The Importance of AI in Enterprise Treasury Management
Integrating artificial intelligence (AI) into enterprise treasury management processes is revolutionizing the way businesses handle financial data. By moving away from traditional manual spreadsheets to automated data pipelines, companies can streamline their operations and adapt to the fast-paced digital landscape.
Corporate finance departments are under constant pressure due to market fluctuations, regulatory requirements, and the increasing demand for digital financial solutions. Recently, Ashish Kumar, the head of Infosys Oracle Sales for North America, and CM Grover, the CEO of IBS FinTech, shed light on the challenges faced by corporate treasuries.
IBS FinTech, a prominent player in the industry for nearly two decades, has been ranked among the top five globally in a recent IDC report. Despite the widespread adoption of AI-powered automation in various business functions, treasury departments continue to rely heavily on manual spreadsheet processes.
Grover highlighted the gap in CFO offices, where essential treasury management tasks are still being managed using outdated Excel sheets. Treasury teams are responsible for managing cash flow, liquidity, and risks associated with foreign exchange and commodity trading. Even companies with surplus cash need to invest strategically to generate returns.
One of the major challenges faced by enterprises is the lack of real-time data connectivity. Treasury teams often have to manually enter data from trading platforms like Bloomberg or Reuters into spreadsheets before posting accounting entries into their enterprise resource planning systems.
Successfully Harnessing AI for Treasury Management
Implementing AI in treasury management requires addressing these manual bottlenecks. While many business leaders see AI as a quick fix, it is crucial to have a solid foundation of digitized and automated data to maximize the technology’s potential.
Grover emphasized the importance of creating a digitized and automated data set to effectively leverage AI in treasury management. Integrating treasury management systems with existing enterprise resource planning platforms can help establish this foundation. IBS FinTech, which has built its backend on Oracle databases, now seamlessly integrates with Oracle Cloud, NetSuite, and Fusion.
A connected ecosystem that includes direct communication between treasury management systems, enterprise resource planning platforms, trading platforms, and banks enables executives to access accurate information for liquidity management, risk mitigation, and compliance monitoring.
In light of increasing global volatility driven by geopolitical and economic factors, Grover stressed the need for automation and real-time information systems to navigate this uncertain landscape successfully.
Kumar highlighted the importance of modernizing treasury management with AI and integrating it with enterprise resource planning systems to enhance financial resilience. Conducting a thorough audit of existing data workflows is essential to identify potential areas for improvement. Direct integrations ensure real-time data flow, minimizing errors and setting the stage for future technology deployments.
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