Treasury Management Strategies In An Uncertain Market

Written by Keegan Chamberlin
July 19, 2022

During the COVID-19 pandemic, companies with an adaptable treasury management strategy withstood poor economic conditions better than competitors. Given today’s uncertain market, now is the time for companies to build a strategy that will see them through any economic conditions.

So, what are some successful strategies you should consider?

3 Characteristics of A Successful Treasury Management Strategy

Embracing Treasury Management Automation

Automation is becoming necessary for growth as transaction volume increases within our economy. Your treasury could miss out on critical insights without automating bank aggregation.

Eventbrite, the global self-service ticketing platform, realized automation is necessary to maintain growth.

“When I first joined Eventbrite, my day-to-day consisted of logging into our bank portals, analyzing accounts’ balances, and then standardizing this data into a spreadsheet. I had to do this across all four of our main banks. I spent 2-3 hours a day pulling and normalizing bank data before Trovata, which wasn’t a good use of my time.”

– Niall Burke, Global Treasury Manager at Eventbrite

Even though their TMS promised to automate bank aggregation, manual workflows were often required. This left less time for analysis and action.

To solve this problem, Eventbrite utilized Open Banking APIs. These API banking connections were simple to set up, empowering them to automate the consolidation and normalization of their multi-bank data in a few hours. 

“Implementing Trovata was very straightforward. With the great support from Trovata, we connected our three major bank partners. Our transaction data came in right as we were speaking. Now, we’ve automated daily, weekly, and monthly cash reporting, giving us more confidence in our data.”

– Niall Burke, Global Treasury Manager at Eventbrite

With increased cash visibility, Eventbrite trusts their transaction data is accurate. This visibility empowers them with the confidence they are making data-backed business decisions.

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Improving Cash Forecasting Accuracy Through Transaction Tagging and Machine Learning

Your treasury can gain better visibility into cash flow by utilizing machine learning (ML). ML algorithms analyze historic bank data, discovering data patterns impossible for humans. These algorithms help you make more accurate predictions by learning as they spot trends over time. 

Orbus, the market-leading exhibition group, struggled to discover trends when forecasting with manual methods. 

“Understanding cash trends and forecasts was a manual and tedious process for us. Just getting the data we would need from various systems was so complicated. Once we wrapped our hands around it, there wasn’t time left to get meaningful insights from it.”

Aurelia Sirbu, Orbus CFO

This changed by embracing bank data automation paired with machine learning algorithms.

These algorithms analyzed their subsidiaries’ balance and transaction data, providing tagging recommendations.

The data sets could be utilized for further forecasting and analysis. 

“We streamlined our reconciliation process by creating tags. They automate the cash forecasting process and build powerful dashboards in an instant… We were able to build more accurate cash forecasts due to Trovata’s machine learning capabilities.” 

– Aurelia Sirbu, Orbus CFO

Improving their cash forecasting accuracy gave Orbus time to focus on strategic analysis. This helped them discover growth and optimization opportunities within their cash flow data. 

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Regularly Reviewing Treasury Management Assumptions

Market conditions are constantly shifting. Your strategy needs to be agile enough to position your company for growth.

Regularly reviewing your assumptions’ accuracy and performing stress tests helps optimize your treasury’s strategy to weather any storm.

Square struggled to support the broader demand for data integrity and availability across their organization due to the complexity of normalizing millions of transactions across their twenty banks with hundreds of accounts. Their old data structure was fragmented and inflexible, making centralization an incredible challenge. Without the necessary cash flow visibility, reviewing the assumptions that made up their treasury management strategy was nearly impossible.

Square teamed up with Trovata to develop a cash management platform that met their broader data integrity needs. By automating their bank data aggregation, Square now has an intelligent Multi-Bank Data Lake™. This makes it easier to monitor and analyze their treasury management assumptions. 

“True cash visibility means we can now get cash in the right places when needed. And we can manage modern treasury challenges in daily-time at enterprise scale.”

– Tim Murphy, Global Treasury Lead at Square

Strengthen Your Treasury Management Foundation Through Cash Management Automation

It doesn’t need to take an army to build a solid treasury management foundation. Trovata works alongside you to automate cash reporting, forecasting, analysis, and payments. Bridge the gap between your bank partners and treasury management strategy by automating your data management processes.

By doing this, your treasury team can gain powerful insights from your cash flow. This way, you can create a treasury management strategy that enables you to grow regardless of market conditions. 

Download our resource, “The CFO’s Playbook for Driving Growth Despite Market Volatility,” today.

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