Powering Treasury's Digital Transformation with BPA

Unlock the full potential of automation for better efficiency and accuracy! Learn how automation is changing the future of Treasury operations to help finance leaders jump into the digitalisation of the treasury function.In this episode of the CurrencyCast, Agustin Mackinlay, the Senior Financial Writer at Kantox, explores the topic of business process automation and its impact on treasury operations. He is joined by Frédéric Chapelle, Partner at PwC Luxembourg, and Corentin Maricq, Manager Advisory - Finance & ESG Transformation at PwC Luxembourg.Together, they discuss the pain points addressed by business process automation and its potential to drive treasury's digital transformation. They also touch upon the significance of artificial intelligence, particularly Chat GPT, in shaping the future of finance and treasury management.Take a look at the main takeaways from this insightful conversation.

Business Process Automation: Unlocking Efficiency and Value

Business process automation (BPA) has emerged as a transformative solution for finance and treasury operations. According to Frédéric and Corentin, one of the key pain points addressed by BPA is the gap between client expectations and the solutions delivered by software providers and integrators. They emphasize the importance of understanding the specific needs and adequately preparing for the implementation process to ensure success.Moreover, before delving into automation, it is crucial to review and optimize existing processes, adopting lean practices and best-in-class approaches. Frédéric and Corentin caution against the hasty adoption of tools and system integrators without focusing on process improvement and embracing transformational practices.

Driving Growth and Mitigating Risks: The Benefits of Automation

Automation offers a top-down approach to finance transformation, empowering treasury leaders to steer their organizations towards growth while effectively managing risks. Frédéric and Corentin highlight the motivations for adopting automation, including growth-oriented strategies, risk mitigation, and the implementation of control frameworks.By automating repetitive and time-consuming tasks, treasury professionals can devote more time to strategic activities, such as improving cash flow forecasts. Contrary to concerns about losing control, automation actually reinforces control by enabling treasurers to focus on higher-value tasks, leveraging real-time data and analysis to drive business performance.

People and Automation: Embracing Change and Upskilling

The discussion moves towards addressing common fears associated with automation, such as job replacement and loss of control. Frédéric and Corentin assert that automation enhances control rather than weakening it. They emphasize the need for treasurers to upskill and embrace the changing landscape of technology and automation.Drawing parallels to the scepticism around Chat GPT, they encourage education and proactive adaptation to leverage the benefits of automation. Rather than resisting change, treasurers should equip themselves with the necessary skills to thrive in an evolving environment.

The Role of Treasury Management Systems (TMS) in Automation

While treasury management systems have revolutionized treasury operations, Frédéric and Corentin highlight some potential limitations regarding effective currency management. They discuss the need for a strong FX rate feeder, which allows finance teams to provide commercial teams with the necessary FX rates for pricing purposes. Additionally, they address the challenges of gathering information from various parts of the company to create comprehensive hedging programs.The experts suggest a best-of-breed approach, where treasury platforms or working capital platforms are supplemented by specific add-ons to meet industry-specific needs. They emphasize the importance of building a holistic IT architecture that integrates various tools and solutions to achieve optimal performance and risk management.

Artificial Intelligence and the Future of Finance and Treasury

The conversation concludes with a focus on artificial intelligence (AI) and its implications for business process automation. Frédéric and Corentin discuss the significance of Chat GPT and AI in pricing, forecasting, and simulation. While acknowledging the seismic impact of AI, they link it to the hype surrounding blockchain, emphasizing the need for a balanced perspective on its role in finance and treasury management.