From a mere cost center to a profit center, the Treasury has experienced a dramatic shift in recent years. Treasurers today are not only involved in managing risks and liquidity, but are also equally responsible for effective capital management.
To help in seamless execution of key roles and responsibilities, organizations in the BFSI sector are increasingly adopting the latest technologies. The main objective behind this is to eliminate inefficient and costly manual processes. Hyperautomation is seen as a key technology helping banks and other financial institutions to automate repetitive tasks with minimum human intervention.
This will enable the treasury personnel to focus on strategic action plans. With Hyperautomation they can access real time insights that facilitate data driven decisions. Hyperautomation encompasses Robotic Process Automation (RPA), Artificial Intelligence (AI), Machine Learning (ML) to streamline tasks and automate business processes with improved efficiencies and reduced expenses.
Role of Treasury
Each organization has its own financial milestones and obligations. The main purpose of this department is to mitigate risks and manage liquidity. In this process it performs several critical functions which are as follows:
Risk management: Treasurers assess and understand the risks and devise corrective measures accordingly to minimize the uncertainty.
Liquidity Management: They maintain short term working capital and optimize cash resources.
Cash Forecasting: They maintain a structured cash flow forecasting methodology using data driven techniques.
Regulatory Change: Financial regulations are complex and dynamic. Treasurers need to stay updated on the latest regulatory changes to ensure organizational compliance.
The above-mentioned core functions are evolving continuously. Treasurers are required to perform some part of their jobs from outside traditional office setup. Scalable automation technologies are gradually replacing the paper based processes to simplify tasks for business profitability.
Hyperautomation trends in Treasury
Accounts Payable: This has been one of the most inefficient processes of the Treasury function. Following manual processes can lead to increased costs and inadequate productivity. According to Accounts Payable Association:
90% finance professionals complain about phone calls from suppliers related to late payments
Close to 3.6% of the invoices complied manually have data entry related errors
Human induced errors in Accounts Payable result in problematic cash flow forecasting for 56% organizations
Thus by automating tasks like billing and invoicing, companies can go paperless. In this process documents are stored electronically and can be accessed easily. Additionally it also helps in streamlining and digitizing collaboration among clients, vendors, stakeholders and other departments. Utilizing suitable RPA tools, advanced Accounts Payable solutions can detect and resolve fraudulent issues in real time.
Accounts Receivable: Automation market for Accounts Receivable is growing rapidly. Here automation technologies help in creating and sending digital invoices faster and with accuracy. Payments can be quickly remitted to improve cash flow. Advanced treasury automation solutions leverage the benefits of AI and ML to ensure error free billing.
Advanced Analytics: Hyperautomation elements used in advanced analytics play a pivotal role towards predictive analysis by identifying cash flow patterns, preventing fraudulent activities, identifying changes in the payment behavior etc.
Thus use of automation technology not only helps in transforming key tasks but also enables in accommodating futuristing trends for overall process transformation.
How Neebal can help?
At Neebal we focus on creating automation technologies suitable for businesses across BFSI, Pharma, Agro and FMCG verticals. With more than a decade’s presence in this spectrum, we have been successfully providing purpose driven and outcome oriented solutions to simplify processes and facilitate digital transformation. Our solutions are not only customizable but also are effective in reducing human intervention without compromising on proposed benefits.
Consult us for your business profitability using Hyperautomation solutions. From catalyzing digital transformation to enhancing productivity, our hi tech services enable you to stay ahead conveniently.
Conclusion: Are you looking for Hyperautomation companies to manage your Treasury function? Talk to our experts and automate your repetitive tasks for improved and error free productivity.