Real-time treasury

How Real-Time Treasury Will Change Payment Transactions

In a connected and ever faster moving world, constant development is the main task of every single internal business department. Issues such as increased environmental awareness and changing consumer behavior demand companies to develop new business models. The resulting concepts such as the Sharing Economy, mobile payment methods or sustainable energies present them with new challenges. This dynamic is also noticeable in the treasury department. Payments are smaller, shorter-term and difficult to predict. The need to connect a wide variety of data in decision-making is getting stronger. Above all, this requires real-time integration and global 24/7 payment transactions. The solution is the so-called Real-Time Treasury.

Transformation of the Business Models through Technological Progress
Treasury Follows the Sun Combines Different Concepts

According to the "Follow The Sun" approach, transactions in the future should no longer be tied to local time and time zones, but should instead follow the open capital markets and thus prevent cut-off times. In addition, various payments in all kind of different currencies around the world could flow into a "Multi Currency Global Wallet" via real-time pooling following the same principle. Interest calculations would be made to the second using the "Unified World Time Interest Calculation Method (UWTICM)" based on endless cash flows. The resulting processing of payments and calculations in real-time offers many advantages for the treasury.

As for the banks, the foundation is already there - in the European Union, several directives have already been launched to make payment transactions faster and more transparent. SEPA Instant Payment and PSD2 provide for the use of APIs (Application Programming Interfaces), which make it possible to link several applications and thus accelerate processes.

As for the corporations, the biggest change on the way to Real-Time Treasury will be the expansion of "digital core applications", the use of "Artificial Intelligence (AI)" and "Robotic Process Automation (RBA)". The goal is to link internal and external systems with each other in order to present the current data situation more comprehensively, but above all, in real-time. Increased networking and automation can give companies important competitive advantages in many areas, but especially in strategic decision-making:

  • Cash management becomes more transparent and dynamic so that cash flows can be reinvested more effectively
  • Faster and more transparent credit collection enables faster reinvestment
  • Forecasts can now be generated automatically on the basis of a more comprehensive set of data
  • More efficient hedging, reduction of risk and thus cost reduction
  • General cost savings through automation
  • Employees can focus their skills on strategy execution rather than repetitive tasks

 

Whitepaper - Real-time Treasury in a Connected World

You find this approach interesting? You can find more detailed information about our Real-Time Treasury approach in our "Real-Time Treasury" whitepaper or contact us directly.

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Christian Million

Christian Million

Christian.Million@convista.com
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