Creating real-time reality for finance teams

Nothing slows down free trade and payments more than manual intervention.

And with news on Sunday (October 20) that Bank of America is now allowing companies to lock in exchange rates for up to a year, simplifying treasury management processes through digital automation is top of mind for finance and treasury executives Meaning.

As more companies work to replace manual payment processes with automated and secure electronic solutions, today’s financial landscape benefits from an intensifying network effect, where it has never before been possible to optimize working capital, efficiently manage liquidity and have real-time visibility Ensuring cash flows are greater.

As digital transformation accelerates, the adoption of application programming interfaces (APIs) is one of the most powerful tools for redesigning treasury operations. APIs have become essential in the corporate finance ecosystem as they enable seamless integration and communication between different financial systems, enable automation and enable real-time data access. As APIs become easier and more accessible and collaboration between FinTechs and financial institutions becomes faster, treasury teams are benefiting, improving their ability to perform strategic financial management functions and adapt to an increasingly complex financial environment.

This ongoing shift is not only modernizing the way companies move money, but is also redefining the role of finance and treasury within the larger corporate organization.

Read more: Real-time reality check: How digital payments are driving Treasury’s AI development

How simplified API adoption drives innovation

One of the key benefits of API integration for treasury teams is the ability to access real-time data from banking and financial systems. Traditionally, treasury teams relied on manual processes and regular data imports, which often resulted in delays and data discrepancies. However, with APIs, teams can now integrate data streams from various banking partners and financial institutions directly into their treasury management systems (TMS), providing an up-to-date overview of cash balances across all accounts and currencies.

“The most underrated part of any of these financial organizations is the controller’s office and the back end of the finance department, where they have to be able to pull in reports at the end of every day and be able to close the books in two or three days a day End of a month,” Cindy Turner, chief product officer at Worldpay, told PYMNTS.

API-driven solutions are also changing the payments landscape for treasury teams by improving the efficiency and speed of payment processing. Using APIs, treasurers can connect directly to payment platforms and banks, enabling automated, real-time payment processing that aligns with strategic cash management goals. This feature significantly reduces reliance on traditional file-based transfers and batch processing, which often result in delays and inefficiencies.

Automation, Seamus Smith, EVP group president at FIS, told PYMNTS, “allows the CFO to put more of their performance into thinking about the future and growth of their company.”

“Collections teams, for example, rely on timely and accurate information from sales and finance to effectively manage receivables,” Smith added, noting that solutions that “analyze historical data, identify patterns, and help companies make more informed decisions meet”, the financial world changes team results.

See also: The digital migration of the Ministry of Finance creates greater synergies with the finance department

Better treasury management means better business growth

As API technology evolves, treasury teams will have more opportunities to leverage data-driven insights, optimize cash flows, and manage risk in a real-time, automated environment

“The treasury function has definitely become more important and has definitely increased in terms of the versatility that needs to be explored,” Ole Matthiessen, global head of cash management at Deutsche Bank, told PYMNTS in an interview.

APIs enable treasury teams to connect and integrate with multiple banking partners and financial platforms without the complexity typically associated with traditional banking systems. The trend towards open banking and API technology standardization has made it easier for companies to connect their treasury management systems with banks, FinTech solutions and other financial services, creating a more connected and efficient financial ecosystem.

“With the right strategies, midsize companies can leverage their working capital not only to survive, but also to thrive in a competitive global marketplace,” Lauren Hewings, head of working capital solutions at Visa, told PYMNTS, pointing out that CFOs and treasurers are no longer satisfied with traditional methods of managing working capital. Instead, they are turning to digital solutions to increase the efficiency of their working capital.

Read more: How APIs connect modern and legacy B2B payment architectures

“The trend towards digital solutions is becoming increasingly important,” said Hewings. “There is a mismatch between what CFOs and treasurers are looking for and what financial institutions are offering.”

PYMNTS Intelligence finds that top performers regularly pursue strategies such as integrating their suppliers with enterprise resource planning (ERP) systems to streamline payments and optimize cash flow visibility.

“A lot of treasurers are thinking, ‘How can I squeeze every last bit of juice out of my financial ecosystem?'” Ambrish Bansal, global head of liquidity and cash concentration products for Citi’s Treasury and Trade Solutions division, told PYMNTS.

“I see the role of the Treasury becoming more and more central [the enterprise’s] Business strategy, to growth strategy, to expansion strategy – and quite frankly, to sustainability strategy,” Bansal added. “The treasury team plays a central role.”

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