Why SMB Finance Teams Don’t Need a Full Enterprise Treasury Management System
This article is a contribution from our partner, TreasuryView TL, DR Enterprise Treasury Management Systems (TMS) are designed for multinationals managing global cash pools, hundreds of bank accounts, and complex derivatives. For SMBs with €10M–€500M in loans, these systems are overbuilt, costly, and slow to implement. What SMB finance teams need is visibility, automation, and audit-ready reporting. Modern cloud solutions like TreasuryView provide the control and insights SMBs need in days, without the enterprise baggage. The Visibility Myth: Bigger, Entreprise Systems Aren’t Always Better When SMB finance teams begin struggling with Excel: manual reconciliations, version errors, and late-night reporting, many assume the next step is an enterprise TMS. These platforms promise total visibility across debt, liquidity, and risk. But visibility isn’t about the number of features; it’s about having the right features for your team size and complexity. For SMBs, enterprise solutions often add unnecessary cost and operational burden while still leaving day-to-day needs unmet. Why Enterprise TMS Doesn’t Fit SMB Needs 1. Costly Systems to Buy and Maintain for SMBs Enterprise TMS solutions are built and priced for global corporations. Licensing alone can run into hundreds of thousands of euros annually, with additional spend required for consultants, custom integrations, and ongoing IT support. All the investment and binding contracts also make it hard to leave the For SMBs managing €10M–€500M in loans, this level of overhead diverts capital away from growth and liquidity management. 2. Painfully Slow Implementation while SMB finance teams need solution fast Enterprise TMS deployments are notorious for being complex IT projects. A full rollout can take 6–12 months, requiring ERP integrations, vendor workshops, and training. During this time, reporting inefficiencies remain unsolved, often worsen. SMBs, however, need visibility today, not next year. With TreasuryView, onboarding takes less than a day with sign up less than <1 min, with no IT involvement. 3. Over-Engineered Treasury Features that SMBs Never Need/Use Enterprise systems shine in costly areas like cash management, payment management, and Liquidity Management – tools that few SMBs ever need. Most SMBs simply need a clear debt dashboard, automated maturity reporting, and accurate interest cost forecasting. Paying for advanced modules you’ll never use wastes both budget and team capacity, needless to tell the onboarding time that it saves and how more simple and intuitive software is to use. 4. Operational Burden Running an enterprise TMS requires specialized staff, hourse of training… For a lean SMB team, where the CFO and controller often wear multiple hats, this creates an impossible workload. In practice, many SMBs end up reverting back to Excel while their costly TMS sits underused. TreasuryView eliminates this friction with an intuitive, spreadsheet-like interface that requires no treasury expertise or IT background. Human support is always available for a quick call – no IT ticket and talking with AI. The SMB Finance Team’s Reality: Lean Teams, Complex Portfolios SMB finance teams face serious treasury challenges, especially since managing debt and treasury in spreadsheet, is risky: The real constraint isn’t sophistication — it’s time and bandwidth. Excel creates risk; enterprise TMS adds complexity. SMBs need the middle path: fit-for-purpose visibility without enterprise overhead. What SMBs Actually Need in a TMS Alternative The right treasury platform for SMBs should focus on essentials: These capabilities cover 95% of SMB treasury needs without the cost, delay, or operational burden of an enterprise TMS. When (Rarely) an Enterprise TMS Makes Sense An enterprise TMS may be justified if your company is: Conclusion: SMB Finance team, Don’t Overbuy Complexity! Enterprise TMS platforms are designed for multinationals with large treasury teams. SMBs need visibility, automation, and compliance without complexity. 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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The Role of Currency Management in the Ecosystem Economy
This article is written by Kantox As financial services are more and more embedded into platforms that provide a one-stop shop experience for clients, there are still gaps where currency management can bring great value. Discover the role of currency management in the realm of fintechs and how it can shape the ecosystem economy. The breakneck performance of leading technology stocks this year is widely attributed to macroeconomic factors such as receding inflation expectations and a pause in short-term interest rate increases in the United States. But here’s another possible explanation: investors are rallying —no pun intended— around the new Ecosystem Economy. This emerging ‘Ecosystem Economy’ is analysed in a book by Venkat Atluri & Miklós Dietz. The Ecosystem Economy. How to Lead in the New Age of Sectors without Borders. According to the authors, the barriers between traditional sectors of the economy are coming down. Instead, large platform companies are reorganising traditional sectors by focusing, like never before, on technology-empowered customers. These (impatient) consumers are now firmly in command. Wherever they go, they seek one-stop shopping experiences to satisfy their changing and ever-expanding needs. All in all, Atluri and Dietz estimate $80 trillion in revenue flowing to small, medium and large ecosystem players in the coming decade or so. This exciting scenario is filled with opportunities for fintech companies as they find their place in the new economic landscape. The emergence of global ecosystems Global ecosystems, according to the authors, will be centred around two types of needs. On the one hand, individual human needs will be addressed in areas like Travel, Home, Commerce, Talent, Mobility and Wealth. On the other hand, B2B services like SMEs and Enterprise services will also be targeted. The companies involved will act either as large ‘ecosystem orchestrators’ or as smaller partners/competitors. Take the so-called Home ecosystem. This area is already operating through platforms that include real estate and rental search engines and online services for inspection, appraisal, moving, renovation, legal issues, decoration and maintenance. Needless to say, this one-stop shopping experience is incomplete without financial services like financing and insurance. As financial services become embedded into most ecosystem platforms, a broad process of ‘fintechisation’ is gaining ground. It will only gather momentum. Astute participants will identify ‘ecosystem gaps’ and move to fill them. Here’s one such gap: currency management. Let’s analyse the role of currency management in this ecosystem economy that is taking shape. The role of currency management Consider the following ‘ecosystems’, and how automated currency management can help fintechs play a decisive role: Enterprise sector: Services to large companies encompass M&A, treasury management, treasury technology infrastructure, long-term funding, strategy consulting and risk management. ⇒ Potential FX-related improvement: in-house FX services to optimise currency management between headquarters/subsidiaries, including netting opportunities. Small and Medium-sized companies: Neobanks are serving the financial needs of micro-businesses and SMEs by offering business cards, invoice management, expense management and bookkeeping and recording. ⇒ Potential FX-related improvement: seamless FX markets operations in different currencies with easy implementation via APIs. Travel: Participants are scrambling to bring many different customer needs—flights, hotels, conferences, events, tickets and others—under one place. Increasingly, this involves embedded financial solutions like payments, insurance, rentals and financing. ⇒ Potential FX-related improvement: embedded SWIFT and SEPA international payments in dozens of currency pairs. Commerce: Retail purchasing needs are increasingly addressed through ‘buy now pay later’ (BNPL) solutions and digital marketplaces with goods and services offered in seamless packages of payments solutions, consumer loans and loyalty programmes. ⇒ Potential FX-related improvement: guaranteed FX markets rates during predetermined time lapses. A broad reorganisation There are, quite obviously, a number of risks involved in the emerging global ecosystem economy. One such risk stems from unnerving geopolitical developments and their potential implications in terms of ‘de-risking’, supply chain disruption and broad changes in the regulatory environment. If, however, the business reorganisation centred around the customer proceeds along the lines suggested by the authors of the Ecosystem Economy, there would be opportunities for fintech companies to cover the financial aspects of the immense range of offerings that will be on display. And, like it or not, we live in a multi-currency world. In other words, ‘fintechisation’ goes hand in hand with automated currency management solutions.The time to act is now. 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 to get more information. Notice: JavaScript is required for this content.
The Stablecoin Reality Check: Unlocking Liquidity or Just Relocating the Traps?
Written by Sharyn Tan (Views are my own) In the ever-evolving world of finance, stablecoins have emerged as a beacon of hope for revolutionizing payments and liquidity management. Often touted as the “future of money,” these digital assets pegged to fiat currencies like the US dollar promise to bridge the gap between traditional finance and the blockchain era. But from a treasurer’s perspective, the burning question remains: Do stablecoins truly unlock stuck liquidity, making capital more accessible and efficient, or do they merely accelerate its movement while shifting where it gets stuck? This debate isn’t just academic—it’s central to how corporations manage working capital in a globalized, 24/7 economy. Let’s dive deeper. Stablecoins, such as USDT, USDC, and newer entrants like PYUSD backed by regulated institutions, are designed to maintain a stable value, making them ideal for transactions without the volatility of cryptocurrencies like Bitcoin. Their growth has been explosive: as of late 2025, the total market capitalization of stablecoins has surpassed $300 billion, with daily trading volumes often rivaling those of major fiat currencies. Proponents argue they represent a seismic shift in settlement infrastructure, offering always-on availability, blockchain transparency, and smart contract programmability—features that traditional banking rails, like SWIFT or ACH, have struggled to combine effectively. From a treasurer’s lens, this sounds transformative. Imagine a world where cross-border payments settle in seconds rather than days, reducing the infamous “float” that ties up billions in corporate treasuries annually. Stablecoins could minimize prefunding requirements, where companies must hold excess cash in accounts to cover potential delays or failures in transactions. Real-time visibility across markets would allow treasurers to optimize cash positions dynamically, turning payments into a strategic tool for liquidity management rather than a mere operational chore. In surveys of banking professionals, faster settlements rank as the top benefit of stablecoin adoption, cited by nearly half of respondents, followed closely by improved liquidity access. But here’s where the debate heats up: Are stablecoins genuinely freeing liquidity from its traditional traps, or are they just relocating those traps to new silos within the crypto ecosystem? The Case for Unlocking Liquidity: A Revolution in Motion On the optimistic side, stablecoins are seen as “better money” that enhances velocity—the speed at which capital circulates through the economy. Unlike bank deposits, which are often locked in low-yield accounts or subject to banking hours and holidays, stablecoins operate on decentralized networks that never sleep. This always-on nature can unlock trillions in “stuck” assets, such as those in real-world asset (RWA) tokenization, where illiquid properties or commodities become tradable fractions on-chain. For treasurers, this could mean pooling cash across borders without the friction of currency conversions, where regulatory permitted, boosting capital efficiency and reducing exposure to float risk. Stablecoins, integrated with payment platforms, enable real-time settlements using on-chain liquidity, where collateral like RWAs or yield-bearing assets keeps earning returns even while in use. This “split-yield” architecture, as seen in innovative protocols like STBL, separates principal from returns, ensuring liquidity isn’t sacrificed for yield. In DeFi applications, stablecoins provide the backbone for lending and borrowing, where AI-driven agents can automate arbitrage, routing, and yield allocation, turning idle capital into productive assets. Moreover, with regulated players like J.P. Morgan, Citibank and PineBridge entering the space, stablecoins are gaining treasury-grade compliance, making them viable for institutional use. This could lead to a “liquidity revolution,” where stablecoins not only speed up money but make it smarter, integrating with broader strategies like tokenized treasuries or possibly even government-backed digital stimuli. As some experts suggest, their real value lies in the opportunities for creating complementary business models that export digital dollars globally, enhancing sovereignty and credit creation. The Counterargument: Just Moving the Traps Faster Skeptics, however, argue that stablecoins don’t unlock liquidity—they simply relocate where it gets trapped, often in opaque or fragmented ecosystems. While they promise daily liquidity, many are backed by assets that aren’t always easily sold, echoing the risks of uninsured bank deposits. Historical parallels to national bank notes from the 19th century highlight this: stablecoins, like those notes, rely on issuer credibility, but without universal deposit insurance or capital buffers, they can amplify systemic risks during market stress. Interoperability remains a major hurdle. Liquidity in stablecoins is often siloed within specific blockchains or protocols, requiring bridges or swaps that introduce fees, delays, and counterparty risks—essentially recreating the prefunding traps of traditional finance but in a digital guise. For instance, while DeFi liquidity pools sound innovative, they’ve seen massive outflows when incentives dry up, with LP tokens rotating into other assets but not truly freeing capital for real-world use. Regulatory uncertainties add another layer: in jurisdictions without clear frameworks, stablecoins can trap liquidity in compliance limbo, limiting their scalability. Critics also point out that stablecoins’ current scale isn’t sufficient to drive broad market movements, with turnover still dwarfed by fiat systems. In treasury contexts, holding stablecoins might benchmark well against operations checklists for execution and routing, but it doesn’t eliminate the need for traditional buffers against volatility or redemption runs. A Treasurer’s Balanced Take: From Experiment to Operational Model As treasurers, we must navigate this debate pragmatically. Stablecoins aren’t a cure-all, but they offer tools for smarter liquidity when integrated thoughtfully. Start by assessing how they fit into your working capital strategy: Use them for high-frequency, low-value payments to test waters, then scale to other treasury operations like yield-optimized holdings or RWA-backed lending. The key is diversification—don’t let liquidity get trapped in one ecosystem; leverage multichain protocols for seamless flow. The exciting developments? With confidential smart contracts and AI agents enhancing privacy and automation, stablecoins are evolving beyond mere efficiency tools. Regulated innovations could tip the scales toward a true revolution, especially if they address the traps through better compliance and liquidity routing. So, what’s your view? Are stablecoins just an efficiency tweak, relocating liquidity traps at higher speeds, or the dawn of a liquidity revolution that frees capital for good? Lorena Pérez Sandroni, Treasury Masterminds Board Member, Comments Stablecoins in my opinion are more than an efficiency tweak. They solve real pain points:speed, transparency, programmability . But they also introduce new…
Why Financial Services Remain Frustratingly Hard to Navigate: A 30-Year Perspective
This article is written by HedgeFlows After three decades of watching both corporate and personal financial services, I’m convinced the fundamental problems haven’t changed — they’ve just gotten more sophisticated at hiding behind better interfaces. Last month, I watched a seasoned CFO of a £50M revenue company spend hours trying to understand whether they should hedge their Euro exposure. Despite running a financially sophisticated business, they couldn’t get straight answers from their bank about costs, timing, or even whether hedging made sense for their specific situation. The bank’s solution? A generic presentation about FX products and a suggestion to “start small and see how it goes.” This isn’t an isolated incident. It’s the norm. The Information Asymmetry Problem After 30 years of observing financial services from multiple angles—as a user, advisor, and now as someone building solutions—I’ve identified a fundamental issue that affects everyone from individual investors to mid-market companies: pervasive information asymmetry. Providers Don’t Really Know Their Customers Financial services providers excel at collecting historical data. They know what you’ve done, where you’ve banked, what products you’ve bought. But they’re remarkably poor at understanding what you’re trying to achieve or what challenges you’re facing next quarter, next year, or in the next phase of your business growth. This backward-looking lens means their “solutions” are often responses to problems you had yesterday, not the ones keeping you awake tonight. Customers Can’t Navigate the Complexity On the flip side, most companies—especially those outside the Fortune 500 or FTSE 100—simply can’t afford to have specialists in every area of finance. The CFO of a growing tech company might be brilliant at financial planning and fundraising, but they’re not necessarily experts in FX hedging, trade finance, or treasury optimization. This creates a knowledge gap that providers should fill but rarely do. Instead, they assume you know what you need and simply present options rather than guidance. The Transaction-First Mentality As a direct result of these information asymmetries, financial services have evolved into transaction machines rather than outcome optimizers. Banks sell FX products, not FX risk management strategies. Investment platforms sell access to markets, not investment success. The conversation typically goes: “Here are our FX hedging products” rather than “Let’s understand your business cycle, cash flow patterns, and risk tolerance, then design an approach that makes sense for you.” The Personal Finance Mirror These same dynamics play out in personal financial services, though this area is slowly improving. We’re seeing better apps, more intuitive interfaces, and wider access to investment products that were previously institutional-only. But even here, the improvement is mostly about democratising transactions rather than improving outcomes. Retail investors now have access to options trading, cryptocurrency, and complex ETFs — but are they getting better investment results? Are they making more informed decisions? Often, no. The focus remains on giving people more ways to trade rather than helping them achieve their actual financial goals: retirement security, home ownership, education funding, or wealth preservation. Why This Matters More Than Ever In today’s economic environment, the cost of financial services complexity has never been higher: Mid-market companies are particularly squeezed. They’re too sophisticated for basic banking products but not large enough to justify the white-glove treatment that major corporations receive. They’re stuck in the middle, often making suboptimal financial decisions not because they’re not smart enough, but because they don’t have access to the right information and guidance. The Path Forward The solution isn’t more products or better marketing. It’s fundamentally restructuring how financial services think about customer relationships. Instead of asking “What products can we sell this customer?” the question should be “What outcomes is this customer trying to achieve, and how can we help them get there?” This requires: 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 to get more information. Notice: JavaScript is required for this content.
In-House Banks and Cash Pooling: Why They’re the Hot Treasury Topic of 2025
From Treasury Masterminds If there’s one thing 2025 has made crystal clear, it’s that treasurers are done letting cash collect dust across dozens of accounts and entities. The conversation has shifted fast; from fragmented liquidity management to full-scale internal banking. In-house banks (IHBs) and cash pooling structures are no longer just “nice-to-have efficiency tools.” They’re becoming the backbone of how modern treasury teams centralize control, cut costs, and unlock liquidity. For years, the idea of a global cash pool or internal funding hub was a sort of corporate myth, talked about in every strategy deck but rarely executed at scale. That’s changing. The pressure of higher rates, FX volatility, and stricter bank regulations has forced treasurers to rethink liquidity management from the ground up. Every trapped dollar now carries a cost, every local bank relationship a layer of friction. So why are in-house banks the hot topic this year? Because technology, regulation, and business necessity have finally aligned. And there’s more than one way to build one. The Spectrum of In-House Banking Models No two in-house banks look the same. They evolve, step by step, as a company matures in its centralization journey. Here’s how that typically plays out: 1. Netting Centers – The First Step to Efficiency Many treasurers start with a netting center, essentially a clearing hub for intercompany invoices. Instead of subsidiaries paying each other across borders (and triggering FX costs and transaction fees every time), netting allows all positions to be offset periodically, say monthly, so only the net amount is paid or received.It’s simple, saves on fees, and reduces exposure to currency fluctuations. But it’s also the warm-up act—the first taste of centralization without major legal or accounting changes. 2. Cash Pooling – Centralizing Liquidity Next comes cash pooling. Whether physical or notional, it’s where treasurers start to actually bring balances together. In 2025, hybrid models are gaining traction, especially with multi-bank connectivity solutions that allow treasurers to manage pools across regions and banks in near real-time. The incentive is clear: maximize liquidity utilization, minimize idle cash, and make intercompany funding more efficient. 3. Intercompany Funding & Treasury Centers – Acting Like a Bank Once pooling is in place, many treasuries evolve into internal lenders. An in-house bank starts to function as a genuine intermediary: managing intercompany loans, FX transactions, and interest settlements.Subsidiaries borrow from or deposit with the IHB, rather than external banks. It reduces group-level borrowing, cuts down on transaction costs, and creates full transparency into cash positions.At this stage, treasury isn’t just managing cash, it’s actively steering group funding strategy. 4. Full POBO/ROBO – The Treasury Power Play At the top of the maturity curve sits the full in-house bank, complete with Payments-on-Behalf-Of (POBO) and Receivables-on-Behalf-Of (ROBO) structures. These models require robust TMS connectivity, legal clarity, and banking integration but the payoff is massive. You get true end-to-end visibility, centralized control, and a reduced external banking footprint. It’s not just operational efficiency; it’s strategic transformation. Why 2025 Is the Perfect Storm A few years ago, many corporates were hesitant to pursue full IHBs because of the technical, legal, and compliance hurdles. In 2025, that’s no longer a valid excuse. APIs, ISO20022, and cloud-based treasury platforms like Cobase have made global integration not only possible but surprisingly manageable. Combine that with a macro environment that rewards every basis point of liquidity optimization, and suddenly, in-house banking isn’t futuristic; it’s pragmatic. Treasury teams are realizing that the true value of IHBs and cash pooling lies in control: Want to learn how to actually build it? Join us next Monday, November 24 at 13:00 CET, for our Treasury Masterminds webinar with Cobase: “In-House Banking & Cash Pooling: Centralizing Liquidity for a Smarter Treasury.” Hear from treasurers and system experts who’ve designed, implemented, and optimized in-house banks and cash pools at scale. Expect practical examples, technology insights, and plenty of “lessons learned” from the real world. 🎙️ Host: Treasury Masterminds💬 Sponsor: Cobase🕒 Duration: 45 minutes + live Q&A 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.
From ledgers to the cloud: the evolution of treasury management systems
This article is written by Embat For many years, corporate treasurers relied on a mix of manual processes and fragmented systems to manage cash, liquidity and financial risk. Over the last two decades, the landscape of Treasury Management Systems (TMS) has evolved significantly, moving from simple spreadsheet-based workflows to sophisticated real-time API integrations. In this article, we explore the history of TMS and how technology has transformed treasury operations. The early days: manual bank uploads and reconciliation In the past, treasury professionals had to download bank statements manually from different banking portals and then upload them into their ERP or treasury software. The “system” consisted of manual bank uploads, often using CSV files, with limited digital processes. This was time-consuming, prone to errors and offered little real-time visibility. Some key challenges included: To address these inefficiencies, companies began using basic treasury management software that could ingest bank statement files in formats such as MT940 (SWIFT), BAI2 or CSV to automate reconciliation. The rise of host-to-host (H2H) and SWIFT connectivity As companies expanded and treasury functions became more sophisticated, the need for more automated data exchange led to the adoption of host-to-host (H2H) connections and SWIFT connectivity. Initially, large corporations established direct file-based connections with their banks to receive bank statements and send bulk payment files securely in a system known as host-to-host. This removed the need for manual downloads but remained batch-based and required significant IT involvement. Meanwhile, the Society for Worldwide Interbank Financial Telecommunication (SWIFT) introduced a standardised messaging framework, enabling treasurers to receive consolidated bank statements from multiple banks through a single channel. While H2H and SWIFT were major advancements, they still had limitations in terms of real-time data access and flexibility. The API revolution: real-time treasury connectivity The latest wave of treasury innovation is being driven by APIs (application programming interfaces), enabling real-time, on-demand connectivity between banks, ERPs and Treasury Management Systems. With APIs, finance teams can retrieve bank balances and transactions in real time. With APIs, finance teams can: Regulatory changes, such as the revised Payment Services Directive (PSD2) in Europe, have played a crucial role in accelerating the adoption of open banking APIs. By mandating banks to provide secure API access to account data, PSD2 has improved transparency, enabled faster transactions and ultimately delivered more efficient treasury operations. The future of treasury management As APIs become the new standard, the future of treasury lies in fully integrated ecosystems, where Treasury Management Systems, ERPs and banking partners communicate seamlessly. Emerging trends include AI, blockchain and embedded finance. Emerging trends include: Conclusion From manual bank uploads to API-driven real-time connectivity, the evolution of Treasury Management Systems reflects the growing demand for efficiency, accuracy and strategic insight in corporate treasury. As technology continues to advance, treasurers will have even greater control over liquidity, risk management and financial decision-making. 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.
Predictive Cash Forecasting: Why It’s Worth the Switch — And How to Get CFO Buy-In
This article is written by Treasury4 There’s a real shift happening right now in the treasury world— moving from legacy cash forecasting tools (built for static reporting) to predictive platforms (built for live, dynamic decision-making). This is about protecting liquidity, strengthening risk posture, and giving treasury a bigger seat at the strategy table. tl;dr: What Are the Benefits of Predictive Cash Forecasting vs. Legacy Tools? If forecasting feels too slow, too manual, or too disconnected — this is worth your scroll. So if you’re wondering whether switching is worth it or how to make the case to your CFO, here’s a real-world look at why it’s the smart move. Why Legacy Cash Forecasting Tools Are Struggling Most traditional treasury systems — Kyriba, HighRadius, Anaplan, even major ERPs — were built in a different era of treasury. An era where: Some of today’s leading platforms are good at cash positioning — but less effective at helping you answer critical forward-looking questions like: Legacy systems weren’t designed for real-time scenario planning or predictive adjustments based on operational signals. They can tell you where you are, but they struggle to tell you where you’re headed. What Predictive Cash Forecasting Brings to the Table 1. Scenario Planning That’s Actually Fun (Yes, Really) Remember when building a cash scenario meant creating six versions of the same spreadsheet, half of which had broken links? Good times. Modern platforms make scenario planning a completely different experience. You can tweak assumptions, move sliders, and instantly see the effects. It’s a bit like those old “choose your own adventure” books — except instead of getting eaten by a dragon, you’re mapping out how to extend your cash runway by sixty days. Wondering what happens if receivables slow down in Europe or if your next acquisition closes early? Test it in minutes. Build, compare, tweak again. It’s flexible, fast, and — dare we say it — kind of satisfying. 2. Always-On Forecasting With Real-Time Signals Modern treasury solutions treat forecasting more like a living, breathing thing. They pull in real-time signals — like billing cycle shifts, sales pipeline updates, and receivables trends — to keep the forecast evolving naturally. Instead of asking, “Where were we last month?” you’re answering, “Where are we going next?” It’s the difference between checking a weather report from last week versus looking out the window right now. For practitioners who work fluently across business intelligence platforms and structured datasets, automated forecasting and trend analysis opens an even bigger door. Treasury teams can solve unstructured problems faster, running real-world scenario simulations that don’t just report the past — they support proactive planning, risk modeling, and better alignment with executive strategies. For a broader industry take on how predictive analytics is shaping the future of cash flow forecasting, this overview shows how AI is being applied to forecasting processes and how to adopt it to increase accuracy and decision-making speed. 3. Open Data Architecture That Doesn’t Box You In In the past, accessing treasury data often meant delays, limitations, and disconnected systems. Today’s cash and treasury platforms are built on open, flexible architecture, where data moves both ways — easily pushed, pulled, enriched, and reused wherever it’s needed. Teams gain fast access to reliable information, with full visibility across systems, entities, and timeframes. Everything talks to everything else: ERPs, TMS platforms, CRM systems, banking feeds. No more rigid data bottlenecks, and definitely no more locked-in silos. Modern platforms are designed to meet treasury experts where they already live — across trusted analytics environments and reporting systems. That means pre-built visualizations, direct access to curated treasury datasets, and scalable architecture that grows alongside your needs, not against them. 4. Treasury-Led Reporting (No Service Tickets Required) Waiting three weeks for IT to run a report you needed yesterday? That’s a story for the grandkids. Modern treasury and cash solutions put curated data and intuitive templates directly in your hands, so you can build what you need when you need it. Want to build a dashboard showing cash forecasts across all entities? Use preconfigured templates to filter by entity, currency, or region, and publish views for finance and executive teams in minutes. Need to model a new debt facility or funding round? Adjust the inputs directly—no need to submit a request or wait for engineering. Treasury teams can access curated datasets, update parameters, and generate updated reports in real time, all from the same interface. 5. Direct Cash Flow Statements, Built for Complex Companies Running treasury for one company is tough enough. Add multiple subsidiaries, acquisitions, and cross-border operations, and things can get messy fast. Modern cash and treasury platforms are ready for that. They offer direct cash flow statements with hierarchical structures that naturally align to accounting standards, so you’re not reinventing the wheel every time a new entity joins the fold. For private equity-backed firms, high-growth companies, or multinational groups, this kind of structure makes a world of difference. You stay organized, confident, and ready to answer when leadership says, “Can you show me cash flows broken down by business unit?” without breaking a sweat. 6. Liquidity Tiering: Seeing Cash in Full Color Not all cash is created equal. Some are locked behind covenants, some tied to subsidiaries, and some ready for deployment tomorrow. Modern treasury platforms bring liquidity tiering into the spotlight, giving clear, layered views of cash across restricted, committed, and available categories. Instead of guessing at how much working capital you really have on hand, you see it clearly. You can support long-term planning, smarter investment timing, and better capital allocation without spinning up a dozen side spreadsheets. It’s the financial equivalent of finally getting a color-coded map after years of navigating with a grayscale printout. How It All Ties Together: Treasury-Led Growth Modern treasury and cash platforms give us a completely different way of operating. When you have real-time data flowing freely, forecasting that evolves automatically, and the ability to test big strategic moves instantly, treasury becomes a strategic growth engine. You’re not…
APIs Are a Digital Foundation: Why Adoption Is “When,” Not “If”
Written by Macer Skeels, CTO, FinanceKey Introduction Anyone who claims that APIs are just hype does not understand them. The truth is, APIs are already embedded into the digital fabric of the tech world. While marketing has overused the term, and repeatedly overpromised the benefits, this has led many to dismiss APIs as buzzwords and hype. Don’t be fooled: APIs remain one of the most powerful technological foundations any organisation can invest in. In a previous Treasury Masterminds Contrarian View article, I argued that API adoption in the Treasury domain isn’t a matter of if, but when. In this article, I will reinforce that argument and explain why APIs have been so successful in transforming the tech landscape. The Rise of the API In 2002, Jeff Bezos issued an internal memo to all Amazon engineering teams mandating that system-to-system communication should occur exclusively via service interfaces, regardless of the language or technology. Allegedly, the memo concluded that anyone failing to comply would be terminated. This directive became known as the Bezos API mandate. Prior to this, Amazon’s systems were tightly coupled. They relied on a single monolithic codebase where every team touched the same database- The result: long, slow and painful release cycles. Within a few years, not only were Amazon’s systems transformed, but the company had fundamentally changed. From a retail company with a messy tech stack, Amazon became a leading technology company structured around hundreds of ‘two-pizza teams’ and dozens of business lines. The tech shift was so influential that it became a template for other technology giants: Google used it as a model for internal API initiatives and Netflix used it as inspiration for its microservice migration. Today, API-first is the default in Software architecture and business model designs. The Assembly Line Parallels. To understand why APIs are so powerful, it helps to look at the parallels in manufacturing. Following World War II, Japan faced chronic shortages of capital and equipment. In response to these challenges, Toyota engineer Taiichi Ohno developed two philosophies that would allow the company to extract the maximum value from each component, machine and employee. 1. Kaizen – “Continuous Improvement”Kaizen emphasizes small, incremental improvements rather than large-scale initiatives. Every employee contributes to the process and improvements compound over time. Toyota implements over 1,000,000 new improvements each year, most of which originate from factory floor workers. By comparison, Western factories often implement 100 times fewer improvements annually. 2. Just in Time (JIT)JIT is a production strategy that eliminates waste (“muda”) by reducing overproduction, wait times and excess inventory. It ensures inventory costs are minimized by producing the right quantities, at the right place, at the right time. Beyond cost savings, JIT improves agility and responsiveness. When Harley-Davidson was restructured following a leveraged buyout in the 1980s, JIT was implemented as part of an operational overhaul. The results were striking: inventory fell 75%, annual inventory turnover ratio rose from 2 to 17, product defects dropped and production costs decreased. The Conditions behind JIT and Kaizen Both JIT and Kaizen depend on three underlying conditions naturally supported by assembly lines: While these conditions are inherent to manufacturing, modern digital systems built on APIs can replicate them: APIs are, in effect, digital assembly lines. They standardise workflows, remove friction between steps and keep work moving smoothly across teams and partners. This is the same kind of transformation that made the Toyota Production System and Lean manufacturing such game-changers. By adopting API-first principles, Treasurers can replicate the efficiency, agility and continuous improvement once reserved for the factory floor. APIs in Treasury For Treasurers, success is measured in cash, risk and control. APIs unlock tangible business outcomes: The key is to measure outcomes with the same rigor once applied to manufacturing throughput and waste reduction. Establish baselines before adoption, track improvements in liquidity efficiency, decision speed and exception rates, and foster a culture of experimentation. Small failures should be embraced as learning opportunities, not setbacks. Expressed as basis points saved, days of liquidity released or reductions in operational breaks, these measures resonate with CFOs and boards, framing APIs as a Treasury performance driver rather than just a technical upgrade. Conclusion Treasury is at a crossroads. The shift to APIs is not merely a technical upgrade, it’s a strategic transformation akin to moving from manual ledgers to ERP systems or from paper-based trading to electronic platforms. Organisations embracing API-first principles will unlock faster decisions, leaner operations and tighter financial control. APIs bring Lean principles to data: eliminating digital waste, accelerating insights and enabling real-time operations. This isn’t about future-proofing, it’s about present performance. The question is no longer if Treasury should adopt APIs, but how fast. Start small, map processes, identify friction and build the digital assembly lines that will power tomorrow’s Treasury. The opportunity is clear. The tools are ready. The time is now. References Notice: JavaScript is required for this content.
Essential Treasury KPIs: How to Track and Automate Metrics for Success
This article is written by our partner, Nilus If you’re leading treasury or finance at a growing company, chances are you’ve asked yourself: “Why are our forecasts always off?” “Where exactly is our cash today?” “How do we prove we’re managing risk, not just tracking it?” These aren’t just workflow hiccups, they’re strategic blind spots. And the root cause is often the same: poor visibility into the right metrics. Treasury KPIs are the instruments that transform financial uncertainty into clarity. When chosen thoughtfully and tracked consistently, they help you avoid liquidity shocks, strengthen decision-making, and communicate performance clearly across the business. In this guide, we’ll walk through the essential KPIs every treasury team should monitor, how to tailor them to your business, and how automation tools like Nilus can make real-time, accurate tracking not only possible but painless. Key Takeaways Why Treasury KPIs Are Critical for Confident Decision-Making In today’s fast-paced financial environment, treasury teams must respond to volatility, regulatory shifts, and real-time data demands across regions and systems. The ability to track the right KPIs isn’t just helpful, it’s essential for staying in control. Think of KPIs as your financial radar: they help you anticipate issues before they escalate, whether it’s a looming liquidity crunch, unexpected FX exposure, or inaccurate cash forecasts. Without them, decision-making becomes reactive, delayed, and risk-prone. That’s where automated, AI-powered systems like Nilus come in. By replacing spreadsheets with dynamic dashboards, treasury teams can monitor metrics in real time, uncover trends early, and move from firefighting to forward planning. What Are Treasury KPIs and Why Do They Matter? Treasury KPIs are quantifiable metrics used to evaluate the performance, risk posture, and strategic effectiveness of a company’s treasury function. At their core, treasury KPIs answer four fundamental questions: These KPIs span multiple categories: In practice, treasury KPIs also serve as the connective tissue between finance operations and executive decision-making. They help CFOs and treasurers explain financial performance to boards, secure favorable financing terms, or make the case for capital investments. And in high-stakes moments, like a sudden drop in revenue or a market shock, they become the first tools decision-makers reach for. Without treasury KPIs, financial leaders are flying blind. With them, they’re equipped with precision navigation for today’s complex and fast-paced business terrain. So let’s dive into the exact indicators you should be tracking. Treasury KPIs Every Finance Team Should Track Cash & Liquidity Management KPIs Days Cash on HandThis measures how many days your business can continue operating with the cash it currently has. It’s like checking your fuel tank before a road trip. Too low, and you’re running on fumes; too high, and you may be hoarding idle cash that could be invested more productively. Global Target Balance vs. ActualThis metric tells you if you’re optimizing liquidity across regions. If your target is $50M in APAC and you’re sitting on $100M, you’re not putting that money to work. If it’s only $10M, you’re at risk. Daily Cash Balance Variance vs ForecastForecasts are your financial weather report. This KPI shows you how close your predictions are to actual outcomes. Regular misses signal deeper issues, perhaps flawed assumptions or delayed data inputs. Non-Interest-Bearing Cash %Cash sitting in non-interest-bearing accounts is like a car idling in neutral for hours on end. You’re burning opportunity. This KPI helps you identify cash that could be better allocated toward high-yield accounts or short-term investments. Investment & Debt KPIs Debt-to-Equity RatioThis ratio reflects the proportion of company financing coming from debt versus equity. A higher ratio means more leverage, which might amplify returns but also increases risk. Cost of Debt (Pre-/Post-Tax)Understanding your borrowing cost helps determine whether financing is being used efficiently. Pre-tax and post-tax views offer insight into how tax structures affect your actual cost of capital. Debt Service Coverage Ratio (DSCR)This indicates your ability to service debt using operating income. A DSCR under 1.0 means you’re not generating enough to cover obligations, a red flag for lenders and credit analysts. Weighted Average Cost of Capital (WACC)WACC is the average rate a company expects to pay to finance its assets. It’s a critical benchmark: if your investment returns aren’t exceeding your WACC, you’re not creating value. Risk & Operational Resilience KPIs Interest Rate Risk ExposureMeasures sensitivity to changes in interest rates. If your debt portfolio is heavily floating-rate, a rate hike could spike your financing costs. Currency RiskCompanies operating across borders face FX volatility. This KPI captures your exposure and helps determine if hedging strategies are sufficient. Liquidity Risk IndexThis tracks your ability to meet short-term obligations without disrupting operations. Think of it as a stress test: what happens if customer payments are delayed or credit lines tighten? Cash Flow Forecast Accuracy (%)A core operational KPI. If your forecasts are consistently off, it signals weaknesses in process or data quality. High accuracy builds confidence in treasury’s strategic value. How to Choose the Right KPIs for Your Treasury Department Choosing the right treasury KPIs is less about picking from a universal checklist and more about strategic alignment. Like tailoring a suit, the ideal KPI framework fits your organization’s structure, industry, and goals. Here are key principles to guide your selection: 1. Start With Strategic Objectives Think of KPIs as tools to measure progress toward a goal. If your treasury strategy emphasizes liquidity optimization, focus on KPIs like Days Cash on Hand or Net Cash Flow. If debt reduction is the priority, metrics like DSCR and Cost of Debt should take center stage. 2. Match Metrics to Maturity A startup scaling rapidly will need different KPIs than a mature enterprise with global operations. Early-stage companies may track burn rate or short-term cash runway, while more established firms benefit from WACC, FX risk exposure, and capital allocation efficiency. 3. Factor in Operational Complexity Do you operate across multiple currencies or regions? You’ll need to include currency risk and regional cash position metrics. Is your company highly seasonal? Then forecast variance and scenario planning KPIs become more important. 4. Think in Time Horizons Short-term KPIs…