Understanding Treasury Tech Innovation: What to Look For

Written by Sergio Garcia
March 22, 2024

Treasurers have seen their role rapidly evolve from operations to strategic partners within their organization. In fact, according to a survey by HSBC, 50% of CFOs of large organizations say treasurers play a key role in strategic decisions. Amidst this, innovations in treasury management tech have accelerated to new heights – offering a plethora of new solutions (and buzzwords) meant to streamline workflows.

But, with the barrage of tech now available, identifying the right solution that streamlines the complexities of treasury management is a daunting challenge. In this blog post, you’ll learn key attributes of the next generation of treasury tech that are essential to keep pace with modern business demands. 

Treasurers are tasked with collating, comparing, accounting for, reporting, analyzing, and forecasting not just cash, but also debt, investment instruments, foreign exchange transactions, and complex accounting requirements.

This myriad of responsibilities has historically made it difficult to build a centralized system that accurately and efficiently streamlines operations. For treasurers, this challenge resulted in limited options for solutions that keep up with the evolving demands of modern treasury functions. 

inline cta tms vs cash flow management platforms a 1

The Limitations of Traditional TMS Platforms

Traditional Treasury Management Systems (TMS) have long been the mainstay of treasury technology. However, as technology advances, their limitations become increasingly apparent. Legacy TMS platforms often suffer from:

  • Difficult Implementation: Complex installations and lengthy configuration processes can hinder efficiency and delay adoption.
  • Integration Challenges: Inflexibility in integrating emerging technologies like artificial intelligence and machine learning creates roadblocks to innovation.
  • Limited Scalability: Difficulty in scaling to accommodate growing data volumes and organizational complexity restricts future-proofing capabilities.

Fortunately, a new wave of treasury technology is emerging to address these shortcomings.

Key Innovations in Treasury Management: Powering the Treasury of Tomorrow

The next generation of treasury software represents a paradigm shift for how financial institutions and corporations manage their financial operations. These solutions are designed to address the critical challenges faced by treasurers in today’s data-driven business environment. Here’s a closer look at the key features that differentiate next-gen treasury tech from its legacy counterparts:

Big Data Brawn: Traditional TMS platforms often buckle under the weight of ever-increasing data volumes. Modern treasury solutions, however, are built to handle this influx with ease. They leverage scalable cloud infrastructure, which ensures treasurers have access to all their financial data, regardless of its size or complexity.

innovations in treasury management

Intelligent Automation: Next-gen treasury tech harnesses the power of artificial intelligence (AI) and machine learning (ML) to automate repetitive tasks and generate deeper insights from financial data. Machine learning algorithms can analyze vast datasets to identify trends, predict future cash flow needs, and automate routine processes like bank reconciliations and payments. This frees up valuable time for treasurers to focus on strategic initiatives.

innovations in treasury management

Real-Time Visibility with API Connectivity: Legacy TMS systems often operate in isolation, hindering real-time visibility into financial activities. Next-gen solutions leverage API (Application Programming Interface) connectivity to seamlessly integrate with other critical financial platforms, banks, and external data sources. This creates a single source of truth for all financial data, providing treasurers with a holistic view of their financial health in real-time.

innovations in treasury management

Unmatched Scalability and Flexibility: Unlike their rigid predecessors, next-gen treasury platforms are designed with scalability and flexibility in mind. Cloud-native architecture allows these solutions to adapt and grow alongside the organization. Treasurers can easily add new features and functionalities as their needs evolve, ensuring their technology stack remains future-proof.

Enhanced User Experience: Gone are the days of clunky, outdated interfaces. Modern treasury solutions prioritize user experience with intuitive and user-friendly interfaces. These interfaces are designed to be accessible for users with varying levels of technical expertise, fostering wider adoption within the treasury team and streamlining workflows.

The cumulative effect of these features is a transformative leap forward in treasury management capabilities. Next-gen treasury tech empowers treasurers to become strategic partners within their organizations, enabling them to make data-driven decisions, optimize cash flow, mitigate risks, and navigate the complexities of the modern financial landscape.

Trovata: Next-Gen Treasury Tech for Modern Treasurers

Trovata has combined the power of APIs, machine learning, and cloud technology to create a single source of truth for all of your financial data. Not only is it accurate, but also provides treasurers with a suite of powerful tools to analyze that data. Sophisticated forecasting and scenario modeling tools allow for complex projections, and generative AI functionality enables direct interaction with your financial information.

innovations in treasury management

This modern toolset empowers treasurers to achieve real-time analysis. With this technological foundation, it becomes a simple process to further build traditional TMS capabilities on top of this centralized data platform. A platform that combines centralized real-time data, built-in automated reporting and forecasting, and traditional TMS capabilities, paints a compelling picture of the future of treasury tech. To learn more, schedule a demo today!

bottom cta tms vs cash flow management platforms b 1 min

Subscribe to Newsletter