Financial Institutions Embrace AI For Treasury Management

Financial institutions are increasingly turning to AI to boost treasury management, with AI-powered account analysis emerging as a key tool for optimizing cash management and improving liquidity, as detailed in a report by PYMNTS.

As financial operations become more digital, AI is reshaping how institutions manage their treasury functions, allowing for more accurate insights, better client relationships, and enhanced operational efficiency, as reported by PYMNTS.

“The market is evolving, and institutions need tools that can evolve with it,” said to PYMNTS Norman Marraccini, senior vice president of products and services at FIS.

Account analysis, long viewed as a back-office function, is now being elevated by AI technologies. PYMNTS explains that traditionally, account analysis statements—provided by banks—offered detailed reports on banking activities such as transaction volumes, service fees, and compensating balances.

With the integration of AI, these insights are becoming more granular and dynamic, giving treasury teams the ability to not only track cash flow but also predict trends and optimize decision-making, says PYMNTS.

AI tools in account analysis can analyze vast amounts of financial data, enabling institutions to identify their most profitable clients and optimize pricing models.

According to Marraccini, AI-powered platforms will help institutions offer more competitive rates, ensuring they remain attractive to commercial and small business clients, as reported by PYMNTS.

“AI can take the guesswork out of pricing, ensuring that customers are matched with the right accounts and services,” Marraccini explained to PYMNTS.

By automating data analysis, AI allows treasury professionals to focus on strategic decision-making instead of manual data crunching, significantly improving both efficiency and accuracy.

Despite the promise of AI, many financial institutions are still grappling with legacy systems and manual processes. Marraccini warns that continuing to rely on outdated technologies could lead to costly errors in pricing, billing, and account management, which can erode customer satisfaction and revenue.

“When you rely on manual tools or incomplete product catalogs, you open the door to errors in pricing and billing,” he said to PYMNTS.

AI’s potential is particularly significant in identifying profitable opportunities and improving client retention.

With advanced AI-powered analysis, institutions can offer personalized solutions based on a client’s specific cash flow patterns, lending needs, and deposit behaviors, ultimately enhancing loyalty and minimizing client attrition, reports PYMNTS.

Looking ahead, Marraccini is optimistic about the future of AI in treasury management. FIS’s upcoming AI-driven platform, launching in 2025, aims to harness the full potential of artificial intelligence, eliminating inefficiencies and optimizing revenue, says PYMNTS.

By adopting these cutting-edge tools, financial institutions can transform their treasury operations, gaining a competitive edge and maximizing the value of every client relationship.

As digital transformation accelerates, AI is quickly becoming an indispensable component in the evolution of treasury management, helping financial institutions navigate the complexities of modern cash flow management and drive sustainable growth.