasury colleagues to explore these opportunities, as the ability to communicate and influence becomes an increasingly important differentiator as you advance in your career.
Broadening that skillset is most definitely achievable but it requires difficult decisions and trade-offs – maybe making that sideways move, or leaving behind a role in which you are a recognised expert, in return for longer-term growth and development. That can be tough to contemplate but I would encourage people to think deeply about what really motivates them in their role.
What prompted your move to Columbia Threadneedle Investments ?
Having undertaken senior Treasury positions, I was looking for that natural progression to a Treasurer role. Initially, I envisaged this in banking, rather than asset management. However, coming into Columbia Threadneedle Investments with its completely different business model has given me the chance to learn something new and demonstrate versatility. I was also attracted by the transformation underway, following a recent large acquisition. From a Treasury perspective this included developing a holistic approach to capital and liquidity management. The key objective being to maintain robust, proactive risk assessment, including ownership of the ICARA/ICLAAP processes, whilst also identifying opportunities to optimise financial resources and drive shareholder value.
There is also a significant operating model and people element to the role. Historically, Treasury has had a relatively light footprint in region, with certain tasks undertaken as part of broader Finance roles. The Global Treasurer saw an opportunity to create a Treasury presence within the EMEA region, operating in line with Enterprise standards and driving real value for the organisation.
My previous roles mean that I understand the importance of having a strong link into the global team, which is going to be key to our success moving forward. In large, global organisations this is a recurring challenge for the Regional Treasurer, balancing the expectations of local regulators, risk committees and independent boards, alongside those of the overall Group.
How does treasury differ at Columbia Threadneedle compared to previous roles?
The roles in bank treasury tend to be more technically demanding, as you need to understand products, how they operate, the nature of risk, as well as technical elements surrounding stress-testing and planning. All of this takes a lot of time to absorb and apply with competence. These risks also tend to be more dynamic, particularly within a Markets business, where balance sheet size and mix can move substantially over short periods, particularly during periods of market stress.
By comparison, an asset manager’s business model is simpler than a typical investment bank. However, what asset management provides is the opportunity to connect across the organisation, partnering with senior business and staff group leaders to make decisions and have real impact. For example, one of my first tasks has been to lead a cross-functional team in assessing opportunities to optimise our intercompany funding model, enabling the region to realise its full dividend potential, bringing together subject matter experts to drive a tangible commercial outcome for the firm.
How do you deal with change?
Over the last 15 years, working in bank treasury has been all about change! The key is being able to engage, understand and help the organisation navigate it. I would also encourage people to view change as a great opportunity for personal growth. For those that are open to the prospect, it can provide unique opportunities, with exposure to new skills and an ability to have impact that is not always available in a stable BAU environment.
What are the most transferable skills from banking treasury to asset management?
Those from the banking sector have experienced the most challenging regulatory environments and generally have a keen risk management mindset, which can be applied across business models, including asset management.
How important is it to experience different banking cultures?
It definitely helps. I learned a lot from my time at Nomura, for example. I found the culture there so different to financial institutions based in the UK, Europe or North America; they value patience and a much slower, structured decision-making process. I learned how making decisions in a more thoughtful, constructive way helps you achieve a better outcome. And how breaking complex subjects down into more digestible phases, bringing people on the journey in 1-2-1 settings, can help to build consensus and buy-in, ultimately supporting better outcomes.
This approach can frustrate those more use to working at pace. However, the act of slowing things down and being more considered leads to a higher quality product and better alignment across the firm. I’ve certainly brought this approach with me into subsequent roles – the idea that how you deliver is as important as what you deliver.
What advice would you give someone looking to move into the investment space?
Two things: use your network and keep an open mind. When it comes to networking, don’t be afraid to lean on the expertise of those around you. Ask the right questions and you can learn a lot, and don’t be afraid to bring your own ideas and perspective.
Secondly, take the time to explore different opportunities and be open to new challenges. People often have a predetermined idea about what their next move might look like. But by keeping an open mind, you’ll be surprised at what opportunities present themselves.
It’s also important to accentuate your strengths and capabilities. Coming out of bank treasury you will have transferable skills such as your ability to lead teams, affect change and deal with complexity. You will have plenty of strengths and qualities to bring to new situations – make sure you understand them and you are clear how they could add value in a new environment.
I wasn’t necessarily looking for my most recent roles, but by having honest conversations I realised the barriers to moving were more manageable than I thought. The recruitment process is a two-way conversation, and I would encourage people to use it as an opportunity to explore and don’t discount themselves from interesting opportunities too quickly.
