Transform Treasury with Technology and J.P. Morgan Payments

Better technology and data leads to more informed decision making, resulting in better forecasting and improved control
Priyanka Rath, Head of Global Liquidity and Account Solutions Specialists at J.P. Morgan Payments, on the transformational impact of technology on Treasury

J.P. Morgan Payments has a deep understanding of the impact of technology on Treasurers and their partners.

When implemented correctly, this technology can enhance a Treasurer’s ability to perform their core responsibilities, and their value to the organisation.

Priyanka Rath, Head of Global Liquidity and Account Solutions Specialists at J.P. Morgan Payments, says better technology and data leads to more informed decision making, resulting in better forecasting and improved control.

Cash is king and Treasurers need to have their finger on the pulse – the right cash, in the right place and the right time,” says Rath.

“Technology can help through automation of cash movements and improved visibility. Also, data and analytics can drive accurate forecasts to minimise cash buffers. 

“Improvements in visibility around transactional flows and cash needs can enable strategic business decisions. Machine learning and AI-driven tools can further enhance and refine thoughtful decision making for Treasury teams, arming them with actionable insights.”

Rath also believes that technology can help alleviate resource constraints and operational risks associated with inefficient and/or manual processes. 

The technology landscape is constantly evolving and treasurers are constantly evaluating the possibilities with the latest trends, in addition to keeping pace with day-to-day demands.

No ‘one-size-fits-all’ approach to Treasury technology

J.P. Morgan Payments brings years of institutional knowledge and industry best practice, in addition to detailed know-how when it comes to tech developments – partnering with clients every step of the way to help them through their digital transformation journeys.

That journey can be complex, with a high volume of tech solutions on offer. So how can treasurers make the best choice?

“There are several avenues to consider and a myriad of factors to evaluate as treasurers make decisions when it comes to technology providers,” says Rath. “Treasurers must consider cost, flexibility and their ability to deploy. There is no one-size-fits-all approach.” 

Treasury technology continues to become more sophisticated, and it is important to select a solution that is realistic to deploy and flexible enough to meet your company’s future needs; ultimately, it is a case of what works best for your company, both today and in the future. 

J.P. Morgan Payments works with companies to curate customised solutions that are tailored to their existing and emerging needs. 

When it comes to cash positioning, real-time payments and real-time visibility are vital – especially considering the evolving rate environment, bottom-line pressures and potential global monetary policy changes. 

Rath says as the world moves towards real-time payments, companies will gain in efficiencies. Forecasting will improve, cash buffers will be reduced and visibility into cash positions will be more reliable. Treasury technology will need to keep pace to fully take advantage and to keep up with the real-time funding needs.

The importance of APIs in real-time Treasury

The future of real-time Treasury will be very difficult without solid knowledge about APIs and the ability to deploy them. Reporting, visibility and automation – but also liquidity structure amendments – will rely heavily on APIs and eventually will become the norm. 

“The real power of APIs will come with how Treasurers use that information to effectively update their forecasts in nearly real time,” says Rath. 

“They will have access to far more information and will be able to anticipate cash needs on a much more reliable basis.”

The benefits of virtual solutions

While virtual solutions have been around for some time, J.P. Morgan Payments finds that there is still room to grow in how they are deployed to maximise the advantages. 

“We have heard many clients ask about virtual accounts to save on fees. Can they be cheaper? Yes, but that is not the only benefit; we try to get our clients to think of the art of the possible,” states Rath. 

“If you had the ultimate account structure that provided both summary and the most granular level of reporting, allowed you to self-service account openings/closings, and offered the maximum amount of flexibility – what would that look like? That is where virtual accounts really start to unlock their power.”

Not all virtual solutions are created equally, and J.P. Morgan Payments has built its virtual solutions product suite on proprietary technology that is fully integrated with physical accounts. This means there are no lags in cash positioning or timing mismatches.

“We continue to incorporate real-time feedback from our clients to enrich and enhance the offering, so it stays ahead of the curve when it comes to meeting our clients’ evolving needs,” says Rath.

Relationship between Treasurer and CTO is crucial

When it comes to delivering a successful digital transformation, the relationship between Treasurer and CTO is critical – a partnership and collaboration that needs to work hand-in-hand. 

“Treasurers and CFOs need to work in tandem with the CTO’s organisational goals. That’s why we work closely with Treasurers as they define their objectives to see where we can complement a company’s own deployment/upgrade roadmap when it comes to Treasury technology,” says Rath. 

“In our organisation, we spend US$15bn on technology at unparalleled global scale and speed – from AI to embedded banking and cybersecurity. Our clients benefit from the scale of such investment, and we work closely with Treasurers and CTOs to ensure the company’s goals and objectives are successfully met over the long term.”

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