Embedded AI to cut financial close times 30% by 2028

Finance teams using cloud ERP systems with embedded AI assistants could close their books 30% faster by 2028, as automation and predictive tools become more deeply integrated into core finance processes. That is the latest forecast from Gartner, which identifies five themes it expects to reshape the finance function: composable ecosystems, intelligent process automation, AI trust, risk and security management, adaptive analytics, and AI-driven planning and forecasting.

According to the research firm, advances in machine learning, generative AI and agentic AI are moving cloud ERP platforms beyond transaction processing towards greater automation and decision support.

“Cloud ERP finance applications will deliver additional automation, insight, and efficiency to finance functions in the near future by integrating machine learning, GenAI, and AI agents,” says Mike Helsel, senior director, research in the Gartner Finance practice. He cautions, however, that CFOs must navigate vendor hype, organisational change and the economics of AI investment to realise these gains.

A shift towards more modular, composable ERP architectures is central to that transition. Legacy systems were often criticised for their inflexibility, whereas cloud-based models increasingly allow finance teams to add or adapt functionality through low-code tools and modular components. This flexibility, Gartner argues, enables organisations to deploy capabilities more quickly in response to shifting regulatory and market conditions.

Intelligent process automation is also evolving. Embedded AI tools are being applied to reconciliation, collections and transaction processing, with predictive capabilities designed to improve accounts receivable performance and working capital management. Helsel describes a market in which providers are “redefining mature intelligent process automation solutions to handle everything from autonomous transaction processing to AI-driven accounts receivable collections that predict payment behaviour and optimise working capital”.

Alongside automation, risk oversight is emerging as a priority. As finance systems grow more complex, AI trust, risk, and security management tools aim to support anomaly detection, continuous control monitoring, and real-time audit logging. Gartner says both established vendors and newer entrants are building these capabilities into cloud ERP finance platforms to address fraud and compliance concerns.

Adaptive analytics and AI-driven planning tools round out the five themes. Vendors are introducing conversational interfaces and context-sensitive dashboards that allow finance teams to query systems in natural language and generate insights from large datasets. In parallel, scenario modelling and predictive forecasting tools are being positioned to improve responsiveness to market shifts.

Despite the momentum, adoption remains at an early stage. Data quality challenges, integration complexity, skills gaps and inconsistent multi-entity support continue to slow implementation. Even so, Gartner forecasts that 62% of cloud ERP spending will be directed towards AI-enabled solutions by 2027, up from 14% in 2024.

“CFOs should insist on industry-specific features, transparent pricing, and referenceable customer adoption for AI tools, while investing in data governance and upskilling finance teams to maximise ROI and mitigate adoption risks,” Helsel says.

 

Japanese equities jump 13.8% as election boosts sentiment

Japanese equities have begun 2026 strongly, with the TOPIX index rising 13.8% in US dollar terms as of 26 February, supported by political developments and renewed investor interest. The rally gathered pace after Prime Minister Sanae Takaichi secured a two-thirds majority in a snap election. Speaking on the latest episode of the Goldman Sachs Exchanges podcast, Bruce Kirk, chief Japan equity strategist in Goldman Sachs Research, notes that markets have historically responded positively to decisive victories of that scale.

“Historically, stocks have rallied 20% in the three months following an election win of that scale for Takaichi’s party,” Kirk says, adding that the price-to-earnings multiple has tended to rise over the subsequent nine months, reflecting expectations of political stability and stronger foreign investment.

Kirk argues there may be further upside. Increased allocations from mutual funds and a weaker US dollar could provide additional support, particularly for international investors measuring returns in dollar terms.

However, he cautions that the backdrop is more complex than the headline performance suggests. Japanese equities have already delivered strong gains over the past year, and structural improvements will be required to sustain momentum. “The market has definitely gone higher over the last three years, but return on equity has effectively flatlined around 9%-10%,” Kirk says.

For corporate treasury and finance teams, the implications extend beyond equity markets. A sustained rally, combined with a softer US dollar, could influence capital-raising conditions, foreign investor flows, and currency dynamics. Japanese corporates may find improved access to equity financing, while multinational groups with exposure to Japan will need to monitor the impact of exchange rate moves on reported earnings and hedging strategies.

Ultimately, Kirk suggests that investors will require stronger profitability metrics before equities can push materially higher. Until return on equity shows sustained improvement, further gains may prove harder to secure.

 

Hong Kong and Shanghai sign MoU on digitised trade finance

The Hong Kong Monetary Authority (HKMA), the Shanghai Data Bureau and the National Technology Innovation Center for Blockchain have signed a memorandum of understanding to deepen cooperation on digitised cargo trade and trade finance between Shanghai and Hong Kong.

The agreement sets out plans for joint research into digital technologies and their application in cargo trade and finance, with a focus on developing cross-border infrastructure linking the two jurisdictions. The parties will examine the creation of a cross-border platform to support financial collaboration and facilitate the use of electronic bills of lading under Hong Kong’s Project Ensemble initiative.

The initiative will also explore how cargo and trade data can be used to streamline trade finance processes through connections with Hong Kong’s Commercial Data Interchange and CargoX. By linking data sources across jurisdictions, the authorities aim to improve visibility, reduce manual documentation and support more efficient financing flows.

For Hong Kong, the arrangement builds on its role as an intermediary between mainland China and international markets, particularly in trade settlement and financial connectivity. For Shanghai, the MoU supports efforts to integrate domestic data infrastructure with international ecosystems via Hong Kong’s established regulatory and financial framework.

Closer alignment between data platforms could support faster processing of trade documentation, improved risk assessment and reduced reliance on paper-based instruments for corporates engaged in cross-border trade. Electronic bills of lading and shared cargo data may also help address longstanding challenges in trade finance, including fraud, duplication, and delays.

 

Diverging rate paths cloud global easing outlook

Expectations that the next move in interest rates will be lower remain intact across developed markets, but the timing and scale of any cuts are increasingly diverging. After the first round of central bank meetings this year, the prospect of a synchronised easing cycle is fading, with domestic labour markets, fiscal policy and political developments now shaping policy decisions as much as inflation itself.

In his latest Risk Insights blog, Shane O’Neill, global head of capital markets at Validus Risk Management, argues that hedging decisions are no longer driven simply by the direction of rates. “Hedging decisions are increasingly shaped not just by the direction of rates but by the balance of risks on the path ahead - and those risks are now differing meaningfully across regions,” he writes.

In the US, the Federal Reserve has left policy unchanged, maintaining a cautious tone while acknowledging progress on inflation. Price pressures, particularly in services, remain sticky, while labour market data show clearer signs of softening. Hiring momentum has slowed, and forward-looking indicators point to further moderation.

O’Neill notes that the balance of risks is becoming more finely poised. Leadership changes at the Fed, seen by some as tilting more towards lower rates, may also influence how quickly easing begins once it does. “While volatility in expectations is likely to persist, the balance of risks may lean toward rates ultimately moving lower than currently priced, even if inflation proves slower to return to target,” he says.

For US dollar fund managers, lower rate expectations may reduce the traditional hedging ‘pick-up’, even as shifts in spot levels affect partially hedged positions. O’Neill adds that the dollar’s role in the global economy is facing closer scrutiny than at any point in recent years, increasing sensitivity to political and economic developments.

The UK presents a similarly uncertain picture. The Bank of England held rates at its latest meeting, but the 5-4 vote split underlines how finely balanced policy has become. Four Monetary Policy Committee members supported an immediate cut, signalling that easing could be approaching.

Recent inflation data have strengthened that case at the margin. Headline CPI fell to 3% from 3.4%, while core inflation declined to 3.1% from 3.2%. Both remain above the 2% target, however, and policymakers have warned against moving too quickly. Markets currently price roughly two cuts over the remainder of the year, though expectations remain highly sensitive to incoming data and political developments.

The eurozone, by contrast, appears less inclined to move towards near-term easing. The European Central Bank held rates at 2% at its latest meeting, and market pricing reflects a similar stance, with fewer than 10 basis points of cuts priced in for 2026. While growth remains subdued, policymakers are weighing a different mix of risks compared with their US and UK counterparts.

Fiscal policy is becoming more expansionary in parts of the bloc, most notably through higher spending in Germany, which could support demand and, over time, put renewed pressure on prices. At the same time, external factors such as potential US trade tensions add uncertainty to the inflation outlook. In this environment, the ECB’s emphasis is on stability rather than pre-emptive easing, leaving the balance of risks to rates more evenly distributed than in other major economies.

Taken together, the picture across developed markets is one of broad directional agreement but growing tactical divergence. While the overall bias for rates may still be lower, the journey is unlikely to be uniform. “Effective hedging is less about identifying a single turning point and more about managing uncertainty across a range of plausible outcomes,” O’Neill concludes.

 

Santander and Mastercard test AI-executed payment in Europe first

Santander and Mastercard have completed what they describe as Europe’s first live end-to-end payment executed by an artificial intelligence agent within a regulated banking framework. The transaction was carried out in a controlled environment using Mastercard’s Agent Pay capability and processed through Santander’s live payments infrastructure. The pilot was designed to validate whether an AI system could initiate and complete a transaction on behalf of a customer while operating within existing payment rails and regulatory controls.

Under the model, AI agents are authorised to initiate payments within predefined limits and permissions. The system integrates the AI agent into the payment flow as a governed participant, interacting with issuers, acquirers and merchants while maintaining established security and authentication standards. PayOS supported the orchestration of the transaction.

The test is intended to demonstrate technical and operational readiness rather than signal a commercial launch. Santander said the exercise confirmed that its infrastructure can support AI-driven transaction models under its existing compliance and control framework. The bank plans to move into extended testing and explore additional use cases before any broader rollout.

The development signals the potential emergence of agent-initiated commerce, where AI systems execute purchases or payments based on pre-set mandates. Such models could, over time, affect procurement workflows, automated supplier payments and embedded finance arrangements.

However, wider adoption will depend on governance, auditability and clear liability frameworks. Integrating AI agents into regulated payment systems raises questions around authorisation controls, dispute resolution and oversight, particularly as transaction volumes scale beyond pilot environments. The pilot reflects early experimentation with how AI agents might operate within established banking and card network structures, rather than outside them.

 

US business owners upbeat but succession and advisory gaps persist

Business confidence is recovering among US small and mid-sized companies, but gaps in succession planning and risk oversight suggest many remain underprepared for structural change. That is the central finding of Huntington National Bank’s 2026 Beyond Business Report, based on a survey of more than 750 owners, chief financial officers and financial decision-makers at companies with annual sales between US$1m and US$500m.

Sentiment towards the economic outlook has improved compared with prior years, even as operating pressures remain elevated. Nearly all respondents (95%) report rising costs and wage pressures, with companies generating under US$50m in annual sales identifying these as their top concern. A further 87% cite cybersecurity and fraud as major threats, while higher employee wages, supplier expenses and raw material costs are seen as the largest drag on profitability.

Against that backdrop, Huntington Private Bank’s chief economist, Olu Omodunbi, points to a more supportive macro environment. “Economic conditions are expected to support consumer spending and investment in 2026. Inflation has eased, interest rate expectations are becoming clearer, and consumer balance sheets remain relatively healthy,” said Omodunbi. “While risks remain, these dynamics are creating a more stable environment for businesses to plan, invest and grow.”

For finance teams, that combination of easing inflation and clearer rate expectations may improve planning visibility. However, persistent cost inflation and cyber risk underline the need for tighter working capital management, liquidity buffers and investment in controls.

The report also highlights a looming shift in ownership. More than half of businesses (54%) expect an ownership change by 2030, primarily driven by retirements. Among owners considering a sale or transfer, 82% cite retirement as the main driver, up seven percentage points from 2024.

Yet readiness is limited. Only 45% of respondents have a formal succession or exit plan in place, falling to 39% among smaller firms. For finance leaders, that gap raises questions about valuation, capital structure, tax planning and leadership continuity, particularly in founder-led organisations where decision-making may be concentrated.

Advisory support is another weak point. More than a quarter of businesses (27%) do not have a primary business adviser, while 48% rely on peers or other owners for guidance. Melissa Holding, director of wealth management at Huntington, warns that this can compound internal risk. “As business complexity increases, risk isn't just external - it’s also making critical decisions in isolation,” she said.

The findings suggest that while macro conditions may be stabilising, strategic preparedness is uneven. Improved sentiment alone is unlikely to offset structural weaknesses in governance, advisory oversight and succession planning as businesses navigate the next phase of growth.

 

BoE advances CHAPS opening as part of 24x7 push

The Bank of England will extend the settlement hours for the UK’s high-value payment system CHAPS by bringing forward the start of settlement from 06:00 to 01:30, with the change targeted for September 2027. The early morning extension will apply to CHAPS payments settled in RTGS and is designed to support earlier high-value settlement, strengthen liquidity management and align UK operations more closely with global markets. Participation will be optional for direct participants who send payments, although all direct participants will receive payments from 01:30, regardless of whether they actively send during the extended window.

The decision follows a consultation launched in July 2025. Of the 42 organisations that responded, 41% said they would use the early morning window, representing around 84% of CHAPS transaction value in 2024. A further 59% did not expect to use the extension immediately but supported an optional model. Most respondents backed implementation in the second half of 2027 to allow time for technical and operational changes.

Under the revised timetable, forward-dated payments submitted without a specific settlement time will settle at 01:30, subject to available funds. Intraday liquidity will also be credited at that time, while throughput rules and existing 12:00, 15:00 and 17:00 targets will remain unchanged and will not be assessed before 06:00.

The Bank will operate an ‘alert and respond’ support model between 01:30 and 06:00. Critical settlement-impacting incidents will continue to trigger escalation outside core hours, while non-critical issues will be addressed during the standard settlement window.

By contrast, the Bank has decided not to extend the evening contingency window at this stage, citing limited demand and concerns over cost and operational complexity. Instead, it will incorporate longer operating hours into its broader roadmap towards near 24x7 settlement. It will also explore a refined proposal for settlement on certain bank holiday Mondays, focusing on enabling both CHAPS and net settlement.

The earlier start time could offer greater flexibility in funding and liquidity positioning for corporates, particularly for cross-border payments and early-morning margin or funding flows. However, institutions will need to assess system readiness, staffing implications and the impact on internal crediting processes ahead of the 2027 go-live.

 

Finastra links trade platform to blockchain document network

Finastra has partnered with document transfer platform CargoX to integrate blockchain-secured electronic trade documentation into its Trade Innovation system, as banks step up efforts to digitise trade finance processes at source. The collaboration connects CargoX’s electronic trade document platform, which supports more than 65 document types, with Finastra’s Trade Innovation solution. The aim is to enable financial institutions to exchange trade documents electronically across counterparties, reducing reliance on paper-based processes.

Integration will be delivered through Finastra’s open API framework and its Trade Innovation Nexus connectivity layer. The combined offering is positioned as a cloud-based solution with encryption, audit trails and fraud controls embedded into the document flow.

For banks and their corporate clients, the move reflects a broader shift towards electronic documentation in cross-border trade. Paper bills of lading and other trade documents have long been associated with processing delays, operational risk and vulnerability to fraud. Digital-at-source models are intended to address those weaknesses by creating verifiable, transferable electronic records from the outset of a transaction.

The partnership also aligns with industry commitments to accelerate digitisation. Member carriers of the Digital Container Shipping Association have pledged to issue bills of lading fully electronically by 2030, placing pressure on financial institutions to ensure their trade finance platforms can support electronic documentation at scale.

Wider adoption of electronic trade documents could translate into shorter processing times, reduced document-handling risk, and improved visibility into transaction status for corporates. It may also support compliance and audit requirements through more robust record-keeping.

As regulatory frameworks for electronic transferable records continue to evolve across jurisdictions, interoperability between banks, corporates and logistics providers is likely to become a key differentiator. The Finastra-CargoX integration represents another step towards embedding digital documentation within mainstream trade finance infrastructure.

 

Canton group executes cross-currency gilt repo transactions

A consortium of financial institutions working with Digital Asset has completed a fourth round of transactions on the Canton network, expanding the scope of cross-border intraday repurchase activity across asset classes and currencies. The latest tests included, for the first time, cross-border intraday repo transactions using tokenised UK gilts. Participants also executed a cross-currency intraday repo in which tokenised gilts were exchanged against non-sterling tokenised deposits, extending earlier trials that combined multiple asset classes and currencies.

The working group comprises institutions including LSEG, Euroclear, Citadel Securities, Tradeweb, Société Générale, Virtu Financial, The Depository Trust & Clearing Corporation, Cumberland DRW and TreasurySpring, alongside Digital Asset. Archax, a regulated digital asset exchange and custodian, joined the latest round of transactions, reflecting continued interest from European market participants.

The initiative is focused on testing how tokenised collateral and on-chain settlement infrastructure could support intraday liquidity management across time zones. By enabling collateral to move in near real time, participants aim to explore whether 24-hour settlement models can reduce operational friction in repo and short-term funding markets.

The developments point to the potential for greater flexibility in funding and liquidity allocation, particularly where cross-currency exposures are involved. Embedding haircuts and repo interest directly into smart contracts, as trialled in the latest transactions, also suggests a route towards automating elements of risk management and settlement processing.

The working group has indicated it will continue testing on-chain financing models in 2026, as market infrastructure providers and dealers assess how distributed ledger-based collateral mobility could complement existing repo and clearing frameworks.

 

Deutsche Bank backs Dutch sustainable aviation fuel plant

Deutsche Bank has closed a non-recourse project financing to support the construction of a greenfield sustainable aviation fuel (SAF) facility at the Delfzijl chemical park in the Netherlands. The plant, known as DSL-01 and developed by Dutch biofuel specialist SkyNRG, is described as the first greenfield SAF facility globally to secure project finance. It will also be the first European plant dedicated solely to SAF production. Commercial output is expected to begin in mid-2028.

Once operational, the facility is projected to produce 97,500 tonnes of SAF annually, alongside around 35,000 tonnes of sustainable by-products including bio-based propane, butane and naphtha. The fuel is expected to deliver an 80% lifecycle greenhouse gas reduction compared with fossil jet fuel, rising towards 90% as renewable energy availability increases and reliance on natural gas falls.

KLM has signed a cost-plus offtake agreement covering 75% of the plant’s SAF output. The airline has set a target of 10% SAF usage by 2030, exceeding the current EU mandate by four percentage points.

The financing comes as the SAF market expands rapidly. Supplied volumes doubled in 2024, and the introduction of EU and UK blending mandates in January 2025 is expected to drive further growth. Global demand is projected to reach around two million tonnes this year and could exceed 15 million tonnes by 2030, supported by both regulatory requirements and voluntary commitments.

SkyNRG, backed by Macquarie Asset Management, KLM and Dutch pension fund APG, positions the project as part of a broader effort to integrate aviation into a bio-based economy. “To capture longer-term dynamics, we’ve extended our analysis to reflect what is needed through 2050,” said chief executive Maarten van Dijk. “Robust policy frameworks and targeted support for offtakers, technology developers, and infrastructure players are essential to keep SAF growth on track.”

 

Basware adds AI agents to invoice platform

Basware has introduced agentic artificial intelligence capabilities to its Invoice Lifecycle Management platform, as finance teams look to move from automated to more autonomous accounts payable processes. The update builds on the company’s InvoiceAI tool, launched in November, and adds AI agents designed to support invoice handling from ingestion through to reconciliation. The new capabilities include an AP Business Agent, which provides contextual guidance on next steps in invoice workflows, and an AP Data Agent, which allows users to query invoice data using natural language prompts.

The launch comes as many finance functions are still in the early stages of AI adoption. According to a global survey of 200 finance leaders in the US, UK, France and Germany conducted by FT Longitude on behalf of Basware, 61% say their organisations have deployed AI agents largely as experiments. One in four respondents say they do not fully understand what an AI agent looks like in practice.

Basware’s platform is designed so that AI-driven actions pass through a single governed execution path, with business rules, compliance requirements and risk thresholds applied before tasks are completed. The company says this approach is intended to ensure auditability and oversight as more operational decisions are delegated to AI systems. Further AI agents planned for release during 2026 include tools to support supplier dispute management and real-time assistance for accounts payable clerks.

The development reflects a broader push to improve touchless invoice processing, reduce manual intervention and generate clearer audit trails, while balancing efficiency gains with governance and control requirements.

 

S&P bolsters platform with AI tool for treasury credit analysis

S&P Global Market Intelligence has introduced CreditCompanion, a generative AI assistant embedded in its RatingsDirect platform, designed to strengthen liquidity and counterparty risk oversight for corporate treasury teams. RatingsDirect provides access to S&P Global Ratings credit research, market data and risk indicators. CreditCompanion is designed to automate elements of research retrieval and analysis through a chat-based interface, enabling users to generate company summaries, peer comparisons and ratings lists based on S&P’s underlying data.

The tool draws on more than one million credit ratings and three years of credit research, linking outputs directly to their source documents. It can summarise credit outlooks for issuers and instruments, highlight downgrade pressure and flag potential risks of falling below investment grade, based on published ratings research.

CreditCompanion also provides sovereign and sector overviews from a credit perspective, incorporating commentary on macroeconomic variables such as interest rates, foreign exchange movements and liquidity conditions. The platform links these macro factors to potential deterioration channels identified in ratings analysis, thereby supporting internal stress testing and scenario discussions.

For treasury teams managing bank lines, investment portfolios and trading counterparties, the ability to consolidate credit outlooks, peer comparisons and macro context in a single interface may streamline internal review processes. The tool also generates consistent documentation aligned with credit policies, which can support limit-setting and monitoring activities.

As market volatility and funding conditions remain sensitive to interest rate and geopolitical shifts, tools that integrate credit research with macro analysis are likely to play an increasingly vital role in treasury risk management frameworks.

 

Northern Trust expands dynamic currency hedging framework

Northern Trust has added German bank Berenberg to its dynamic currency hedging framework, allowing clients to incorporate third-party foreign exchange models into their currency risk management strategies. The enhancement enables asset owners and asset managers to integrate Berenberg’s artificial intelligence-based FX models into Northern Trust’s existing dynamic hedging platform. The solution adjusts hedge ratios in response to market conditions and model-driven forecasts, rather than maintaining static hedge levels.

The expanded framework is available across the US, UK, Europe, Australia and Canada. By incorporating external models, clients can select strategies that better align with their investment objectives and risk tolerances.

Dynamic currency hedging has gained traction amid elevated exchange rate volatility and as investors reassess the costs and effectiveness of traditional hedging approaches. Model-based strategies seek to adjust exposures based on macroeconomic signals, valuation metrics, and market momentum indicators, aiming to mitigate downside risk while retaining some upside participation.

The integration of third-party FX models may provide corporates with greater flexibility in managing translation and transaction risk. The ability to dynamically calibrate hedge ratios could also influence hedge accounting outcomes and liquidity planning, particularly during periods of sharp currency movements.

 

BILL and Rillet launch real-time finance data integration

BILL has partnered with ERP provider Rillet to introduce a real-time, two-way integration that synchronises accounts payable, spend, and financial data across both platforms. The integration enables continuous, bi-directional data synchronisation between the two systems for supported workflows, covering vendors, accounts, bills, credits and payment activity. The aim is to reduce manual reconciliation and minimise data discrepancies between operational finance tools and the general ledger.

As more growing businesses adopt AI-driven finance platforms, fragmented systems and delayed data flows can create reporting bottlenecks, particularly at month-end close. The joint integration is intended to address those gaps by keeping records aligned in real time and preventing duplication across platforms.

Under the arrangement, BILL’s payments, accounts payable, and spend management capabilities connect directly with Rillet’s general ledger environment. Deep-link functionality allows users to move between the two systems when reviewing or reconciling transactions.

This news highlights a broader shift towards continuous accounting models, where financial data is updated on an ongoing basis rather than consolidated periodically. Real-time synchronisation may help shorten close cycles, improve visibility over cash positions and reduce the risk of posting errors caused by manual data transfers. As AI-enabled ERP systems gain traction among mid-market and scaling businesses, interoperability between workflow tools and accounting platforms is becoming a focus area.