Digitalization is reshaping the role and functioning of treasury teams in corporations worldwide. Trends like the explosion of data, new data management logic, and increased use of connectivities have led to structural changes in the way treasury teams operate. What are the different impacts of digital transformation on treasury teams? And what are some best practices for treasury teams to transition to digitalization and automation?
Find trends, tips, and insights in our latest white paper about the Future of Treasury in the Digital Age, crafted in partnership with Strategic Treasurer.
The State of Digitalization in the US
While the use of paper checks and manual processes are still surprisingly high in the US, treasury teams are investing more and more in technology, focusing on areas like data, connections, and AI and Machine Learning.
The use of ACH, APIs, and AI/ML is expected to grow exponentially in the coming years.
The Impact of Digitalization on the Treasury Function
Treasury teams are expected to grow and add more staff to answer new tasks and responsibilities.
The top management has increased expectations towards Treasury Professionals that include strengthening payment security, better liquidity planning and forecasting, improvements in managing working capital, and effective risk management.
On top of that, more technology means new skill sets and functions for treasury teams. They are expected to adopt financial technology and handle fraud risks with automation tools
A Playbook For a Smooth Transition to Automation
While moving towards increased digitalization and the use of automation, technology, and staffing are vital areas to focus on.
To create the right stack for their business, companies should take into account their data needs, connectivity, reporting, and analytics expectations as well as their general system infrastructure. Some skills like technology skills, technical skills, and interpersonal skills are now vital for the new expectations and responsibilities of treasury teams.
When choosing the right software and tools, there are important criteria to take into consideration, like geographical needs, security standards, sufficient customer support, and system architecture.
Download the full WP to learn more
Overall, digitalization is having massive impacts on treasury departments. Technology is changing the treasury landscape and companies need to make the switch before lagging behind in terms of security, efficiency, and risks.
