From Game Boys to AI: How technology is transforming treasury

The world is constantly evolving and one thing we can be sure of is that the pace of change will continue to increase – and treasury is certainly not immune to it. The journey from paper-based cash management to digital platforms, APIs, and real-time data we have seen over recent decades is akin to the leap from 1980s handheld games to today’s immersive virtual reality. And this shift is not merely about shiny new tools – it’s about fundamentally reshaping how treasurers think about visibility, risk, efficiency, and value creation. What used to be a largely manual function is now more connected, more visible, and more strategic than ever. In this piece, we look at a handful of key shifts shaping the modern treasury landscape. Think of them as principles or focus areas, each highlighting how the function is evolving, and what that means in practice for treasurers today.

Treasury’s tech evolution: More than just efficiency

Just 15 to 20 years ago, dealing desks functioned on a patchwork of phone calls, printed confirmations, and spreadsheets. Payments were triggered manually, with treasurers relying on batch processing and delayed data. Fast forward to today, and most modern treasury functions have embraced significant degrees of automation – algorithmic FX, real-time dashboards, and APIs connecting treasury systems with banks and internal stakeholders.

What has truly changed is not just the speed or accuracy of processes, but the ability to access and act on information. The move from faxes to concurrent databases has empowered treasurers to make data-driven decisions at a pace once unimaginable.

From transformation to strategy: Choosing the right tools

Effective treasury transformation starts with a clear understanding of organisational needs. Not every company needs a real-time treasury management system (TMS). A business whose payments operate on a daily batch basis might prioritise consolidated cash and FX visibility over instant payment execution.

Critically, transformation doesn’t happen in a vacuum. Treasury must operate as a partner to the business, gathering reliable data, understanding working capital drivers, and forecasting based on actual needs rather than assumptions. The strength of the output – forecasts, investments, policy decisions, is only as good as the input. Embedding treasury contacts within business units and promoting data accountability are essential steps.

Flexibility in a new era

The recent failures of financial institutions like SVB and Credit Suisse have made it clear that following an investment policy alone does not equate to prudent risk management. While treasury policies are critical in setting risk appetite and operational guardrails, they must be flexible enough to evolve with market dynamics.

A “living policy” approach is essential. Rather than static documents updated every few years, investment mandates and counterparty limits should be re-evaluated regularly, particularly during periods of volatility. Treasury teams must be empowered to act swiftly, ideally through delegated authority or subcommittees, rather than waiting for full board reviews.

Monitoring tools also need to mature. It’s no longer enough to rely solely on credit ratings. Modern treasurers increasingly turn to sentiment analysis, market alerts, credit spreads, and alternative data sources to stay ahead of systemic risk. Tools that once required Bloomberg terminals are now more accessible and more critical.

A risk-adjusted state of mind 

When it comes to managing cash, diversification remains foundational, but there’s growing awareness of the value of secured instruments like repo, particularly in environments where macroeconomic risks seem to be appearing from every corner. 

Direct access to repo markets is still challenging for many corporates, particularly those with lean treasury teams. But the rise of platform-based solutions has lowered barriers to entry, enabling access to secure investments without the burden of infrastructure, custodians, or collateral management.

Ultimately, evaluating cash placements through a risk-adjusted lens is the norm; only now there are additional means to monitor and to execute. Treasurers factor in not only yield, but credit exposure, liquidity, tenor, and systemic trends. In practice, this may mean deliberately accepting a slightly lower yield in exchange for greater security, particularly when market signals indicate elevated risk. 

Building support: Do boards get it?

Treasury decisions don’t happen in isolation. Boards and investment committees play a pivotal role in setting risk appetite and approving policies. Fortunately, there’s increasing awareness at the leadership level of the importance of security, diversification, and proactive risk management. 

That said, engagement and education remain key. Treasurers must articulate strategies clearly, backed by data, and ensure that stakeholders understand the rationale behind complex instruments or adjustments to policy. Trust and communication are as important as spreadsheets and platforms.

In smaller or less mature organisations, treasurers may still encounter outdated perceptions - viewing deposit diversification as sufficient, or dismissing repos as overly complex. Building internal confidence in secure, risk-adjusted strategies is a long game, but one that yields resilience in the face of market shocks.

Technology is the enabler, but people still matter

Treasury technology today is powerful, but not omnipotent. Machine learning models can forecast short-term liquidity, and APIs can deliver real-time insights. Yet, if the underlying data is flawed – due to behavioural KPIs, poor master data, or misaligned incentives - forecasts will miss the mark.

The path forward lies in both technological and behavioural transformation. Treasurers must focus on building a culture of data discipline, operational agility, and cross-functional collaboration.

Looking ahead, orchestration will likely be the next big leap. Fintech has already modularised core services: payments, FX, risk, and analytics. The future lies in intelligently connecting these microservices to create streamlined, context-aware workflows across the treasury function.

Final thoughts: empowerment through optionality

Treasury’s role has expanded from operational execution to strategic enablement. As complexity increases, so too must optionality. Having a wide range of tools, products, and partners ensures treasury teams can respond to both opportunity and crisis.

Technology can and should free up capacity. But it must be implemented with purpose, maintained with discipline, and underpinned by a clear understanding of risk and reward. By combining human judgment with digital tools, treasurers can lead their organisations with confidence, resilience, and insight.

*TreasurySpring’s blogs and commentaries are provided for general information purposes only, and do not constitute legal, investment or other advice.

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