FIS Blog

Beyond the Cloud – Next-Generation Treasury Technology


Andrew Bateman | Monday, August 7, 2017

Cloud adoption rates are on the rise. But apart from cloud, which is often associated with the modernization of treasury technology, what are the other forms of innovation in store for treasury?

Blockchain and the emergence of artificial intelligence (AI) have been two growing areas of interest within the treasury and financial community. A recent study conducted by EuroFinance and JPMorgan indicated that over half of treasurers believe blockchain will fundamentally change the payments ecosystem. Many treasurers believe the distributed database technology and peer-to-peer network underlying blockchain may allow for organizations to more easily exchange data, with reduced reliance on intermediaries. Because secure and efficient payments processing is commonly a pain point for treasurers, many organizations would be eager to adopt a new technology that can simplify transaction processing. Blockchain style and other solutions that greatly simplify the payments ecosystem may be closer than we think.

AI is another area that has got many in the treasury technology industry talking. Treasurers are seeking solutions that can not only process data but also learn from that data to improve analytical output and reduce human intervention in decision-making. Areas of cash forecasting and payments processing are two prime functional candidates that could lend themselves to AI improvement. On the payments side, there is an opportunity for systems to better learn from payment histories, using counterparty and value data to improve the identification of potential fraud, or to identify opportunities for lower cost channels or payment types. Cash forecasting, on the other hand, should be able to use a history of data in order to better predict future cashflows.

The role of technology within treasury has increasingly grown over the past several years, and will continue to become more important as new, innovative solutions appear. While we can’t be certain when next-generation technologies like blockchain and AI will become commonplace within the treasury and financial world, it is evident that treasurers who are utilizing the latest in treasury technology have the distinct advantage of being able to deliver greater strategic value to the organization.

Treasurers should ensure they are using the best in existing technology today, and keep a constant eye on the horizon for the emergence of next-generation technologies.

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Tagged in: Treasury Payments, Corporate Solutions

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