Artificial Intelligence Revolutionizes Corporate Finance As Treasury Management Gets A Digital Makeover

The world of corporate finance is rapidly evolving, with the latest trend being the adoption of Artificial Intelligence (AI) upgrades in enterprise treasury management. This technology has the potential to transform the way businesses manage their cash, liquidity, and risk, providing them with real-time data and insights that can inform strategic decision-making.

Companies like IBS FinTech, which operates for 19 years and ranks among the top five globally according to an IDC report, are at the forefront of this revolution. The company’s CEO, CM Grover, believes that while AI-powered automation has made significant strides in various areas of corporate life, treasury departments often still rely on manual spreadsheets.

“The reality is that many CFOs’ offices are still using Excel for managing their most critical information system - treasury management,” Grover said during a recent discussion. “We’ve identified this gap and are working to bridge it with our AI-powered solutions.”

Treasury teams play a critical role in managing cash, liquidity, and risk for companies. With the increasing complexity of global markets, foreign currency risks, and commodity fluctuations, these teams face significant challenges in navigating these complex environments. Moreover, cash surplus companies must invest in operations to generate returns, making real-time data connection a crucial aspect of their operations.

The current state of enterprise treasury management is characterized by manual bottlenecks, where teams execute trades on platforms like Bloomberg, Reuters, or 360D, manually enter the data into spreadsheets, and then post accounting entries into an enterprise resource planning system. This fragmented approach creates silos, making it challenging for executives to access accurate information in real-time.

To overcome these challenges, IBS FinTech has developed a connected ecosystem that integrates treasury management systems with existing enterprise resource planning platforms. By establishing this data foundation, companies can establish a single view of their financial operations, enabling them to monitor liquidity, mitigate risk, and ensure compliance across the system.

Integrating treasury management systems with existing platforms requires creating a digitized and automated data set. “It is not by talking you can do AI in treasury,” he emphasized. “You have to create that underlying data set that has to be digitised and automated.”

The key to successfully implementing AI in enterprise treasury management lies in establishing this digital data foundation. By integrating with Oracle Cloud, NetSuite, and Fusion, IBS FinTech has built a robust platform that can connect with various systems, providing executives with real-time information to manage liquidity, mitigate risk, and monitor compliance violations.

Global volatility is expected to increase due to geopolitical and economic factors impacting commodities, equities, and foreign exchange. In this uncertain environment, executives must prioritize automation and real-time information systems to operate effectively.

Ashish Kumar, head of Infosys Oracle Sales for North America, emphasized the importance of modernizing treasury management with AI and connecting it to enterprise resource planning systems. “Building financial resilience requires a single view of your financial operations,” he noted. “If a finance team relies on manual entry between a trading platform and an enterprise resource planning platform, AI initiatives will fail due to poor data quality.”

Implementing direct integrations ensures data flows in real-time without error, providing the necessary baseline for future technology deployment.

The benefits of AI upgrades in enterprise treasury management extend beyond operational efficiency. By providing executives with real-time data and insights, these systems enable them to make informed strategic decisions, drive business growth, and enhance competitiveness. The use of AI-powered automation reduces manual errors, increases efficiency, and enhances compliance with regulatory requirements.

With the ability to connect various systems, companies can establish a single view of their financial operations, making it easier to analyze trends, identify areas for improvement, and respond to market fluctuations. By providing executives with real-time data and insights, these systems enable them to make informed strategic decisions, drive business growth, and enhance competitiveness.

The adoption of AI upgrades in enterprise treasury management is a game-changer for corporate finance departments. By providing real-time data and insights, these systems enable executives to make informed strategic decisions, mitigate risks, and optimize cash flows. As global volatility increases due to geopolitical and economic factors impacting commodities, equities, and foreign exchange, companies must prioritize automation and real-time information systems to operate effectively.

By establishing a connected ecosystem that integrates treasury management systems with existing enterprise resource planning platforms, companies can create a single view of their financial operations, enabling them to monitor liquidity, mitigate risk, and ensure compliance across the system. With the ability to reduce manual errors, increase efficiency, and enhance compliance, AI upgrades in enterprise treasury management are poised to revolutionize the way businesses manage their cash, liquidity, and risk.

Global companies must prioritize automation and real-time information systems to navigate increasing global volatility. The adoption of AI upgrades in enterprise treasury management is a crucial step towards achieving this goal. By providing executives with real-time data and insights, these systems enable them to make informed strategic decisions, drive business growth, and enhance competitiveness.