
The role of APIs: Connecting treasury with real-time finance
APIs are not new technology; they are simply a way for systems to communicate. However, in treasury, APIs offer speed, flexibility and automation in ways traditional file-based processes never can.
Here are a few examples of how APIs benefit corporate treasurers:
1. Real-time access to financial data
- Instantly retrieve balances, transactions and cash positioning data.
- Example: An investment firm can track intraday balances to optimise trading strategies.
2. Automation of payments and cash flow management
- Initiate payments directly from internal systems without logging into a bank portal.
- Follow business payment flows in real-time, ensuring liquidity optimisation.
3. Embedded financial services
- Businesses can integrate financial services into their own products (e.g., offering embedded FX or payment validation).
- Example: A real estate platform could enable instant mortgage validation for buyers using embedded banking APIs.
4. Enhanced fraud prevention and payment visibility
- API-based access to account validation services reduces fraud attempts by stopping fake invoices.
- Track and trace international payments with real-time status updates to improve cash management and supply chain processes.
- Example: Treasury to take positions based on information or business to release goods based on new information.
APIs remove friction from treasury operations by embedding finance directly into corporate workflows. Instead of treasury departments working in silos, they become seamlessly connected to their bank, their customers and their financial partners.