My Life in Treasury - Paolo Catena
Paolo Catena, Treasury Specialist, iGuzzini illuminazione, has presided over many significant events in his 16 years with the Italy-based international architectural lighting firm. As a true professional, he has taken all in his stride. He talks to TMI about his approach to treasury, teamwork, technology, and transformation.
“Since my days at high school, I have had a major interest in economics and finance, despite the fact that these were not subjects of study for me at that time. So once I graduated from high school, I decided to pursue a course of study that led me to a degree in economics.” So says Catena of his formative years. With a vision of his future in finance forming early on, he has certainly pursued his calling with a passion. That’s not to say that a career in treasury was always his goal.
“That started by chance, and not immediately after graduation,” he recalls. “In fact, as soon as I graduated, I decided to register as a financial adviser and worked as a financial and insurance adviser for about a year and a half. Then I had the opportunity to work for a leading footwear company as an Administration and Finance specialist, which I did for four years. It was only when I joined iGuzzini in 2007 that my career as a treasurer truly began.”
In making that move, Catena landed with an international group that has more than 60 years of history in the design and production of innovative indoor and outdoor lighting systems. iGuzzini was acquired by AB Fagerhult of Sweden in March 2019, and today its operations in Italy are supported by manufacturing bases in China and Canada, with subsidiaries in Germany and Finland, and satellite offices across Europe, the Middle East, Africa, South and North America, and Asia.
Duty calls
As the Treasury Specialist at iGuzzini, with 16 years in the hot seat to date, Catena is currently responsible for managing company liquidity and ensuring that the organisation has adequate funding to meet its financial needs.
As part of his role, he manages relationships with credit institutions, both for the Italian parent company and the wider group. He handles the day-to-day operations of the treasury function, such as financial accounting, monitoring of financial flows, daily checks of the group’s bank balances and net financial position, and preparation of payments and management of IHB systems with the group’s banks. He also monitors bank fees and negotiates terms with the group’s banking partners.
With banking contact such a key part of Catena’s role, he naturally has developed strong views on how these key relationships should work. It is not all favourable. “Some banks are realising how crucial it is to provide quality customer service, and I have witnessed a significant improvement from some banks in recent times,” he notes. “Unfortunately, some remain entrenched in an old-fashioned mindset that will lead to them losing customer trust.”
For those banks that cannot or will not change, Catena has a warning. “If the customer is ignored, if the bank does not respond within a reasonable time, or if the customer has to phone or write emails several times to get an answer, then it means that the bank is not focused on customer service.” Good service, he insists, is vital for customer retention. “A satisfied client is the bank’s best advertisement, but a dissatisfied client could be that bank’s worst enemy, helping to create a bad reputation, and that can be extremely hard and costly to shake off. It’s why I believe taking care of customers is about having your company’s future at heart, because a company without customers is doomed to fail.”
Transferable skills
Being able to make these key relationships work, diplomatically yet sometimes forcefully, is a skill that Catena has honed over the years. “When I started working, I thought technical skills were more important than the so-called soft skills,” he says. “But along the way I had to reconsider this aspect.” Indeed, he knows that two of the most essential skills, regardless of the type of work undertaken, are integrity and trustworthiness, both qualities that may be called upon every working day.
“Establishing yourself as a person who is honest and supportive of others can help you network while building a good reputation within your field,” he explains. “Having strong morals can help you earn greater responsibility at work and build trust among your co-workers.”
Another crucial skill cited by Catena is attention to detail. “It enables you to improve your workplace performance, efficiency, and productivity. Being detail-oriented means your employer can count on you to focus on every facet of an assignment, to identify errors, and correct them as needed.”
For Catena it really does mean being meticulous. This includes being thorough and accurate in the review and analysis of information, and being able to spot errors or discrepancies that others might miss. Detail-oriented individuals, he adds, are organised and efficient, and have a strong sense of responsibility for their work. They are also driven to follow through on tasks, ensuring that all steps are completed in a timely and accurate manner.
It’s quite a litany of requirements, but Catena remains unyielding on this point. “I genuinely believe that being detail-oriented is a key attribute for success in many roles, but particularly so in fields such as finance, accounting, auditing and, of course, treasury.”
I genuinely believe that being detail-oriented is a key attribute for success in many roles, but particularly so in fields such as finance, accounting, auditing and, of course, treasury
Challenges…
In today’s volatile commercial environment attention to detail is especially important to Catena. However, he expresses his frustration at how some financial services processes – specifically those requiring vigilance – have failed to change with the times. One of the biggest challenges that he faces all too frequently is the whole KYC procedure, which he describes unfavourably as “a bottleneck”.
He is highly critical of the current system. “There is a complete lack of standardisation. Every financial institution that is conducting business with a corporate client requires corporates to perform KYC from scratch. For clients, this means providing multiple versions of the same information just to satisfy each counterparty’s KYC requirements.”
Indeed, while the need for KYC – and AML – compliance is not questioned, it is this lack of consistency around data requests that Catena says can lead to confusion, mass duplication, and delays. “With corporations such as ours that have several global banking relationships, each requiring us to supply KYC information, the absence of a common standard causes a significant drain on resources, and always results in unnecessary inefficiency.”
It’s true to say that the process of ongoing KYC monitoring was made yet more challenging as a result of the Covid-19 pandemic and the financial pressures and restrictions on in-person interactions. Now, with client circumstances changing and forcing KYC and AML data to be regularly refreshed to ensure compliance – particularly given the constantly shifting regulatory landscape – Catena is drawn to comment that “customer due diligence is never complete”. Indeed, he adds, “continuous monitoring of financial activity is now needed to collect new data to verify customer information so that action can be taken if it is not consistent”.
…and opportunities
Challenges may be an everyday part of the treasurer’s lot, but with the right mindset, positives may emerge too. Indeed, Catena is quick to recognise that, for him, one of the biggest areas of opportunity within the current wave of events is personal growth. “When you find yourself working in a changing and volatile economic context, it is like navigating rough waters. It is the way we handle difficulties that can make us better. That’s why I think that difficult times can be our most important ally for our growth as people.”
Another way in which challenges can produce positives, notes Catena, is through the development of strong teamwork. While he is based in Italy, iGuzzini’s global reach requires him to work with colleagues across different continents. This could be a barrier to efficiency, so it should come as no surprise that building a strong international line-up is extremely important to him. In fact, he sees the geographic spread of the iGuzzini team as naturally lending itself to diversity and, by extension, a variety of perspectives and experiences.
“These can bring fresh ideas and new approaches to projects and problems, leading to increased creativity and innovation,” Catena explains. He believes that diversity is critical for the success of any organisation operating in a global environment. “It helps to foster a positive and inclusive culture, promotes collaboration, co-operation, and innovation, and leads to more efficient and effective decision-making, increased productivity, and improved communication,” he enthuses.
Of course, when it comes to working together, many treasurers have access to the professional support of their national treasury association (NTA). Catena has been a member of the Associazione Italiana Tesorieri d’Impresa (AITI) for more than 12 years. He adds that AITI is proactive in providing assistance to its members, offering timely and relevant information and resources. “This could include guidance on how to navigate changes in the industry, or updates on government policies that may impact members,” he explains.
To help deliver its membership promise, AITI offers virtual training and development opportunities. “With many people working remotely, professional bodies like AITI can provide online training and development opportunities to help members stay up to date with the latest trends and best practices,” he notes. Importantly, AITI and others like it (notably across Europe where most NTAs are under the umbrella of the European Association of Corporate Treasurers (EACT) organise networking events to help members connect and collaborate with their peers.
Digital drivers
NTAs such as AITI are also a conduit through which treasury professionals can start exploring how new technologies are reshaping the role, its processes, and procedures. Catena is clear that technology is having, and will continue to have, a significant influence on the field of treasury. He reports four key areas of impact.
Digital payment tools are already helping to reduce transaction costs and improve cash flows. In the field of data analytics, he feels that technology can be leveraged for access to more data and advanced analytics, which can help improve treasury forecasting and decision-making. Process automation is another area that is subject to increasing activity. He observes in particular how treasury functions such as cash management, risk management, and financial forecasting are being automated to increase efficiency and reduce errors. His fourth area of note is real-time monitoring. Here, he says technology is set to help reduce risk and improve liquidity management.
Over the years, Catena has been closely involved in a number of treasury software implementations. Given the changing demands of the role, it’s no wonder he feels that technology has become an essential component of treasury operations.
“Automation of routine tasks, and real-time visibility into financial data, enables treasurers to make more informed decisions, manage risk more effectively, and to respond more quickly to changes in the market,” he says of its practical value. “But technology can also be used to improve communication and collaboration within the treasury department and with other stakeholders, such as banks and investors. It’s why technology has transformed the role of the treasurer from one that is primarily focused on administrative tasks, to one that is more strategic and data-driven.”
While the simpler tools that enable automation of repetitive tasks, such as data entry and reconciliation, are enabling treasury professionals to focus on more strategic activities, Catena is looking deeper into the potential of the cutting-edge, especially role-specific advancements in AI and ML. “I think it will assist treasury departments in making even more informed decisions by providing real-time insights into financial data. And blockchain too will start to reshape the way treasury operates by increasing transparency and security in our financial transactions.”
Starting out, staying ahead
Even with the latest tools to hand, Catena admits that treasury can be a demanding role, but tempers this thought with his equally weighted belief that it is a highly rewarding endeavour. So, what would he say to anyone considering taking on the professional challenge?
“A good piece of advice that I always offer is that networking and building relationships with other finance professionals can be really helpful in learning and gaining insight into industry developments, and staying current with best practices,” he offers. “I always say you have to be prepared to take on multiple roles too. Treasury professionals often need to wear many hats, and the ability to adapt and take on new tasks is crucial for success in this field.”
Catena further underscores the need to remain current with industry developments and regulations. He notes that with the financial industry constantly evolving, it’s important to stay informed about new laws, regulations, and trends that may affect an organisation’s financial operations.
And finally, he advises getting hands-on experience as soon as possible. “While classroom education is important, practical experience is also crucial for understanding the day-to-day real-world operations of a treasury department.”
For anyone looking to build or develop a career in treasury, Catena sums up the key characteristics of the role in three words: dynamic, strategic, and transformative. Anyone considering a career in treasury should be possessed of a certain dynamism, he says, because the role of the treasurer is constantly evolving and changing and the need is to be able adapt to new situations and challenges.
“This means being able to think on one’s feet and make quick decisions, as well as being able to handle multiple tasks and responsibilities at once. It requires being able to reshape the strategy and approach to the treasury function itself in order to adapt to the business environment, and to be able to see how best to leverage new technologies, products, and services to improve the performance of the function.”
For Catena, dynamism also means being proactive and forward-thinking, and being able to anticipate and prepare for potential risks and opportunities. “This requires a combination of analytical skills, strategic thinking, and creativity: a dynamic treasurer is able to identify and capitalise on new opportunities, while also being able to mitigate and manage risks.”
Success in corporate treasury also calls for strategic thinking because the primary role is to manage an organisation’s financial resources in a way that supports its overall goals and objectives. “You need to develop a deep understanding of your organisation’s financial position, and then be able to use this to anticipate and respond to changes in the wider financial environment.”
Finally, Catena explains that a truly transformative treasurer should be able to continuously adapt and evolve their approach to meet the changing needs of their organisation. “The work is becoming increasingly complex and dynamic, so it requires professionals who are able to think outside the box and come up with new solutions to new challenges,” he concludes.
In a world where new challenges are never far from view, Catena’s emphasis on teamwork, technology, and transformational thinking have held him in good stead over the years. With integrity and attention to detail firmly in the mix, his capacity to turn threats into opportunities is a recipe for long-lasting success and, pun intended, keeping the lights fully on at iGuzzini illuminazione.
