AI in Treasury: A Partner, Not a Replacement
This article is written by Palm At Palm, we take a practical view of the role of AI in treasury and cash management. Rather than positioning AI as a revolutionary force that will replace people, we see it as a powerful enabler that reduces manual workload and brings agility to your processes. We believe in embedding AI thoughtfully into day-to-day workflows to solve real-world challenges. Cash forecasting and AI Our approach begins with understanding that treasurers need solutions built specifically for their needs, not generic technology. Here’s how our cash forecasting system works in practice: Step 1: Understanding your financial language When you start with Palm, we first sit down together and have a deep-dive chat about how you organise your cash today. Just like every language has its grammar peculiarities, every company has its own financial language. We believe that understanding your financial language is critical. Specifically for cash forecasting: This foundational step is crucial; it’s literally teaching our system to speak your financial language. The more specific context our AI has, the better decisions it can propose or execute on. Step 2: Bringing your data into our system Next, we focus on getting your (financial) data into our system. For example when it comes to bank statements: In addition, we focus on getting all the relevant information into our system. This is where integrations come in, in which we can automatically connect with many ERP and Payroll systems. Moreover, if you prefer to manually upload your forecasts or data our AI can automatically recognise and map your data into a compatible format. Imagine if you had to sort through hundreds of receipts by hand. Our AI is like having a helper who organises them all for you in minutes, but still checks with you to make sure everything is right. Step 3: Smart categorisation that gets smarter with your input Once your data is in our system, our AI helps categorise all your transactions: It’s like having an additional team member who quickly learns exactly how you like things done and executes that going forward. Step 4: Forecasting your future cash position This is where everything comes together to give you a valuable, transparent and clear view of your cash position for the next 13 weeks: We’re actively working on making the process of determining your cash forecast as seamless as possible. We envision workflows where context can be automatically gathered from stakeholders, consolidated and reviewed without the manual hassle. Why this makes the difference for treasurers If you’re a treasurer, you might have felt left behind by technology. Many systems seem built for tech experts, not finance professionals. Our approach is different: Your data security is non-negotiable We understand that you’re dealing with your company’s financial heart. That’s why security isn’t an add-on for us, it’s built into everything we do: Expanding our AI scope The above zooms into our cash forecasting processes and what role AI plays in them today. We believe that AI will play an increasing role in the future. At Palm, we aim to keep iterating and identifying new use cases in which AI can play a role. A few examples we are actively iterating on: The Palm Difference: AI that works for you What makes our approach special is that we’ve embedded AI thoughtfully into our core product features. It’s not about flashy technology or replacing human expertise. It’s about practical benefits that make your job easier today: Tangible Outcomes for Your Treasury Function: In the end, our AI is simply a really good assistant that helps you do your job better. You remain the expert. You make the decisions. We just make it easier for you to do what you do best. Also Read Join our Treasury Community Treasury Masterminds is a community of professionals working in treasury management or those interested in learning more about various topics related to treasury management, including cash management, foreign exchange management, and payments. To register and connect with Treasury professionals, click [HERE] or fill out the form below. Notice: JavaScript is required for this content.
Franklin
Your Payment Will Let you Know Where Your Shipment Is
Written by Enrico CamerinelliSupply Chain & Finance- Strategic Advisor Helping European Fintech Vendors Break Into Commercial Banking Banks face a fundamental disconnect: their payment systems operate separately from the supply chains that trigger those payments. Tokenized currency assets (e.g., stablecoins and deposit tokens) solve this problem by bringing money directly onto the blockchain. These digital currencies use smart contracts to automatically release payments when real-world conditions are met, such as a shipment arriving, passing quality inspection, or clearing customs. The Disconnect Between Physical and Financial Supply Chains Treasury departments operate in isolation from the supply chain activities that generate their cash needs. Manufacturers ship products, logistics providers move goods, warehouse systems update inventory. But banks only receive payment instructions after manual processes bridge these physical events with financial transactions. The result? Trapped working capital and systems that can’t respond in real time. The “snake” model illustrates supply chain flows from sourcing through fulfillment to payment collection. Each segment represents stages where financial services could integrate seamlessly. The “Snake” Traditional banking forces corporations to track purchase orders in ERP systems, while instructing banks to execute payments using separate systems. Introducing SC&F Agents: Intelligence in Motion Since smart contracts embed payment logic directly into supply chain systems, I anticipate that platforms for tokenized currency assets will embed smart APIs connecting to supply chain systems, watching for events and triggering payments when conditions are met. Newly introduced Supply Chain and Finance (SC&F) agents will act as messenger “avatars” between supply chain systems and financial platforms, linking logistics, warehouses, payment rails, lending services, FX markets, and compliance tools. Instead of waiting for manual payment initiation, SC&F agents see events in real time and execute the right action. When a manufacturer’s ERP generates a purchase order, the platform reserves digital currency and forecasts cash flow. When warehouses confirm receipt, it checks quality and delivery terms. Conditions match? Payment executes. Something off? The system flags it while keeping both sides visible. SC&F agents are essentially digital tokens powered by smart contracts. Digital twins for physical goods carrying product specs, routing, invoices, payment instructions, and insurance in one programmable unit. An automotive parts supplier ships components. The physical parts are assigned their “digital twin” in the bill of materials that will carry information and data for production operations, quality inspection certificates, delivery schedule, invoice, and payment terms. As the shipment moves through logistics networks, the agent travels alongside. Everything checks out, delivery’s on time, quantities match, customs cleared, and payment triggers automatically. No manual work, no delays. Traditional invoices just sit there. Tokenized invoices watch supply chain conditions and trigger the execution of payments when criteria hit. Smart contracts ensure both sides get what they need before money moves. Conditional Activation Throughout the Chain SC&F agents adapt as conditions shift. Need liquidity? The agent routes the invoice to a discount provider automatically. Shipment delayed? Payment timing adjusts. Have risk factors changed (e.g., the ship has passed through a critical area or the truck has crossed into a different jurisdiction)? Insurance premiums adjust accordingly. This logic runs through the entire chain: credit checks in sourcing, trade finance activation in negotiation, inventory financing during fulfillment, automated reconciliation at collection. Enterprise Integration Without Disruption SC&F agent platforms plug into enterprise systems through standard APIs, no infrastructure replacement needed. The ERP or the treasury management system talks directly to tokenized currency networks. Treasury gets real-time visibility without workflow changes. The technology handles multiple currencies essential for global chains. A European manufacturer buying from Asia and selling to North America manages exposures in one framework with automatic conversions. Banks using SC&F agent technology will give clients unprecedented transparency. Instead of black-box accounts, platforms track each activity separately on distributed ledgers. Companies see project costs, subsidiary performance, profits. All with full payment visibility. The Technical Foundation Tokenized currency assets pegged to fiat are digital versions of regular money. Organizations get blockchain benefits without crypto volatility. Corporate users don’t touch tokens. SC&F agents on smart contracts handle everything behind the scenes. Traditional payment systems can’t run conditional logic autonomously. Stablecoins (or deposit tokens) in smart contracts check supply chain data, verify conditions, and move money without middlemen. This is critical for apps needing automated responses to physical events. Competitive Advantage Banks with infrastructure for tokenized currency compete by offering more than payment processing. SC&F agent technology enables sophisticated cash management, automated reconciliation, and embedded financing integrated into supply chain operations. Tokenized currencies open revenue streams beyond transaction fees: supply chain finance; dynamic discounting; working capital optimization. This shifts banks from commodity processors to strategic partners. SC&F agents fits Banking-as-a-Service perfectly for rideshare platforms, retailers, and neobanks. The Path Forward Supply chains are becoming every day more and more digital. Banks need to embed into these ecosystems through SC&F agent infrastructure, or tech providers with embedded finance capabilities will cut them out. When supply chains and financial services converge through SC&F agent platforms, banks deepen relationships, create revenue, and differentiate. Banks deploying SC&F agent technology position for the shift to intelligent, automated services. The question every bank must answer: will we lead this transformation, or become irrelevant as clients move to providers offering these capabilities? SC&F agents connect physical operations to programmable financial services. Banks deploying this infrastructure made of intelligent agents, tokenized invoices, and event-driven automation will take market share from competitors stuck on manual processes ignoring supply chain realities. Conclusion I anticipate we are experiencing a fundamental transformation in banking: when tokenized currency assets operate through smart contracts embedded in supply chains, payments become living indicators of physical reality. SC&F agents create bidirectional transparency: payments execute only when shipments confirm delivery, quality, and compliance, while simultaneously revealing supply chain status through payment activity. This inversion of traditional banking logic where payments follow manual instructions divorced from physical events, proves that financial flows can mirror operational reality in real time. Banks deploying this infrastructure transform from passive payment processors into active supply chain intelligence platforms, where every transaction carries verifiable proof of physical…