Turning data into decisions: Automation’s role in modern treasury
Global volatility, interest rate fluctuation and shifting geopolitics are redefining the payments landscape. Treasury teams are no longer measured by speed alone — the new standard is broader: speed + resiliency + intelligence + security. As businesses demand real-time, transparent and compliant payment experiences, treasurers must automate complexity while delivering efficiency at scale.
9 minute read
Key Takeaways
- Innovations in consumer payments have led to faster transactions and improved experiences, but have not carried over to the B2B payments space due to complexity.
- The new benchmark for treasury teams is speed + resiliency + intelligence + security.
- Automation enables this new standard by providing near real-time response to change, simplified processes and improved security.
Innovation has revolutionized consumer payments, with digital solutions and real-time transactions becoming broadly available to consumers. In particular, Pay-By-Bank and Request-for-Pay have seen a dramatic rise in use.
So why hasn’t the B2B payments industry experienced the same sweeping “customer-first” mindset as its consumer counterpart?
The short answer: complexity. B2B payments tend to be higher in value than consumer payments, which adds its own level of complexity. B2B payments also have other factors that increase their difficulty: regulatory mandates, FX pricing, intraday liquidity management, automated hedging triggers and a 24/7 “always on” expectation.
Treasury leaders must deliver on four fronts: speed, resiliency, intelligence and security.
The new treasury standard is no longer only “speed.” Treasury leaders must deliver on four fronts: speed, resiliency, intelligence and security.
Improved data delivers speed and accuracy
ISO 20022 demands inclusion of richer, more structured data in payments messaging.
But to think of it as merely a messaging upgrade undersells what it truly is: a data revolution. Improved data leads to a large number of benefits: less manual intervention for faster reconciliation, lower fraud
rates, a better understanding of liquidity and more accurate forecasting.
Automation as resiliency
With your data improved and speed enhanced, we next design for resiliency. Geopolitical fragmentation
requires treasury operations to be able to adapt to the unpredictability of today’s world: requiring resilient networks, not just fast ones.
Automation can play a major role in resiliency, providing near real-time capability to respond to change.
Traditional paper and manual processes do not possess the ability to turn on a dime and adjust to change — and while human oversight will always be important — human teams tend to be resistant to change and slower to react to it.
Bank of America’s solutions use automation and AI to provide near real-time capability to manage and respond to change, particularly to rapid fluctuations in FX.
Enhanced intelligence, security and transparency
AI, automation and other innovations, like biometrics, are providing security and fraud protections at higher levels than ever before.
AI and machine learning can analyze copious amounts of data in real-time, providing the ability to recognize malicious patterns, verify documents and track user behaviors with a speed that previously couldn’t be matched.
Digital payments solutions also provide an unprecedented level of supply chain transparency. For example, they offer the ability to instantly locate specific transactions whenever needed, allow for the application of metrics and provide structured data for teams to leverage to make smarter business decisions. This leads to better experiences for suppliers and vendors, strengthening those relationships
Seamless integration as mandatory
Perhaps the largest barrier to adoption of digital payments solutions and automation are the costs of adoption — time, resources, budgets and so on.
This is why our digital tools are designed to easily integrate with nearly every popular ERP/TMS on the market. Our platforms use API-first architecture to seamlessly connect with existing systems, turning what was once a mountain of integration effort into a nearly flat road.
And the elephant in the room: Regulatory forces
Any digital tool, platform or system offered today must be able to navigate the increasingly complex levels of regulation, including ISO 20022 and data localization requirements, instant payment mandates, global fraud frameworks and digital ID infrastructure.
Bank of America’s CashPro® treasury platform and our FX solutions have every level of national, regional and local regulation incorporated, allowing treasurers to instantly stay compliant at every step while providing room for innovation.
A world where modernization and automation are no longer optional
The B2B payments landscape remains a complex environment, with numerous challenges ranging from regulations to cost consideration.
AI and automation can help treasury teams overcome many of those challenges with less difficulty than ever before. As the space evolves and the new standard for teams — speed + resiliency + intelligence + security — becomes the norm, automation may not be optional for businesses wishing to stay ahead of their competition while meeting the increasing standards of their business customers.
Modernize your treasury operations. Speak to a Bank of America representative today.
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