Must-Have Skill Sets For Treasury Managers in the Age of AI

Debunking AI myths around the Treasury Manager role

It is a myth that Artificial Intelligence will automate everything and replace jobs. AI only enables faster processing and provides an accurate analysis, but humans are irreplaceable in drafting strategies and making key business decisions. Therefore, AI must not be viewed as a threat, but as a tool to amplify human potential and accelerate organizational growth.

Treasury Manager’s Routine

A treasury manager’s day-to-day activities include:

• cash flow management
• Cash forecasting
• Financial instruments trading
• Cash and deal accounting
• Bank relationship management
• Cash and deal accounting
• Forex risk management
• Counterparty risk reporting
• Board reports preparation
• Payments

Some of the tasks that can be automated are:

• cash flow management
• Board reports preparation
• Cash and deal accounting
• Counterparty risk reporting
• Payments

And the tasks that can be enhanced (optimized) are:

• Cash forecasting: For making investing, hedging, and borrowing decisions
• Financial instruments trading: For making recommendations based on the data
• Forex risk management: For coming up with optimal hedging decisions for current exposures
• Bank relationship management: For understanding which bank accounts to partner with to stick to the portfolio guidelines
• Payments: For identifying fraudulent payments

A treasury manager’s large part of work is stuck in administrative work which is routine and repetitive work and that doesn’t stretch their skill sets. With AI managing mundane tasks, the managers can unleash their business acumen and redirect their focus towards challenging and high-priority activities.

Skills the treasury team must have in the digital age

The new digital era calls for new skills for the treasury team:

Treasury Analysts

Analysts usually focus on transaction-focused, low-value, and repetitive manual work. However, nowadays they need to refine their communication and technical skills and focus on analysis, visualization, and making recommendations.

Treasury Managers

Managers are responsible for people management and team productivity. They need to hone their business planning and communication skills and concentrate on high-value tasks like analysis, KPI management, continuous process improvement, and controls.

Treasurers

Treasurers focus on managing liquidity. For bringing more value, they need to hone their technology competency and communication skills and focus on important metrics, and strategic opportunities.

Where to Start with the Automation Journey?

The 4E framework helps embrace new technology:

4E Framework

• Embrace the future and accept that AI will continue to advance and develop, so learn to adapt the new technologies to maximize profit.

• Evaluate if the current hard skills and soft skills are fit for the future and then redesign the tasks to be fit for the future.

• Empower and take necessary steps to get ready for digital transformation such as enhancing communication and building relationships.

• Educate by learning from webinars, training, online articles, podcasts, etc to keep up with the change and adopt strategic business understanding.