Treasury Management: The ROI of Automation

Written by Keegan Chamberlin
July 13, 2022

As transaction volume grows, treasurers must determine how to handle it. For example, is it more efficient to hire more people and manage it in spreadsheets? Or is automating treasury management the answer? Manual processes that may have worked before are no longer optimal or scalable.

But the move to automation doesn’t have to be scary. On the contrary, the move toward digital transformation can introduce new benefits and opportunities for growth. 

Automating treasury management doesn’t just reduce tedious, manual tasks; it increases the accuracy of cash reports and forecasts, increases talent retention, improves cash visibility, and reduces fees. So let’s examine how automation can benefit your team and unlock a return on your investment.

Automating Treasury Management Reduces Manual Processes

In the previous decade, automation technology wasn’t readily available to treasurers. However, banking APIs have changed that, making it more accessible to automate data management. 

APIs enable banks to exchange transaction data between their accounts and third-party fintechs. This has cut the need to log in to multiple portals. Banking APIs connect to your banks to aggregate your bank data into one format. Automating the download and processing of information allows you to make better real-time decisions.

Open banking APIs also establish a single source of truth for your data. By aggregating your bank data, your treasury can gain visibility across all accounts. You no longer have to rely on aggregating disparate spreadsheets, wondering if your data is accurate. By establishing a single source of truth in the cloud, everyone has access to the same data. 

treasury management visibility

Automating Treasury Management Gives Better Visibility to Key Stakeholders

Establishing this single source of truth benefits more than treasury and finance. With access to better intelligence, decision-makers can make better business decisions.

People can solve problems more quickly when everyone has the same information. Treasury can relay rich insights to executives so that course corrections can happen at speed. This can help your organization be more agile and flexible.

Automating treasury management opens up further opportunities than data aggregation. By pairing that technology with machine learning (ML) algorithms, your treasury can discover previously hidden insights. ML can analyze large amounts of data and spot patterns much faster than humans. 

Automating Treasury Management Allows for More Consistent and Credible Reports and Forecasts

Because the data is being pulled directly from the bank via an open banking API into a secure and controlled database, treasurers can rest knowing their reports and forecasts are built on trusted data. In addition, banking APIs normalize data and feed it into reports and forecasts, reducing the chance of human error.

In this way, automated cash management platforms establish and maintain a forecast baseline. In addition, machine learning algorithms analyze historical data to increase forecast accuracy.

The advantage of ML in a financial data platform is that it can learn from previously available data. The larger the pool of available data and the more iterations it can perform, the more it can understand. This makes predictions that machine learning makes more accurate over time.

But human interaction will likely always be necessary. While some factors can be predicted based on past performance, one-off events can’t. Tweaks to data are necessary to include these one-off events and establish a more accurate forecast.

Automating Treasury Management Increases Talent Engagement and Retention

Automating treasury management can free up time from performing manual, tedious tasks. When treasury spends less time on menial tasks and more time analyzing data, they will be more engaged. By becoming cash management advisors, they can make a more valuable contribution to the organization.

That meets a vital demand of the Gen-Z workforce currently seeking employment. They want jobs that are purposeful, not repetitive. Optimizing operations to meet the changing expectations of the labor market can give you a competitive edge.

Automating Treasury Management Reduces Fees 

When your treasury constantly needs to export bank data, the fees can rack up.  By automating the aggregating of bank data via APIs, you can eliminate the need for constant data requests.

How Trovata Can Empower Your Treasury To Automate Cash Management

Ready to explore automating your treasury management processes?

Imagine what you can accomplish if your treasury team isn’t dependent on aggregating bank data manually. Instead, you could enable your team to become strategic advisers by focusing on analysis that assists leadership in making more informed decisions. 

With Trovata’s cloud-native API approach to treasury management, you can easily automate your cash reporting, forecasting, analysis, and money movement in weeks, not months, with no internal IT required.

Download the Trovata Platform Data Sheet to learn how you can gain powerful insights into your cash flow. Empower your team to make better business decisions backed with trusted data.

main cta trovata platform data sheet

Subscribe to Newsletter