Treasury is undergoing a profound transformation, evolving from a traditionally tactical, back-office function into a strategic driver of enterprise value. Paul Lalovich, managing partner of Agile Dynamics, walks through the evolution of the corporate treasury function, and explores how technology, innovation, data and artificial intelligence are driving its next chapter.

The role of the corporate treasurer has reached a critical inflection point. Historically focused on managing liquidity, mitigating financial risks, and ensuring operational efficiency, the treasury function is now being called upon to play a more strategic role in the enterprise. The pressures of a hyper-connected, 24/7 global marketplace, coupled with increasing market volatility, are demanding a level of agility and foresight that traditional treasury models cannot provide.

The Covid-19 pandemic served as a stark reminder of the importance of a resilient and responsive treasury function, capable of navigating unforeseen disruptions and providing critical insights to the C-suite.

This evolution is not merely a response to market pressures; it is being actively enabled by a new generation of financial technologies. Blockchain, stablecoins, AI, and smart contracts are not just incremental improvements; they represent a fundamental shift in the underlying infrastructure of finance. These technologies are empowering treasurers to move beyond manual, batch-based processes and embrace a future of automated, real-time, and data-driven decision-making.

As we will explore, the organizations that embrace this transformation are not just improving efficiency; they are redefining what is possible in treasury management, turning a traditional cost center into a strategic engine for growth and resilience.

The Imperative for Change: Legacy Systems Under Strain

Despite the rapid pace of digital transformation across the enterprise, many corporate treasury departments remain constrained by outdated and inefficient infrastructure. A reliance on manual processes, fragmented systems, and lagging data creates significant operational risks and hinders the treasury’s ability to act as a strategic partner to the business. The pain points of legacy treasury are becoming increasingly acute in today’s fast-paced environment:

Manual Processes and Spreadsheet Reliance

A staggering 70% of organizations still depend on spreadsheets for critical treasury functions like cash flow forecasting and resource management [1]. This over-reliance on manual data entry and manipulation is not only time-consuming but also prone to human error, introducing significant operational risk and limiting the treasury’s ability to provide timely and accurate insights.

Data Integrity and Lack of Real-Time Visibility

The challenges of manual processes are compounded by issues of data quality. Nearly 40% of CFOs admit they lack full confidence in their financial data, undermining their ability to make informed, real-time decisions [1]. In a world where market conditions can change in an instant, relying on previous-day statements and batch-processed data is a recipe for strategic disadvantage.

Friction in Cross-Border Payments

Traditional cross-border payment systems, with their reliance on correspondent banking networks, are notoriously slow and expensive. Settlement can take several business days, trapping working capital and creating significant friction in international trade and intercompany transactions. This latency erodes efficiency and limits a company’s ability to respond dynamically to market opportunities and risks.

These structural inefficiencies are not just operational headaches; they represent a fundamental barrier to strategic agility. In an era where real-time is the new standard, the lag and opacity of legacy treasury systems are no longer tenable.

Paul Lalovich is managing partner of Agile Dynamics

A New Financial Architecture

The limitations of legacy treasury are being addressed by a powerful convergence of new technologies that are reshaping the financial landscape. These innovations are not just about doing the same things faster; they are about enabling entirely new ways of managing liquidity, risk, and capital.

Blockchain technology and the digital assets it supports, particularly stablecoins, are at the forefront of the treasury revolution. By providing a programmable, transparent, and near-instantaneous settlement layer, blockchain is fundamentally reimagining how value is transferred.

Stablecoins, which are digital currencies pegged to stable assets like the US dollar, offer a compelling alternative to traditional payment rails. They enable 24/7, real-time cross-border payments with significantly lower transaction costs and reduced counterparty risk. The impact of this technology is already being demonstrated by industry leaders.

In a groundbreaking pilot, Siemens issued a commercial paper fully on-chain, completing the entire process from trade confirmation to final settlement in just 93 seconds. This near-real-time settlement stands in stark contrast to the days or even weeks it can take for traditional processes to clear.

The adoption of stablecoins is rapidly moving from a niche concept to a mainstream reality. A 2025 survey by EY-Parthenon found that while only 13% of financial institutions and corporates are currently using stablecoins, 54% of non-users expect to adopt them within the next 6 to 12 months. The same survey found that 41% of current users have already realized cost savings of at least 10%, primarily in B2B cross-border payments.

The projected market impact is enormous, with respondents believing that 5% to 10% of cross-border payments, representing $2.1 trillion to $4.2 trillion in value, will be conducted using stablecoins by 2030.

Further reading: Integrating Bitcoin into corporate treasury strategies.

The Strategic Brain of Treasury

If blockchain provides the new rails for finance, then artificial intelligence is the engine that will power the next generation of treasury operations. AI and machine learning algorithms are transforming treasury from a reactive, transaction-focused function to a proactive, predictive, and strategic one. By analyzing vast amounts of historical and real-time data, AI can uncover hidden patterns, predict future trends, and provide actionable insights that were previously unattainable.

The application of AI in treasury is already delivering significant value, as demonstrated by several leading companies:

• Prysmian Group, a global leader in the energy and telecom cable industry, implemented an AI-powered cash flow intelligence solution from J.P. Morgan. The results were dramatic: a 50% reduction in manual work, $100,000 in annual labor cost savings, and a 3x improvement in their forecast horizon from 30 to 91 days.
• Robert Bosch, the German multinational engineering and technology company, utilized prescriptive analytics to optimize its net working capital, successfully trimming its cash buffer by 30%.
• Unilever, the British-Dutch multinational consumer goods company, gained real-time access to 130 bank accounts in just 10 days using APIs, a move that has been instrumental in elevating the treasury’s role in strategic decision-making.

These examples illustrate the power of AI to not just automate existing processes but to fundamentally enhance the strategic capabilities of the treasury function. From predictive cash flow forecasting and intelligent FX risk management to automated fraud detection and optimized working capital, AI is empowering treasurers with the tools they need to navigate an increasingly complex financial landscape.

Automating Policy and Governance

Smart contracts, which are self-executing contracts with the terms of the agreement directly written into code, represent another critical component of the modern treasury architecture. By codifying treasury policies, investment mandates, and risk limits into automated logic, smart contracts can ensure compliance, reduce manual overhead, and create an immutable audit trail for all treasury activities.

This programmability of capital allows for the creation of a truly “autonomous treasury” – one that can automatically rebalance liquidity, execute hedging strategies, and manage intercompany financing without manual intervention.

Real-Time and Intelligent Treasury

The convergence of these technologies is giving rise to a new operational model for corporate treasury – one that is characterized by its real-time nature, its embedded intelligence, and its deep integration with the broader enterprise. This modern treasury function is not just a support service; it is a strategic hub that provides critical data and insights to drive better business decisions.

The Centralized, Data-Driven Hub

Leading treasury organizations are moving away from fragmented, siloed operations and toward a centralized, data-driven model. By leveraging cloud-based treasury management systems (TMS) and APIs, companies can achieve a single source of truth for their global cash positions, exposures, and forecasts. This real-time visibility is the foundation for more effective liquidity management, risk mitigation, and strategic capital allocation.

Siemens provides a powerful example of this approach. Over the past two decades, the company has continuously evolved its proprietary cash management system, Finavigate, into a central hub for its global treasury operations.

By integrating banking APIs directly into this platform, Siemens has gained real-time access to over 70% of its global bank account balances. This has enabled the company to manage its cash as a single global pool, automate up to 80% of its cash application processes, and reduce its reliance on manual, error-prone workflows.

From Tactical Execution to Strategic Insights

The automation of routine tasks is freeing up treasury professionals to focus on higher-value activities. Instead of spending their days on manual reconciliations and payment processing, they can now dedicate their time to strategic analysis, scenario modeling, and providing data-driven insights to the business. This shift is elevating the role of the treasurer from a tactical executor to a strategic advisor.

The case of Prysmian Group highlights this transformation. By automating its cash flow forecasting and reconciliation processes, the company not only achieved significant cost and time savings but also freed up its treasury team to focus on more strategic initiatives, such as long-term financial planning and retrospective analysis. This is a clear demonstration of how technology can empower treasury to move up the value chain and become true strategic partners to the business.

Treasury Modernization

The journey to a modern, intelligent treasury function is a complex one that requires a clear vision, a phased approach, and strong leadership. Based on the experiences of early adopters and the insights from our research, we offer the following strategic recommendations for treasury leaders embarking on this transformation:

**Build a Foundation of Real-Time Data **The first and most critical step is to establish a single source of truth for your global treasury data. This means moving away from fragmented spreadsheets and legacy systems and embracing a modern, cloud-based TMS with robust API connectivity.

As the Unilever case demonstrates, gaining real-time access to bank accounts is a foundational step that can be achieved rapidly and deliver immediate benefits [6].

**Embrace Digital Assets for Cross-Border Payments **The efficiency gains and cost savings offered by stablecoins for cross-border payments are too significant to ignore. Start with a pilot program in a specific region or for a particular use case, such as intercompany settlements. This will allow you to build experience with the technology, understand the regulatory landscape, and demonstrate the value proposition to the organization.

**Leverage AI for Predictive Forecasting and Risk Management The power of AI to enhance cash flow forecasting and risk management is undeniable. Explore how you can integrate AI and machine learning capabilities into your existing treasury systems. The examples of Prysmian Group and Robert Bosch **show that even targeted AI implementations can deliver substantial returns in terms of efficiency, cost savings, and strategic insights.

**Codify Policies with Smart Contracts **As you become more comfortable with blockchain technology, explore the potential of smart contracts to automate your treasury policies and governance processes. This can start with simple, rule-based applications and gradually evolve to more complex, autonomous workflows. The goal is to create a more efficient, transparent, and compliant treasury function.

**Foster a Culture of Innovation and Continuous Learning **The technologies driving the treasury revolution are constantly evolving. It is essential to foster a culture of innovation and continuous learning within your treasury team. Encourage your team to experiment with new technologies, stay abreast of market trends, and develop the new skills that will be required to thrive in the future of treasury.

The Future of Treasury is Now

The evolution of corporate treasury is not a distant future prospect; it is happening now. The convergence of blockchain, AI, and digital assets is creating a new financial architecture that is more efficient, transparent, and intelligent than ever before. The organizations that embrace this transformation will be better equipped to navigate the complexities of the modern global economy, unlock new sources of value, and gain a significant competitive advantage.

The journey to a modern treasury function is not without its challenges. It requires a strategic vision, a willingness to embrace change, and a commitment to investing in new technologies and talent. However, as the real-world examples in this paper demonstrate, the rewards are well worth the effort.

By moving from a tactical, operational focus to a strategic, data-driven one, treasury leaders can transform their function from a cost center into a powerful engine for enterprise value creation. The future of treasury is here, and the time to act is now.