Tino Kam agrees that new technologies are improving risk management. “With tools like robotic process automation, corporate treasuries are able to automate more of their risk management. For example, invoices or payments in the ERP-system could trigger simple spot conversions or more sophisticated hedging strategies containing swaps and forwards.”
4: Robotics and artificial intelligence
Treasuries are also investigating ways to use robotics to streamline their day-to-day operations. “Most of today’s treasuries are lean and they want to lessen their dependencies on people, so process efficiency is the main focus. Taking a real-life example, if a person is off sick or on annual leave, this shouldn’t impact a company’s critical operations. In that case, automation can provide a big advantage,” says Claesson.
In the near future, Tino Kam thinks these tools will increasingly be used in conjunction with artificial intelligence (AI). “I think we’ll see more treasuries taking advantage of their data using the power of AI,” he says. “For example, when it comes to cash forecasting or risk forecasting, treasuries won’t just be dependent on their current data set. They’ll use AI to compare it with historic data and predict future trends.”
There’s already a lot of innovation happening in this area — and AI could soon help treasuries reach all of their core KPIs. “There’s no way that humans can leverage all the data that’s out there. But with AI you can,” Kam says. “Ultimately, it will help treasuries to achieve their core KPIs of funding, liquidity and risk management. In fact, in five years, these KPIs will probably be replaced with new ones — because the main three will be increasingly automated functions.”
There is already a lot of excitement about the possibilities of using new technology. It’s not just banks leading the way with solutions. “Customers often come to us with ideas or use cases for APIs that we haven’t even thought about,” says Claesson. “It’s sparking creativity as treasuries seek new ways of streamlining and improving their cash management. Nordea is working closely with customers and partners to develop these solutions.”