North Asia continues to solidify its position as a dynamic hub for transaction banking innovation, driven by CFOs and treasurers who are reimagining treasury functions to unlock strategic value.

In China – the region’s largest and most influential market – treasury leaders are collaborating closely with financial service providers to pioneer solutions that transcend traditional liquidity management.

One notable initiative is the establishment of cross-border cash pooling solutions, which implemented a two-layer structure that links domestic and offshore liquidity, enabling efficient cash management across borders.

This approach not only enhances visibility and streamlines processes but also strengthens control over financial activities. As a result, organizations are well-positioned to lead in treasury innovation within the region.

However, the effectiveness of these cross-border initiatives hinges on proactive collaboration with regulators. Transparent dialogue with authorities like the State Administration of Foreign Exchange ( Safe ) and the People’s Bank of China ( PBoC ) is critical to navigating China’s evolving regulatory landscape.

For instance, Safe’s multi-currency cash pooling framework allows firms to manage liquidity across RMB, USD and other currencies, while PBoC’s nationwide RMB pooling and free-trade zone schemes offer tailored flexibility for domestic and cross-border cash concentration.

By aligning cash management strategies with these frameworks, businesses can balance efficiency with compliance, ensuring that liquidity solutions adapt to both market needs and regulatory priorities.

ESG, sustainability

Beyond liquidity management, sustainability is emerging as a cornerstone of treasury strategy. Banks are responding to this shift by rolling out environmental, social and governance ( ESG )-linked credit facilities, which tie financing terms to ESG performance metrics.

These instruments incentivize companies to embed ESG principles into their core operations—whether by reducing carbon footprints, or improving governance transparency. For example, a manufacturer might secure lower interest rates by committing to renewable energy adoption, thereby aligning financial incentives with long-term sustainability goals.

This trend reflects a broader recognition that ESG compliance is no longer a checkbox exercise but a driver of resilience and competitive advantage in global markets.

Supporting this transition, banks are also doubling down on partnerships with high-growth sectors central to China’s economic vision. From healthcare and electric vehicles ( EVs ) to renewable energy and advanced electronics, financial institutions are providing bespoke solutions to help these industries scale domestically and expand internationally.

Take China’s EV sector: banks are offering supply chain financing to help manufacturers secure raw materials, enter overseas markets and comply with ESG standards. Such collaborations underscore a strategic alignment with Beijing’s priorities – innovation, sustainability, and global competitiveness – while positioning banks as enablers of China’s next-phase economic growth.

Financing solutions

Underpinning all these developments is the surging demand for supply chain finance. As treasury teams prioritize working capital efficiency, they are increasingly turning to supplier finance programmes to extend days payable outstanding and strengthen relationships with second- and third-tier suppliers.

Innovative platforms in China now enable multi-tier financing, where large corporates can onboard smaller suppliers onto digital ecosystems, ensuring timely payments and liquidity access. For example, an automotive firm might use a third-party platform to finance its component suppliers, mitigating bottlenecks and fostering a more resilient value chain.

By addressing the needs of smaller suppliers – often the weakest link in global supply networks – companies not only enhance operational stability but also contribute to broader economic inclusivity.

There was a similar focus on supply chain finance in Japan, particularly through the implementation of receivable purchase programs designed to expedite the conversion of receivables into cash while allowing for off-balance sheet treatment.

Traditionally, Japanese companies have collaborated primarily with local banks; however, they are increasingly seeking partnerships with international service providers to facilitate cross-border trade finance in a more cost-effective manner to meet their financing needs.

This shift highlights a growing recognition of the benefits that global service providers can offer in terms of efficiency and flexibility. By diversifying their financing sources, Japanese companies can enhance their competitive edge in international markets, streamline their cash flow management, and better navigate the complexities of global trade.

This strategic approach not only supports immediate liquidity needs, but it also fosters long-term growth by enabling businesses to invest in innovation and expansion.

Hong Kong steps up

Hong Kong is strategically reinforcing its role as a global financial hub by spearheading digital transformation in treasury management. As part of this vision, the city is progressively integrating advanced digital processes to optimize treasury operations, enhance transparency, and align with global standards for efficiency.

At the corporate level, companies are modernizing account reconciliation methods, replacing manual workflows with automated systems that enable real-time tracking of cash flows and liabilities. This shift not only reduces human error but also unlocks granular visibility into financial positions, empowering businesses to make data-driven decisions.

In parallel, banks and financial institutions are pioneering dynamic solutions to meet evolving market demands. Leading the charge are innovations like application programming interface connectivity, which seamlessly bridges corporate treasury systems with banking platforms for instant data synchronization, and electronic direct debit authorization, streamlining recurring payments while ensuring compliance.

Additionally, Hong Kong’s Faster Payment System QR code infrastructure is being leveraged to accelerate collections, enabling businesses to receive funds instantaneously – whether from business-to-business partners or retail customers – and improving liquidity management. These innovations are particularly impactful in Hong Kong’s cross-border-heavy economy, where speed and reliability are critical for maintaining competitiveness.

Solutions centred around ESG principles continue to be a prominent focus for companies based in Hong Kong. Many organizations are utilizing financial products, including bank guarantees and trade facilities, that integrate both green and social elements to showcase their commitment to sustainable practices.

By embedding ESG considerations into their financial strategies, businesses can enhance their reputation and drive long-term value while contributing positively to their communities and the environment.

Korea, Taiwan priorities

South Korea is also placing a strong emphasis on sustainability, with Korean corporations actively pursuing their transition journeys by incorporating products related to EVs and recycled materials. They are collaborating with international banks to develop customized sustainable trade finance solutions.

This strategic shift not only aligns with global sustainability goals but also positions these companies to capitalize on emerging market trends.

In Taiwan, banks are prioritizing support for corporations in their treasury functions by offering comprehensive collection solutions that encompass multi-currency virtual accounts, direct debits, and various collection channels.

These services enable clients to efficiently manage high-volume daily collections and achieve automated reconciliation, while also accommodating multiple local payment methods with flexible, customized matching options tailored to specific collection needs.

This focus not only streamlines cash management for businesses but also enhances their operational efficiency. By providing robust treasury solutions, banks are helping companies adapt to the complexities of a dynamic financial landscape, ultimately driving growth and improving customer satisfaction.

Examining key treasury solutions

Given the dynamic region there were a number of notable treasury solutions presented to The Asset’s board of editors that showcased measurable benefits. In China, the largest market in the region companies such as Zoomlion Group sought to improve their liquidity setup establishing a multi-bank host-to-host connectivity that enhanced the company's global account and liquidity management efficiency, improving the sales collection reconciliation through dedicated virtual accounts for buyers in key markets.

In Hong Kong, Lenovo looked to improve its financing options doing an amendment and upsizing of an existing 1-year committed renewable syndicated receivables purchase program in favour of 12 entities of the company, establishing a tailored structure that allows the company to benefit from the increased limits on its buyers.

There were also notable supply chain financing deals out of Japan with companies understanding the value of effective working capital management. For example Bayer Yakuhin did a Japanese yen denominated uncommitted and without-recourse receivable purchase program allowing the company to accelerate the conversion of receivables into cash and decrease interest-bearing debt.

South Korea treasury solutions featured several companies striving to improve their internal processes in the hopes of saving costs. Kakao Bank, one of the most notable virtual banks globally implemented an API-based FX solution that allows the user to enquire about FX rates and execute FX transactions on a 24/7, 365-day basis.

For the complete list of winning treasury solutions, please click here.

For the complete list of winners of Best service providers in North Asia please go here.

To learn more about these awards, please click here.

To join the in-person annual celebratory dinner in Hong Kong on May 21, 2025 please contact us at celebrate@theasset.com.

Stay tuned in the coming days as we announce the winners of The Asset Triple A Treasurise Awards 2025.