The Secret Treasurer writes… How we unlocked liquidity through digital tools (and why you should too)
This article is written by ETR Digital Like every corporate treasurer, one of my main jobs is to make sure there’s enough liquidity to keep the business running smoothly, support growth, and give us the financial flexibility we need. But that’s often easier said than done! Lately, I’ve been exploring some different tools for unlocking working capital. And with everything going on in the digital trade space, I figured I’d take a look at Digital Negotiable Instruments (DNIs). Because they can help speed up payments and receivables processes, unlocking significant amounts of liquidity and improving cash flow management. Wait, what are DNIs? Good question! And I only discovered them through a session at an industry conference, so you’re not alone in never having come across them. In a nutshell, DNIs are essentially the digital version of old-school paper trade instruments like bills of exchange and promissory notes. But instead of dealing with stacks of paperwork and slow manual processes, everything’s securely handled on a digital platform. So, it’s nothing totally new and risky, it’s an innovative way to approach an age-old challenge. In practice, DNIs mean faster, clearer transactions – and much less waiting around. Where paper-based instruments might take days or even weeks to settle, DNIs can be wrapped up in a fraction of the time. That’s a big win when you’re trying to unlock liquidity. How DNIs helped us release trapped cash Before using DNIs, we were facing a pretty common issue: too much working capital was tied up in slow trade cycles. We had payables and receivables stuck in the system, delaying access to cash we could’ve been using elsewhere in the business. I’m sure that feels like a familiar frustration. Then we decided to start using DNIs (it wasn’t a tough switch). And the difference was like night and day. Take our cross-border transactions. They used to be really paper-intensive, taking weeks to finalise payments and get funds moving. But with DNIs, we’ve cut down the processing time dramatically. That’s helped us speed up cash inflows and bring down our DSO. We also brought DNIs into our supplier financing programme. Again, easy to do. And it meant that suppliers got paid faster, we improved our own cash conversion cycle, and we could even extend our own payment terms without damaging supplier relationships. A win-win (yes, it might sound a bit clichéd but it’s true). Finding the hidden liquidity Those few switches have made all the difference already. And it was easy to know which working capital ‘levers’ to pull because I used the ICC’s free Cash Conversion Cycle Calculator – and it showed me exactly where our cash was getting stuck. So, I encourage you to check it out https://ic4dti.org/getting-started-ccc/ It’s super easy to use, anything you plug in is private, and it will give you a clear picture of where your working capital could be improved. For us, unsurprisingly, a lot of the inefficiencies were from outdated trade processes. But digitalising them has made a huge difference almost immediately. Seeing is believing If, like me, you’re a corporate treasurer looking to make your cash work harder, I can’t recommend DNIs enough. They’ve helped us streamline operations, reduce delays, and unlock liquidity that was previously gathering dust in slow-moving processes. They’re essentially just a better version of what was there before. Like upgrading from a landline phone (or carrier pigeon in some instances!) to the latest smartphone. And if you’re not sure where to start, give the ICC’s Cash Conversion Cycle Calculator a try. It’s a quick way to spot opportunities to improve your cash flow – and helps put you in control. 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
The 5 Biggest Challenges Facing Treasury Teams Today: Analyst vs. Manager Perspective
By Treasury Masterminds In today’s fast-evolving economic and technological environment, corporate treasury teams are under more pressure than ever. But the challenges faced differ depending on your role within the function. What keeps a Treasury Analyst up at night isn’t always the same thing that keeps a Treasury Manager on their toes. Here are the five biggest challenges in treasury right now — and how they impact analysts and managers differently. 1. Cash Visibility & Forecasting Accuracy For Analysts: Analysts are often the ones collecting and consolidating data from multiple bank portals, ERPs, and spreadsheets. Poor system connectivity or inconsistent data formats can turn this into a manual, error-prone process. The pressure to deliver daily liquidity positions and accurate short-term forecasts is high — especially when data arrives late or is incomplete. For Managers: Managers are responsible for the accuracy and strategic value of forecasts. They need to trust the data — and explain it. When visibility is low or forecasts prove unreliable, they face difficult conversations with CFOs or business units. Implementing better tooling, standardizing forecasting models, and pushing for real-time insights becomes a strategic priority. 2. FX Volatility & Hedging Decisions For Analysts: Analysts typically track exposures, update hedge positions, and ensure data flows correctly into treasury systems or spreadsheets. Rising FX volatility increases the volume and complexity of this work. Mistakes in exposure data can lead to under- or over-hedging — both costly errors. For Managers: Managers must decide when and how to hedge, selecting the right instruments and balancing cost vs. protection. With rate divergence, political instability, and foreign currency risks on the rise, FX policy decisions are more complex. They must justify these decisions internally while ensuring compliance with policy and accounting rules (e.g., hedge effectiveness). 3. Technology Integration & TMS Utilization For Analysts: Many analysts work with fragmented systems and spend significant time on manual processes. Even with a TMS in place, poor configuration or lack of integration can mean the analyst still lives in Excel. Learning how to use automation, APIs, or new treasury tools adds to the workload — but is critical for career growth. For Managers: Managers are often tasked with leading digital transformation in treasury. Whether selecting a new TMS or optimizing an existing one, they must navigate vendor complexity, internal IT constraints, and user adoption challenges. Without alignment between systems and processes, strategic goals like real-time reporting or multi-entity pooling fall flat. 4. Banking Relationships & Counterparty Risk For Analysts: Analysts manage KYC documentation, open/close accounts, maintain signatories, and support day-to-day bank operations. Increasing compliance complexity makes this slow and frustrating. A simple change in signatories can take weeks and delay payments. For Managers: Managers must assess concentration risk, negotiate fees, and ensure business continuity. The collapse of regional banks and sanctions enforcement have raised the stakes. They are expected to build resilient banking strategies — often with fewer resources — while maintaining global coverage and operational flexibility. 5. Talent, Skill Development & Retention For Analysts: Treasury is evolving beyond spreadsheets. Analysts are expected to understand APIs, dashboards, data models, and even Python — but often receive little structured training. Opportunities to upskill, get exposure to strategic projects, or move laterally are essential to avoid turnover. For Managers: Managers are caught in the middle — needing digitally fluent staff, but facing talent shortages and limited hiring budgets. Building a high-performing team means investing time in coaching, cross-training, and creating a treasury culture where analysts see a clear career path. Final Thought Whether you’re in the weeds of reporting or shaping treasury strategy from above, the challenges facing treasury professionals are growing more technical, more cross-functional, and more critical to business success. The key difference? Treasury Analysts are expected to execute better, while Treasury Managers are expected to elevate the function. If you’re navigating any of these challenges — you’re not alone. That’s exactly why the Treasury Masterminds community exists: to share what works (and what doesn’t) across treasury teams worldwide. Also Read Join our Treasury Community Treasury Mastermind 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 to get more information. Notice: JavaScript is required for this content.
AI for Treasury and Finance
This article is written by HedgeFlows Artificial Intelligence (AI) is reshaping industries across the board, and Treasury and Finance are no exceptions. With its ability to enhance decision-making, streamline processes, and unlock valuable insights, enterprise AI is quickly becoming an essential tool for industry leaders. HedgeFlows has recently hosted an expert panel discussion on AI in the Treasury and Finance space, and we wanted to share some key learnings and insights that could help executives understand and leverage AI effectively within their organisations. Why AI is Relevant to Treasury and Finance The rise of AI in Treasury and Finance is driven by its unique ability to process large volumes of data, identify complex patterns, and automate repetitive tasks. For treasury functions, AI offers solutions to problems like forecasting cash flow, managing risks, optimising FX hedging, and improving data quality. With market volatility and rising operational complexities, augmenting human capabilities with intelligent systems is no longer a luxury but a necessity for organisations aiming to stay competitive. During the panel, Alexis Besse, a Managing Director, Head of Quantitative Trading from Jefferies, highlighted the practical application of AI in prediction models for market movements, noting its current limitations and vast potential. Meanwhile, Neh Thaker, co-founder of HedgeFlows, suggested that AI’s revolutionary value lies in enabling finance teams to move beyond mundane tasks to become strategic enablers for their businesses. But where do you start? Here are actionable insights from the panel discussion to help you consider integrating AI into your treasury and finance functions. Key Benefits of AI in Treasury and Finance 1. Improved Decision-Making AI can analyse data sets at an unprecedented scale and speed, helping teams make faster, more informed decisions. Whether it’s providing insights into market risks or identifying patterns in transactional data, AI empowers treasurers with actionable intelligence. 2. Enhanced Process Automation From cash flow forecasting to transaction matching, AI helps automate routine and time-intensive manual tasks. This doesn’t just save time; it also reduces errors, boosts accuracy, and allows teams to focus on strategic projects. 3. Better Risk Management The ability to identify and manage risks is greatly enhanced with AI tools. For example, AI models can provide real-time alerts about FX exposure or sudden changes in market conditions, empowering treasury teams to act proactively. 4. Data Integration and Analysis AI helps aggregate and harmonise unstructured data from disparate sources, offering a single source of truth. For enterprise-scale organisations, this level of data integration is critical for accurate reporting, forecasting, and compliance. 5. Cost and Resource Optimisation By freeing up Finance teams from mundane, repetitive tasks, AI allows for significant cost savings while creating the space for more impactful, strategic work. This is a game-changer for resource-constrained teams. Practical AI Use Cases in Treasury and Finance 1. Cash Flow Forecasting AI can improve the accuracy of cash flow predictions by analysing historical data, identifying trends, and accounting for multiple variables. According to James Kelly, the former Group Treasurer at Pearson, and founder of YourTreasury.ai even simple automation of forecast validation and reconciliation can save significant time and improve reliability. 2. FX Risk Management AI can assist in scenario analysis for FX exposure, offering advanced insights that allow treasurers to fine-tune hedging strategies. While predicting currency movements with certainty remains challenging, AI tools can improve execution timing and identify periods of high volatility. 3. Data Cleaning and Reconciliation Manual data reconciliation is a time drain for many organisations. AI tools can spot anomalies, identify duplicates, and automate the integration of datasets from various business lines, improving data accuracy and usability. 4. Regulatory Compliance AI-powered systems are now capable of analysing regulatory documents, automating Know Your Customer (KYC) processes, and ensuring compliance with industry guidelines. This enables faster approval cycles without compromising on due diligence. 5. Large Language Models for Summarisation and Reporting Advanced tools like large language models (LLMs) can summarise earnings reports, generate briefing notes, and even assist in drafting board presentations. This can help finance teams translate complex data into clear narratives, saving hours of manual effort. Addressing Challenges and Risks While AI presents incredible opportunities, it is not without challenges. Here are some considerations for treasury and finance professionals venturing into AI: 1. Data Security and Privacy Corporate information often contains sensitive data. Ensuring that third-party AI tools comply with data privacy regulations and maintaining robust internal control measures is essential. Platforms like OpenAI’s ChatGPT and Anthropic’s Claude provide varying levels of data security that organisations should assess carefully. 2. AI Hallucinations and Reliability Large language models are powerful but occasionally generate inaccurate or nonsensical outputs. For mission-critical tasks, always validate AI-generated outputs to avoid misinformation. 3. Integration into Existing Systems Implementing AI effectively requires integration with existing ERPs, Treasury Management Systems (TMS), and data storage platforms. Organisations must invest time and resources into building seamless integrations. 4. Human Skills Development AI is not a replacement for human oversight. Teams must be upskilled to use AI tools strategically, understanding their outputs and ensuring that the technology complements, rather than replaces, human decision-making. How to Get Started with AI in Treasury and Finance Here are steps to begin your AI transformation in the Treasury function: 1. Identify Routine Manual Processes Evaluate day-to-day tasks that are repetitive, error-prone, or resource-intensive. Start by automating these with AI-powered tools to unlock immediate efficiency gains. 2. Experiment with Accessible AI Tools Use generative AI platforms like ChatGPT for tasks such as drafting reports or generating insights. For more complex financial applications, consider platforms tailored to your industry. 3. Start Small with Pilots Instead of attempting to overhaul entire processes, pick one or two specific use cases for your first pilot. Examples include automating reconciliations or enhancing market research. 4. Collaborate with Technology Partners Work with vendors like TMS providers or specialised fintech firms that understand the nuances of your needs. For instance, HedgeFlows offers integrations that simplify treasury processes while leveraging the power of AI. 5. Upskill Your Team Encourage teams to learn about data science and machine learning to improve their…
MiCA Regulation in Europe: A Jargon-free Guide
This article is written by Fortris The EU’s new regulatory framework for crypto assets aims to establish a clear set of rules for the crypto sector across Europe. This article unpacks some of the technicalities to explain what MiCA covers and how it affects businesses. In June 2023, following more than two years of intense discussions between European Union lawmakers, the long-awaited regulation on markets in crypto-assets (MiCA) came into force. The regulation paved the way for the EU to become the first major jurisdiction with a comprehensive regulatory framework on crypto assets, and has been seen as an indicator of crypto assets becoming increasingly mainstream. As the European Commission puts it, financial services within the bloc must be “fit for the digital age”. Digital finance has a key role to play in shaping a more competitive, sustainable, resilient economy – and a more inclusive, modern, prosperous society. European Commission As the end of 2024 will mark a key milestone for the implementation of MiCA, let’s take a look at this important piece of legislation. We’ll cover its scope, timelines for implementation, and some essential takeaways for businesses looking to explore crypto asset activity in Europe. What is MiCA? MiCA is a regulatory framework developed to establish clear and consistent rules for the cryptocurrency industry across the EU. Its goal is to ensure legal clarity, safeguard consumers and investors, and maintain market integrity, all while encouraging innovation in the digital assets space. MiCA addresses multiple areas of the crypto market, such as the classification of crypto tokens, standards for service providers, and responsibilities for issuers. As the end of 2024 will mark a key milestone for the implementation of MiCA, let’s take a look at this important piece of legislation. We’ll cover its scope, timelines for implementation, and some essential takeaways for businesses looking to explore crypto asset activity in Europe. What is MiCA? MiCA is a regulatory framework developed to establish clear and consistent rules for the cryptocurrency industry across the EU. Its goal is to ensure legal clarity, safeguard consumers and investors, and maintain market integrity, all while encouraging innovation in the digital assets space. MiCA addresses multiple areas of the crypto market, such as the classification of crypto tokens, standards for service providers, and responsibilities for issuers. As the end of 2024 will mark a key milestone for the implementation of MiCA, let’s take a look at this important piece of legislation. We’ll cover its scope, timelines for implementation, and some essential takeaways for businesses looking to explore crypto asset activity in Europe. What is MiCA? MiCA is a regulatory framework developed to establish clear and consistent rules for the cryptocurrency industry across the EU. Its goal is to ensure legal clarity, safeguard consumers and investors, and maintain market integrity, all while encouraging innovation in the digital assets space. MiCA addresses multiple areas of the crypto market, such as the classification of crypto tokens, standards for service providers, and responsibilities for issuers. Understanding the terminology Before exploring the scope of MiCA and its intended effects in more detail, let’s first unpack some of the key terms used in, or in relation to, the regulation. Firstly, the regulatory bodies involved: Secondly, the types of assets covered by MiCA. The term stablecoin is widely used in the crypto assets world to refer to an asset that is designed to maintain a steady value. To keep this stability, they are “pegged” or tied to something with relatively low volatility, such a traditional currency (for example USD or EUR) or a commodity such as gold. Let’s say a company issues 100,000 in USD-pegged stablecoins. It would need to have the equivalent cash reserves in a bank to “back” these dollar-for-dollar. MiCA divides what are commonly called stablecoins into two main categories: ARTs and EMTs. MiCA also specifies a third category of assets under the catch-all term Other Crypto Assets. These include established, decentralized cryptocurrencies like Bitcoin and Ethereum. These are not backed by any underlying assets and can be more volatile in nature. A final piece of terminology worth noting is Crypto Asset Services Provider (CASP). This is the term MiCA used to refer to any provider that offers services related to crypto assets, such as trading platforms, exchanges, and custodians. CASPs must comply with MiCA rules to operate legally in the EU. A note: you may hear VASP (Virtual Asset Service Provider) used in relation to crypto assets. This is a term used by the global Financial Action Task Force (FATF). It is often used in anti-money laundering (AML) and counter-terrorism financing (CTF) contexts. Although CASP and VASP refer to similar kinds of service providers and have a lot of overlap, the terms should not be used interchangeably in the context of MiCA because of regulatory variances. To name just one example of this, the Central Bank of Ireland has noted that a CASP authorisation assessment is more involved than a VASP registration. The scope of MiCA regulation The key goal of the MiCA regulation is harmonizing the regulatory approach to crypto assets across EU member states. What does this mean, and how will it work? To date, there has been a lot of variation in the regulatory approach across the bloc, leading to inconsistencies and legal complexities for businesses operating in multiple countries. By harmonizing the rules, MiCA removes these disparities, ensuring that crypto businesses, investors, and consumers across the EU operate under the same regulatory framework. This simplifies compliance and encourages cross-border operations, which digital assets are particularly well suited to. It’s important to note that harmonizing does not mean applying one blanket rule or timeline across the whole bloc. For example, EU member states have some discretion in how they implement certain aspects, as overseen by their NCA. What MiCA means for crypto service providers Under MiCA, Crypto-Asset Service Providers (CASPs) must meet several requirements to operate legally in the EU. Here’s a simple breakdown of some key rules: In short, CASPs under MiCA must be…
Treasury Contrarian View: APIs in Treasury — Game-Changer or Just Another Integration Headache?
APIs (Application Programming Interfaces) have been hailed as the future of bank connectivity, real-time data exchange, and seamless treasury operations. Banks, TMS vendors, and fintechs are pushing APIs hard. But here’s the contrarian take: Are APIs truly revolutionizing treasury, or are they just another complex, costly integration layer with more hype than help? The Case for APIs as a Game-Changer The Case for APIs as Overhyped A Balanced Strategy: Use APIs Where They Add Real Value Instead of rushing to adopt every new API available, treasury teams can: Let’s Discuss We’ll be gathering opinions from treasurers, TMS vendors, and banking partners—share your view and be part of the conversation! COMMENTS Jan-Willem Attevelt, Co-founder of Automation Boutique — the company behind the newly launched API Boutique — comments: APIs offer exciting opportunities for corporate treasury. In theory, they provide on-demand access to financial data, as well as the ability to initiate actions. This can significantly reduce manual work and offer greater flexibility in how companies connect with banks and systems. However, while the potential is significant, we’ve seen that for many companies, implementation is still far from straightforward. To fully realize the value of APIs in treasury, we need to focus on making them easily usable within the tools and systems companies already depend on. Today, most APIs are built with software developers in mind. If you’re building an accounting platform or a treasury management system, having access to real-time balances or transactions via API is powerful. But the reality is that most companies don’t have the technical resources to make use of these APIs for their own reporting or treasury operations. In treasury, APIs have been discussed for years as if they’re a ready-made solution. But an API isn’t an app that a company can simply install and start using. To get value from it, you need a developer to handle authentication, establish the connection, maintain its reliability, and integrate the data into the tools your treasury team already works with. This process is often costly, time-consuming, and overwhelming. For many companies, it’s not even clear where to begin. Even for companies with technical expertise, there are still barriers to using banking APIs effectively. Take Open Banking APIs as an example. While all European banks are required to offer them, these APIs were primarily designed for consumer use and not well suited to corporate treasury needs. Accessing them requires a special PSD2 license as a regulated third-party provider (TPP), which most companies do not have. On top of that, the user must reauthorize access every 90 days, making the setup fragile and difficult to automate reliably. There are also limitations on how frequently the data can be refreshed, often restricted to just a few times per day. All of this makes Open Banking APIs a poor fit for companies that need stable, high-frequency access to financial data for reporting or operational purposes. What a lot of banks have done well is offer premium APIs that go beyond Open Banking. These are really useful for cash visibility, giving companies access to balances and transactions in real time. But even then, the experience is hit or miss. At some banks, we’ve run into bugs, sandbox environments that don’t behave like production, and documentation that assumes you already know everything. Sometimes we honestly wondered if we were the first ones to actually try using the API. Beyond cash visibility, access to deeper financial data drops off quickly at most banks. If you want API access to get visibility on things like loans, overdrafts, FX trades, bank guarantees, or letters of credit, you’re probably out of luck. Most of that data has been traditionally locked away from real-time access. The good news is that this is starting to improve and banks are gradually offering more data through APIs, but also allowing you to initiate a variety of actions (e.g. payments or FX trades). Despite the challenges, the opportunity is clear: APIs need to be directly usable by companies within the tools they already rely on, such as Excel, Power BI, or a TMS. At the end of the day, getting access to real-time financial data shouldn’t require a developer. It should be as simple as opening Excel. Renea Mahadeo, Treasury Masterminds board member, comments: Dismissing APIs as hype is like dismissing AI – ignore it and watch competitiveness tank. Sure, batch data works, just like fax machines still do. But is yesterday’s data really good enough in a world where markets move by the second? A treasurer with a forward-looking vision must have a technology strategy. Understanding your goals before you begin the transformation, will serve as a guide to wise decisions throughout the process. That starts with asking: Which of your banks offer APIs – and for which use cases? If they don’t, will you push for it or consider alternatives? If building in-house isn’t feasible, which TMS or API aggregator best aligns with your needs? How can you structure a business case to get CFO buy-in? Having witnessed large MNCs and SMEs implement premium banking APIs globally, the most successful treasurers have a clear vision and strategy in place to future-proof and level-up their tech stack. Your vision will anchor every tech decision. Change may not be easy, but avoiding it has a cost. Like skipping workouts, inaction may feel easier now – but the cost shows up later in lost agility, missed insights, and competitive drag. Royston Da Costa, Treasury Masterminds board member, comments: The introduction of APIs (Application Programming Interface) has made Real-time data a possibility that could be invaluable in Treasury because it enhances decision-making, improves risk management, and optimizes liquidity. Here are my thoughts on why: 1. Liquidity Optimization Cash Positioning: Instant visibility of global cash balances enables more efficient cash pooling, sweeping, and funding decisions. Intraday Liquidity Management: Banks charge based on intraday usage—real-time insights allow treasurers to optimize cash deployment. 2. Faster Decision-Making Automated Hedging: With real-time data, treasury teams can automate FX and interest rate hedging to lock…
Smarter Payments, Better Insights: Why Treasurers Should Embrace ISO 20022 Sooner Rather Than Later
This article is a contribution from our content partner, Salmon Software With the move to ISO 20022, cross-border financial messages are becoming richer, smarter, and more structured – leaving legacy formats, and their limitations, behind. For corporate treasurers, this is a rare chance to rethink how data flows across treasury. And with the transition deadline set for November 2025 (for financial institutions using the SWIFT network), corporates must also prepare for a shift that enhances payment processing, cash visibility, and automation in reconciliation processes. Understanding the Key Differences Between MT and MX Messages ISO 20022 introduces a new generation of messages – commonly referred to as ‘MX’ in the SWIFT world. While MX is specific to SWIFT, the ISO 20022 standard is also being used in other payment systems globally, such as SEPA and domestic real-time payment schemes. MX messages offer a significant improvement over SWIFT’s traditional MT formats. Unlike text-based MT messages, MX messages use XML, which provides greater flexibility, enriched data fields, and improved interoperability. The structured data format (compare the two examples below by following the links) allows for more transparency, supporting Unicode and including structured addresses, Purpose Codes, and Legal Entity Identifiers (LEIs). Additionally, automation is significantly enhanced through Straight-Through Processing (STP), reducing manual interventions and errors. Message comparison – MX vs MT Example camt.053.001.02 – XML version Example MT940 This transition also improves cash visibility by enabling real-time transaction tracking and enriched remittance data that streamline reconciliation processes (see table for more details). Feature MT Messages MX Messages (ISO 20022 via SWIFT) Benefits of MX for Treasury Data structure & format Text-based, fixed-length fields XML-based, structured and flexible Easier integration, better machine readability Data capacity Limited Rich and extensible More detailed payment/remittance data Interoperability Proprietary to SWIFT Globally standardised (via ISO 20022) Easier cross-border and multi-bank integration Character set Latin-only (ASCII) Unicode (multi-language support) Handles global languages and special characters Flexibility Rigid and hard to adapt Flexible and extensible Easier to meet changing regulatory or business needs Efficiency Manual processing common Supports automation (STP) Reduces errors, lowers operational costs Cost Often higher due to manual steps Lower with automation Saves time and resources on reconciliation Information richness Limited field usage, often free text Structured fields (e.g. LEI, Purpose Code, structured address) Enables advanced reconciliation, analytics, and compliance checks The Business Impact: Faster Payments and Better Cash Management As the table outlines, ISO 20022 offers treasury teams a range of operational and strategic benefits that go beyond compliance. These include faster settlements, thanks to standardised, structured data helping to reduce delays in both domestic and cross-border payments. This cuts processing times from days to hours, or even minutes. Improved cash flow visibility can also be achieved as a result of enriched statement data (e.g. camt.053) which supports near real-time insights, enabling more accurate forecasting and reduced need for buffer reserves. In addition, liquidity management can be enhanced as a result. With better visibility and control, treasurers can optimise working capital and deploy cash more efficiently across entities. Elsewhere, smarter reconciliation can be achieved as detailed remittance and structured references reduce manual effort and speed up matching between bank statements and internal ledgers. And risk management can be improved, through the use of standardised identifiers like LEIs and Purpose Codes to help with screening, fraud detection, and audit trails. Finally, the richness of ISO 20022 messages enables true data-driven decision making, resulting in better analysis for investment planning, intercompany funding, and FX hedging. Why Acting Early Pays Dividends While corporates aren’t subject to a hard deadline for migrating to ISO 20022, there are some important changes on the horizon. For example, from November 2026, all international and SEPA payment instructions must include structured or semi-structured addresses for counterparties. Unstructured formats will no longer be supported, meaning that treasurers will need to ensure their ERP or TMS is ready to capture and transmit address data in the correct format. At a minimum, this includes fields like ISO country code and town name. So, although corporates can technically continue using MT101 files for now, forward-looking treasurers are already planning ahead. Migrating to ISO 20022 XML formats, including pain.001.001.09 (customer credit transfer initiation), ensures alignment with both regulatory expectations and operational best practices. This version supports enhanced data elements including LEIs, Unique End-to-End Transaction References (UETRs), and structured remittance fields, all of which help strengthen reconciliation processes and audit readiness. With most banks set to phase out MT messages by November 2025, relying on dual formats (MT and MX) beyond that point introduces additional operational complexity and risk. For treasury teams, early adoption is the best route to smoother operations, improved compliance, and better long-term efficiency. 5 Steps to Ensure a Smooth Migration To take advantage of the benefits on offer, it’s important to recognise that migrating to ISO 20022 is not just about systems upgrades. It requires a wider business transformation, too. Following a structured migration plan can help: Addressing Common Migration Challenges Despite the many benefits of ISO 20022, the path to full adoption isn’t without obstacles – especially for corporate treasurers who sit downstream of their banking partners’ progress. One of the biggest challenges is inconsistent adoption across the banking ecosystem. Not all banks are progressing at the same pace. Some may have already migrated to MX formats, while others continue to use legacy MT messages or apply temporary translation layers that convert ISO 20022 messages into MT formats. This creates data quality gaps, format inconsistencies, and a potential loss of enriched information during translation. To help mitigate these risks, treasurers can take a proactive and collaborative approach. For example, best practice suggests that treasury teams should engage early and often with banking partners to help smooth the migration. Ask relationship banks for a clear roadmap of their ISO 20022 implementation, including timelines, supported message types (e.g. camt.053, pain.001), and any interim conversion strategies. Understanding which banks are sending native MX and which ones use MT back-conversion will also be key to managing expectations. Assessing internal systems readiness is equally important. TMSs and ERPs, as…
Nordics and Estonia Develop Offline Card Payment Systems: A Wake-Up Call for Corporate Treasury
In response to recent undersea infrastructure damage and rising geopolitical tensions, Finland, Sweden, Norway, Denmark, and Estonia are making strides to develop offline card payment systems. This initiative aims to ensure uninterrupted payment capabilities during times when internet connectivity is compromised. Sweden, in particular, has set a deadline for implementing this system by July 1, 2026, for essential transactions, aiming to support outages lasting up to seven days. While this may seem like a necessary precaution in the face of unexpected internet disruptions, it also raises critical questions about how reliant we have become on digital payment infrastructure—and what this means for the world of corporate treasury. Why Are We So Dependent on Digital Payment Systems? Corporate treasury operations have become deeply intertwined with technology. From managing liquidity to handling payments and foreign exchange, everything today operates through highly integrated, tech-driven systems. As businesses scale and grow globally, online payments have streamlined processes, improved cash flow management, and reduced errors that might arise from traditional, paper-based systems. Technology allows companies to connect with banks and financial institutions across borders, using platforms that support real-time transactions, instant payments, and automated treasury management systems (TMS). However, as we place more trust in these systems, we also increase our vulnerability. A disruption to internet connectivity or technical glitches can cause immediate ripples throughout the business world. In fact, the pandemic showed us just how vulnerable we are when systems fail or become compromised. The dependency on tech-driven payment systems makes any disruption in connectivity a potentially catastrophic event for global businesses. The Risk of Being Too Reliant on Tech One key lesson to draw from the Nordic countries’ shift to offline card payments is the recognition of just how fragile our digital infrastructure can be. Financial institutions, payment systems, and even our everyday business functions are tied to internet connectivity. The reality is that without access to the internet, treasurers may find themselves unable to access funds, settle payments, or execute critical financial transactions. For corporate treasurers, this reliance creates a scenario in which liquidity management, treasury reporting, and cash flow forecasting could become severely compromised. For businesses, this means that disruptions could affect everything from employee payroll to vendor payments and even customer transactions. The possibility of a system downtime lasting hours—or even days—could severely hamper treasury functions, potentially leading to missed opportunities, delayed payments, or even lost business. Why Treasury Teams Should Pay Attention Corporate treasurers, responsible for ensuring smooth financial operations and managing cash flow across the business, are becoming increasingly aware of the growing reliance on digital systems. The need for operational resilience has never been more critical. These recent developments in the Nordics are a wake-up call, signaling that businesses must account for offline capabilities in their treasury and payment systems. Here are a few takeaways for treasurers: The Bigger Picture: Geopolitical and Infrastructure Risks The recent efforts by Nordic countries are not only driven by technological considerations but also by the broader geopolitical environment. Geopolitical tensions and infrastructure vulnerabilities, particularly in undersea cables, are increasing the potential for disruptions. Treasurers need to stay ahead of these risks by not only investing in backup systems but also by monitoring geopolitical developments that could impact their payment infrastructure. Conclusion As the world becomes more interconnected through digital systems, businesses must ensure that their treasury operations are resilient enough to handle disruptions. The efforts of the Nordics and Estonia to develop offline card payment systems should serve as a reminder of the importance of planning for system failures in an increasingly tech-dependent world. For corporate treasurers, the time has come to reassess risk management strategies and ensure that payment systems—both online and offline—are integrated and prepared for whatever disruptions may arise. In the end, the question is not just about building smarter, more efficient payment systems; it’s about preparing for the times when those systems fail, and ensuring that business continuity is maintained in every scenario. Also Read Join our Treasury Community Treasury Mastermind 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 to get more information. Notice: JavaScript is required for this content.
Leveraging Data for Treasury Decisions: A Single Source of Truth
This article is written by Treasury4 Treasury operations are more complex than ever before. Treasurers must deal with everything from cash and liquidity management to compliance and risk reduction—all across multiple global entities. Adding to these challenges is the issue of siloed data. With accounts across multiple banks, departments, and entities, treasurers are often tasked with tracking down, compiling, and comparing isolated data points. This task is time-consuming and can lead to data disparities, which can, in turn, limit the ability to make timely and accurate strategic decisions. To overcome these challenges, treasury teams need a unified data platform for all their various data. By integrating entity, cash, and banking information into one single source of truth, treasurers can gain comprehensive, real-time insights that reduce inefficiencies, allow for more agile, informed decision-making, and foster alignment with broader organizational goals. In this article, we’ll delve into the problems caused by siloed data, the value of a centralized platform, and the actionable steps to implement one effectively. Challenges of Siloed Data in Treasury Fragmented data systems remain a pervasive problem for treasurers—limiting their ability to manage operations effectively. The ripple effects of siloed data impact critical processes, from cash flow forecasting to compliance and risk mitigation. Common issues include: 1. Disconnected Data Sources Data silos typically result from the use of multiple standalone systems, such as ERP modules, bank portals, and entity-specific spreadsheets. For example, a multinational corporation might operate in dozens of countries, each with its own banking relationships and financial systems. Consolidating this scattered data manually can be an arduous and error-prone task, leading to incomplete or outdated reports, compliance issues, and other risks. 2. Inefficiencies and Inconsistencies The manual processes required to consolidate fragmented data can lead to significant bottlenecks. These inefficiencies are compounded when discrepancies arise between systems, such as mismatched transaction records or differing formats for cash flow data. 3. Limited Visibility Siloed data severely hampers the treasury team’s ability to gain a real-time view of cash positions, leaving them in a position to be reactive instead of proactive. This lack of visibility can lead to: The Concept of a Single Source of Truth To address these challenges, a centralized platform consolidates all treasury data into a single source of truth, providing a reliable, real-time view of the organization’s financial health. Having a single, integrated dataset enables treasury teams to: Key components include of a centralized data platform include: By leveraging centralized technology platforms like Treasury4, treasury teams can create a clear, accurate data flow, breaking down silos and ensuring all stakeholders operate with the same information. Benefits of Data Integration for Treasury Decisions Integrating siloed data into a single source of truth delivers several strategic advantages, including: 1. Enhanced cash visibility A unified platform provides a clear, real-time picture of cash positions across all entities and accounts. This visibility allows treasurers to: 2. Improved forecasting accuracy By integrating historical data with real-time insights, treasury teams can: For example, predictive analytics tools built into advanced platforms can analyze past trends to suggest actionable insights, such as identifying recurring cash flow patterns or potential shortfalls. 3. Streamlined compliance and reporting Compliance is an area where siloed data can cause significant risks. Integrated platforms simplify regulatory and internal reporting by: Treasurers can respond quickly to requests for information, saving time and reducing the risk of non-compliance. 4. Faster Decision-Making Treasury operations often require swift decisions, whether it’s seizing investment opportunities or addressing unexpected liquidity needs. By consolidating data, teams can: How Technology Enables Data Integration Modern technological solutions can give treasurers the tools to centralize data and automate processes. For instance, modern treasury management systems (TMS) like Treasury4 provide: Application programming interfaces (APIs) are critical to providing unified data. APIs connect separate systems in real time, allowing data integration across bank portals, ERP systems, and external compliance or investment tracking tools. Case study: How an integrated system transformed decision-making for one global organization For years, one $4 billion global enterprise relied on various spreadsheets to keep track of its entities spanning over 50 countries and its 150-plus bank accounts. These spreadsheets were often outdated, making it difficult to gain consistent, reliable insights from treasury data. The team needed a system to provide a single source of truth for their banking data, with a reliable audit trail. The team decided to adopt Entity4. Not only could it provide the treasury team with the system of record they needed, but it could also act as a single source of truth for other departments, including legal, tax, and more. After spending a quarter transitioning their spreadsheet data to Entity4, the finance team had access to accurate, reliable reporting on their banking data. The team now has full control over and visibility into their accounts—including the interactions and relationships between accounts—significantly reducing both operational and credit risk. Steps to Transition to a Single Source of Truth Shifting to a single, centralized platform requires a well-thought-out strategy to ensure a smooth transition. 1. Assess current data silos: Conduct a comprehensive audit to identify where data resides, who owns the data, and how data flows between systems. This step helps pinpoint gaps and inefficiencies. 2. Select the right platform: Choose a treasury management system that aligns with your organization’s needs. Consider compatibility with existing systems, real-time reporting and analytics capabilities, and scalability to accommodate your organization’s growth. 3. Foster cross-functional collaboration: Collaboration between treasury, IT, and finance teams is essential to align technology implementation with operational goals. Ensure all stakeholders are involved in decision-making and rollout plans. 4. Implement role-based access: Role-based access controls ensure secure sharing of data, enabling stakeholders to access relevant information without compromising sensitive data. Conclusion Siloed data can present a significant obstacle to treasury operations, creating delays, inefficiencies, and risks. Transitioning to a single source of truth transforms the treasury’s ability to manage cash, liquidity, and compliance. It enhances visibility and forecasting capabilities, allowing for easier compliance management and faster decision-making. Also Read Join our Treasury Community Treasury Masterminds is a community of professionals working in treasury management or…
Why was Treasury 2.0: Future-Proofing Finance with AIWritten and Why It Matters Now
In the treasury world, change is no longer a slow evolution. It’s a fast-moving reality. New technologies, shifting expectations, and global complexity are reshaping treasury’s role at a pace most traditional playbooks can’t keep up with. This is exactly why one of our Board Members, Bojan Belejkovski, wrote Treasury 2.0: Future-Proofing Finance with AI. The idea for Treasury 2.0 came from real-world frustration. Despite a wave of technology marketing across finance, treasury teams are often left behind. Even some of the largest technology vendors, when asked how their tools support treasury management, admit that their solutions focus mostly on accounting administration, not on the liquidity, risk, and cash management challenges treasury teams face daily. For too long, treasury professionals have had to rely on outdated materials focused on basics: treasury 101 guides, certification handbooks, or academic theory. Very few resources address the realities of treasury leadership today where AI, automation, and strategic agility aren’t future concepts, but daily necessities. What Treasury 2.0 Provides a Resolution To Treasury 2.0: Future-Proofing Finance with AI directly tackles the growing gap between what treasury professionals need and what traditional resources offer. The book doesn’t just outline the changes happening but it offers practical tools for navigating them. Readers will explore how AI can be used to automate cash forecasting, predict liquidity needs, manage risk in real time, and strengthen decision-making across treasury operations. In particular, the book introduces practical techniques for AI prompt engineering — a skill that can dramatically improve how treasury teams interact with and extract insights from AI-driven systems. The author, Bojan Belejkovski, spent months studying prompt engineering, testing approaches, and seeing firsthand how it increased the quality and accuracy of treasury-related work. This practical knowledge is distilled throughout the book to give readers a clear advantage as they adopt new technologies. Who Treasury 2.0 Is For? Treasury 2.0: Future-Proofing Finance with AI is written for treasury and finance professionals who understand that the old ways of working are no longer enough. It’s for practitioners who are ready to move beyond spreadsheets, static reports, and manual processes and who want to build treasury functions that are faster, smarter, and more resilient. Whether you’re a senior leader setting strategy or a practitioner managing day-to-day liquidity and risk, the book offers a framework for thriving in a world where AI and digital transformation are rewriting the rules of finance. Treasury 2.0: Future-Proofing Finance with AI is available on Amazon. To learn more and get your copy, visit https://a.co/d/a6lMujY today. Also Read Join our Treasury Community Treasury Mastermind 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 to get more information. Notice: JavaScript is required for this content.
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