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…
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The Stablecoin Risk Nobody Talks About
Inspired by the Bank Policy Institute’s November 2025 analysis Stablecoins were meant to make payments faster, cheaper, and smoother. A digital token pegged to the U.S. dollar—how complicated could that be? But if you look at what the Bank Policy Institute (BPI) and U.S. regulators are saying lately, the so-called “safe” coins might be anything but. For treasurers, that matters. Because stablecoins aren’t just a crypto curiosity anymore—they’re creeping into settlement infrastructure, fintech rails, and bank-tech partnerships. The question isn’t if they touch your world, but how much risk they drag along when they do. The Stable Promise, the Fragile Reality The U.S. “GENIUS Act” (yes, someone actually called it that) is supposed to give stablecoins a legal and supervisory framework. It requires issuers to fully back tokens with high-quality liquid assets and redeem them on demand. On paper, that looks like the kind of regulation treasurers could live with. But paper isn’t balance-sheet reality. Even fully backed stablecoins can stumble if their reserves lose value or redemptions get messy. In other words, they can “break the buck” just like a money-market fund. The BPI highlights that risk clearly: the peg is a promise, not a guarantee. DeFi: The Wild West of Liquidity Here’s where it gets more interesting. Many stablecoins end up circulating on decentralised finance (DeFi) platforms—an unregulated playground that looks like a banking system with none of the adult supervision. Stablecoins are borrowed, leveraged, re-lent, and rehypothecated across multiple chains. When that loop breaks, liquidity disappears overnight. The risk doesn’t stay in DeFi—it seeps into payment networks, custodians, and even fintechs connecting to corporate treasuries. It’s a classic contagion problem in a new wrapper. Why Treasurers Should Care Most treasurers won’t touch stablecoins directly. But here’s the catch: your payment provider, your ERP, or your fintech partner might. And that means you’re exposed whether you like it or not. Think about it this way: You don’t need to be holding stablecoins to get splashed by their problems. What Regulators Are Worried About The BPI’s latest note reads like a polite but firm warning to lawmakers: the GENIUS Act could backfire if implemented too loosely. Their key points: Translation: regulators see what’s coming, and it looks suspiciously like a parallel financial system. What This Means for Corporate Treasury For treasurers, this is not about betting on blockchain. It’s about protecting liquidity and ensuring continuity in a financial system that’s quietly changing shape. Final Thought Stablecoins could still change how money moves—24/7, borderless, programmable. The opportunity is real, but so is the need for discipline. For treasurers, the advantage goes to those who prepare before the market standard shifts. The future of payments might not belong to whoever adopts stablecoins first, but to whoever understands their risks best. 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.
Why your business needs an in-house Bank today
This article is written by Nomentia If you’re managing 200+ bank accounts across 12 countries with a spreadsheet and goodwill, you’re not alone. But you are doing it wrong. You’re losing control. And you know it. Every late close, every FX surprise, every “where’s the cash?” email from your CFO is a symptom of a system that’s outgrown itself. Treasury teams are burning hours reconciling internal transfers, chasing balances, and paying transaction fees to banks just to move money between their own entities. Pretending it’s normal. Pretend that treasury has to be complex. That intercompany flows must be messy. That setting up banking for a new subsidiary must take months. It doesn’t. It shouldn’t. You wouldn’t run finance without a general ledger. Why are you still running treasury without an internal bank? Meet Janne Tuunanen With over a decade of experience at Nomentia, Janne Tuunanen has worked closely with companies across industries to solve complex treasury challenges. He shares his insights on what it takes to build a solid business case for implementing an in-house bank. What is an in-house bank, really? The in-house bank is the fix most companies know about but haven’t acted on. Why? Because it sounds big, and no one has time for big. But not doing it is already costing you in speed, visibility, and money. Instead of relying on dozens of external banks and manual processes, an in-house bank lets you control the movement of money across your group. With an IHB, you can: The result? Fewer accounts, fewer fees, cleaner intercompany flows, and real-time visibility into global cash. The best part? It’s measurable, and it’s next. The treasurer’s wake-up call Meet Johan, a treasurer who thought he had things under control. Johan manages treasury for a €500 million turnover manufacturing group with operations in eight countries. On paper, things look fine. Cash is flowing. Payrolls are met. No one is panicking. But underneath, things look a little different. The company has 250 external bank accounts spread across 14 banks. Every month, Johan’s team spends two weeks consolidating balances. The month-end close takes three days, and that’s on a good month. Intercompany loans are tracked in spreadsheets. No one has a clear view of the group’s cash position until it’s too late. Then the audit lands. The FX report shows €60,000 in preventable losses over the past year. All due to poor internal netting and suboptimal currency rates. It’s not a surprise. Johan knew they were exposed. But now the CFO knows too. That same week, a new acquisition in Spain stalls because treasury can’t open local accounts fast enough. Local teams are wiring money manually. Risk is spiking, and Johan’s phone won’t stop ringing. He finally sits down and maps it out. Too many accounts. Too many banks. Too many internal transfers that cost real money. He adds up the fees, the staff hours, the hidden losses. It’s not sustainable. Things need to change. Building the business case: A clear ROI It’s easy to assume an in-house bank is only worth the trouble for the big players. That’s exactly what Johan thought, too, until he did the math. Johan started mapping the chaos onto a spreadsheet: bank accounts, transaction volumes, fees, staff hours, and FX losses. What begins as a gut feeling turns into a clear financial case. And the numbers speak for themselves: Category Before IHB After IHB Savings / Gains External bank accounts 250 90 160 fewer accounts Monthly costs per account €5 €5 Annual costs €15,000 €5,400 €9,600 Weekly transactions 6,000 6,000 Internal transactions processed via banks Yes No €60,000 saved Transaction costs per item €0.20 €0.20 – Treasury headcount needs Increasing – FTE for admin €30,000 saved FX handled via banks Yes Internal pricing €30,000 saved Hedging effectiveness Fragmented Centralized €30,000 Year-one costs (setup + solution) €70,000 Total one-year savings €159,600 Net year-one gain €89,600 Monthly net gain ~€13,000 Beyond ROI: Strategic impact of In-house bank Twelve months after implementing the in-house bank, Johan’s treasury looks nothing like it did before. Month-end close, once a painful three-day scramble, now takes less than a day. The team no longer chases balances or reconciles intercompany positions. Instead, it’s all visible in real time. What used to be manual, fragmented, and reactive is now automated, centralized, and calm. When the company acquired a new subsidiary in Poland, treasury had banking in place within hours. No waiting for local accounts. No compliance bottlenecks. Payments were live on day one. The internal FX desk, once an operational headache, now runs like a miniature profit center offering better-than-bank rates to group entities and locking in spreads the company used to pay to third parties. But the biggest change? Strategic speed. With cash visibility across entities, better hedging tools, and a unified payments layer, the business can now move quickly, no matter whether it’s a new market, a major deal, or a shift in capital structure. The in-house bank didn’t just bring savings but changed how fast the company can think and act. If you’re considering it, you probably need it Most companies don’t realize how inefficient their treasury operations are until the costs become visible. If you’re even thinking about an in-house bank, it’s worth asking yourself a few direct questions: These aren’t just operational questions. They point to whether your finance function is built to support scale, speed, and strategic decision-making. If your answers make you uncomfortable, you’re already overdue for an in-house bank. Why you’re (probably) ready for an in-house bank Treasury complexity doesn’t scale well, and most companies are already feeling it. Too many accounts. Too many fees. Too much time spent on things that should be automatic. If your finance team is still chasing balances, reconciling internal transactions manually, or waiting weeks to set up banking for a new entity, you’re not behind. You’re exposed. An in-house bank isn’t a luxury. It’s infrastructure. It gives you the tools…
Familiar Treasury Stories – One Missed Payment, One Bad Rate, One Expensive Lesson
This article is written by Palm In a multinational environment, treasury teams often operate across dozens of entities, selling in multiple currencies, sourcing materials globally, and managing constant flows between accounts. The role is simple on paper: ensure the organisation always has the right amount of the right currency, in the right account, at the right time, without paying more than necessary. In practice? Exchange rates shift unpredictably, large payments can surface in forecasts at the last minute, and reconciling ERP data with bank statements can take hours. The challenge is to build an FX strategy that reduces risk, speeds up forecasting, and builds trust in every decision. Why FX Is More Than Just the Rate FX touches nearly every aspect of treasury work: Two main priorities drive the strategy: Without timely, transparent forecasts, both are harder to achieve. The “Wait and See” Trap For many treasury teams, the default FX approach is simple: wait until a payment is due, then make the trade. On the surface, it feels safe, no early conversions, no unnecessary exposure. But in volatile markets, that “safe” approach can be the most dangerous. Picture this: it’s Thursday afternoon, and the team is preparing to fund a large supplier payment. The forecast shows the payment comfortably covered. But overnight, the currency shifts sharply. By Friday morning, the cost to make that same payment has jumped by six figures. The problem wasn’t just the market move, it was that the team didn’t see it coming. With ERP data extractions taking hours and reconciliations lagging behind, the forecast was always one step too slow. The result? Missed opportunities to lock in favourable rates and a costly reminder that timing in FX is everything. The Overtrading Problem At the other end of the spectrum lies the overtrading trap. Determined to avoid nasty surprises, some teams adopt a “trade early and trade often” philosophy. On paper, it keeps liquidity in the right currency and reduces last-minute scrambles. In practice, it can quietly drain value from the business. Frequent conversions rack up bank fees, increase operational workload, and add complexity to cash positioning. Without a quick, reliable way to compare trading scenario, like the difference between weekly and monthly trades, teams are left making decisions in the dark. It’s a little like checking the weather every hour and changing your outfit each time, you’re busy, but you’re not necessarily better prepared. The Hedging Dilemma Hedging is supposed to be the safety net, a way to protect against unfavourable moves and bring predictability to planning. But a hedge is only as effective as the forecast it’s based on. Without early visibility into large, unbooked payments or the flexibility to adjust forecasts for sudden, high-impact events like tax payments or unexpected supplier requests, hedges can miss their mark. Instead of locking in savings, the team can end up over-hedged, under-hedged, or committed to rates that no longer make sense. It’s not that hedging doesn’t work, it’s that hedging without foresight is like buying insurance for the wrong house. You’re paying for protection, but it’s not where you need it most. From Reaction to Precision A shift from reactive processes to precision forecasting means: → Faster reconciliation through bank statement ingestion and quick ERP syncs.→ Early payment detection for large, unbooked transactions.→ Transparency via clear breakdowns of data sources and explainable machine learning assumptions.→ Variance analysis to explain deviations and build trust.→ Better visibility with improved forecast visualisations and embeddable dashboards.→ Proactive alerts for overdrafts, threshold breaches, and currency surpluses.→ Reduced manual burden with batch uploads (coming) and quick manual one-offs. The Impact of Forward-Looking FX Within months, teams adopting this approach have seen: Markets will always move. But with a forecasting process that’s fast, transparent, and trusted, treasury teams can act at the right time, in the right way, consistently. 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.
The Corporate Treasury Guide: How to Manage Multiple Cryptocurrencies Efficiently
This article is written by Fortris Treasury management is changing fast. It’s no longer just about bank accounts and fiat. Bitcoin, Ethereum, stablecoins like USDT or USDC, and even more niche cryptocurrencies are becoming part of everyday operations for corporate treasurers. If you already manage a crypto treasury, you know the pressure. Juggling multiple cryptocurrencies isn’t optional anymore. Done well, it can strengthen liquidity, give your balance sheet more resilience, and help your team move quickly in volatile markets. But there are real challenges. Prices swing, security risks are higher, liquidity can be unpredictable, and compliance requirements are constantly evolving. To get the benefits without the pain, you need the right approach and the right tools. Keep all your crypto in one place Supporting multiple cryptocurrencies in one place is the foundation of a modern treasury. It starts with Bitcoin and Ethereum, but treasurers usually need to handle stablecoins like USDT and USDC, plus other assets that partners or clients may prefer. When you can manage everything in a single system, efficiency improves. There’s less manual tracking, fewer mistakes, and more time for actual decision-making. Best practices include: Set up your treasury so security and compliance are automatic Security is always the top priority. For treasuries, that means knowing when to use hot wallets for accessibility and cold wallets for safe storage. Both play a role, but relying on one alone creates unnecessary risk. You’ll also need to decide between custodial and non-custodial (self-custody) setups. Custodial wallets give convenience. Non-custodial wallets give more control but add responsibility. Many corporates land somewhere in the middle, using a mix. Multi-signature (multisig) protections are another key layer. They prevent any one person from moving funds unchecked. And with regulators paying closer attention, you’ll need clear audit trails and reporting baked into your system. Setting up security in this way reduces mistakes and keeps compliance from becoming a daily headache. Use task views and automate routine operations Even the most secure setup won’t help if your operations get bogged down. Tools that provide clear task lists and show pending approvals or anything holding up a transaction make a big difference. Automation also speeds up operations as well as cutting unnecessary costs. Automatic sweeps, consolidation of funds and transaction monitoring reduce manual work, limit errors and help lower operational costs. When you have clear visibility, you avoid delays and missed actions, and this gives the treasury team more time to focus on strategy instead of firefighting. Use dashboards and analytics to guide decisions Numbers matter. Treasurers need dashboards that show inflows, outflows, and KPIs at a glance. Real-time reporting gives you the ability to step in before issues turn into problems. Analytics also help you spot trends. Where’s liquidity tightening? Which assets are overexposed? With the right insights, you make better calls and can explain decisions clearly to the CFO or board. Connect your treasury to the systems you already use A corporate treasury shouldn’t live in isolation. A well-run treasury connects seamlessly to payments, accounting and other financial systems. If your crypto operations don’t integrate smoothly, you’ll end up reconciling by hand and that’s where mistakes can creep in. Think about cross-border payments, fiat-to-crypto exchanges and day-to-day accounting. A system that plugs into what you already use will save endless time and prevent headaches at month end. Balance risk and opportunity across your crypto assets Crypto brings opportunity, but also plenty of risk. Volatility is the obvious one, but it’s not the only concern. You also need to plan for operational continuity, especially in high-risk markets where regulations or infrastructure can shift overnight. Some treasurers use crypto as a liquidity buffer. Others see it as diversification. Either way, risk management means putting guardrails in place so your strategy doesn’t get derailed by a sudden price swing or system failure. Look for a solution that lets you diversify holdings, set exposure limits, track liquidity across multiple cryptocurrencies, and maintain operational continuity with built-in safeguards. With these tools, you can act quickly and confidently, even in volatile markets. Choose a treasury system that covers all your needs Vendor evaluation is about trust as much as technology. Ask how the provider handles compliance, what security certifications they have, and whether their platform is built for enterprise use. When you’re evaluating solutions, focus on features that matter most: 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.
Building an Actionable Roadmap for Implementing AI in Treasury
From Treasury Masterminds Everyone talks about “AI in treasury” as if it’s a switch you can flip between coffee breaks. It’s not. It’s a journey that starts with structure, not software. Below is a simple, pragmatic roadmap to move from ideas to impact—without wasting six months in PowerPoint purgatory. 1. Define the Problem, Not the Tool Treasuries love tools. But AI is not a tool—it’s a means to solve a problem. Start by defining where you lose time, accuracy, or control today. Common use cases: Each of these can be linked to measurable outcomes (reduce forecast error by 20%, cut manual hours by 30%, etc.). That’s how you define “success” before the first algorithm is even considered. 2. Assess Your Data Reality AI feeds on clean, structured, and accessible data. Treasury data rarely fits that description.Ask yourself: Run a “data audit.” It’s the dullest but most crucial step. You can’t forecast tomorrow’s cash flow with confidence if half your data lives in inboxes. 3. Pick One Use Case and Prototype Fast Don’t aim to “implement AI.” Aim to pilot one AI-powered use case. Start where: Good first projects: Run it as a 6–8 week pilot with clear KPIs. Prove the concept, then expand. 4. Build a Cross-Functional Team AI projects fail when IT “owns it” or Treasury “outsources it.” They work when Finance, Treasury, Data Science, and IT collaborate.Define roles early: This is also where you establish AI ownership inside finance—so you don’t rely forever on external vendors. 5. Implement Governance and Controls AI doesn’t eliminate controls; it creates new ones.Treasury should define: Document decisions as you go. AI in treasury should improve transparency, not mystify it. 6. Educate and Upskill the Team The fastest way to kill innovation is to let people feel excluded from it. 7. Measure, Iterate, and Scale AI is not “done.” It learns—or dies.After the pilot: By this point, you should have an internal framework and the confidence to apply AI thinking to other areas—FX exposure management, investment optimization, or working capital analytics. 8. Communicate Results Most CFOs don’t care about models—they care about outcomes. Quantify: Share results internally. Celebrate small wins. It builds momentum for the next project and helps shift the narrative from “AI experiment” to “strategic advantage.” Final Thoughts An AI roadmap is not about chasing buzzwords—it’s about building digital muscle in treasury. The goal isn’t to have a “smart treasury.” The goal is to have a faster, more informed, less reactive one. Start small, stay practical, and keep humans in charge of the machines. That’s how AI stops being a headline and starts being a habit. 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.
Verification of Payee – The Reality: Not Everyone is Ready
This article is written by Cobase The EU’s Instant Payments Regulation is reshaping the financial landscape at record speed. By late 2025, every bank and payment service provider in the eurozone must be able to receive instant payments, and by early 2026, they must be able to send them. On paper, this sounds like progress: faster, cheaper, safer payments for all. In practice, the rapid timeline is creating strain across the industry. The downside of forced adoption Not every player in the payments ecosystem is ready for this shift. Many banks still operate on legacy infrastructure, not built for real-time, round-the-clock processing. For them, upgrading systems to handle instant payments, fraud checks, and sanctions screening within seconds is a massive task. Vendors face a similar challenge. Some are rushing to bolt instant-payment functionality onto old platforms, creating patchwork solutions that may not scale or stand up to regulatory scrutiny. Corporates, meanwhile, are caught in the middle. Treasury teams must adapt their workflows, manage liquidity in real time, and—critically—ensure that their master data is accurate. The risk is clear: if corporates and banks aren’t fully prepared, they may be tempted to look for “opt-outs” or backdoors in the regulation to buy more time. But regulators have made it clear: there is no going back. Instant payments and Verification of Payee (VoP) are here to stay. Why verification of Payee is the pressure point The Regulation doesn’t just mandate instant payments—it makes Verification of Payee mandatory. That means before a transfer is processed, the account name must be checked against the IBAN, and mismatches must trigger a warning. This sounds simple, but the operational impact is huge: For banks and corporates, this is where the regulation bites hardest. Without strong VoP tools, the risk of fraud, error, or compliance failure grows. Why verification The regulation is coming fast, and not everyone is ready. But the answer isn’t to delay or to water down compliance. The answer is to adopt solutions that make instant payments both safe and sustainable. For corporates, this isn’t just about checking a regulatory box. It’s about safeguarding payroll, protecting supplier relationships, and keeping treasury operations running smoothly. For banks, it’s about maintaining customer trust in an environment where money moves in seconds. Cobase’s role is to provide the tools to make this transition possible—helping clients stay compliant, avoid backdoors, and operate securely in the new real-time payments world. Conclusion The pressure is real. The Instant Payments Regulation is forcing banks, vendors, and corporates to modernize faster than many expected. But cutting corners isn’t an option. With Verification of Payee built into every step of the payment process—master data, bulk files, single transfers, and address books—Cobase ensures clients stay both compliant and protected. Instant payments are becoming the standard. The real question is: will your systems, data, and processes be ready? With the right solutions, the answer can be yes—without compromise. Frequent Asked Questions (FAQs) 1. What is the Instant Payments Regulation? The Instant Payments regulation is new EU legislation that makes instant payments mandatory across the euro area. By late 2025, all banks and payment service providers holding euro accounts must be able to send and receive instant transfers 24/7. 2. Why were instant payments not widely available before? Although SEPA Instant Credit Transfers (SCT Inst) were introduced in 2017, participation was optional. Some banks adopted the scheme quickly, but many did not. As a result, instant payments were common in some countries but almost unavailable in others. 3. How does Verification of Payee (VoP) work? Verification of Payee checks whether the name of the beneficiary matches the IBAN before a transfer is processed. If there’s a mismatch, the sender is warned. This helps reduce fraud and prevents costly errors before the payment leaves the account. 4. What risks do corporates face with instant payments? Instant transfers are irreversible. Errors in supplier details, outdated employee data, or fraud attempts can cause money to be lost in seconds. Without accurate master data and fraud-prevention controls, corporates are more exposed to risk than with traditional, slower payments. 5. How should businesses prepare for instant payments? Corporates need to ensure their payment processes, ERP data, and fraud controls are ready for a real-time environment. This means cleaning up master data, implementing strong verification measures, and adopting technology that supports instant and secure payment flows. 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.
Why working capital matters more than ever
This article is a contribution from our content partner, Kyriba Economic uncertainty. Supply chain disruptions. Rising inflation. Shifting consumer demands. Today’s financial landscape is anything but predictable. For businesses, these challenges are more than just economic headlines—they’re daily hurdles that require strategic planning and agility. Amid this turbulence, one factor has become a lifeline for businesses trying to stay resilient and seize growth opportunities: working capital. By effectively managing and optimizing working capital, companies can maintain liquidity, operate efficiently, and position themselves for long-term success. This blog will explore what makes working capital so critical in today’s economy, break down its components, and offer actionable strategies to optimize it. Why working capital is a game-changer in today’s economy Working capital is no longer just a financial metric on a balance sheet. It’s a strategic tool that helps businesses adapt to disruption, capitalize on opportunities, and ensure operational stability. Today, liquidity is the new currency of resilience. Here’s why working capital plays a pivotal role: Breaking Down the Components of Working Capital Working capital management revolves around optimizing the Cash Conversion Cycle (CCC)—a foundational metric that measures how quickly a company can turn its investments in inventory and resources into cash flow from sales. The three levers of the CCC are: Optimizing these three components is challenging, especially in a globalized landscape with multiple ERPs, business units, and jurisdictions at play. Advanced analytics and digital financial platforms are essential for real-time visibility, scenario planning, and agility. Real-world example: Bray International The scale of the challenge is clear: in our recent CFO survey, more than 70% of finance leaders across key global markets, including the US, UK, Japan, and France, expressed concern about the impact of supply chain issues on their organizations’ financial health and outlook. In France, that figure reached 80%. The message is clear: volatility is not a passing phase, but a defining feature of today’s business landscape. To see how optimizing working capital can drive resilience, take a lesson from Bray International. When tariffs disrupted trade relations in the U.S., Bray could have reacted defensively. Instead, they took proactive measures like diversifying manufacturing locations and leveraging liquidity for strategic investments. By adopting data-driven decision-making and scenario planning, they managed to not only mitigate risks but also turn uncertainty into competitive advantage. Their agility underscores the importance of working capital in dynamic environments. Strategies for Optimizing Working Capital Managing working capital effectively is a strategic imperative. Here are actionable steps your business can take today: Overcoming challenges in working capital management While working capital optimization is essential, businesses face unique challenges that make it difficult to maintain. Here are some common hurdles: Rising inflation Higher costs for raw materials, labor, and logistics directly impact purchasing power. Businesses must adopt efficient procurement processes and limit cost variability. Supply chain disruptions Extended lead times and increased inventory holding costs have made efficient inventory management more critical than ever. Strategies like nearshoring and alternative supplier sourcing can offer relief. Stricter credit terms Suppliers tightening credit terms puts additional financial pressure on businesses. Companies need to negotiate better payment terms and explore financing options to reduce strain. Turning uncertainty onto opportunity Today’s volatile conditions have raised the stakes for working capital management. While the challenges may seem daunting, businesses that view uncertainty as an opportunity for strategic growth can thrive where others retreat. By focusing on receivables, inventory, and payables, and leveraging technology and strategic insights, businesses can free up cash, reduce costs, and position themselves for long-term success. From financial flexibility to strategic advantage Working capital is no longer just a financial metric. It’s a lifeline for businesses navigating modern volatility and an enabler of strategic growth. Companies that treat it as an enterprise-wide priority will emerge stronger, more competitive, and better equipped to seize the opportunities hidden within disruption. Now’s the time to reimagine how your organization manages its cash flow. With proactive strategies and the right tools, you can transform working capital from a routine financial consideration to a strategic lever for success. Read more from Kyriba 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.
Citi & Coinbase: A Turning Point for Digital Payments in Treasury
From Treasury Masterminds When Citi announced on 28 October 2025 that it would partner with Coinbase to offer “digital-asset payment solutions” to institutional clients, it signalled something bigger than a single bank-exchange collaboration. It marked another step in the gradual convergence between traditional finance and the digital-asset world — and a moment treasury professionals can’t afford to ignore. According to Reuters, the partnership will initially allow Citi’s U.S. institutional clients to move fiat funds through Coinbase’s infrastructure and explore conversion into stablecoins — digital tokens such as USDC or EURC, designed to maintain a stable value and backed by traditional assets. Citi has also hinted that the service could expand globally. For corporate treasurers, this development is less about crypto speculation and more about infrastructure modernisation. It opens the door to faster cross-border payments, new liquidity options, and more efficient settlement processes that might one day rival today’s SWIFT-based networks. Lorena Pérez Sandroni, Treasury Masterminds board member, added: “Citi partnering with Coinbase is a signal. The financial system is shifting, and global banks are positioning for a new payment infrastructure where speed, transparency, and programmability are no longer ‘nice to have’ — they’re expected. This isn’t about betting on crypto; it’s about modernising the rails that money moves on.” The Bigger Trend: From Parallel Systems to Integration For years, banks and digital-asset platforms operated in separate worlds — traditional finance on one side, crypto exchanges on the other. That separation is shrinking fast. We’ve already seen: Now, with Citi and Coinbase teaming up, the message is clear: banks are no longer just observing digital assets; they’re integrating them. This matters for treasury because the core promise of digital-asset rails aligns with what treasurers constantly seek — speed, transparency, cost efficiency, and control. Lorena also noted: “If cross-border transactions can settle in minutes, 24/7, with full traceability, then waiting days through legacy, expensive correspondent networks starts to look outdated — and questionable.” Opportunities for Treasurers 1. Faster Cross-Border Settlement: Moving funds between subsidiaries or paying suppliers overseas can take days through traditional channels. Using stablecoins or blockchain rails could reduce this to minutes — potentially improving liquidity visibility and reducing working-capital buffers. 2. Extended Payment Hours: Unlike conventional banking systems bound by cut-off times, blockchain-based payments operate 24/7. This could reshape treasury’s approach to liquidity windows, especially for businesses operating across time zones. 3. Enhanced Transparency: Blockchain-enabled transactions are traceable and timestamped, offering real-time confirmation. For treasurers, that means fewer reconciliation delays and faster confirmation of fund flows. 4. Lower Transaction Costs: Depending on volume and jurisdiction, bypassing intermediary banks could reduce correspondent fees and FX spreads — though this will depend heavily on regulatory acceptance and liquidity depth in digital markets. Lorena noted: “Corporates are demanding better payment efficiency — faster liquidity, lower settlement costs, and more real-time control. Blockchain-based stablecoin rails can deliver exactly that.” Risks & Governance Considerations However, every opportunity brings its own complexity. Regulation and Compliance: The legal framework around stablecoins and digital-asset payments is still evolving. Treasurers must ensure compliance with AML/KYC standards, sanctions screening, and data-protection requirements when onboarding digital-asset service providers. Audit and Accounting: Under IFRS and GAAP, stablecoins aren’t yet treated as cash or cash equivalents, which complicates balance-sheet classification. Accounting teams will need clear guidance on valuation, reporting, and impairment. Counterparty Risk: Even when working with a reputable exchange like Coinbase, treasury must evaluate the risk profile, custody arrangements, and service-level guarantees. Operational Risk: Integrating digital-asset payments introduces new workflows — key management, wallet security, and reconciliation logic — that differ from traditional bank accounts. Kortam Mohamed, Treasury Masterminds board member, adds “This is a promising step — like Ripple–GTreasury. But mainstream adoption depends on the backend. Banks and fintechs must seamlessly integrate stablecoins and blockchain with fiat systems and invest in training so treasury teams can manage wallets and blockchain workflows securely. Build trust through operational reliability and proactive education.” The Digital-Asset Readiness Framework for Treasury At Treasury Mastermind, we’ve seen growing curiosity among treasurers about how to prepare — not just if they should. Below is a practical self-assessment framework to evaluate your digital-asset readiness in five dimensions: Pillar Key Questions Why It Matters 1. Banking Relationships & Partners Are your core banks exploring digital-asset offerings? Are they regulated for stablecoin custody or blockchain settlement? Future-proofing relationships ensures access to next-generation payment rails without losing oversight. 2. System Integration (ERP / TMS / API) Can your treasury systems connect to digital-asset platforms through APIs? Is your data model flexible enough to handle new asset types? Seamless integration avoids “off-system” processes that create reconciliation risk. 3. Risk & Compliance Framework Does your policy cover digital-asset transactions, KYC, AML, and sanctions screening? Early policy alignment avoids governance gaps once pilot projects begin. 4. Accounting & Reporting Do finance and audit teams understand how to classify stablecoins under IFRS/GAAP? Accounting clarity prevents reporting delays and misstatements. 5. Capability & Knowledge Does your team understand wallet security, private keys, and digital custody? Treasury talent must evolve alongside technology. Training and awareness are essential. Treasuries scoring low on these dimensions don’t need to jump in immediately — but they should start conversations, test internal processes, and engage with banks piloting these capabilities. Lorena noted: “Both corporates and banks must prepare the foundation. This isn’t about moving today — it’s about being ready when the market standard shifts: accounting, risk and compliance, treasury systems, and team capabilities.” A Measured but Inevitable Shift The Citi–Coinbase partnership doesn’t turn every treasurer into a blockchain enthusiast overnight. But it’s another sign that digital-asset infrastructure is moving from the edge to the core of institutional finance. For now, the most pragmatic approach is to observe, learn, and prepare. Map where digital payments could add value, ensure your governance can accommodate them, and engage your banking partners about their roadmaps. Kortam added: “Only a dual focus on technological integration and proactive education will pave the way for broader acceptance of stablecoins as a viable, efficient tool in modern treasury…