Smarter Banking for Corporate Treasurers

Corporate treasury has evolved significantly, shifting from a mere cost center to a pivotal player in shaping business strategy and driving growth initiatives. This transformation requires treasurers to focus less on routine activities and more on leveraging data for timely, informed decisions that optimize working capital.

With 70% of corporate treasurers showing interest in Treasury Management as a Service (TMaaS), the demand for seamless, technology-driven solutions is undeniable. However, the gap between corporate treasurer expectations and traditional banking capabilities has opened a window of opportunity for FinTechs to revolutionize the sector.

The Evolving Expectations of Corporate Treasurers

The new generation of corporate treasurers—often digital natives—expect banking services that align with their experiences as retail consumers. Their wishlist includes:

• Real-Time Payments: Immediate transaction processing for improved liquidity management.
• Paperless Transactions: Reduced manual effort and faster workflows.
• Data-Driven Insights: Granular analytics for decision-making.
• Proactive Alerts: Notifications that help identify risks and opportunities.
• Digital Collaboration: Tools for seamless communication with internal and external stakeholders.
• Connected Ecosystems: A centralized, real-time view of multi-bank and multi-entity operations.

These expectations highlight the need for intuitive, integrated, and intelligent banking solutions.

The Rise of FinTech Solutions

FinTech companies are stepping up to bridge the gap between treasurer expectations and traditional banking capabilities. Their innovations have already transformed retail banking, and they are now reshaping corporate banking with solutions that focus on convenience, cost-efficiency, and cutting-edge technology.

Key Innovations in Corporate Treasury

1. Treasury Management as a Service (TMaaS)

   • Platforms like Kyriba and FIS Integrity integrate internal ERP systems, banking APIs, and real-time account statements to offer a comprehensive view of receivables, payables, and cash flow.

2. AI-Powered Cash Management

   • Solutions such as HighRadius automate cash forecasting, reduce Days Sales Outstanding (DSO), and optimize working capital.

3. Supply Chain Financing Marketplaces

   • Platforms like Taulia connect suppliers, buyers, and financial institutions, facilitating competitive financing options and faster access to capital.

4. Virtual Account Management

   • Leaders like Tieto and Cashfac streamline account management and enable treasurers to maintain better control over liquidity.

5. Digital Lending for SMEs

   • Companies such as Tala and OnDeck Capital leverage AI for alternate credit assessments, addressing the $5.2 trillion global MSME credit gap.

6. Fully Digital Banking

   • For SMEs, players like Razorpay and Tide offer digital current accounts integrated with financial management tools like QuickBooks.

Challenges for Banks

Despite their established relationships and robust infrastructure, traditional banks face challenges in meeting modern corporate treasurer expectations:

• Legacy Systems: Outdated, siloed technology limits scalability and integration.
• Manual Processes: Paper-based workflows create inefficiencies and delays.
• Revenue Pressures: Declining global GDP and low-interest environments strain profitability.
• Regulatory Constraints: Compliance requirements limit the ability to innovate quickly.

These barriers make it difficult for banks to deliver the speed, flexibility, and innovation demanded by corporate treasurers.

Opportunities for Banks to Innovate

To remain competitive, banks must reimagine their service delivery models and prioritize digital transformation:

1. Collaborate with FinTechs

   • Banks can leverage FinTech innovations to enhance their offerings and integrate them into existing ecosystems.

2. Invest in Back-Office Automation

   • Solutions like Traydstream, which automate trade document checks, can reduce costs and improve efficiency.

3. Modernize Customer Portals

   • Platforms like CoCoNet and Bolero’s Galileo offer intuitive, feature-rich portals that enhance the corporate banking experience.

4. Leverage APIs and Open Banking

   • Open banking initiatives, enabled by regulations like PSD2, allow banks to provide flexible, API-driven services to treasurers.

5. Focus on Product Innovation

   • Banks can differentiate themselves with unique offerings, such as virtual accounts, AI-driven insights, and digital trade financing.

6. Expand Multi-Channel Reach

   • Banks should explore third-party partnerships to broaden their service delivery channels while modernizing their internal portals.

The Future of Corporate Treasury

As technology continues to reshape the financial services landscape, corporate treasury stands on the cusp of a smarter, more efficient era. FinTechs, with their agility and customer-centric approach, have shown how banking can integrate seamlessly into corporate workflows.

For traditional banks, this is a pivotal moment to embrace innovation, enhance customer experience, and regain their competitive edge. By combining their strengths—financial expertise, relationships, and data—with modern technology, banks can secure their place in the future of corporate treasury.

The race is on, and treasurers are set to experience smarter banking like never before. The question remains: Who will lead the transformation—banks or FinTechs?