From back office to boardroom: 5 ways treasury has transformed in the last 10 years - Trade Treasury Payments

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From back office to boardroom: 5 ways treasury has transformed in the last 10 years

Nobody dreams of becoming a corporate treasurer. Most kids, and even adults, don’t even know what a treasurer does. It’s a role people stumble into – often by accident, occasionally by design. 

A decade ago, it meant being the financial plumber of the organisation. Keeping cash flowing, plugging leaks, managing risks, and staying essentially invisible unless something went wrong.

Today, the tools, responsibilities, and expectations have shifted dramatically. Treasury has moved much closer to the business, closer to the boardroom, and is far more visible than ever before. Treasurers are also more empowered with tech, and have voices that reach across the company, and wider industry. 

But that doesn’t mean there isn’t still work to do. 

So, here are my top five changes that have reshaped the function over the past decade, looking at what’s different, what’s working, and what’s still evolving.

1. Artificial intelligence for all

Yes, it’s a buzzword, but AI is one of the biggest tech shifts we’ve seen in treasury over the last decade, and it is empowering treasury teams to take control.

Over the past 18 months, treasurers have shifted from passive curiosity around AI to hands-on experimentation. That’s partly because tools like Microsoft and Google now have AI capabilities baked in, so you don’t need to install specialist systems to start getting value. It’s also because the security landscape has matured, with clear guardrails around data handling and enterprise-grade large language models (LLMs).

While AI is often pitched (rightly or wrongly) as the ultimate game-changer for forecasting and fraud detection, leading treasurers have started using AI for smaller, more targeted use cases. These include: chasing forecast submissions, pre-populating forms, drafting routine emails and reports, speeding up KYC and validation processes, and automating workflows that used to steal hours from the team each week.

Interestingly, AI is also being used to capture institutional knowledge. According to James Kelly, Founder of AI boutique, Your Treasury, if you record a meeting where the team talks through key processes, feed that into a chatbot, within weeks you can build a living knowledge base. This can be especially useful if a key team member is off sick or away on leave, essentially changing the face of treasury staffing.

2. APIs and real-time treasury

“What’s our cash position right now?” used to be a surprisingly difficult question to answer. Bank portals showed yesterday’s balances. Payments in transit were invisible. Different systems refused to talk to each other.

It’s still not perfect by any means, and not standardised, either. But application programming interfaces (APIs) have gained so much traction over the past five years or so, and completely opened up new real-time data avenues, alongside the advent of real-time payments, of course.

Instead of batch files and end-of-day statements, treasury teams can now use APIs to seamlessly connect directly to banking systems for real-time data. It’s like finally driving with the headlights switched on, instead of constantly checking the rearview mirror.

And when treasury teams have access to real-time data, they can make better decisions about everything from short-term investments to FX exposures. 

Of course, not everything needs to be real-time. There is a growing movement that says ‘on time’ treasury is enough for many, if not most. Nevertheless, the capability itself has opened up so many new opportunities for treasury teams, and will continue to do so.

3. The return of active risk management

After years of historically low interest rates and relatively stable currency markets, many treasury teams had forgotten how brutal market risk can really be. Some had even scaled back hedging programmes as unnecessary overhead, assuming the cost outweighed the risk.

That assumption didn’t hold. By late 2021 and into 2022, everything changed. Central banks began raising rates at record speed. Currency pairs that had barely moved in years swung 5-10% in a matter of weeks. The euro briefly dipped below parity with the US dollar. Sterling plunged after the UK’s mini-budget crisis. Volatility returned rapidly, and without much warning.

The response was a clear shift back to systematic risk management and rules-based hedging – protecting against the downside with structure and consistency, and the added benefit of evolving tech.

4. The ESG rollercoaster

While ESG might not be the current flavour of the month, it still remains important, and has undeniably been one of the biggest innovations in treasury over the past decade. ESG was once considered treasury-adjacent at best. Sustainability teams handled the reporting, treasury handled the money. That division no longer exists.

Today, capital markets price in environmental risk, reward sustainable practices, and scrutinise greenwashing. Treasury teams have adapted by structuring sustainability-linked loans, issuing green and social bonds, investing in ESG-compliant instruments, and integrating ESG metrics into supply chain finance.

It remains to be seen what will happen to ESG over the next decade, but the tide has turned in how European companies, at least, approach sustainability – and that momentum will be hard to stop entirely.

5. Diversity for better decision-making

Treasury, like most financial functions, has historically lacked diversity in all its forms: gender, race, sexuality, age, disability, and more. Although the change over the past decade hasn’t been dramatic (it’s still predominantly rather male and pale – I won’t say ‘stale’!), it has been meaningful. Driven not by just corporate mandates but also by practical necessity.

Global treasury operations require understanding of different markets, regulatory environments, and business practices. And teams composed of similar backgrounds might miss cultural nuances that affect everything from payment practices to counterparty relationships.

Initiatives fostering diversity among the treasury community have created platforms for mentorship and advancement, gradually reshaping the field. And treasury associations like the ACT and IACT are playing their part too, with DEI charters, and programmes to foster young talent.

Again, it is tough to know where this trend will head, given the current political climate. But it is my hope that the most forward-thinking treasury leaders will still actively seek diversity – different thinking styles, backgrounds, and perspectives – recognising that homogeneous teams produce homogeneous (and often limited) results. Let’s see!

Shifting sands

Of course, there are so many more changes than this that have happened in treasury over the past ten years. With SaaS models proliferating, for example, Treasury Management Systems (TMSs) have become so much more accessible to companies of all sizes, not just the elite. 

As digital treasury has progressed, cybersecurity has also come within the treasurer’s remit with teams needing to embrace multi-factor authentication, biometrics, payment verification protocols, segregation of duties, and rigorous training (among many other measures). Digital currencies have also come onto the scene, offering up new potential for more seamless cross-border payments. 

Meanwhile, supply chain finance has experienced a resurgence, in no small part thanks to the pandemic. Pre-COVID, most treasurers managed supplier payments as a routine process with predictable timelines. Then global supply chains fractured under unprecedented strain. Suddenly, working capital became much more than a metric, and turned into a survival strategy.

Through the fragility, companies discovered their suppliers were also struggling with their own cash crunches. Those who couldn’t offer financial support watched suppliers prioritise customers who could. Treasury teams quickly deployed early payment programmes, supplier finance arrangements, and flexible payment terms to keep goods flowing.

The pandemic also introduced treasury teams to the concept of remote working, and many teams now have a hybrid model. At the same time, skills requirements are changing – remote teams require different communication skills. And treasury teams in general are having to upskill in new areas from data literacy and technology fluency to strategic thinking and emotional intelligence.

Where will treasury go next?

Treasury’s transformation hasn’t necessarily been a smooth, intentional evolution over the past decade. It’s been reactive, sometimes chaotic, and driven as much by external disruption as internal vision. But, as ever, the function adapted – partly because it had to, but also because there were trailblazers driving change.

Perhaps the biggest treasury evolution, though, is one of perception. It might sound a little cliché, but treasury is no longer just a ‘back-office function’ – it has become a true strategic adviser with visibility and reach across the organisation. Treasurers have (by and large) been recognised for the expertise they bring, and finally have a seat at the table as value creators and key decision-makers. Here’s to even more progress over the coming decade!