As the new year begins, corporate treasurers naturally find themselves wondering what lies ahead – and how best to prepare. Here, experts from across the industry offer their reflections and predictions on everything from AI to ISO 20022 and improved FX risk management. So, what might 2025 look like for corporate treasurers? Which are the hottest opportunities to embrace, and the biggest risks to avoid?

Treasury never sleeps. Well, treasurers might (if the job isn’t keeping them awake too much!) but the profession itself continues to evolve at speed. 

Tech is undoubtedly a major driving force in this evolution. “Every year there is a tech-related buzzword,” quipped Steven Lenaerts, Head of Global Channels and Digital Onboarding, BNP Paribas. “In the past, it’s been blockchain and application programming interfaces (APIs), which are still relevant, but in 2025 I believe it will be artificial intelligence [AI] – which was already a hot topic last year, but is only going to become hotter, in my view.” 

Royston Da Costa, Assistant Treasurer at Ferguson agreed, pointing to the rise of generative AI (GenAI) tools such as ChatGPT and Claude. He noted that 2024 discussions – especially at large industry conferences like EuroFinance (held in Copenhagen in October) – focused on how these technologies could revolutionise treasury functions. 

“It was early days at EuroFinance, but the impact of generative AI on the workplace was under discussion, particularly ChatGPT and other large language models (LLMs).” Discussion, and practical application, of LLMs will only continue to increase in 2025.

Practical use cases for AI in treasury

While many still see AI as a tool of the future, it is already transforming treasury operations, empowering teams to reduce risks, improve accuracy, and focus on strategic growth. Use cases (this list is by no means exhaustive) include:

1. Cash flow forecasting: More accurate predictions using historical and external data.
2. Risk management: Simulating FX, interest rate, and credit scenarios to optimise risk management strategies, such as hedging.
3. Automated reporting: Creating tailored compliance and performance reports, including areas such as ESG.
4. Liquidity insights: Real-time monitoring and portfolio optimisation.
5. Payment efficiency: Intelligent routing and anomaly/fraud detection.
6. Workflow automation: Drafting policies, standardising data, and automating routine tasks including form filling for KYC.
7. Cost savings: Identifying overspending and benchmarking bank and vendor fees.
8. Decision support: Supporting refinancing, liquidity planning, FX risk management, and debt optimisation, for example.

Roadblocks to overcome

It is not just GenAI that is making waves in treasury: many banks and vendors are also working hard to make the most of predictive AI. But not all tech vendors are quite up to speed, yet. As Da Costa noted, “Treasury management systems (TMSs) will reach a tipping point in that they will have to decide whether to embrace new tech like AI or stick to existing inflexible technology structures.”

Lenaerts agreed, adding, “Not everybody is at the appropriate level of maturity yet. AI adoption requires a progressive, iterative approach – for banks, vendors, and corporates. Also, AI builds on API connectivity, data management and sharing initiatives, and so forth to deliver the best results. As yet, there is no standard best practice approach here, but decisions will still need to be made for organisations to remain competitive.”

Meanwhile, Bob Stark, Head of Strategy & Enablement at Kyriba, highlighted a crucial prerequisite for AI adoption: robust data management. “There is no AI strategy without a data strategy,” he stressed. He also cautions that most tech platforms aren’t yet ‘AI native’ and that people, processes, and technology all need to align to get the most out of any AI project – or indeed any other implementation. “Otherwise, it’s just a superficial test case project or a matter of garbage in, garbage out.”

Another piece of advice from Stark for any treasurers wanting to leverage AI in 2025, especially for cash forecasting, is that they will need data mastery and appropriate ongoing governance and oversight to get the most out of any AI applications. “A clear idea of ‘what do I want to achieve?’ is necessary before embarking on any AI project focused on improving cash forecasting, or the numerous other use cases that are possible.” 

These use cases, he said, are typically designed to achieve enhanced automation and efficiency, compliance improvements, and more robust security. But on the latter, Stark warned that AI can be an attack and a defence mechanism in this field. As such, “Cybersecurity must be a top priority for 2025.”

Given the pervasive nature of AI, the challenge for treasurers will be to leverage it strategically, ensuring that it enhances efficiency, strengthens security, and delivers actionable insights without compromising governance or increasing vulnerabilities. 

Achieving this will form part of a wider digital transformation remit for treasury teams, which, of course, also includes digitising paper processes, leveraging digital advances to improve old ways of working, and even upgrading business models.

Building a modern treasury

In fact, digitisation underpinned many treasury transformation projects throughout 2024, enabling teams to achieve greater efficiency and real-time operational capabilities. “In 2025, treasurers will continue to focus on leveraging technology, whether to reduce manual processes such as reliance on paper documentation within trade finance or to drive innovative payment solutions like seamless, contactless payments,” said James Fraser, Global Head of Trade & Working Capital at J.P. Morgan Payments.

He believes that the advancements in real-time treasury management present significant opportunities for the industry as well. With the integration of faster payments, more open APIs, and open banking payment methods, treasury teams can now better automate and expedite the capture of transaction data. This enables more efficient and accurate real-time management of cash positions, creating more predictable cash flow.

“This trend empowers treasurers to navigate a landscape where payments can be initiated anywhere, anytime, in any currency, and through a variety of platforms, from ACH to mobile wallets. The modern ‘always-on’ payment ecosystem will particularly benefit financial institutions (FIs) that maintain robust security and controls.” 

Digging deeper into real-time payments

Indeed, the rise of instant payments, particularly in the European Union through the Instant Payment Regulation (IPR), was a major milestone in 2024. Matthew Davies, Head of Global Payments Solutions, EMEA, and Global Co-head of Corporate Sales, GPS, Bank of America (BofA), noted, “The introduction of instant payments across the EU is an important milestone in the evolution of its financial infrastructure. We’re focused on ensuring clients can seamlessly receive instant payments and providing real-time visibility to help better manage liquidity and market shifts.” 

Nevertheless, it is important to distinguish between instant payments and on-time payments, as not every company is focused on the need for 24/7 instant payments. “Many of our large corporate clients have existing technology, infrastructure and processes prepared for batch processing of payments – for example, to pay software subscriptions or salaries at a certain date. On time payment here might be more relevant and cost-effective,” said Davies.

Wim Grosemans, Global Head of Product Management, Payments & Receivables, Cash Management at BNP Paribas, has seen a handful of high-profile corporates really wanting to accelerate their real-time capabilities. 

But, he said, definitions of ‘real-time’ differ, depending on if you focus on the cash balance reporting implications or other up/downstream impacts. “For me, it simply means being able to move liquidity in real-time at any point in time, and confirming it – whether by cross-border instant payments, or other means. But regardless of the definition, I do see it being a constant theme for 2025.”    

Another topic that interests Grosemans and his clients is SEPA Instant Credit Transfers (SCT Inst). “Now that the transaction limit on SCT Inst transactions is set to be removed, it may become an instrument of significant treasury traffic. Money can be moved over the weekend too. This all contributes towards the shift towards real-time treasury but will require collaboration between banks and corporates to manage the liquidity challenges.”

Preparing for ISO 20022

Within the payments and cash management space, ISO 20022 migration will also likely be a continued theme for 2025. “Large corporate customers are gearing up for ISO 20022 compliance ahead of the banking deadline later this year, but there is some frustration that there has not been a more unified approach in terms of timing or transition that was more in step with the banking community,” said Jacqui Drew, Global Head of Account Management at ION Treasury, which includes the Reval and Wallstreet brands among many others. 

“Treasury teams are seeking assurance that the technology they have available will be compliant, flexible and able to cater to new and old payment formats,” she noted.

Stark agreed, adding, “Most finance leaders, including treasury and payments teams, remain concerned about the ISO 20022 XML messaging standardisation drive and the imminent migration as well. While the delayed Swift-mandated 2025 deadline does not apply directly to corporates, there is concern about which banks will continue to support MT messaging and which will fully switch to XML-based messaging.” Smaller banks are in the frame, and other non-bank partners in the payment chain may cause issues too.  

“This may lead to a ‘blending’ of message formats that means finance teams will demand translation tools to avoid rebuilding file import and export processes in their ERP and other finance systems,” cautioned Stark. 

Though ISO 20022 offers numerous potential benefits, for now, the complexity and uncertainty are making life harder for many treasurers, who have other priorities to contend with.

Bracing for macro headwinds

One of these areas of focus is, of course, managing market risk, and making appropriate cash and liquidity decisions. Davies elaborated, “Financial markets, and particularly the present interest rate environment, have brought an increased focus on liquidity management. For example, treasurers need to make sure there isn’t idle liquidity sitting around, centralise their cash position, and pay down debt.”

In this regard, Stark said, “Geopolitical and economic instability are live issues,” due to ongoing wars with their impact on oil and gas prices, free market access, trade routes and so on. “Treasury teams are under pressure to support re-shoring of supply chains, mobilisation of liquidity and increased agility in banking partners, should business changes be required.”       Such shifts could be needed in the event of sanctions, interest rate moves, or other economic shocks or major strategic decisions. 

Upcoming geopolitical events look set to create yet further uncertainty. The commencement of Donald Trump’s second term as US President, Germany’s elections in February 2025, and high-stakes midterm elections in the Philippines in May are just a few key moments to watch. Each event has the potential to shift market conditions, impact trade policies, and create new challenges for corporates.

Understandably, said Stark, this is leading to a renaissance in aligning technology with better practices in business continuity planning (BCP) and risk mitigation, with a specific focus on foreign exchange (FX) hedging and liquidity planning.   

Davies could not agree more. “Treasurers want to make sure their business is ready to adapt to rapid currency fluctuations, so we spoke with a number of clients in 2024 about the benefits of guaranteed rates and FX netting solutions, for example.” And these conversations only look set to intensify as this year unfolds.

In a similar vein, Seth Phillips, CEO and Co-Founder of Bound, a fintech providing automated currency hedging strategies, believes that 2025 will see treasury teams focus on tech that enhances proactive decision-making around FX risk. He noted, “The macro instability we’re seeing isn’t going away anytime soon. Treasurers need tools that can help them act decisively, and stay in control, regardless of what markets get up to.”

The ultimate aim of this kind of tech is ensuring greater predictability and stability in cash flows, he explained. “Automating FX hedging – not just the workflows but the strategic decision-making process as well – helps treasury teams take currency risk off their plate, so they can focus on bigger-picture financial goals.”

Never do nothing

While treasurers clearly have many tech, macro, and strategic changes to contend with in the year ahead, what all of these trends demonstrate is that the world isn’t slowing down. So, neither can treasury teams. In fact, if there is one major lesson from 2024 to carry into the next 12 months, it’s that the real risk isn’t always in trying something new – it’s in standing still.