Treasurers turn to automation amid rising pressures

As treasury teams face mounting economic complexity, a new survey reveals they are relying more than ever on automation, clear communication, and revamped processes to weather the storm. According to the 2025 AFP Treasury Benchmarking Survey, sponsored by Wells Fargo and conducted in late 2024, treasury professionals cite cash forecasting, automating manual tasks, and streamlining payment processes as their biggest hurdles. These findings align with a wider corporate push to enhance resilience and efficiency in a time of volatile interest rates and political uncertainty.

It is no secret that treasury leaders today juggle numerous demands, from guiding liquidity policies to implementing advanced technology solutions. However, while 96% of respondents deem communication skills “critical” for effective treasury leadership, only 81% believe their current leaders excel at it. 

Meanwhile, 62% of respondents say cash or liquidity forecasting is their single most challenging task. This is a significant undertaking in today’s dynamic environment. Larger organisations, with revenue exceeding $1bn, find this task especially onerous; they often grapple with multiple bank accounts, varied currencies, and shifting global markets. Treasury professionals at these firms typically manage more intricate forecasting models, prompting a stronger push for automation and specialised tech.

Across the board, respondents point to technology upgrades - particularly around automation and data analytics - as crucial for meeting these challenges. Survey data shows a notable contrast in automation maturity: treasury departments labelled “strategic/optimised” report automating 51% of their processes when building robust liquidity forecasts, outstripping “developing” counterparts, who sit at 39%.

Some “established” departments indicate they have achieved around 45% automation in liquidity forecasting, suggesting that although many organisations are making headway, there is still ample room for improvement.

Along with drawing attention to technology shortfalls, the survey also highlights the expanding scope of treasury’s remit. On average, organisations employ nearly 5 full-time employees (FTEs) in a treasury “front office”(those tasked with external-facing activities such as bank relationship management) and over 6 FTEs in the “back office,” which handles reconciliation, reporting, and other administrative duties. Altogether, the average treasury team size hovers around 11.7 FTEs.

Interestingly, as a treasury department progresses along the “maturity spectrum” from “foundational” to “strategic/optimised” it devotes more resources to higher-level strategic responsibilities. According to the survey, 12% of respondents classify their departments as “strategic/optimised,” indicating that these teams not only centralise activities but also advise CFOs on complex investment decisions, support cross-departmental projects, and implement advanced technology solutions.

Another notable development is the treasury team’s growing interaction with other departments. More than 50% of participants report increased collaboration with AP and the CFO/C-suite over the past two years. The ties with AP often stem from the shared goal of combating payments fraud, while the closer rapport with executive leadership points to the broader strategic role treasury now plays. Indeed, the report underscores that treasury has evolved from a back-office function into a consultative partner, advising on everything from financial risk management to long-term capital strategy.

Yet not all interdepartmental links are strengthening. ESG and sustainability functions saw the highest reported decrease in treasury interaction, a curious trend given many companies’ public sustainability commitments. 

The survey also highlights how formalised policies can vary across organisational size and maturity. Overall, 56% of respondents say their organisations enforce enterprise-wide treasury standards. In contrast, more “developing” treasury departments lack mandatory protocols, as 44% report having no enterprise-wide standards or relying primarily on voluntary guidelines. Meanwhile, for “strategic/optimised” teams, that figure drops to 36%, implying that top-performing treasuries tend to employ uniform policies, thus reducing errors, streamlining workflows, and ensuring regulatory compliance.

 

Tokenisation could save $135bn for asset management industry - Calastone

Transforming asset ownership into digital tokens on a blockchain holds the potential to unlock over $135bn in cost savings for the asset management industry, according to research from Calastone. The research also identifies that fund processing costs are projected to rise by 32% over the next three years, putting firms under increasing pressure to modernise.

The study, ‘Decoding the Economics of Tokenisation: Transforming Cost Dynamics in Asset Management’, polled 26 global asset managers - covering the UK, Europe, Asia and the US - and explores how tokenisation could eliminate long-standing inefficiencies in fund issuance, administration, and distribution. 

By leveraging tokenisation, asset managers could cut operational costs by 23% (or 0.13% of AUM), while also accelerating speed to market of new fund launches and improving overall profitability.

Across major fund types, the asset management industry can expect to save an estimated $135.3bn as a result of tokenisation – an improvement of 30%, according to estimates by asset managers. For the average fund, tokenisation could deliver a total P&L improvement of $3.1-7.9m, including increased revenue estimated at $1.4-4.2m per fund based on more competitive total expense ratios (TERs).

It currently takes 12 weeks to launch a new fund. Tokenisation could reduce this timeline by three weeks, giving asset managers a competitive advantage by enabling quicker access to new distribution channels. Additionally, fund launches currently require $50.3m in seed funding on average. Tokenisation could reduce this figure by 24% ($12.2m) according to the study, easing the financial burden on firms and investors, enabling more agile fund launches.

“Tokenisation is already becoming a core pillar of strategy for asset managers, offering a path to greater efficiency, flexibility, and competitiveness,” commented Brian Godins, Chief Commercial Officer at Calastone. “Our research highlights the scale of the opportunity, with tokenisation capable of unlocking over $135bn in cost savings and streamlining fund issuance, administration, and distribution.”

 

Bond investor demand for automation and APIs grows

A survey of 67 buy-side corporate bond traders in the US and Europe suggests that the market’s next major evolution will be defined by automation, data analytics, and greater use of APIs. Conducted by Crisil Coalition Greenwich in December 2024 and January 2025, the study revealed that an overwhelming number of participants want dealers to expand auto-quoting capabilities, enhance data offerings, and provide more ways to interact electronically.

Over the past decade, e-trading has already gained significant traction in corporate bonds, but buy-side traders are looking to take the next step. Chief among their requests is the expansion of auto-quoting beyond liquid investment-grade bonds into high-yield and emerging markets. Survey findings also indicate that these managers continue to crave more granular pricing, execution, and trading data. This signals a steady shift away from reliance on phone calls and chat transcripts and towards more precise, data-driven decision-making. This sentiment holds true on both sides of the Atlantic, reflecting a broad consensus that better access to actionable market information drives superior execution outcomes.

Demand for transaction cost analysis (TCA) has seen a marked upswing, with more than one-third of respondents citing TCA solutions this year, up from 18% in prior surveys. TCA, previously an elusive “art” in fixed-income markets, has become significantly more tangible as new sources of benchmark pricing and historical execution data come online. Not only do these developments help traders quantify the quality of their executions, they also serve as a building block for future automation initiatives. Algorithms, after all, can only choose the right dealers if they understand past performance.

Portfolio trading, a practice that batches multiple bonds into a single transaction, continues its rise in popularity. Volume in this segment surged by 76% year over year in 2024, a sign that broader adoption is reshaping workflows. While some portfolio trades remain partly manual, the growing consensus is that these block solutions minimise the need for tedious data entry, leading to more efficient execution. The proportion of respondents citing portfolio trading tools dipped slightly, though experts suggest this reflects satisfaction with existing improvements rather than a loss of interest.

Although adoption of APIs for trading and data is not yet widespread, the survey highlights a notable gap between European and US participants. In Europe, 32% of respondents prioritise data APIs, compared with just 12% in the US. Similarly, 15% of Europeans express interest in trading APIs, versus 9% among their American counterparts. While European bond markets have historically been more electronic due to geographic and language diversity, observers believe that their comparative caution around new protocols such as all-to-all trading could position them to embrace API-centric workflows more quickly.

Meanwhile, sales coverage remains a priority. Almost one-third (30%) of participants want improvements in that area, more than double last year’s 14%. Though automation and e-trading continue to reshape bond markets, many buyers clearly value real-time support from knowledgeable sales contacts. Interestingly, only 8% desire a single point of contact across related products like exchange-traded funds (ETFs) and derivatives, suggesting that most still prefer specialised coverage for each asset class.

As technology further permeates fixed-income desks, bond dealers face mounting pressure to offer cutting-edge tools, granular analytics, and robust API connectivity, trends that show no signs of slowing on either side of the Atlantic.

 

Impact of higher tariffs on US economy assessed

US President Donald Trump made a series of changes in the past week to tariffs on imports from three of the US's largest trade partners.

The 10-percentage-point hike in the China-focused tariff (which is in addition to the 10% levy imposed last month) is estimated to raise the US effective tariff rate by 1.2 percentage points, and increase core prices by around 0.1%, Alec Phillips, Goldman Sachs Research's chief US political economist, wrote in a report. 

Meanwhile, a 25% tariff on Canada and Mexico (10% on Canadian energy) would, according to projections, raise the effective tariff rate by 5.7 percentage points, and to increase core prices by around 0.6%. Some trade announcements have been reversed or paused.

The eventual overall level of tariffs will have repercussions for the US stock market: Every five-percentage-point increase in the US tariff rate is estimated to reduce S&P 500 earnings per share by roughly 1-2%, said David Kostin, chief US equity strategist in Goldman Sachs Research.

 

US Treasury suspends enforcement of Corporate Transparency Act

The US Treasury Department has announced that, with respect to the Corporate Transparency Act, it will not enforce any penalties or fines associated with the beneficial ownership information reporting rule under the existing regulatory deadlines, nor enforce any penalties or fines against US citizens or domestic reporting companies or their beneficial owners after the forthcoming rule changes take effect. 

The Treasury Department will further be issuing a proposed rule-making that will narrow the scope of the rule to foreign reporting companies only. A statement said that the Treasury was taking this step in the interest of supporting American taxpayers and small businesses and ensuring that the rule is appropriately tailored to advance the public interest.

“This is a victory for common sense,” stated U.S. Secretary of the Treasury Scott Bessent. 

 

CFOs plan budget increases for sales, IT and marketing 

CFO plans to increase 2025 budgets for the sales, information technology and marketing functions indicate a continued push to fuel growth, according to Gartner, following polling of 300 CFOs.

“For the second consecutive year, growth is a key executive priority and the sales and corporate IT functions are the most likely to see budget increases - with 66% and 58% of CFOs planning to boost spending by 4% or more in those areas, respectively in order to bolster growth,” said Randeep Rathindran, distinguished VP, research in the Gartner Finance practice.

The October 2024 poll also showed that more than half (54%) of CFOs plan budget increases for the marketing function, to boost brand visibility, customer engagement and competitive positioning.

“Marketing budgets were among the most likely to be reduced when the COVID-19 pandemic struck, and this is the first time since that period that this functional budget is among the top three most likely to see increases,” said Rathindran.

Human resources, legal and compliance, as well as finance, are most likely to see minimal budget changes and even cuts, with 18%, 16% and 16% of CFOs planning budget reductions in these areas.

“Reduced legal budgets may reflect a strategic choice to simplify internal resources or use external counsel more efficiently,” added Rathindran. “Reduced hiring levels — and therefore a need for fewer recruiters — explain some of the budget reductions in HR.”

 

North Macedonia and Moldova join SEPA payment schemes’ geographical scope

The European Payments Council (EPC) Board has approved the inclusion of the Republic of North Macedonia and Moldova in the geographical scope of the Single Euro Payments Area (SEPA) payment schemes. The geographical scope of the SEPA payment schemes now covers 40 countries.

All existing EPC payment scheme participants will be able to send or to receive SEPA Credit Transfer (SCT), SEPA Instant Credit Transfer (SCT Inst) and SEPA Direct Debit (SDD) transactions to and from SCT, SCT Inst and SDD scheme participants from North Macedonia and Moldova as of when their financial institutions will have adhered to the respective scheme(s).

The adherence of financial institutions from these countries to the SEPA payment schemes, according to the EPC calendar, will be enabled starting from April 2025. The Operational Readiness Date (ORD) for payment service providers (PSPs) from the Republic of North Macedonia and Moldova is set for 5 October 2025. 

 

LSEG global account verification to tackle cross-border payment fraud 

LSEG Risk Intelligence has announced the launch of Global Account Verification (GAV) in APAC and EMEA. The solution checks that payee and account details match before transfers are confirmed, protecting businesses and individuals from fraudulent transactions. The expansion of GAV globally follows the initial launch for US customers in October 2024.

GAV is designed to help organisations protect their customers by enabling real-time verification of bank accounts and ownership across 21 countries. It verifies whether payments will reach the correct recipients by querying account information and categorising them with a “match”, a “close match” or a “no match”.

The solution aims to combat Authorised Push Payment (APP) fraud, where fraudsters trick their victims into willingly making large bank transfers to them by posing as a bank or another trusted organisation.

LSEG plans to add to the number of available countries in 2025. GAV is available via API, meaning that organisations can seamlessly integrate account data into their systems.

 

FIS introduces AI-based product support tool for treasury

FIS has announced the launch of FIS Treasury and Risk Manager - Treasury GPT, a proprietary generative AI-driven product support tool embedded within its FIS Treasury and Risk Manager – Integrity Edition (Integrity). In collaboration with Microsoft, the tool uses Microsoft Azure OpenAI Service for enhanced data and risk management, and generates responses on queries pertaining to product usability, client configuration, policies and best practices for use of the solution. As the first such solution for FIS’ Treasury Management offerings and one of the first for the treasury management industry as a whole, the announcement underscores FIS’ commitment to unlocking efficiency and value for money in motion, providing treasurers with innovative tools to manage risk more efficiently, combat cost pressures and drive growth.

According to PwC, 89% of CEOs using generative AI in their businesses say it will impact their business model in the next three years, illustrating the benefits that businesses are finding with the technology once put to use effectively. Treasury GPT references product documentation and uses machine learning through Azure OpenAI Service to provide FIS users with informed guidance, enabling them to focus less on low-value administrative tasks and more on liquidity management and strategy.

As an extension of the collaboration with Microsoft, FIS has also announced it will migrate Integrity to Microsoft Azure. As an illustration of the company’s commitment to harnessing the benefits of cloud-native technology, the move seeks to enhance Integrity’s scalability, security and data-processing performance.

“As modern business management becomes increasingly complex, we continue to identify opportunities to help drive digital transformation for people, organisations, and industries around the world,” said Jacqueline O’Flanagan, head of Financial Services for the Americas at Microsoft. “Treasury GPT addresses a host of efficiency and workflow challenges for corporate treasurers and CFOs, and integrating with Microsoft Azure OpenAI Service empowers those leaders to drive growth and manage new risks.”

 

HSBC collaborates with TreviPay on e-commerce trade solutions

HSBC is collaborating with global B2B payments and invoicing network TreviPay with the aim to enhance digital purchasing experiences for businesses by offering flexible payment options and financing solutions at the point of sale. By leveraging TreviPay’s platform, HSBC is focusing on helping corporate customers enable sales and engage with new business buyers through receivables finance, invoice processing and management and risk mitigation. 

As e-commerce continues to reshape B2B trade, the collaboration intends to empower businesses by offering more payment choices by embedding access to trade credit for their buyers in online sales portals, which are backed by the business buyers accessing financing options.  

The collaboration aims to combine HSBC’s expertise in facilitating trade with TreviPay’s end-to-end order-to-cash technology. The pair are looking to enable businesses to expand their reach, drive sales velocity and offer seamless payment experiences through the various ways they interact with their business buyers. 

Through this collaboration, businesses can benefit from flexible payment terms and options at the point of check-out. These tools can support businesses in improving their cash flow by reducing days sales outstanding (DSO) and optimising resource allocation.  

In addition, risk mitigation strategies, such as support for onboarding new buyers, can enhance transaction security, while streamlined payment and invoicing processes create a seamless buyer experience. 

“The way businesses are trading with other businesses is changing and they need innovative e-commerce solutions to stay competitive,” said Vivek Ramachandran, Head of Global Trade Solutions at HSBC. “By working with TreviPay, we’re giving our customers the tools to offer more payment choices while managing risks and expanding their online reach.” 

 

Fides reveals centralised cash pooling solution 

Fides Treasury Services has announced the launch of ONEPool, a cash pooling solution designed to optimise liquidity balances across all banks efficiently through centralised cash pooling.

Built on the foundation of Fides’ connectivity platform, ONEHub, the new solution is designed to enable businesses to take full control of their global liquidity, improving cash concentration, visibility, and operational efficiency. Designed for organisations managing complex banking structures, ONEPool provides customisable pooling rules and advanced tools to streamline treasury operations.

The solution provides real-time visibility across all company cash balances. It aims to optimise cash utilisation and minimise interest expenses, including functionality to calculate, allocate, and track intercompany interest rates. The connection to ONEHub enables access to thousands of banks, while the solution’s customisable rules fit diverse treasury operations.

 

Emirates NBD and Visa launch digital payments offering in the UAE

Emirates NBD is set to be the first bank in the UAE to introduce the Visa Commercial Pay-Mobile Module for its SME and corporate clients. This initiative aligns with the UAE Government’s vision of digitalising payments while at the same time providing a distinctive proposition to the bank’s clients to enhance payment efficiencies enabling security, automation and reconciliation through tokenised credentials.

Visa Commercial Pay Mobile lets corporates and SMEs manage expenses and enables employees to make payments using Visa virtual cards on their mobile devices through digital wallets like Apple Pay or Google Pay. The solution extends the current virtual card capability of deploying tokenised virtual credentials providing enhanced security, real-time controls and expense management to the digital wallets, enabling the use of virtual cards to make POS machine (card present) payments.

“This collaboration underscores our continued commitment to empower businesses with cutting-edge financial tools,” commented Deepak Chandran, Group Head of Retail Products at Emirates NBD. “We are confident that our new value proposition will provide our customers with increased flexibility and control for their online and offline corporate payments.”

 

Deutsche Bank and K-Sure to support Korean companies expanding overseas

Deutsche Bank South Korea, in collaboration with The Korea Trade Insurance Corporation (K-Sure), has provided a $20m invoice discounting facility to Posco International Singapore. This strategic partnership marks a significant milestone as part of K-Sure's inaugural programme designed to bolster the overseas growth of Korean subsidiaries.

Under this programme, K-Sure provides Posco International Singapore with insurance, effectively mitigating risks associated with international trade transactions. 

Simultaneously, Deutsche Bank's invoice discounting facility enables Posco International Singapore to receive payment for raised invoices before customer settlement. This solution is designed to enhance the company’s liquidity, optimise cash flow, and streamline invoicing processes.

“We are delighted to support the growth of homegrown companies overseas,” said Hyun-Nam Park, Seoul Branch Manager, Deutsche Bank. “Through this collaboration, we aim to bolster the competitiveness of Korean companies on the global stage, fostering their growth in a secure and financially stable environment.”

 

Swedbank and SpareBank 1 establish a Nordic investment bank

Swedbank and SpareBank 1 are entering a partnership to create a Nordic investment bank, SB1 Markets. The new investment bank should broaden Swedbank’s equity research and sales, increase sector competence, and strengthen the ability to serve the clients in the Nordic region.

The jointly owned Nordic investment bank will employ around 240 professionals in Norway, the US and Sweden. The Stockholm team will start off with 35 employees from Swedbank’s Corporate Finance and DCM High Yield teams, and thereafter expand with equity research. Swedbank will own 20% of SB1 Markets.

The Swedish FSA has been informed and the transaction is subject to approval from the Norwegian FSA. The collaboration is expected to be operational by 1 January 2026.