Business Strategy

Corporate Treasury Technology Trends in 2022

How treasurers use technology was significantly altered by the pandemic coupled with the shift to remote working. The pandemic really accelerated the shift to digital, which means that many time-consuming jobs, such as cash forecasting that would previously be done manually, have now been automated. If you are looking for corporate treasury jobs then please see here.

Technologies such as AI and Machine Learning have ended becoming a necessity rather than a luxury and the industry is waking up to this realisation. According to a recent survey by Treasury Dragons, 45 per cent of interviewees said that they plan on spending more on treasury technology in 2023 than they did in 2022.

Besides saving time and money, this new technology also allows treasurers to analyse large volumes of data quickly, reduce errors, mitigate risk, and detect fraud. Below are some of the key technology trends that are already being seen and will likely continue being seen in 2022 and beyond.

1. Process Automation Using RPA

Robotic Process Automation (RPA) is a software robot that mimics human behaviour. Like AI, it is commonly used in treasury for automating manual, labour intensive operations.

RPA not only boosts productivity and efficiency but also improves cash visibility. So, treasury teams are able to access data easily without having to spend hours looking through different portals and spreadsheets.

RPA also helps in improving accuracy, performs repetitive tasks, and transfers data between systems. Furthermore, it can also help with reconciliation processes, invoice data, credit collection, and even gathering information on FX exposure, bank statements, and cash flow forecasts.

2. Artificial Intelligence (AI)

Artificial Intelligence is important to the future of treasury. AI refers to machines programmed to learn from existing behaviour and solve problems. Many organisations are already using it for process automation and speeding up things such as cash forecasting, cash flow planning, and hedging.

AI is hugely valuable in treasury because accurate cash forecasts allow CFOs to make key decisions on investing, borrowing, risk management, and acquisitions. Besides making risk management easier, it can also expose discrepancies in payment activities, which can make it easier to flag up unusual data thus helping to prevent fraud.

3. Cloud-Based SaaS and TMS Solutions

The demand for cloud-based Software-as-a-Service (SaaS) treasury solutions and Treasury Management Systems (TMS) is really starting to rise.

A cloud-based Treasury Management System is a solution that’s not only fully stored but also accessible in the cloud from virtually any location that has an active internet connection. Furthermore, there isn’t any limit to the amount of data that you are able to store.

Cloud based Treasury Management Systems (TMS) also eliminate the manual tasks involved in cash forecasting. They are also growing in popularity for accurate and centralised cash flow management along with various other tasks.

4. APIs

Application Programming Interfaces or APIs offer a wide range of benefits, which include faster processes, less errors, increased productivity, time savings, as well as enhanced security and decision making.

APIs allow third-party providers to access financial information as well as develop new apps and services. This allows treasury departments to monitor all their transactions without the need to actually get in touch with their bank or even pay banking fees.

APIs also offer other advantages, such as the retrieval of real-time data from financial accounts as well as reconciling transactions. Accessing bank and internal systems using APIs can help improve the consistency of cash-flow forecasting information, especially when used in combination with RPAs.

According to a recent Euromoney survey, 57 per cent of corporate treasurers anticipate they will be using APIs for cash forecasting as well as cash management moving forward.