A Day in the Life of a Treasury Robot

This article is originally posted by our Partner Automation Boutique

A concept that’s both fascinating and futuristic is the treasury robot.

Let’s take a look into what a day could look like for one of our treasury robots:

6:00 AM – Bank Data Gathering with APIs and RPA 🏦

My day doesn’t begin with coffee but with data collection. I use APIs whenever possible for a smooth retrieval of bank account balances and transactions from various banks. For banks that do not offer APIs, I gather the MT940 statements. For those without MT940 capabilities, I deploy my Robotic Process Automation (RPA) skills to log in to the banking portal and scrape the required data.

After all data is collected, I ensure it is imported into the Treasury Management System and initiate the reconciliation process. When my human colleague arrives later, she only needs to review my work and manage any exceptions.

7:00 AM – Updating FX Rates with API Integration 💱

I then update the Foreign Exchange (FX) rates in our Treasury Management System. This is automated through the integration of an API from the ECB (European Central Bank), which allows for regular updates and ensures our financial operations use the correct FX rates. Before updating the system, I perform some checks to make sure that the rates I gathered are correct and complete. For any rates for which I have doubts, I notify my human colleagues with a message on Teams.


8:00 PM – Updating the Cash Flow Forecast

Next, I focus on updating our cash flow forecast. By synchronizing data from our bank accounts, ERP, CRM, and historical trends, I create a draft of our updated cash flow forecast. My human colleague will later make manual adjustments based on her judgment before the forecast is used in decision-making. If she wants, I can help her spot patterns I can find in the data, such as seasonality in the cash flows or find those clients who always pay late at the end of the year.

10:00 AM – Crafting the Weekly Report 📊

Mid-morning, I start creating the weekly report on cash movements and liquidity positions within the group. Using Power Query, I transform raw data into insightful information, which is then automatically visualized in both Excel and Power BI. After a thorough review and approval by a human colleague, I email this crucial report to management.

1:00 PM – Counterparty Risk Management and Anti-Fraud Checks using APIs 🔍

In the early afternoon, I focus on risk management and fraud prevention activities. I conduct counterparty risk analysis by interfacing with credit scoring companies through APIs.

Simultaneously, I validate supplier bank account details, a critical step for maintaining our financial security and integrity.

2:00 PM – FX Risk Management 💱

After completing the anti-fraud checks, I turn my attention to FX risk management. I calculate currency exposures by analyzing upcoming payables and receivables in various currencies. Then, I determine the necessary trades and ensure they align with our company’s risk strategies and policies. Afterward, I input these trades onto the dealing platform. They are not executed immediately; instead, I notify my human colleague to review and approve them.

5:00 PM – Optimizing Overnight Deposits for Yield Maximization 🌙💰

As the business day winds down, I suggest the best strategy  regarding automatic overnight deposits. This task involves analyzing various investment opportunities to ensure the best possible yield on our company’s cash reserves. Maybe one day my colleagues will let me also execute the transactions, it would be easy for me!

So, that’s a snapshot of a day in my life, the life of a treasury robot. But here’s an important thing you should know about treasury robots. The treasury robot, as described, doesn’t actually exist as a single entity. In reality, what we’re talking about are various software robots, each specialized in different processes and automation technologies (like RPA, AI, APIs and Power Query). When these are combined, they create what can be metaphorically referred to as “the treasury robot.” This means it can be fully customized to fit the unique workflow and needs of any company, making the concept both versatile and adaptable.

With the technologies we have at our disposal today, we can create this kind of “treasury robots”. Imagine the potential! How would you design your company’s ultimate treasury robot?

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January 24, 2024

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