AI in KYC: The five key questions senior leaders should be asking
This article is a contribution from one of our content partners, Avollone I hardly need to point out the ways in which Artificial Intelligence (AI) has exploded into our lives – both personal and professional – over the past few years. I recently read an EY report that said that 90% of European financial services firms have integrated AI to some extent and 69% expect Generative AI (GenAI) to significantly impact productivity. To take an example from our own industry, GenAI is often put forward as a way to streamline the more labor-intensive and time-consuming tasks in KYC operations. The way I see things, there’s no denying that AI holds gamechanging potential. However, I think it would be foolhardy for executives not to acknowledge its risks, many of which are very complex. One of the reasons for this is that modern AI and machine learning models tend to work within a ‘black box’, with data points working together in ways that are impossible for a human to understand. So executive teams are often left scratching their heads, feeling sure that AI could offer value in their KYC processes but equally not wanting to expose their organisation to unknown risks. To shed some light on the matter, I’ve come up with five key points for leaders considering AI in KYC to discuss with their teams 1. How can AI enhance our KYC processes? Rather than getting sidetracked by shiny new technologies, we advise our customers to think about the problem they’re trying to solve, and how (or if) AI can help. There are a myriad of ways in which AI can be effectively deployed to boost efficiencies within the KYC space. For example, AI can extract tasks and related due dates from an incoming email, generating and assigning sub-tasks for individuals to act upon. It can prompt the collection of data from counterparties – or even source the correct information from public sources. At Avallone, our mantra is that AI should act as a user’s “wingperson”. It should augment, rather than replace, the work of the human. By taking each KYC task case by case, we work with our customers to determine where it makes most sense for AI to streamline their processes. 2. Where can we find experts in AI for KYC? A significant portion of firms say that they have limited GenAI expertise within their workforce, and we know that Machine Learning and AI are typically areas with the widest talent gaps. While it’s important for leadership to take a long-term approach to building key skills within their teams, executives often view this issue the wrong way around. In fact, you don’t need AI experts to determine how best to improve your KYC processes. AI is a tool like any other, and what’s most important is to place that tool in the hands of someone who fully understands the problem you’re trying to solve. You need KYC experts who understand all the complexities within this space, and who also have an overview on where automation could be implemented for the greatest gain and least risk. 3. What are the potential pitfalls in using AI for KYC? Treasury and compliance leaders are right to proceed with caution when using AI. As AI becomes more commonplace within the industry, it’s naturally falling under increased scrutiny by regulators. For example, the European Commission’s recent AI Act promotes principles of safety, ethics, transparency and accountability – requiring transparent model decisioning, explainability and tracking of data privacy. Regulators are penalizing organizations who fail to adopt the correct approach – as they should. Unfortunately, an increasing number of organizations are falling foul to these regulatory requirements. Recently, a Danish bank used AI to close thousands of alerts, however they were unable to explain the AI-driven decision-making process and were forced to re-process them manually. In Germany, a bank was fined €300,000 for not being able to justify why AI rejected a customer’s credit card application. Failure to ensure transparent decision-making can cost an organization in time, money and reputation – often negating the original benefits of AI. Given the significant risks that AI introduces, senior leaders must be sure that there are adequate controls in place to protect both their business and customers – often this involves balancing automation with human oversight. As well as ensuring explainability of all decisions, organizations must also stay updated with the ever-evolving technological and regulatory developments. Executives need to ensure that they have adequate resources to manage this extra workload either within their own teams, or through collaborating with a trusted partner. 4. How – and why – should we balance automation with human oversight? It’s widely acknowledged that AI can perform many tasks faster, more efficiently and more cost-effectively than humans. However, particularly in KYC, human verification is a crucial step. Let’s take a practical example: collecting key financial information from investors to send to your bank. Automating parts of this process can save teams significant time and resources – AI can scan a questionnaire, and source and add missing data points. However, automatically sending this data onto your bank is a step too far. With no human oversight, your organization is left open to data breaches, errors, fines, and untold reputational damage. Not to mention the issues surrounding accountability – who is actually responsible if AI makes your investors’ sensitive information public? None of these consequences are worth the risk. Simply by building in a layer of human approval before sending the package to your bank, you mitigate against these harmful scenarios. 5. How can we integrate AI with our existing and future workflows? At Avallone, we focus on collaborating with our users to understand where it makes most sense to automate. We recommend starting with the obvious, repeatable tasks and building from there. By automating in small and digestible ways, Treasury teams are able to retain full control and accountability while also enjoying AI’s full benefits. And while each AI use case may seem minor, the ultimate impact on…
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How Executives Are Using AI to Lead Smarter: Key Takeaways from the Huszár Consulting Survey
In May and June 2025, Huszár Consulting surveyed 143 senior professionals—mainly C-levels, founders, and team leads—across industries like technology, financial services, and professional services. The aim: to understand how AI is currently used in leadership and what holds back broader adoption. Here’s what the data reveals. In May and June 2025, Huszár Consulting surveyed 143 senior professionals—mainly C-levels, founders, and team leads—across industries like technology, financial services, and professional services. The aim: to understand how AI is currently used in leadership and what holds back broader adoption. Here’s what the data reveals. 1. AI Usage Is Nearly Universal A striking 97.6% of respondents report active use of AI in their work. This is not a hypothetical trend—it’s already happening. Most common use cases include: Less common applications include coding (4.6%), image generation (4%), and video generation (1.5%). This suggests AI is primarily used for cognitive, communication-heavy tasks rather than technical development. 2. AI Is Already Impacting Leadership—But Not for Everyone Over half (51.2%) of respondents say AI has already made them more effective leaders. Meanwhile, 36.6% believe it could help, but they haven’t seen the impact yet. Only 2.4% dismiss its relevance entirely. This points to a key theme: belief in AI’s potential is high, but visible proof of impact varies. The strategic takeaway? The more it’s used in daily decision-making, the more tangible the value becomes. 3. Biggest Barrier? Lack of Time When asked what’s holding them back from using AI more confidently, the top answer wasn’t ethics, trust, or compliance—it was lack of time (30.5%). Other notable barriers include: Interestingly, this marks a shift from earlier AI narratives focused on fear or ethics—today, practical adoption constraints are front and center. 4. Curiosity Runs Deep The survey collected over 100 open responses on AI learning interests. Themes included: Some responses even veered into AI’s societal and geopolitical impact—mentioning military regulation, quantum computing, and emotional development. A sign that leaders are thinking beyond just tools and toward long-term implications. 5. Strategic Insights for AI Adoption The report outlines four practical recommendations for organizations: Final Thought This survey doesn’t aim to represent the entire market—it’s a directional signal from innovation-forward professionals already experimenting with AI. But it’s clear that the wave of adoption is underway, and the focus is shifting from why to how. Board Reflections from Treasury Masterminds We asked a few of our board members to react to the findings. Their comments will be added below. Want to share your own experience with AI in treasury? Join the conversation on Treasury Masterminds or drop your thoughts in the comments. Is this data reflective of your reality? COMMENTS Daniel Huszár, AI Strategist & Educator, comments: The findings reflect something I’ve been seeing in conversations for months. Many people are using large language models daily. They rely on them to write, research, summarize, and think. But more importantly, many are beginning to ask a different kind of question, not just “what can this tool do,” but “how do we structure work around it?” People are now thinking about agents, orchestration, and how to build systems around AI. A lot of these voices are coming from leaders, consultants, and managers. People who may not call themselves “technical” but are actively using AI to help them work. It also means that if you’re waiting to “get more technical” before engaging with AI, you might be waiting too long. If you can write a clear sentence, you can prompt a model. If you understand your team’s needs, you can begin to design AI support. One of the strongest themes I am seeing: those who use AI regularly are more confident in its potential, and more aware of its limitations. That confidence comes from trial and error. So if there’s one thing I’d encourage, it’s this: use the tools. Start today. Build your own understanding by experimenting, especially before thinking about automating everything with AI agents. Bojan Belejkovski, Treasury Masterminds Board Member, comments: Across industries, I’m seeing (a rather slow) AI shift from abstract hype to a practical tool for speeding up decisions, refining communication, and surfacing strategic options faster. I believe the real value isn’t in technical complexity but how AI helps leaders analyze trade-offs, align teams, and drive action with more clarity. That said, one barrier that I keep noticing, and is still holding people back, is fear of being replaced or becoming less relevant. At all levels. However, staying away from AI only delays the learning curve and limits your value. The leaders embracing AI aren’t trying to replace judgment because they’re using it to sharpen thinking and operationalize strategy more effectively. Tanya Kohen, Treasury Masterminds Board Member, comments: This is a great conversation. I’d offer you that one of the most valuable roles AI can play for leaders isn’t necessarily in decision-making itself, but in preparing for it. AI can help reduce bias by utilizing broader information sources, spotting patterns, and distinguishing correlation from causation. These are tasks that often distort judgment simply because leadership doesn’t have the time or access to relevant information. Used thoughtfully, AI can serve as a powerful partner in thinking, helping leaders ask better questions before rushing to answers. The hesitation around AI adoption often gets framed as a time issue, but I think it’s more rooted in unfinished digital transformation. Many organizations are still working through messy data, siloed systems, and unclear process ownership. Without clean inputs and a shared understanding of “what’s true,” even the best AI tools won’t deliver meaningful results. Leaders may want to lean in, but the foundation isn’t quite solid yet. That’s why the biggest opportunity lies in fixing the basics like streamlining access to data, creating clarity on ownership, and making sure teams at every level can trust and act on the same information. 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…
Why Modern Cloud Treasury Management Systems Are Better for SMB Debt Portfolio Management?
This article is a contribution from our partner, TreasuryView Despite 80% of CFO offices and treasury teams still relying on spreadsheets, this method poses significant risks in today’s volatile market. Errors, losses, and inefficiencies are all too common. Times are changing and SMBs can play in the big league now, too. Shortcoming of Traditional Treasury Systems. Especially for SMBs Implementation time is long, including IT, trainings Traditional systems typically take 4 to 18 months to implement, causing significant delays in operational capabilities. During this time, businesses are often stuck in a holding pattern, unable to address ongoing issues effectively. Lack on innovation on a financial field The financial field is constantly evolving, yet legacy systems use outdated methods that create major operational challenges. Manual reconciliations, for instance, might seem minor with error rates between 0.8% and 1.8%. However, for companies processing 100,000 transactions daily, this results in 800 to 1,800 errors each day, potentially leading to compliance issues and financial inaccuracies. Furthermore, manual processes hinder productivity and heighten operational risks. Treasury teams often find themselves bogged down with email documents, version comparisons, meeting schedules, and data entry. These inefficiencies drain resources and create vulnerabilities in critical financial operations. High Direct and indirect Costs of Traditional TMS The direct and indirect costs of traditional TMS are substantial, encompassing months of sales discussions, implementation expenses, and significant investments in server hardware, IT staff, and software licenses. Most companies underestimate these ongoing costs, which include: Long contracts: risk of getting the Software that does not meet the CFO team members actual need. Traditional, entreprise- level TMS usually comes with binding contracts without the opportunity to test the software in advance to figure out, would it be user friendly but moreover, does it solve as many problems as the users have. Sometimes easier solutions could meet 80% of the needs and have the opportunity to really “try the software out” before you agree the contract for years. How Cloud Debt Management Software Makes a Difference? Especially for SMBs. Cloud-based debt management software enables financial teams to make decisions with unprecedented precision and confidence from day one. Easy to implement and user-friendly, platforms like TreasuryView often offer a free trial, allowing you to test the software risk-free. There are many advantages, especially for SMBs: Immediate Operational Readiness, Easy to Use. No istallations. Just log in and start working! Cloud-based debt management software like TreasuryView is ready to use now and gives financial teams clarity and insights to make informed decisions. With precision and confidence, from day one. Platforms have intuitive UX – designed end user in mind. This immediate readiness minimizes the cost of inactivity, enabling you to start making informed decisions quickly. Accessible and Affordable. Cloud-based software is designed to be straightforward to integrate. For SMBs, this means entry into the “big league” is not only possible but also practical. The ease of use and the option to try the software without any financial commitment reduce the barriers typically associated with advanced financial systems. Intelligent Scenario Testing with integrated market data. Cloud systems excel in flexibility and foresight, offering intelligent scenario testing that traditional systems cannot match. You can simulate thousands of potential outcomes based on historical data and current market conditions. This capability allows for detailed contingency planning, like assessing the impacts of currency devaluations, customer defaults, or supply chain disruptions on cash positions. Unified Data Foundation for Error Reduction – Everyone are Working with the same data. Collaborate easier accross subsidiaries or teams. And shate access with your accountant or CFO. A unified data foundation means that all stakeholders—from finance team members to external partners—work from the same set of accurate, up-to-date information. This centralization significantly reduces human errors and enhances overall data integrity, making it crucial for SMBs that need reliable data for decision-making. Security and Compliance Management, like SSO. Cloud debt management software provides strong frameworks that ensure ongoing compliance with changing regulations. Systems in cloud maintain detailed audit trails and monitor every modification, creating verifiable, compliant financial reports. Such rigorous security management is essential for protecting sensitive financial data and maintaining trust in increasingly regulated environments. For example, TreasuryView is hosting all clients´ data in Germany. See more from TreasuryView security matters. Comparison: Modern Cloud Debt Management vs Traditional System Traditional TMS Modern Cloud System TreasuryView Implementation Usually 4-18 months Immediate, cancel anytime User Professional, requires training Intuitive, suitable for all finance levels Annual Cost High upfront, ongoing time and license costs Subscription-based, affordable pricing Scalability Might requires significant hardware upgrades Highly scalable without significant additional costs Security Dependent on in-house measures; often outdated Advanced security features, regular updates Integration with systemy Often requires custom solutions Easy integration with existing systems User Accessibility Access mainly from on-premises Accessible anywhere via internet Latest Market Data Not available Pre-integrated Automation Entreprise automation Personal and enterprise automation Risk Engine None Built-in More about Spreadsheets vs TreasuryView in Debt management. Modern businesses can’t rely on traditional treasury management systems anymore Cloud-based solutions make debt management better and easier, especially for teams in SMBs and teams who search the alternative for Static Spreadsheets. Cloud solutions are changing how financial decisions are made. AI-powered analytics and integrated market data cut forecast errors in half and let companies test different scenarios easily. They also improve compliance management and build a solid data foundation that all stakeholders can use. Business leaders should take a hard look at their treasury operations. Old systems waste resources with long setups, security risks, and integration problems. Cloud solutions fix these issues. Cloud treasury software has become the new standard for debt management. The revolution that “it needs to take ages and €€€ to work” has begin. You can make better decisions already tomorrow. 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…
Tide Partners with Atlar to Elevate Global Treasury
This is a press release from our partner, Atlar Tide, one of the world’s fastest-growing SME platforms, has selected Atlar to streamline its global treasury and finance function using Atlar’s full suite for payments, cash management, and bank-ERP connectivity. Empowering SMEs at global scale Founded in 2015, Tide has become a leading force in SME banking, offering a comprehensive financial platform that helps small businesses manage payments, invoicing, credit, and company formation. Headquartered in London, Tide now serves over one million members across the UK, India, and Germany, supported by more than 2,000 employees globally. As one of the UK’s largest business management platforms, Tide is scaling rapidly and developing increasingly sophisticated financial capabilities to match. With a growing international presence and the complexity of managing multiple banks, currencies, and legal entities, Tide sought a treasury infrastructure that could support both control and scale. A connected and future-ready treasury With Atlar, Tide gains real-time visibility and control across over fifteen financial partners, including global banks and payment platforms. The implementation includes full integration with SAP S/4HANA, ensuring smooth data flow between Tide’s ERP and financial ecosystem. Using Atlar’s modern treasury stack — covering cash management, payments, and forecasting — Tide can centralise its treasury functions across markets while automating key workflows. “As a global business operating at scale, we needed a modern and flexible treasury platform that could integrate seamlessly with our systems and banking partners. With Atlar, we’ve found a solution that gives us the visibility and control we need to support our continued growth,” said Piero Ardito, Director, Group Treasurer at Tide. This partnership reflects a broader trend of digital-first financial services companies adopting real-time, API-first treasury infrastructure to scale efficiently while maintaining control. “Tide is one of Europe’s standout fintech success stories, and we’re proud to play a part in enabling their financial capabilities behind the scenes,” said Joel Nordström, CEO and co-founder of Atlar. “This partnership shows how modern treasury teams are building for both control and scale.” The Atlar team is excited to support Tide as they continue expanding internationally and shaping the future of SME business banking. About Atlar Atlar is the modern treasury management system for the new economy — giving scaling finance teams real-time visibility and control through a single platform connected to their banks and ERPs. By managing these connections, Atlar accelerates time-to-value and simplifies complex financial infrastructure. Ambitious, tech-driven companies like Forto, GetYourGuide, Mangopay, Storytel, Tide, and Zilch rely on Atlar to automate cash management, payments, and forecasting through powerful, user-friendly tools. Backed by world-leading investors Index Ventures and General Catalyst, Atlar is also a preferred partner of industry leaders including NetSuite, Citi, and Nordea. About Tide Founded in 2015 and launched in 2017, Tide is the leading business financial platform in the UK. Tide helps SMEs save time (and money) in the running of their businesses by not only offering business accounts and related banking services, but also a comprehensive set of highly usable and connected administrative solutions from invoicing to accounting. Tide has more than 700,000 SME members in the UK (c. 12% market share) and more than 700,000 SMEs in India. Tide launched in Germany in May 2024. Tide has also been recognised with the Great Place to Work certification two years in a row. Tide has been funded by Anthemis, Apax Partners, Augmentum Fintech, Creandum, Salica Investments, Jigsaw, Latitude, LocalGlobe, SBI Group and Speedinvest, amongst others. It employs more than 2,000 Tideans worldwide. Tide’s long-term ambition is to be the leading business financial platform globally. Also Read Notice: JavaScript is required for this content.
Exploring the Future of Central Bank Digital Currencies (CBDCs) and Their Impact on Corporate Treasury
From Treasury Masterminds In a significant move towards modernizing its financial landscape, the Reserve Bank of India (RBI) has been actively advancing its digital rupee project. This initiative marks a pivotal moment in global finance as India joins the growing list of countries exploring the adoption of Central Bank Digital Currencies (CBDCs). The Digital Rupee: Features and Innovation The RBI’s digital rupee aims to harness blockchain technology to transform India’s currency into a programmable asset. Key features include: The Broader Landscape of CBDCs The concept of CBDCs extends beyond India’s digital rupee, with numerous central banks worldwide exploring or piloting their own digital currencies. Each CBDC initiative reflects unique national priorities and technological advancements: Assessing the Need for CBDCs While the benefits of CBDCs are compelling, the adoption and integration of digital currencies into corporate treasury strategies require careful consideration: Conclusion As CBDC initiatives gain momentum globally, including India’s pioneering efforts with the digital rupee and Europe’s exploration of a digital euro, corporate treasurers face both opportunities and challenges. The path forward involves navigating regulatory landscapes, assessing technological readiness, and strategically integrating CBDCs into treasury operations to capitalize on the benefits of digital innovation while safeguarding financial stability and security. The evolution of CBDCs represents a transformative shift in global finance, with profound implications for corporate treasurers navigating the complexities of a digital-first economy. 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.
How to Create Effective and Powerful Processes in 2025
This article is written by Palm Treasury operations can be a source of frustration for businesses. Board decisions depend on accurate cash flow data and reliable forecasts to make decisions, and treasury professionals are constantly under pressure to balance priorities and produce results. Some obstacles arise from complex, structural data issues with no obvious fixes. But more often, outdated systems and suboptimal resource allocation are to blame. Addressing these inefficiencies starts with identifying the root problems and taking actionable steps to overcome them. In this blog, we investigate what organisations need most from their treasury teams and how efficient treasury processes can empower companies to make more informed decisions. We’ll also look at strategies for streamlining cash flow management, improving forecasting, and optimising bank account structures. The Traditional Treasury The core function of treasury has traditionally been to manage cash and ensure liquidity. This includes maintaining enough cash on hand to meet obligations, managing bank accounts, and ensuring that payments and receipts flow smoothly. For many businesses, the treasury team’s role is behind-the-scenes operation that is largely unseen. If cash flow is steady, bank reconciliations are seamless, and forecasts align with expectations, then treasury is considered to be doing its job. However, this traditional view is no longer sufficient. Today, treasury operations are expected to drive strategic insights. Modern treasury teams are tasked with delivering real-time data, actionable forecasts, and risk management strategies that support growth and financial stability. What Are Treasury Operations? Treasury operations encompass more than just managing cash and accounts. Modern treasury teams are hybrid operators who leverage technology to implement systems and processes that ensure the business has strong financial hygene. They combine technical skills with strategic oversight to make cash flow management, forecasting, and liquidity optimisation as efficient as possible. For example, a treasury professional might: Advancements in technology have made it easier than ever to automate repetitive tasks, such as reconciling bank transactions or updating cash flow models. This shift allows treasury professionals to focus on value-added activities like scenario planning and liquidity risk management. Barriers to Effective Treasury Processes If your business struggles with slow cash flow reporting or inaccurate forecasts, two key issues are likely at play: outdated systems and a mismatch of skills within the treasury function. Outdated Systems and Processes Legacy Treasury Management Systems often lack the integrations and automation capabilities required for modern treasury operations, not embracing the latest technology like AI and current machine learning models. Manual processes, such as downloading bank statements and updating spreadsheets, are time-consuming and prone to error. Organisations stuck in these cycles will find it difficult to keep the forecast up to date in a timely manner. Skills Gaps Treasury operations require a combination of technical expertise and strategic thinking. Data analysis capabilities are becoming increasingly demanded of treasurers as they grapple with growing data sources and formats. Having access to strong IT resources is helpful, however it is the combination of the treasury expertise with the technical skills which is where the magic happens. Steps to Improve Treasury Operations Improving treasury operations begins with identifying bottlenecks and inefficiencies. Here’s how to get started: 1. Diagnose the Problem The first step is to assess your current processes. Where are the pain points? Are manual reconciliations taking up too much time? Is your cash flow forecast inaccurate or outdated? Map out your treasury workflows and identify tasks that consume the most resources. 2. Leverage Technology Look for opportunities to automate repetitive tasks. Cash management platforms such as Palm can help to automate cash positioning, forecast updates, and reporting. Ensure that your systems are integrated to allow real-time data flow between your ERP, bank portals, and other platforms. For example, implementing a Cash Management Solution that integrates with your bank accounts can reduce the time spent on payment processing and cash reporting by providing a single, real-time view of all transactions. 3. Optimise Bank Account Structures Many corporations suffer from overly complex banking structures with too many accounts spread across multiple institutions. Consolidating accounts and implementing sweeping arrangements can reduce fees and simplify liquidity management. 4. Focus on Forecasting Accurate forecasting is essential for proactive decision-making. Invest in tools and processes that allow you to model various scenarios, such as changes in revenue or unexpected expenses. This will help ensure you maintain adequate liquidity while minimising idle cash. The Role of Integrated Treasury Tools One hallmark of efficient treasury operations is seamless data integration. Treasury tools should work together to provide a unified view of cash flow, liquidity, and risk. For example: Free Up Time & Unlock Value Improving treasury operations is not just about cutting costs or automating processes. It’s about empowering your company with the tools, data, and insights needed to make informed financial decisions. By rethinking your approach to cash flow management, forecasting, and bank account structures, you can transform treasury into a strategic asset that drives growth. If inefficiencies are holding you back, now is the time to act. Start by diagnosing your processes, invest in the right technology, and ensure your team has the skills needed to manage a modern treasury function. With these steps, you’ll be well on your way to building a treasury operation that supports success. 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.
Tariffs & the Shifting Role of the U.S. Dollar
This article is written by HedgeFlows For decades, the U.S. dollar has reigned supreme as the world’s reserve currency, underpinning global trade, investment, and economic stability. This dominant position, often referred to as the “exorbitant privilege,” has enabled the U.S. to maintain cheaper borrowing costs, predictable exchange rates, and larger deficits without significant economic fallout. But the ground is shifting. Global tariffs unleashed by Trump and geopolitical tensions, particularly between the U.S. and China, and an increased focus on supply chain security have triggered unprecedented shifts in global trade dynamics led by President Trump’s administration. To those at the helm of mid-market enterprises, these seismic changes may have felt slow-moving and distant until recently. Still, the events of the last two weeks and their potential impact on financial strategy, procurement, and everyday operations cannot be overstated. What’s changing, and why does it matter now? For decades, nations like Japan and China have willingly accepted U.S. dollars as payment for goods and services sold to U.S. companies and consumers, using them as a safe reserve currency. However, as global economic dynamics shift, the long-term dominance of the greenback as the world’s primary reserve currency is increasingly being called into question. Europe is navigating its evolving relationships with the United States, while China has grown powerful enough to engage in a full-scale trade war with the world’s leading superpower. These developments are reshaping the financial landscape, challenging the greenback’s once-unquestioned supremacy. Consider this striking fact: foreign governments and institutions currently hold over $7 trillion in U.S. Treasury securities – more than the total government debt the US has to refinance over the next 24 months. These holdings not only reflect confidence in the U.S. dollar but have also formed a crucial support system for America’s economic structure. They fund unprecedented deficits that the US has enjoyed for decades. A shift away from such reliance could have wide-ranging consequences for businesses globally. What’s Driving the Shift? 1. Onshoring Push in the U.S. Amid Trump’s government tariffs rollout and renewed calls for supply chain security, the U.S. is focused on producing more goods domestically. Geopolitical tensions with China and vulnerabilities exposed by the pandemic have accelerated this transformation. Goods once predominantly imported, such as semiconductors and essential technologies, are increasingly being manufactured on home soil. While this shift is good for domestic industries, it reduces the global demand for the U.S. dollar in trade transactions, an effect mid-market businesses must prepare for. 2. China’s De-Dollarisation Efforts China, long dependent on the U.S. dollar for trade, has launched de-dollarisation campaigns aimed at reducing that reliance. Recent agreements to settle oil trades with Brazil in yuan exemplify this strategy. Additionally, the rise of digital currencies, including central bank digital currencies (CBDCs), is further disrupting dollar-dominated trade norms. China has been increasingly pushing for the use of the renminbi (RMB) in its global trade engagements. One significant milestone in this effort is the trading of oil futures in Shanghai, priced in RMB rather than U.S. dollars, which has gained traction among Middle Eastern oil producers. This move not only strengthens the renminbi’s position as a viable currency for international trade but also challenges the hegemony of the U.S. dollar in global energy markets. By encouraging its trade partners to adopt the RMB, China aims to enhance its economic influence and reduce exposure to dollar-based fluctuations, marking a decisive shift in global financial dynamics. A significant concern among investors is how China’s dollar strategy might unfold. If market participants begin to anticipate large-scale selling of U.S. Treasuries by China, this could trigger capital flight, eroding the dollar’s strength. Something that came to the fore the week after Trump’s recent tariff announcement on the 2nd of April 2025. 3. Rise of Digital Currencies and Non-USD Trade Technological advancements, combined with geopolitical motives, are fuelling the adoption of alternative currencies in global settlements. Whether it’s Russia-India trade conducted in rubles or yuan trading agreements with African nations, the share of non-USD payments is rising. The result? A Diminished USD Demand These trends collectively lower the global need for USD reserves. Businesses could face increased volatility in cross-border transactions as the cushion provided by widespread dollar usage starts to thin. What Is the Exorbitant Privilege and Why It Matters The U.S. dollar has historically benefitted from being the world’s reserve currency, giving it a unique edge. Here’s why that’s significant: For private businesses, access to cheap capital and stability in currency has been an indirect boon, streamlining operations and growth. However, mid-market CFOs need to recognise that these advantages may weaken in the years ahead. What Could Change and What CFOs Should Watch Over the next 5–10 years, several risks could arise for businesses heavily reliant on the dollar-dominated global economy. Potential Risks CFOs Need to Monitor Strategic Takeaways for Mid-Market Finance Leaders For CFOs of mid-market businesses, navigating the shifting role of the U.S. dollar requires strategic foresight and agility. Here are key steps to consider: 1. Build Resilience Against Volatility Invest in systems such as HedgeFlows that enable faster, real-time decision-making for treasury and risk management. Budgeting and forecasting tools that incorporate dynamic scenarios are invaluable when economic conditions are unpredictable. 2. Diversify Funding Sources Explore non-dollar-denominated funding options or global capital markets to hedge against dollar-specific risks. 3. Monitor Risks Proactively Regularly assess creditor, supplier, and even banking risks. Be prepared to act swiftly in response to economic or geopolitical changes. 4. Manage Currency Exposure Strategically Adopt robust FX risk management strategies. Consider currency hedging where needed to reduce exposure in global transactions. 5. Stress-Test Your Financial Models Run scenarios assuming sharper interest rate hikes or heightened FX volatility to ensure preparedness for potential shocks. 6. Stay Educated and Proactive Keep a close watch on insights from trusted organisations like the Federal Reserve, IMF, and financial publications. Diversify the information sources to avoid falling prey to echo chambers. Closing Thoughts: What Comes After the Dollar? “There are decades where nothing happens; and there are weeks where decades…
Visa × Yellow Card: Transforming Corporate Treasury in Emerging Markets
From Treasury Masterminds June 2025 — Visa and Yellow Card have announced a strategic partnership to accelerate stablecoin adoption across Africa and the broader CEMEA region. Yellow Card, a licensed stablecoin orchestrator active in over 20 countries with more than $6 billion transacted since 2019 will leverage Visa’s network—including Visa Direct—to enable faster, cheaper blockchain-based USD (stablecoin) transfers Why stablecoins matter for corporate treasurers How the stablecoin on-/off‑ramp works Here’s a simplified flow: Stage Corporate Treasury Action Stablecoin Flow On‑ramp Treasury transfers local currency into Yellow Card wallet via bank transfer or mobile money. Yellow Card issues USD‑pegged stablecoins. Local fiat → stablecoins Cross‑border Treasury transfers stablecoins via Visa‑linked on‑chain rails directly to another Yellow Card account or partner in another country. Blockchain transfer (USDC/USDT) Off‑ramp Recipient converts stablecoins back into local fiat via Yellow Card and receives funds via bank or mobile wallet. Or optionally, stablecoins enter Visa Direct to credit bank/card accounts. Stablecoins → local fiat Visa Direct integration means businesses can also pay employees or suppliers directly to bank/card-linked accounts using stablecoin settlement rails—blending blockchain efficiency with traditional payout infrastructure. How this benefits corporate treasury teams Emerging market context & future outlook Stablecoins now represent 43‑50 % of crypto transaction volume in Sub‑Saharan Africa, driven largely by limited USD availability With Visa processing $225 million+ in stablecoin settlements since 2023 and plans to expand into more CEMEA markets through 2026 this collaboration signals a major shift in treasury infrastructure. Nevertheless, regulatory clarity remains important—e.g., Ghana’s central bank recently issued warnings over unlicensed stablecoin providers, underscoring the need for treasury teams to partner with compliant, regulated entities Bottom line For corporate treasurers operating in emerging markets: This marks a pivotal moment: treasury teams can now harness digital USD rails, combining cryptocurrency resilience with traditional finance compliance—ushering in a new era for global liquidity and FX risk management. In summary The Visa × Yellow Card partnership delivers a corporate treasury-ready stablecoin infrastructure: opening trapped liquidity, mitigating FX volatility, and enabling speed and transparency—all while integrating with established systems like Visa Direct. Tanya Kohen, Treasury Masterminds Board Member, comments: One of the most transformative features of stablecoins for corporate Treasury is their programmability. Unlike traditional bank money, programmable digital cash can be embedded directly into algorithmic workflows allowing Treasury teams to automate how and where cash moves based on predefined rules and real-time data. This unlocks new levels of efficiency and control: from optimizing working capital in trade transactions, to automating cash management across jurisdictions, to dynamically reallocating liquidity between banks and investment vehicles in line with a company’s investment policy. Crucially, this can all happen without being bound to the limitations of traditional bank products or cut-off times. In this light, stablecoins aren’t just a workaround for emerging market constraints, but a foundational technology for building smarter, more autonomous treasury infrastructure on a global scale. What’s equally compelling is how this shift impacts treasury governance. With programmable money, policy enforcement becomes embedded in code. Investment guidelines, counterparty limits, even ESG criteria can be enforced automatically reducing manual oversight and the risk of policy drift. This could ultimately shift treasury’s role from transaction execution to ruleset design and oversight, pushing finance teams to think more like system architects than process managers. Royston Da Costa, Treasury Masterminds Board Member, comments: Although I am a big fan of stable coin and digital currencies (not crypto currencies due to their volatility), I also feel it is my duty to flag some issues that Treasurers may not be aware of: 1. Trapped Funds There are regulatory grey zones and potential legal risks that treasurers face as most emerging markets have explicit capital controls, and moving money abroad—even via stablecoins—may violate local currency and AML laws. Regulators are catching on, and treasurers using this workaround could be exposed to penalties, license risk, or retroactive enforcement. The benefit of using stable coin to extract cash from restricted markets is still a powerful one, and one can only hope that local regulators try to work with stable coin rather than drive it ‘underground’. 2. Stablecoin FX Exposure Isn’t Risk-Free either If you’re a treasurer trying to manage FX risk, trading local currency volatility for stablecoin counterparty and depeg risk may just shift the problem, not solve it. Having said that, the risk is still limited and manageable. 3. The Myth of “80% Cheaper” Cross-Border Transfers Claiming 80% fee reduction assumes: In reality, on-/off-ramping stablecoins often incurs hidden costs, and recipients may need to pay a premium to convert into usable local currency, especially in markets with shallow liquidity. I believe this will reduce in time as it scales up. 4. Operational Simplicity? Or Complexity in Disguise? Introducing blockchain-based rails means treasury teams now must: What’s pitched as “simpler” is actually a new layer of operational and compliance burden. Unless a company is crypto-native, this is a significant cultural and technical leap. Again, this could be a normal part of the Treasury function in the future and no different to perhaps how some Companies are set up to run an intercompany netting system or in-house bank today. 5. Visa’s Involvement Doesn’t Eliminate Risk Visa’s presence adds an aura of legitimacy, but let’s be clear: There are still positives to be taken from Visa being involved i.e. the size and scale that Visa has to offer, making stable coin a more widely accepted alternative form of payment. 6. Regulatory Risk Is Rising, Not Falling This area has to be tightly regulated as it evolves, and not surprisingly, the examples below confirm this. Today’s “opportunity” may become tomorrow’s legal liability. Contrarian Bottom Line The Visa–Yellow Card partnership is not a “pivotal moment” for treasury innovation—it’s an experimental bet wrapped in enterprise clothing. For corporate treasurers under fiduciary and legal duty, stablecoin-based strategies: Rather than embracing this as a saviour for emerging market treasury, a prudent treasurer might ask: Are we replacing the devil we know with one we don’t understand? To be clear, I still believe that Digital Currencies like Stable coin are the future, however, I also…
What It Really Takes to Run a Billion-Pound VC Firm: Notion Capital’s Ian Milbourn Tells All
This article is a contribution from one of our content partners, Bound A man who wears many different hats, Ian Milbourn is not only a founding partner at Notion Capital, but also the firm’s CFO and COO. Throughout his career, it’s fair to say he’s pretty much seen it all as far as VC challenges go. In this exclusive interview, Ian shares his hard-won insights on managing a multi-strategy VC firm, navigating European expansion, and why doing the basics brilliantly matters more than ever in 2025. The journey from Big Four accountant to venture capital CFO isn’t your typical career path. But, then again, Notion Capital isn’t your typical VC firm. And Ian isn’t your typical General Partner, either. “I was an accountant to start with, working for Ernst & Young,” he recalls. “But I pretty much knew straight away I didn’t want to be an auditor all my life!” That early realisation took Ian down a path that would eventually see him help build one of Europe’s most successful enterprise software investors. His route to Notion Capital was far from direct, though, winding through what he describes as his “deal junkie” phase in corporate finance, before he connected with MessageLabs in 2002. “I said to my recruiter, find me an exciting fast-growth tech company in the West of England that needs some corporate finance expertise. She outright laughed and I thought that was the end of that,” he recalls. “To be fair to her, she didn’t give up, and lo and behold, I got the interview with MessageLabs. And the rest, as they say, is history.” That connection, on a chilly winter’s day in Gloucester, would prove transformative for Ian. As well as securing an exciting new job, he went on to be part of one of Europe’s largest SaaS exits at the time (when MessageLabs was sold to Symantec in 2008 for $695m). And, though he didn’t know it in that moment, he’d also just met his future Notion Capital founding partners: Jos White, Stephen Chandler and Chris Tottman. Growing Notion from the ground up Back in 2009, Ian and his co-founders recognised the enormous potential in cloud computing – a sector that was not yet the ‘megatrend’ it is today. At the time, software was predominantly sold through on-premise installations, and the shift to cloud-based delivery was still seen as a risky bet by some investors. But the Notion founders saw things differently – they believed that cloud transformation was inevitable and wanted to back the entrepreneurs leading that charge. Sixteen years later, that bet has paid off many times over. Notion has grown from an initial £20m fund to managing over £1bn in AUM across multiple funds, investing in some of Europe’s most innovative enterprise software companies. Alongside Bound, the firm’s portfolio includes notable names such as GoCardless, Mews, Paddle, and YuLife – companies that have gone on to become industry leaders in fintech, hospitality management, payments, and insurtech. As Notion expanded, it developed three distinct investment strategies, each catering to different stages of company growth. Its pioneers strategy focuses on earlier stage investments, providing the capital and support that fledgling businesses need to gain traction. Then, the core strategy represents the more traditional VC approach, centred around early-stage and Series A investments, helping startups scale into growth-stage companies. And, for those that have already scaled significantly, Notion’s opportunity fund provides late-stage funding. With such a broad investment remit, Ian’s dual role as CFO and COO becomes increasingly demanding. Managing the financial function of a VC firm is about far more than just number-crunching – it requires a deep understanding of how financial strategy aligns with overall business objectives. Fundraising and investor relations are critical, as without fresh capital, there is no firm. At the same time, deal management, portfolio oversight, and ensuring strong Distributed to Paid-In Capital (DPI) for investors must all be carefully balanced. The challenge, as Ian puts it, is in execution. A venture firm operates with multiple moving parts: sourcing deals, conducting due diligence, managing relationships with portfolio companies, and ultimately securing successful exits. Each function is interdependent, requiring seamless coordination to ensure that the firm remains competitive. “Our job is to find, fund, and fuel the best enterprise software businesses in Europe,” he says. “That requires a huge amount of coordination across investment, finance, operations, and portfolio management. Every moving part needs to function at the highest level.” And that challenge has only grown as the firm’s geographical coverage has expanded. Taking Notion international Founded in the UK, Notion’s ambitions quickly stretched beyond domestic borders. Over the years, it has systematically expanded its European presence, and today, around 60% of its deals originate from acrossEurope, a region where Ian sees immense potential. “There’s a lot of talent across Europe, and a really big work ethic,” he notes. Despite this international focus, Notion has chosen to keep its headquarters in the UK rather than opening multiple overseas offices. Instead, its investment team is structured geographically, with each member responsible for scouting and managing deals within specific European markets. This approach allows the firm to maintain a high level of local expertise while benefiting from the efficiency of a centralised investment strategy. But operating across multiple markets does bring challenges, particularly around currency management. For Notion, like many VCs, FX headaches are an unavoidable reality of doing business. “As a UK-based firm, we operate in GBP, but receive management fees in EUR over time, so we hedge that exposure. But we’ll also eventually exit companies – at an unknown time, for an unknown price, and more often than not, in USD. That exposure is massive, but it’s also difficult to hedge when none of the key variables are fixed.” To tackle this, Notion has integrated Bound, removing the manual, broker-heavy processes that have historically dominated the industry, in favour of simple, automated hedging strategies. “Before Bound, FX risk management meant constant phone calls with brokers, spreadsheets, and uncertainty. Now, we click a few buttons, and it just works,” Ian…