Fragmented data threatens treasury’s agentic AI ambitions

CFOs and treasurers risk undermining agentic AI projects if fragmented data, manual workflows and weak governance are not addressed first, according to a new EY India report on treasury transformation. ‘From spreadsheet heroics to autonomous treasury: An agentic AI adoption playbook for CFOs and treasurers’ argues that autonomous treasury depends on a governed data foundation and redesigned workflows before AI is scaled.

At mid-levels, 60% to 70% of treasury bandwidth can be consumed by low-value work such as aggregating data, manually validating figures and preparing reports that may already be outdated when they reach decision-makers. 

A typical mature treasury function can also run between 50 and 100 interconnected spreadsheets covering cash positioning, FX exposure, investments, debt and regulatory reporting. In one observed case, a global treasury team managing more than 120 bank accounts across over 20 currencies spent almost two weeks each month on reconciliation because it lacked a unified data layer. 

Fragmentation becomes more consequential once AI is introduced. Organisations can test tools on data that is neither clean nor timely enough, receive inconsistent recommendations and then fall back on spreadsheets. As the report puts it: “The path forward runs through the data lake, not around it.” 

A governed treasury data lake would pull data from ERP and treasury management systems alongside bank balances, trade confirmations, market rates and counterparty limits. Structured information can then sit with contracts, emails and market news, while role-based access and lineage controls allow users to trace where figures originated. 

Reconciliation and reporting are highlighted as particularly strong starting points for automation. Analysis cited in the report shows 80% to 90% automatic matching rates in reconciliation, reporting cycles reduced from days to hours and counterparty validation times improved by up to threefold. 

Manual reporting remains another significant drain. Variance reporting required more than 60 hours a month in some programmes before automation, while treasury teams were spending three to five days each month preparing board packs, audit schedules and regulatory reports. 

Agentic AI would sit on top of those automated workflows, applying reasoning, simulation and decision support. Initial deployment should remain advisory, with humans approving recommendations and no autonomous payments during pilot phases. 

Cash forecasting, KYC/AML exception handling and cash reconciliation are identified as suitable early use cases. Forecasting offers scope to reduce liquidity buffers, while reconciliation can deliver measurable returns through fewer errors and faster closing cycles. 

Governance is intended to come before scale. Approval workflows, audit logging and escalation routes should be established before deployment, while performance measures should focus on liquidity buffer reduction, cycle time and manual effort rather than model accuracy alone. 

At scale, the proposed operating model would see around 80% of routine coordination and processing handled by automated workflows and agents, leaving treasury professionals focused on judgement, risk calibration and strategic decisions. 

Human judgement remains central to funding, counterparty relationships, liquidity optimisation and risk appetite, while machines take on more of the collation, exception clearing and routine processing that currently absorbs treasury capacity.

 

US midsize firms maintain overseas payments despite elevated tariffs

Midsize US firms have yet to make a decisive shift away from overseas suppliers despite sustained tariff pressure, with international payments continuing to rise more slowly than domestic outflows, according to new JPMorganChase Institute research. 

The report, ‘Tracking international payments: How are midsize firms responding to continued tariff pressure?’, uses de-identified transaction data from midsize JPMorganChase clients. Authors Chris Wheat, Chi Mac and Ole Agersnap examine tariff payments and flows to domestic and foreign counterparties through mid-2026. 

Payments made towards tariffs tripled during 2025 before peaking in October. By June 2026 they were almost a third below that peak, but remained more than twice their pre-2025 level. On the report’s inflation-adjusted index, the figure stood at 222 in June, versus 314 at the October peak. 

A sharper signal of firms’ behaviour comes from payment flows. Domestic and international outflows moved broadly together through 2023 and 2024, but diverged as tariff increases were announced. Since early 2025, domestic payments have grown 6 to 12 percentage points faster than international ones. 

By June 2026, the domestic outflow index stood at 123.6, compared with 113 for international payments, both relative to an October 2024 baseline of 100. 

Such a gap could be consistent with some shift towards domestic suppliers, but the report stops short of drawing that conclusion. International payments have remained relatively stable despite large changes in tariff rates, suggesting companies may be delaying longer-term supply chain decisions while policy remains uncertain. 

“Supplier relationships can take time to establish, affecting the speed of any response,” the report notes. 

International outflows also include services and financing and may lag goods delivery, making them an early signal rather than a direct measure of imports. 

Sector data show how unevenly the pressure is being felt. Across the overall sample, tariffs consumed 0.81% of company inflows in the 12 months from April 2025 to March 2026, up from 0.35% in the comparable pre-2025 period. 

Apparel manufacturers faced the highest burden at 5.17% of inflows, followed by leather and allied products at 4.69%. Electrical equipment, appliance and component manufacturers reached 4.00%, while machinery manufacturers were at 2.01%. 

Several other manufacturing sectors now sit in the 1% to 2% range. Computer and electronic products rose to 1.22% from 0.30%, fabricated metals to 1.15% from 0.24% and transportation equipment to 0.99% from 0.28%. Food manufacturing recorded the largest proportional increase, with its tariff burden rising more than sevenfold to 0.58%. 

Geography matters too. The Far West recorded the highest post-2025 tariff burden at 1.29% of inflows, followed by the Mideast at 1.09% and New England at 0.99%. But the largest relative increases came in the Great Lakes, where the burden rose 3.39 times to 0.76%, and the Southeast, where it tripled to 0.58%. 

Imported inputs therefore remain a substantial cost for exposed firms even as supplier networks adjust slowly. Finance teams may have to absorb that pressure through prices or margins while keeping enough liquidity and forecasting flexibility to respond if trade policy shifts again. 

 

Canadian exporters accelerate diversification as US demand weakens

Canadian exporters are stepping up efforts to diversify beyond the US as trade uncertainty persists, with 72% planning to enter new markets over the next two years, according to Export Development Canada’s latest Trade Confidence Index.

That is up from 65% five months earlier. Europe is the most attractive destination, cited by 31% of exporters, followed by Asia-Pacific at 20%. Businesses are primarily seeking new revenue streams, a wider customer base and more favourable market conditions.

Overall trade confidence also improved, with the index rising to 71.7 from 69.7 at the end of 2025. Exporters serving both the US and other markets recorded the highest score at 72.7, compared with 69.5 among those focused exclusively on the US.

Stuart Bergman, chief economist at EDC, said: “Canadian exporters are adjusting to a new reality where uncertainty is not a temporary disruption, but an ongoing feature of the global trade environment.”

Diversification is extending beyond exports. Some 34% of respondents are investing outside Canada, up from 29% at year-end 2025. Among exporters active in both the US and other markets, 84% buy from Canadian suppliers, 71% invest domestically, 70% import and 41% invest abroad.

Confidence at home is also improving. More than half of exporters, 55%, expect domestic sales to rise over the next six months, up from 48% at the end of 2025. Investment is increasing in areas intended to lift productivity, including intellectual property and software at 32% and advanced machinery and equipment at 30%.

Pressure from the US remains evident. Nearly one-third of exporters, 32%, reported weaker US orders over the previous six months. Looking ahead, 42% expect sales to remain at lower levels and 21% expect a further decline.

Companies are responding by increasing domestic sales, cited by 29%, sourcing more locally at 22%, accepting lower profit margins at 20% and moving into new export markets at 19%. For finance teams, that mix points to continued pressure on margins, working capital and investment decisions as companies rebalance market exposure.

Manufacturing recorded one of the weakest confidence readings at 67.6, while agriculture and forestry stood at 68.1. The US remains the dominant export market, however, with 81% of respondents currently active there.

EDC noted that the survey was completed before the US imposed 50% tariffs on a range of Canadian goods on 22 August, meaning the latest measures are not reflected in the findings.

 

MAS proposes cross-border recognition in stablecoin framework

The Monetary Authority of Singapore has proposed legislative amendments to the Payment Services Act 2019 to implement its regulatory framework for stablecoins, setting out the conditions issuers must meet to qualify as MAS-regulated.

Under the proposed Single-Currency Stablecoin framework, only licensed issuers would be permitted to describe themselves as MAS-regulated stablecoin issuers and label their tokens as MAS-regulated stablecoins. Other stablecoins would continue to be treated as Digital Payment Tokens and subject to the existing consumer protection rules that apply to DPTs.

The consultation covers requirements on value stability, capital, redemption at par and disclosure, alongside further policy proposals shaped by recent developments in overseas stablecoin regulation.

MAS is considering allowing stablecoins jointly issued by Singapore and foreign entities to fall within the framework where risks are sufficiently mitigated. It also proposes recognising a limited number of foreign-issued stablecoins operating under comparable regulatory regimes, reflecting potential cross-border wholesale use cases.

Additional financial stability measures under consideration include banning interest payments on MAS-regulated stablecoins, requiring stress testing and obliging issuers to maintain recovery and orderly wind-down plans.

Consumer protection provisions would also be strengthened. Issuers could be required to safeguard customer money received before stablecoins are issued, broadly aligning protections with those already applied to existing Payment Services Act licensees.

The framework is intended to distinguish regulated stablecoins from other cryptoassets that use the stablecoin label without being subject to equivalent requirements on value stability and governance.

For treasury and finance teams, the proposals are particularly relevant to the development of tokenised settlement. Stablecoins that meet clear redemption, capital and value-stability standards could become more credible tools for wholesale payments, liquidity movement and settlement in tokenised markets, especially where corporates require certainty over value and legal treatment.

Cross-border recognition would also be important for multinational use cases, although the consultation suggests MAS will take a selective approach rather than grant broad equivalence.

The regulator is seeking feedback on the proposed amendments and related policy positions before finalising the framework. The consultation does not yet set a final implementation date for the regime. Interested parties have until 16 October 2026 to submit comments.

 

Siemens tests Swift ledger for cross-bank treasury payment

Siemens has completed the first live corporate treasury payment over Swift’s shared ledger, in a transaction involving BNP Paribas and HSBC that tested how tokenised infrastructure could work without changing treasury processes.

Funds moved from Siemens’ euro account with BNP Paribas in France to its sterling account with HSBC in the UK. Siemens sent the instruction through its existing banking channels, with no new accounts, wallets or operating procedures required.

BNP Paribas and HSBC validated the payment alongside related foreign exchange and funding arrangements before routing the transaction through Swift’s ledger. Swift confirmed the banks’ interbank obligations, allowing funds to become available in the receiving account while final settlement continued through banking rails.

Rather than settling the transaction itself, the ledger acted as a coordination layer. Any timing difference between making funds available and final settlement was managed by the banks.

For corporate treasury teams assessing tokenised payments, that distinction matters. The pilot suggests distributed ledger infrastructure could extend real-time liquidity movement across different banking groups without forcing companies to abandon commercial bank money, bank relationships or payment instructions.

Siemens focused the exercise on three requirements: settlement finality, reach across banking groups and delivery through standards and relationships embedded in its treasury operation.

Previous work between BNP Paribas and Siemens has covered cash concentration, API connectivity, virtual accounts and instant payments. This transaction tested whether a shared ledger could extend connectivity across those arrangements.

For multinational treasuries, the model could reduce a practical barrier to tokenised payments: rebuilding operational processes around new infrastructure. Combining a shared ledger with APIs, instant payments and automated liquidity tools could allow funds to move more continuously while corporate systems operate in familiar ways.

Interoperability may become increasingly important as banks develop tokenised deposit capabilities independently. A common coordination layer could help connect those systems while settlement remains anchored in regulated banking infrastructure.

Broader adoption will depend on whether the model can deliver the same certainty, reach and control across more currencies, banks and jurisdictions. For corporates, the Siemens transaction provides an early example of how blockchain-based infrastructure might fit into existing treasury operations rather than sit apart from them.

 

Payment friction and AI trust gaps challenge global commerce

Payment acceptance, foreign exchange costs and trust in artificial intelligence remain significant barriers as consumers adopt more mobile and AI-supported commerce, according to research from Alipay+ and S&P Global.

The survey of 6,000 consumers across nine markets in Asia, Europe and the US found 63% already use mobile payments for most transactions while travelling. Yet 53% remain uncertain about merchant acceptance, 54% report difficulty using preferred payment methods for pre-trip bookings and one in four still carries cash as a fallback.

Some 62% cited transaction security as a concern when using mobile payments abroad, while 56% pointed to exchange rates and fees and the same proportion to unfamiliar payment terminal steps.

Spending patterns are also becoming more local. Food and beverage recorded the largest increase in traveller spending at 67%, followed by local attractions at 66%. More than half of respondents, 54%, said they spend more at local shops and eateries than at malls or chain restaurants.

Consumer-facing companies therefore face pressure to support a wider mix of payment methods without losing visibility over costs, settlement and FX exposure. Growing use of local wallets, QR codes and card-linked NFC payments can also complicate reconciliation across markets.

Consumers increasingly expect payment apps to extend beyond transactions. Restaurant reservations and payments were the most requested in-app service at 61%, followed by all-in-one travel booking at 58%, attraction tickets at 57% and local transport booking at 54%. Rewards and cashback, better FX rates and expense tracking were among the strongest drivers of wallet usage.

Douglas Feagin, president of Ant International, said: “The next phase of global commerce will not be defined by whether payments are digital, but whether ecosystems are intelligent, interoperable and globally connected.”

AI adoption is already high for research and planning, with 81.3% using AI-powered tools to explore destinations and experiences. Openness drops as AI moves closer to execution: 73.2% would consider using it for hotel or flight bookings over the next year, but only 26% expressed interest as AI moves towards payments and autonomous decision-making.

Privacy concerns were cited by 43%, while 43% also said they hesitate to use AI assistants because they prefer planning travel themselves and 32% favour human advice.

Finance teams will need to consider what this shift means for payment acceptance, FX pricing, fraud controls and settlement visibility. As AI becomes more involved in commerce, companies will also need clear controls over how automated transactions are authorised, refunded and reconciled.

 

DBS and Citi test weekend cross-border USD payments

DBS and Citi have completed a live cross-border US dollar payment between Singapore and the US over a weekend using tokenised deposits on Swift’s digital ledger, demonstrating how the infrastructure could support 24/7 corporate liquidity movement.

Completed on 5 September between DBS and Citi’s New York office, the transaction took minutes rather than the industry norm of up to two business days. By removing dependence on traditional banking hours, the model could give companies faster access to cash across jurisdictions and time zones.

Coming after the Siemens corporate treasury transaction, the latest live use of Swift’s ledger tests a different capability: moving cross-border dollar liquidity outside traditional banking hours.

Corporate treasuries could use that availability to reposition cash between entities without waiting for markets or correspondent banking windows to reopen. That could be particularly useful for companies operating across Asia and the US, where weekend and time-zone gaps can leave liquidity temporarily inaccessible.

DBS and Citi used tokenised deposits to execute the payment, with Swift’s ledger providing the shared infrastructure connecting the banks. The transaction shows how tokenised money could be used within existing banking relationships to support always-on cross-border payments rather than requiring corporates to move funds through a separate digital asset ecosystem.

Greater availability could also help finance teams respond more quickly to market moves, funding requirements or unexpected cash needs. Faster cross-border access to liquidity may reduce the need to hold additional buffers in multiple locations, although the operational benefits will depend on how widely banks, currencies and jurisdictions become connected.

Demand for such capabilities is growing. A DBS survey cited alongside the transaction found 50% of finance leaders are exploring blockchain-based tools for liquidity and FX management, while Asia’s outbound cross-border payments are projected to reach US$24 trillion by 2033, from US$13.5 trillion in 2025.

The test adds another practical use case for Swift’s digital ledger as banks explore how tokenised deposits can operate across institutional networks. For corporates, the value will be measured less by the underlying technology than by whether it can provide faster access to cash, broader reach and dependable settlement without adding complexity to treasury operations.

 

FIS embeds banking into corporate finance workflows

FIS has launched an embedded banking platform that will allow US banks to offer accounts, payments and related services directly inside the software used by corporate customers.

The platform is designed to move banking closer to companies’ day-to-day finance workflows. Instead of logging into a separate bank portal, businesses could open accounts, move money and manage payables, receivables, cards and expenses from within accounting systems or other operational software.

Accounts remain on the bank’s own balance sheet rather than being recorded on a third-party virtual ledger. FIS said this allows banks to retain customer ownership and regulatory control while software partners manage the user experience.

For corporate finance teams, the practical appeal is integration. Embedding banking functions into existing software could reduce manual handoffs between bank portals and internal systems, shorten payment workflows and improve visibility over cash movements as they occur.

Closer links between banking and accounting environments could also make reconciliation easier, particularly where payment initiation, receivables data and account information sit within the same workflow. Companies may spend less time moving between systems while gaining a more direct view of balances and transaction activity.

Available capabilities include account opening, card issuing, accounts receivable and payable and expense management. Banks can connect through APIs, software development kits, embeddable widgets or white-labelled applications, depending on the software partner.

FIS is launching the platform with pilot banks including Cogent Bank, Commercial Bank of California and M&T Bank, with accounts and payments planned for the fourth quarter of 2026.

The model could also broaden the range of banking services available inside specialist business software, bringing treasury and payments closer to the systems where invoices, expenses and operational decisions originate. How valuable that becomes for corporate customers will depend on the depth of integration and whether banks can deliver consistent controls, data and functionality across those embedded environments.

 

KB Kookmin Bank links trade payments to Kinexys

KB Kookmin Bank is launching an import and export payment service using Kinexys by J.P. Morgan’s Blockchain Deposit Account network, becoming the first Korean financial institution to use the network for corporate payments.

The service will be available through KB Kookmin Bank branches in Korea and Singapore, initially supporting US dollar remittances. Payments will be available to 10 markets: the US, Singapore, Saudi Arabia, India, Thailand, Qatar, the UAE, Bahrain, South Africa and Korea.

Korean importers and exporters will be able to use the blockchain-based network to settle payments with overseas financial institutions and companies connected to Kinexys. The bank expects the service to shorten settlement times, particularly across markets where business days and time zones differ.

Faster receipt of export proceeds could improve access to cash and reduce the time between a commercial transaction and usable liquidity. Importers may also gain more predictable payment timing when settling obligations with overseas counterparties.

Kinexys supports near real-time cross-border settlement and programmable payments. Transfers within the network are available on a 24/7/365 basis, although moving funds between traditional demand deposit accounts and Blockchain Deposit Accounts currently has a three-hour downtime each Saturday.

The platform processes an average of $7bn a day and has handled more than $4 trillion in cumulative transactions since inception, according to internal Kinexys data.

For Korean companies trading with the US, Middle East and other markets, the practical value will depend on how broadly counterparties and banks connect to the network. Wider participation could allow treasury teams to move away from payment schedules shaped by cut-off times and differing business days.

Initial support is limited to US dollars, but the service gives KB Kookmin Bank a route to expand cross-border payment capabilities as corporate demand for faster settlement and more continuous liquidity movement grows.