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Transforming Treasury with Artificial Intelligence

What you’ll learn


  • Learn how to pick the best treasury solution for your needs.
  • Learn how AI in forecasting can help treasury improve cash forecasting.
  • Understand how treasury and treasury software systems have evolved.

Use-Cases of AI in Forecasting

Challenges Faced by Treasury in Choosing the Right Treasury Solution

Optimizing cash liquidity is necessary for a business to make timely decisions, but when faced with the shortcomings of largely manual and spreadsheet-based cash reporting and forecasting tools, the ability to make quality decisions becomes tougher.

Technology solutions for treasury are always evolving through better APIs, data visualization, data gathering, and cash forecasting. For instance, treasury software systems with Artificial Intelligence and Machine Learning are the emerging technologies that are transforming treasury. However, for treasurers, there remains much confusion about what these new intelligent technologies truly offer.

Challenges of Choosing the Right Corporate Treasury Solution

  • Redundant system
  • Regulatory changes
  • Standardization, centralization, and automation
  • Error-prone processes
  • Lack of forecasting speed and quality
  • Settlements or transactions in multiple currencies

Why Treasury needs Better Treasury Software Systems

A robust corporate treasury solution can automate data gathering, integrate seamlessly, provide real-time insights into positions across banks, accounts, entities, and regions, and forecast cash flows accurately.

The major benefits of using treasury software systems system are:

  • Real-time and accurate data availability
  • Reduction in manual entry and calculation errors
  • Increase in productivity of the treasury department
  • Reduction in redundant banking and FX costs
  • Detailed activity monitoring

Three Problems Treasurers Face with Unsuitable Treasury Solution

These are some key areas treasury practitioners struggle with manual or outdated systems:

  • Lack of real-time and sufficient data leads to inaccurate cash forecasting and management.
  • Inability in tracking FX volatility and fluctuating interest rates lead to poor FX risk management.
  • Manual processes lead to ‘dead-on-arrival’ reports, which hinders timely decision-making, and teams focusing on low-value tasks.

These problems can be solved through an AI-powered treasury software system.

The Role of AI in Treasury Cash Flow Management

Treasury focuses on things that add value to the business, like working capital strategy, funding and liquidity strategies, more robust foreign exchange, and interest rate risk management strategies. AI can help with trading oversight by making it easier to monitor market volatility.

AI technologies promote and reinforce treasury as a strategic partner within the organization by enabling them to focus on the strategic and analytical activities that add real value to the business.

Evolution of Treasury and Treasury Software Systems

As companies realize the benefits driven by Artificial Intelligence in various domains, AI has become an essential technology for leading-edge enterprises around the world.

AI drives transformation across treasury in the following ways:

  • Offers a quicker and efficient way to mine and analyze data
  • Help identify trends and patterns
  • Provides valuable and reliable insights for CFOs to make informed decisions
  • Assists in effectively managing working capital
  • Assists in FX risk management through proactive hedging

How AI in forecasting helps treasury improve cash forecasting?

With more organizations recognizing the potential of data to drive business development and growth, expectations of finance are shifting. Teams are beginning to focus on activities like scenario planning and predictive analytics rather than simply reporting the numbers.

Spreadsheet-based Cash Forecasting Challenges.

The treasury department has the following challenges when forecasting cash flows with spreadsheets:

  • Entirely manual and time-consuming.
  • Prone to mistakes.
  • Difficult to collect and combine the correct datasets.
  • Necessitates a great deal of input and frequent human modifications.
  • Low visibility into individual entities to detect variance.

How Artificial Intelligence helps Corporate Treasury

The majority of the issues associated with cash forecasting using spreadsheets are addressed by AI, such as:

  • Increased accuracy: Cash forecasting accuracy is improved through a feedback loop model and frequent variance analysis. Accurate data boosts confidence in borrowing, investing, and M&A decisions, among other things.
  • A broader scope of data: Drill-down capabilities into entity-level data improve granular visibility. Furthermore, teams can easily access data at any time without having to search through multiple spreadsheets and portals.
  • Improved scenario analysis: Incorporating customer-specific variables and the ability to capture trends and patterns allows treasurers to capture ‘what-if’ scenarios. This allows them to devise strategies proactively and avoid potential financial issues.
  • Cost and time savings: AI technologies can help in saving time and costs, streamlining routine processes, and releasing teams from administrative tasks to focus on higher-value activities that enhance their contribution across the organization.
  • Greater ROI: AI provides increased ROI in the short term as well as long term with:
    • Decreased interest expense
    • Increased investment income
    • Freeing up resource bandwidth

Schedule a demo with us to learn how AI is transforming treasury and the process of cash management and cash forecasting.

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The HighRadius™ Treasury Management Applications consist of AI-powered Cash Forecasting Cloud and Cash Management Cloud designed to support treasury teams from companies of all sizes and industries. Delivered as SaaS, our solutions seamlessly integrate with multiple systems including ERPs, TMS, accounting systems, and banks using sFTP or API. They help treasuries around the world achieve end-to-end automation in their forecasting and cash management processes to deliver accurate and insightful results with lesser manual effort.