Automating Basic Treasury Functions 

Optimizing cash flow and mitigating risk are two of the most critical tasks for treasury departments. Yet, the demands placed on the treasury team often…

Alexis Holland profile picture
Alexis Holland

December 8, 20235 minute read

Optimizing cash flow and mitigating risk are two of the most critical tasks for treasury departments. Yet, the demands placed on the treasury team often involve labor-intensive tasks that tie up valuable resources and expose organizations to unnecessary risks. Fortunately, as technology advances, automating these essential treasury functions has become increasingly accessible.  

The benefits of automating treasury functions

Automating treasury functions isn’t just a matter of convenience; it can change an entire organization’s future. It significantly enhances efficiency and productivity while reducing the room for human error. Automation tools can eliminate the need for manual data entry and reconciliation, empowering treasury staff to shift their focus towards high-value tasks. With automation, teams can execute routine treasury activities like cash positioning and account management swiftly and accurately. Furthermore, automated solutions leverage intelligent algorithms and predictive analytics to optimize liquidity and risk management, allowing the treasury team to identify and pick up on unidentifiable trends quickly.  

According to Deloitte’s 2022 Global Corporate Treasury Survey, the benefits of adopting more modern technology solutions in the treasury department include risk mitigation, automation of manual processes, 24-hour performance, speed, quality, efficiency, scalability to support growth, and satisfied employees due to less repetitive work. While the initial investment in a modernization effort may appear substantial, the long-term returns in productivity, risk reduction, and cost savings far outweigh the costs. Many treasury departments have experienced a considerable return on investment by embracing automation. 

If your organization relies heavily on manual treasury processes, now is the perfect time to explore automation solutions. These solutions can transform your treasury department into a strategic component of your organization, giving you a competitive advantage. The future of treasury is digital, and automation is the quickest way to get there. 

The top 5 tasks treasury teams can automate

To run your treasury department efficiently, consider automating these tasks. Automation not only reduces errors but also allows for more time for strategic projects.  

1. Cash Management: Automate Cash Positioning and Forecasting 

With automated tools, treasurers can monitor multiple bank accounts, view transactions, and assess cash flow patterns instantly. Automation not only saves time, but also reduces the risk of making poor cash management decisions. Automated cash positioning and forecasting empower treasurers to make informed, data-driven choices, resulting in improved cash management. 

2. Payments: Streamline Payment Processing with Automation 

The integration of automation into payment processing holds transformative potential for treasurers, replacing labor-intensive manual entry with seamless, electronic processes. Organizations can efficiently establish recurring payments, batch process invoices, and swiftly initiate wire transfers or ACH transactions through automation. This reduces the risk of payment errors and accelerates the entire payment workflow.  

3. Risk Management: Mitigate Financial Risks through Automation 

With automated risk management systems, treasurers can continuously monitor market fluctuations, interest rates, currency exchange rates, and credit risks. These systems provide real-time alerts and insights, allowing treasurers to react swiftly to changes in financial markets.  

4. Reporting: Gain Accurate and Timely Financial Insights 

Accurate and timely reporting is vital for treasury departments to make informed decisions and comply with financial regulations. Automation simplifies the reporting process, ensuring that treasurers have up-to-date financial data and insights at their fingertips. Automated reporting tools gather and consolidate data from various sources, eliminating the need for manual data entry and reducing the risk of reporting errors.  

5. Accounting: Streamline Processes and Reconciliation with Automation 

Accounting and reconciliation tasks are often cumbersome, particularly in treasury, where multiple transactions occur daily. Automation simplifies these processes by automatically matching and reconciling transactions, reducing the risk of errors and inconsistencies. Automated reconciliation tools can quickly identify discrepancies and exceptions, allowing treasurers to resolve issues promptly.  

Leveraging AI and Machine Learning 

The power of AI and machine learning in treasury automation cannot be understated. AI can analyze historical cash positions and flows to predict future balances, enabling better cash positioning and investment strategies. Machine learning can provide insights into accounts payable, automating payments by identifying patterns in payment timing, amounts, and vendors. AI also plays a crucial role in fraud detection, identifying payment anomalies and monitoring transactions for improper activity. 

Choose the right technology partner

Selecting the right technology partner for treasury automation is pivotal to your success. Focus on the following when evaluating potential partners.

  • Experience: Seek a partner with a proven track record and extensive experience serving treasury departments. 
  • Complete Solution: Choose a partner offering a full suite of integrated solutions, ensuring scalability as your business grows. 
  • Flexibility and Scalability: Select a solution that can adapt to your unique needs and is highly configurable with open APIs for custom integrations. 
  • Data Security: Prioritize security with encryption, multi-factor authentication, and strict access controls. 
  • Implementation and Support: Consider partners who provide training, knowledge sharing, and professional service support to help you maximize value. 
  • Innovation: Ensure your partner’s roadmap aligns with your organizational goals and delivers innovative solutions for years to come. 

By automating essential treasury functions and selecting the right technology partner, your organization can achieve greater efficiency, reduce risks, and pave the way for a digital treasury future. The time to embrace treasury automation is now. The potential benefits are limitless. 

Speak to one of our treasury experts

Whether it’s simplifying integrations, enhancing cash management, or streamlining processes, we’re committed to supporting your goals every step of the way. Processing more than 33 billion transactions every year for thousands of companies around the world, OpenText’s dedicated financial services team is committed to creating efficiency in treasury operations. Contact us.

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Alexis Holland

Alexis Holland is an experienced product marketer and financial services thought leader. Driven by solving complex client payment needs, she takes pride in providing the best customer experience possible by effectively communicating the numerous benefits of the financial services offerings within OpenText Business Network. With years of experience in the financial services industry, Alexis enjoys topics around the rapidly growing and constantly changing world of banking and payments. Alexis is a Senior Product Marketing Manager at OpenText, she leads product marketing efforts for Financial Services.

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