The current rapid pace of innovation in treasury technology offers plenty of opportunities for treasurers to improve operational efficiency.

However, when faced with so many choices and a limited budget (in terms of both time and cash), it can be daunting to make a decision on next steps. Treasurers will be looking not only at the immediate gains from a new solution or process but also at how the innovation will set their department up for the future.

Given the pace of change and the level of uncertainty in the global economy, companies want to future-proof their operations as much as possible. Future-proofing allows treasury to evolve as the company adapts to external factors such as technology and regulation change.

There are four areas where treasurers can act to future-proof their departments.

1. Automate where possible.

Automation plays an important role in achieving operational efficiency. It helps manage risk and reduce costs by reducing manual involvement in core processes. Some companies have already automated many processes, but new technology means there are usually opportunities to make existing automations even more efficient and to automate more activities. External partners (e.g., banks and technology vendors) are always on hand to provide advice on the next steps.

2. Focus on data analytics.

Technology can add real value through its ability to collate and analyze data from multiple sources. Analysis can be presented in multiple formats to support decision-making at every level of the organization. Develop a data strategy to ensure access to clean and robust relevant data.

3. Digitize business flows, not just treasury flows.

Data analytics relies on the required data points being in a format that is accessible to the technology. A keen focus on digitizing core activities, on both the financial and physical supply chains, will generate digitized data records that can then be accessed for analysis.

4. Invest in people.

Change will only deliver value if the people deploying the technology understand how the underlying technology works, what it has been designed to do and, most importantly, how new technology solutions can support their activities. In a fast-moving and innovative marketplace, treasurers have to identify the solutions that can add the most value to their organizations, given the time and cost of implementation.

Working with internal and external partners will become more important, so treasurers will want to enhance their communication and interpersonal skills to support their existing practical treasury expertise. Externally, treasurers will rely on partners, including banks and technology vendors, to make the new solutions work as effectively as possible. Internally, treasurers have to build the business support for change and show colleagues how change will directly benefit them.

Critically, as treasurers create time through automation and gain access to greater business insights through data analytics, building relationships with the CFO and executive management will help ensure these insights are used to support better strategic decision-making in the business.

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