A call to action for banks in the AI age
This article is a contribution from our content partner, Kyriba Intelligent platforms and partnerships can help reduce treasury pain points across sectors In today’s volatile economy, corporate treasurers face increasing pressure to manage liquidity, optimize operations, and provide strategic value. Despite working with multiple banking partners, a significant 70% of treasurers say their cash-management needs aren’t fulfilled. This gap isn’t just a service failure – it’s a strategic opportunity. To stay relevant, banks must evolve from traditional service providers into smart, platform-based partners capable of handling the complex demands of modern treasury operations. The most successful firms will move beyond traditional setups to become more intelligent, secure, and user-centric. They will empower relationship managers and senior bankers with advanced tools and technologies to thrive in a competitive and evolving digital landscape. Evolving expectations and unmet needs The financial landscape has shifted significantly due to inflation, supply chain issues, and rising interest rates. As a result, corporate treasurers now expect more from their banking partners. They seek real-time insights for better cashflow management, automated processes to reduce manual work and errors, seamless Enterprise Resource Planning (ERP) integration for faster onboarding and improved efficiency, and strategic advice tailored to their sector’s specific challenges. However, according to Capgemini’s World Payments Report 2023, most banks are falling short, leaving treasurers disappointed and underserved. Manual processes create pervasive pain points Rooted in outdated, manual processes, pain points are widespread across treasury functions. In accounts payable (AP), 63% of payment executives still rely on paper-based invoices, which slow down processing and increase the risk of errors. In the automotive sector, 74% of AP workflows remain manual, while insurance firms face a 27% exception rate at $22 per invoice.1 Retailers aren’t immune either, reporting a 38% exception rate due to a lack of automation. On the accounts receivable (AR) side, the picture is equally concerning. Only 10% of AR processes in retail are automated, and 69% of retailers struggle with multichannel reconciliation due to the proliferation of payment options.2 System fragmentation and a lack of visibility Beyond AP and AR, a lack of interoperability between a bank’s technology and a corporation’s systems creates significant challenges, including analysis gaps in exposures, credit, and counterparty risks, as well as compliance and reporting. Reconciliation remains a largely manual task for many financial firms, with half still relying on outdated processes due to missing data and poor system integration. Non-standard payment formats and weak ERP connectivity further complicate the process. Cash forecasting is another critical area plagued by fragmentation and inaccuracy. 60% of payment executives cite real-time cash visibility as a major challenge with significant consequences, ranging from unnecessary borrowing to missed investment opportunities. 3 Most corporations manage over 27 banking relationships, making it difficult to gain a unified view of their cash positions. This lack of visibility has sector-specific consequences. For instance, insurance companies often maintain overfunded reserves, retailers struggle with inventory and working capital management, and automotive firms face poor oversight of dealer and supplier payments. The high cost of inaction Disconnected systems and manual processes disrupt the cash management chain, leading to inefficiencies and silent attrition, where clients gradually shift volumes away without formal notice. Over 70% of payment executives believe that partnerships with fintechs can help accelerate technology adoption, enable faster market entry, and improve IT cost management. Banks that don’t act risk losing relevance in a rapidly changing financial ecosystem. The AI-powered solution Artificial intelligence (AI) has emerged as a strategic imperative for corporate banking. According to the 2025 CFO Survey Report from cloud-based liquidity performance platform Kyriba, 53% of CFOs are enthusiastic about AI’s potential to transform finance by automating routine processes and enhancing investment analysis. An overwhelming 96% of CFOs now prioritize the integration of AI. 4 While enthusiasm for AI is high, a significant trust gap warrants attention, as 76% report major security and privacy concerns, according to Kyriba’s global insights from 1,000 CFOs and senior financial decision-makers. AI can directly tackle many treasury operations pain points. It enables anomaly detection in cashflow mismatches, predictive forecasting based on real-time and behavioral data, and the smart routing of payments, as well as exception handling. These features not only improve operational efficiency – they also give treasurers the insights they need to make informed decisions. Kyriba’s white-label platform lets banks deploy AI-driven services under their own brand quickly. Services include predictive liquidity forecasting, scenario modeling for risk and cash visibility, and AI-driven reconciliation. The platform’s pre-integrated modules make it easier for banks to offer advanced capabilities to corporations without starting from scratch. To fully capitalize on this opportunity, banks can adopt a three-layer strategy, as outlined in Capgemini’s World Payments Report 2023. Additionally, banks can enhance communication with corporate clients by upgrading senior bankers’ tools and workstations, focusing on the value of AI in a fast-changing environment. What’s more, the adoption of cloud computing and desktop virtualization lets banks access computing resources on demand, streamline operations, improve scalability, and facilitate remote work and collaboration. Corporate treasurers are ready for a change and actively seek partners that can help them navigate complexity, unlock value, and drive strategic outcomes. For banks, the message is clear: the future of corporate banking is about transformation, not just transactions. By embracing intelligent platforms, AI-driven insights, and collaborative partnerships, banks can redefine their role and secure their relevance for years to come. 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The Power of Banking APIs with Treasury Management Software
This article is written by Treasury4 Banking APIs have revolutionized modern treasury management by enabling seamless integration and real-time data connectivity between banks and corporate treasury systems. These APIs serve as secure digital bridges, allowing treasurers to access account information, initiate transactions, and manage cash positions across multiple banks through a single location. In the past, treasurers relied on manual processes, which were time-consuming and prone to errors, or file-based data exchanges, which could only occur based on an agreed-upon schedule with the bank, rather than as needed. APIs have transformed this landscape by providing protocols for direct communication between banking systems and treasury management software. This integration allows for automated data retrieval, transaction processing, and reporting, significantly improving operational efficiency. Banking APIs enable treasurers and their modern treasury management solutions with: Challenges of Traditional Banking Connectivity Methods Traditional banking connectivity methods that don’t utilize APIs often hamper efficient treasury management, as they rely on manual or scheduled processes and disparate systems, leading to numerous inefficiencies and risks. Manual processes Manual data entry and file transfers are among the most time-consuming and error-prone aspects of traditional banking connectivity. Treasury staff must frequently log into multiple banking portals, download account statements, and manually input data into spreadsheets or treasury management systems (TMS). This tedious process introduces a high risk of human error, with typos, misplaced decimal points, or incorrect data entries that lead to significant financial discrepancies and poor decision-making. Moreover, the time spent on these manual tasks reduces the ability of treasury teams to focus on more strategic activities. Data accuracy The lack of reliable, up-to-date visibility into banking data and positions is another major drawback of traditional methods. Without API connectivity, treasurers often work with outdated information. Without access to current account balances, transaction details, and cash positions, treasury teams can end up with suboptimal cash management, missed investment opportunities, and potential liquidity risks. Data consolidation Consolidating data from multiple banking relationships presents a formidable challenge when using traditional connectivity methods. Companies often maintain accounts with several banks for various purposes, such as different geographical regions or specific financial products. Without APIs, aggregating this information into a unified view requires extensive manual effort and custom integration work. The Power of API Connectivity for Treasury Teams Connecting your treasury management solution to banks via API can significantly transform treasury operations, offering a range of powerful capabilities that streamline workflows and enhance decision-making. This integration brings numerous advantages to treasury teams, revolutionizing how they manage financial data and execute transactions. Accurate, reliable data One of the primary benefits of connecting your bank accounts to your treasury management system via APIs is access to accurate, up-to-date banking data. Through API connections, treasury teams can instantly retrieve up-to-date account balances, transaction details, and payment status across multiple banking relationships. This real-time visibility eliminates the need for manual data validation and provides treasurers with a comprehensive, current view of their financial position. Automated data ingestion Automated ingestion of data into the treasury system is another crucial advantage of API connectivity. Instead of manually downloading and importing bank statements, the system can automatically pull this information directly from bank servers, helping treasury teams save time and reduce the risk of data entry errors. Treasury teams can configure the system to update at regular intervals or on-demand, ensuring that they always have the latest financial information at their fingertips. Execute transactions within your TMS Perhaps one of the most transformative capabilities is the ability to execute transactions directly via API. This feature allows treasury teams to initiate payments, transfers, and other financial transactions from within their treasury management system with the same level of confidence as bank portals as a result of the immediate confirmation provided with APIs. By eliminating the need to log into separate banking portals or use file-based payment methods, API-driven transactions increase efficiency and reduce the potential for errors. Treasurers can even implement real-time payment capabilities where they are supported by their banks. Improved cash management With real-time data and transaction capabilities enabled by banking APIs, treasury teams can monitor their cash position, transfer excess funds into investment accounts, or to other accounts requiring funding in a timely manner with confidence. This level of automation and control allows for more effective liquidity management and optimized use of cash resources across the organization. Key Benefits of API Integration for Treasury Teams API integration offers numerous key benefits for treasury teams, transforming their operations and capabilities. These benefits collectively enable treasury teams to operate more efficiently, make better-informed decisions, and contribute more strategically to their organization’s financial success. Increased operational efficiency and productivity Improved cash visibility and forecasting capabilities Enhanced accuracy and control over treasury data Up-to-date insights for strategic decision-making Overcoming API Limitations and Challenges While banking APIs offer significant advantages, treasury teams may encounter certain limitations and challenges in their implementation and use. Understanding these potential issues and developing strategies to mitigate them is crucial for successful API integration. One common limitation is inconsistent data formats across different banks. Despite efforts to standardize APIs, variations in data structures, field names, and transaction codes can complicate data integration. This inconsistency may require additional mapping and transformation efforts to normalize the data within the treasury management system. API outages or performance issues present another challenge. Like any technology, APIs can experience downtime or slow response times, potentially disrupting treasury operations that rely on real-time data and transaction capabilities. To mitigate these risks, treasury teams can: The TMS plays a critical role in consolidating and normalizing API data. A well-designed TMS can act as a central hub, integrating data from multiple banking APIs and presenting it in a standardized format. This consolidation simplifies reporting, analysis, and decision-making processes. Leveraging a TMS that also provides an open data architecture, such as Cash4, can eliminate the data silos that typically form. Key functions of the TMS in API data management include: By leveraging the capabilities of their TMS and implementing robust risk mitigation strategies, treasury teams can…