The year 2025 holds significant changes and advancements for corporate treasurers as they navigate the evolving landscape of treasury operations. Experts from the industry are predicting a shift towards embracing artificial intelligence (AI), with a focus on practical use cases that can enhance efficiency, accuracy, and strategic growth within treasury functions.
Steven Lenaerts, Head of Global Channels and Digital Onboarding at BNP Paribas, highlights AI as the upcoming buzzword in the industry, following the trends of blockchain and APIs in previous years. The rise of generative AI (GenAI) tools like ChatGPT and Claude is set to revolutionize treasury functions, with discussions around their impact gaining traction at industry conferences like EuroFinance.
Practical use cases for AI in treasury include cash flow forecasting, risk management, automated reporting, liquidity insights, payment efficiency, workflow automation, cost savings, and decision support. These applications empower treasury teams to make more accurate predictions, optimize risk management strategies, automate routine tasks, and support strategic decision-making processes.
However, there are roadblocks to overcome in adopting AI in treasury, including the need for robust data management, advanced technology platforms, and alignment of people, processes, and technology. Bob Stark, Head of Strategy & Enablement at Kyriba, emphasizes the importance of a clear data strategy and governance framework to maximize the benefits of AI applications in treasury.
As treasurers look to leverage AI in 2025, cybersecurity remains a top priority to ensure the protection of sensitive financial data and prevent potential cyber attacks. Strategic use of AI can enhance efficiency, strengthen security measures, and deliver actionable insights without compromising governance or increasing vulnerabilities within treasury operations.
In addition to AI adoption, treasurers will continue to focus on building a modern treasury through digitization efforts, real-time operational capabilities, and innovative payment solutions. James Fraser, Global Head of Trade & Working Capital at J.P. Morgan Payments, highlights the integration of faster payments, open APIs, and open banking methods as key drivers for automating transaction data capture and improving cash flow management in real-time.
Overall, the year 2025 presents treasurers with opportunities to embrace technological advancements, navigate evolving regulatory landscapes, and drive innovation within treasury functions. By strategically leveraging AI, digitization, and real-time capabilities, treasury teams can enhance efficiency, improve security measures, and adapt to the changing demands of the financial industry. The modern payment ecosystem is evolving rapidly, with the rise of instant payments and the increasing focus on real-time capabilities. Financial institutions (FIs) that maintain robust security and controls are poised to benefit the most from these changes. In 2024, the introduction of instant payments in the European Union marked a significant milestone in the evolution of financial infrastructure. FIs like Bank of America are focused on ensuring seamless receipt of instant payments and providing real-time visibility to help clients manage liquidity and market shifts.
It is crucial to differentiate between instant payments and on-time payments, as not every company requires 24/7 instant payments. Some corporate clients may still rely on batch processing of payments for certain transactions. However, the trend towards real-time capabilities is expected to continue in 2025, with a growing interest in SEPA Instant Credit Transfers and the removal of transaction limits.
In addition to real-time payments, the payments and cash management space is also preparing for the ISO 20022 migration, which will be a key theme in 2025. Large corporate customers are gearing up for compliance with the new standard, but there is some frustration over the lack of a unified approach in terms of timing and transition. The complexity and uncertainty surrounding the migration to ISO 20022 are presenting challenges for treasury and payments teams.
Managing market risk and making informed cash and liquidity decisions are top priorities for treasurers, especially in the current economic environment. Geopolitical and economic instability, along with upcoming geopolitical events, are creating uncertainty in the market. Treasury teams are under pressure to support liquidity mobilization and increased agility in banking partners.
In response to these challenges, there is a renewed focus on aligning technology with better practices in business continuity planning and risk mitigation. Treasury teams are looking for tools that can enhance proactive decision-making around foreign exchange (FX) hedging and liquidity planning. Automation of FX hedging processes can help treasury teams mitigate currency risk and focus on broader financial goals.
As the world continues to evolve rapidly, treasurers must stay ahead of these trends and adapt to the changing landscape. The key takeaway is that FIs that prioritize security, controls, and real-time capabilities will be well-positioned to navigate the complexities of the modern payment ecosystem in 2025 and beyond. In reflecting on the events of 2024, it becomes clear that the importance of adaptability and innovation cannot be overstated for treasury teams. The past year has taught us a critical lesson: the true risk lies not in embracing change and exploring new strategies, but in maintaining the status quo and resisting evolution.
The rapidly changing landscape of the financial industry, combined with the increasing complexity of global markets, requires treasury teams to be agile and proactive in their approach. Those who fail to adapt to emerging trends and technologies are at risk of falling behind their competitors and missing out on valuable opportunities for growth and success.
One of the key takeaways from the challenges of 2024 is the need for treasury teams to embrace a mindset of continuous improvement. This means being open to new ideas, technologies, and processes that can enhance efficiency, reduce risk, and drive innovation. By remaining stagnant and clinging to outdated methods, treasury teams run the risk of becoming obsolete in a fast-paced and dynamic environment.
Another important lesson from the past year is the importance of strategic risk-taking. While it is natural to be cautious and risk-averse in uncertain times, treasury teams must also be willing to take calculated risks in order to achieve their goals. By carefully evaluating potential risks and rewards, treasury teams can make informed decisions that have the potential to drive growth and create value for their organizations.
In order to thrive in the face of uncertainty and volatility, treasury teams must also prioritize collaboration and communication. By fostering strong relationships with key stakeholders, both internally and externally, treasury teams can gain valuable insights, access to resources, and support that can help them navigate challenges and capitalize on opportunities.
Furthermore, the events of 2024 have underscored the importance of leveraging technology to streamline processes, enhance decision-making, and improve overall performance. Treasury teams that embrace digital transformation and invest in innovative tools and platforms are better equipped to adapt to changing circumstances, improve efficiency, and drive long-term success.
Looking ahead to the next 12 months, treasury teams must remain vigilant and proactive in order to stay ahead of the curve and mitigate potential risks. By staying informed about market trends, regulatory changes, and emerging technologies, treasury teams can position themselves for success and ensure their organizations remain competitive in a rapidly evolving landscape.
In conclusion, the lessons of 2024 serve as a valuable reminder for treasury teams of the importance of adaptability, innovation, strategic risk-taking, collaboration, and technology in driving success and achieving long-term sustainability. By embracing change, taking calculated risks, and leveraging the power of technology, treasury teams can position themselves for growth and prosperity in the face of uncertainty and volatility. It is clear that the real risk for treasury teams lies not in trying something new, but in standing still and resisting the forces of change.