A New Level of Treasury
- Adam Edwards
- Feb 25
- 2 min read
The "A New Level of Treasury" report (link here), published by Bank of America and TMI, introduces the Treasury-as-a-Business (TaaB) model, positioning treasury as a strategic partner rather than a back-office function. TaaB leverages data-driven decision-making, real-time insights, and automation to enhance treasury’s role in liquidity management, risk mitigation, and financial planning.
A key component of this transition is on-time treasury, an alternative to real-time data processing that provides timely and relevant financial insights without the need for continuous data streams. This enables businesses to make quicker, informed decisions, manage liquidity effectively, and optimise working capital.
The report identifies challenges to adopting TaaB, including legacy ERP systems, lack of stakeholder buy-in, and limited technology integration. Overcoming these barriers requires modernising infrastructure, leveraging APIs for bank connectivity, and improving treasury automation.
Technology plays a central role, with the adoption of AI, APIs, machine learning, and predictive analyticstransforming treasury operations. Automated cash flow forecasting, real-time payment processing, and risk management tools are key enablers of this shift.
The report recommends that treasurers collaborate with IT, finance, and external partners to ensure successful TaaB adoption. Organizations that embrace on-time treasury, integrated technology, and data-driven decision-making will improve financial resilience, reduce costs, and enhance strategic decision-making.
Ultimately, TaaB and on-time treasury empower businesses to adapt to financial market changes proactively, ensuring liquidity and operational efficiency while elevating treasury’s role as a business driver.
15 Key Takeaways
Treasury is evolving from a back-office function to a strategic business partner through Treasury-as-a-Business (TaaB).
On-time treasury provides relevant financial insights when needed, without the complexity of full real-time data processing.
Liquidity and risk management are central to TaaB, enabling better cash flow forecasting and financial stability.
Legacy ERP systems are a major barrier to TaaB adoption, requiring modernisation and system integration.
APIs enable real-time bank connectivity, improving cash visibility and transaction processing efficiency.
AI and predictive analytics are transforming treasury operations, enhancing decision-making and risk assessment.
Automating treasury functions reduces operational costs and improves working capital efficiency.
Stakeholder buy-in is critical, as treasury must align with sales, finance, and procurement teams for success.
On-time treasury enhances fraud detection and compliance by providing real-time monitoring and data analysis.
Companies need to assess whether real-time or on-time treasury best suits their business model based on resource availability.
Treasury teams must upskill to work effectively with AI, automation, and analytics-driven solutions.
TaaB strengthens treasury’s role in strategic planning, enabling better capital allocation and funding decisions.
Bank connectivity through APIs and digital platforms reduces manual processes and increases efficiency.
Real-time payments improve supply chain resilience, ensuring faster settlement and enhanced working capital management.
Organizations that implement TaaB will achieve better financial resilience, positioning treasury as a driver of business growth.