Redefining Treasury: Blueprint for a truly connected…

PodcastHSBC Global ViewpointAmber Henderson-SmartSep 23

Treasury connectivity is evolving toward a mix of channels tailored to the task, with real-time visibility and embedded data helping teams make better-informed decisions. Adoption remains uneven, and organizations can build capability incrementally, with priorities shaped by their digital maturity. AI use is growing, but effective deployment depends on timely, governed data and ongoing oversight; Peter expects hybrid connectivity to remain the norm over the next three to five years.

Banking Automation Artificial Intelligence

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Key Takeaways

Treasury technology adoption remains uneven: just over 40% of HSBC-poll respondents use an ERP or TMS, while about 30% still rely on spreadsheets, and just over 40% use an ERP or TMS with some host-to-host or API connectivity. The discussion favors choosing channels by task—APIs for real-time balances or credit notifications, and host-to-host or SWIFT for higher-volume payments—based on factors such as speed, volume, and automation needs.

Embedding bank connectivity in platforms such as an ERP or Excel can reduce manual information-gathering and support faster decisions; combining bank balances and transaction data with forecasts, payables, policies, and approvals adds context for Treasury. The need for timely information is illustrated by Unilever’s historical reliance on end-of-day reports across time zones, which left teams making decisions with out-of-date data.

International growth can create fragmented banking relationships, connectivity models, and processes, while a standardized framework can scale across markets and business lines. The recommended path need not be a costly transformation: starting with a high-value use case such as cash visibility, payment-status tracking, or reconciliation can surface operational changes and provide a basis for expansion.

TECHNOLOGY

Technology Adoption — An HSBC treasury poll found that just over 40% of clients use an ERP or TMS to support their processes, while about 30% still rely on spreadsheets. Separately, just over 40% use an ERP or TMS with some host-to-host or API connectivity, suggesting embedded banking has advanced but still has room to grow.

“Last year, we ran a treasury poll survey, and that told us that just over 40% of our clients are using an ERP or TMS today to support their processes…”—

Channel Mix — Treasurers can use different connectivity channels for different needs. APIs can provide real-time balances or instant credit notifications, while host-to-host connections and traditional channels such as SWIFT remain important for higher-volume payment processing. The right setup depends on the task; one channel need not serve every use.

“So treasurers might use Swift for high volume payment processing, whilst also using APIs to access real time balances or instant credit notifications.”—

Workflow Integration — Integrating bank connectivity into systems and workflows clients already use, including an ERP or Microsoft Excel, can improve access to information and automation while speeding decisions and action.

“I think there's even more value unlocked from bank connectivity in a treasury context when it's tightly integrated into the systems and workflows our clients already use…”—

Treasury Connectivity Priorities

Eleanor introduces the connectivity discussion, and Amber describes how faster markets, digital money, and demands for precision are changing what treasurers need from bank connections.

Real-Time Treasury Visibility

Amber explains that no single connectivity model suits every organization, while Peter illustrates how API-delivered transaction data helped a client improve cash visibility and decision-making.

Connectivity Across Corporate Teams

Peter says connectivity requirements increasingly involve CFOs, technology teams, and business leaders, with priorities ranging from global cash visibility to standardization and automation.

Digital Maturity And Integration

The guests describe how digital maturity shapes treasury needs and why secure, scalable architecture, quality implementation support, and repeatable integrations matter.

Choosing Treasury Channels

Peter recommends matching channels to desired outcomes, combining APIs, SWIFT, host-to-host, and portals according to process needs, resilience, cost, and digital maturity.

Incremental Connectivity Implementation

Amber outlines a four-step approach: define the outcome, match the connection, test it, and scale safely, beginning with a focused use case and adapting internal processes as needed.

Embedded Banking Progress

Amber explains how embedding balances, payments, and exception management into treasury platforms improves visibility and controls, while prebuilt integrations can make onboarding faster and more repeatable.

Unilever Real-Time Cash Decisions

Peter describes how API visibility across Unilever accounts accelerates reconciliation and credit release, supporting faster shipments, better forecasting, and more efficient use of liquidity.

AI In Treasury Workflows

Peter reports growing AI adoption in treasury, including collections use cases, and anticipates a shift from exchanging information to agents coordinating workflows and approved execution.

AI Permissions And Oversight

Amber says useful AI depends on timely, accurate, contextual data and clear permissions, with ongoing human oversight, defined agent access, and accountability essential as autonomy increases.

A Safe Path To Treasury AI

The guests emphasize that AI agents need clear identity, permissions, auditability, and human review, especially for higher-risk actions and access to funds.

Hybrid Connectivity Roadmap

Peter expects hybrid connectivity to remain normal over the next three to five years, recommending that treasurers start with a valuable use case, prove its benefits, and expand incrementally.