The Top 5 Innovations in Treasury Management

treasury innovations

Last modified on May 10th, 2024

Treasury management is about so much more than taking care of a company’s liquidity. According to recent research from DBS, 60% of digital businesses believe that treasury departments have an important role to play in the necessary move towards digital transformation. Keep reading to find out how and learn about the top treasury innovations!

Trustpair is the ultimate tool for treasury teams. Our software prevents third-party fraud and streamlines your treasury workflows — making your processes safer and more efficient. Request a demo to learn more!

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Advanced Treasury Management System

The rise of FinTech (financial technology) companies has been undeniable over the last few years. The rise of digital businesses has disrupted the landscape of the traditional financial management sector.

Nowadays, you can find new technology solutions for banking, spending management, accounting, and of course: treasury management.

Thanks to technology, Treasury Management Systems (or Software) have progressively changed the way treasury departments work. They spend less time on manual processes (like account validation), which means they can focus on higher-value tasks. It also reduces human errors, making their processes more productive.

Learn more about the purpose of the Treasury Department here.

Advanced TMS helps companies small and large streamline their processes in unprecedented ways. API connection means all their financial software and ERPs can integrate seamlessly. For example, many open banking solutions connect with financial SaaS — making them plug-and-play solutions.

This means having access to real-time data, without having to switch between software and spreadsheets to find the latest update. Centralized data makes for better decision-making and is another way that treasury management software can help financial teams.

Stefan Jensen, VP Treasurer Americas of Sephora recently shared that they continuously look for ways technology treasury management can improve their financial processes. Sephora recently implemented a cloud-based TMS, which increased its productivity, cash liquidity management, and cash flow visibility.

While technology solutions are great, they’re only a part of the digital transformation process in treasury.

 

Agile mindset

Treasury innovation can only work if it’s well managed in organizations. Startups have understood this, and that’s why they usually lead the way with technology advancements. Their mindset and their workflow are thought to foster innovation.

But larger businesses have started to embrace this too. It’s one of the top challenges for treasury teams. Enterprises have started reviewing their processes to be more agile and use technology to break their silo management.

Mindsets have also evolved. It’s important to cultivate a growth mindset to stay up-to-date with today’s innovations. That means:

  • Adopting new ways to work (working in sprints from the Lean methodology for example)
  • Encouraging innovation internally (through intrapreneurship programs)
  • Giving employees space for experimentation.

In turn, that agility contributes to attracting and retaining the right talent that will foster treasury innovation. With technology constantly changing, it’s key for treasury departments (and all others really) to employ people who are both familiar with the tech skills and able to handle change.

Fostering this culture comes through hiring the right people, but also ensuring that they keep learning throughout their careers. It’s beneficial for them and the company.

Cyber-security is a perfect example of that. Employees should receive regular and ongoing training on cyber-crime, so they can detect the latest scam techniques. Privacy security policies also need to be updated as technology evolves.

 

Advanced data analytics

Corporate treasurers have access to more data now than ever before. With the rise of Artificial Intelligence (AI) and predictive modeling, financial professionals have real-time information at their fingertips. That leads to increased trade working capital and overall improved treasury cash management.

For treasury teams, this means:

  • More accurate cash flow forecasting,
  • Following KPIs in real-time,
  • Visualizing different scenarios in a few clicks.

Being able to run sensitive analysis through software is an invaluable treasury innovation. Not only does it translate into better decision-making for management, it also saves time and is more accurate.

Machine learning and advanced data analytics also contribute to better risk management. By following a few variables, corporate treasury can forecast changes that could benefit or damage the company’s assets and position themselves accordingly.

When leveraged properly, advanced data analytics allow treasury teams to be proactive in searching for opportunities and preventing potential problems. All this contributes to improved management working capital.

 

Instant payment methods

The rise of instant payment methods is undeniably an innovation in treasury management. Propulsed by Venmo, PayPal, and the like, these methods have now become a solid option in both the B2C and B2B financial sectors.

In 2022, instant payment transactions amounted to $195 billion. That’s a 63% growth from 2021! However, if you listen to some client stories, their experience isn’t always good — especially when confronted with fraud.

Nowadays, businesses and customers have several options for real-time payments:

  • Instant wire transfers,
  • Instant ACH,
  • FedNow, the US Central Bank system.

This changes the way consumers and companies do business together (in B2C and B2B contexts!):

  • On the one side, it shortens the order-to-cash process and procure-to-pay processes, increasing the liquidity of an organization.
  • On the other side, it creates more opportunities for fraud.

While we consider instant payment methods to be a treasury innovation, they also come with their own risks. You need treasury risk management software to mitigate them.

 

Payment security and compliance

To try to keep up with technological progress, regulatory bodies create new regulations. Anti-money laundering laws, federal financial management rules, taxes, NACHA rules for ACH transfers…

It’s hard to keep up with all the changes in compliance a company must meet. Even more so if you do business internationally and have to deal with various international fiscal services (in the US, EU, etc.).

The good news is that, here too, technology can assist you. TMS software can help you stay up-to-date with compliance while securing your payment processes.

Trustpair is an anti-fraud software that completely eradicates the risk of third-party fraud in your business. When you know that 96% of US companies were targeted by at least one fraud attempt in 2023 (and 90% of those were successful), it’s no small feat.

Because one thing is sure: technology benefits not only businesses but also criminals. AI-generated scams are more credible than ever, and put your company at heightened risk of fraud.

Cybercriminals can either attack you directly or can use various social engineering techniques to get your employees (or your management) to take dangerous actions.

Wire transfer scams and vendor fraud are the two most popular types of fraud that can jeopardize your assets and your reputation.

With Trustpair however, your company is fully protected against third-party fraud. Our software runs checks in real-time of your suppliers’ credentials so you always know who you’re paying. We use predictive modeling to detect fraud activity before it even happens, blocking transactions that look suspicious — in the US and internationally. Using Trustpair also enhances collaboration, giving you a secure space to collaborate on your suppliers’ management.

We help you streamline and tighten your processes, so financial and treasury teams can focus on what matters most: strategic decision-making, and bringing forth more beneficial treasury innovation.

Learn more about the future of Treasury Teams in our dedicated white paper!

future of treasury in the digital age white paper

Key Takeaways:

Treasury innovation takes many forms: from adopting a growth mindset to leveraging instant payment and treasury software, they all contribute to the digital transformation needed for your company to keep on thriving. Using anti-fraud software like Trustpair helps streamline and secure your payment processes, eradicating the risk of third-party fraud.

FAQ

Treasury technology is technology that benefits the treasury job, such as: using AI for detecting fraud, leveraging predictive modeling to get real-time cash flow forecasts, or using Treasury Management Software to streamline your business processes.

The treasury function is in charge of cash management and assessing corporate treasury risks regarding the company’s assets. Corporate treasurers ensure there is enough working capital and that their assets are protected against all business risks.

They also decide how to allocate the organization’s cash and finance new projects (using debt to buy real estate, or asking institutional investors to finance a green initiative for example).

Trustpair is an anti-fraud software. It helps treasury departments streamline their processes (making them more efficient) and protect their assets against the risk of third-party fraud. We run supplier checks in real-time so you don’t give money to scammers.

Manage the risks related to corporate treasury.

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