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Financial Institutions Embrace AI For Treasury Management
- Written by Kiara Fabbri Former Tech News Writer
- Fact-Checked by Justyn Newman Former Lead Cybersecurity Editor
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 .
In a Rush? Here are the Quick Facts!
- AI-driven account analysis optimizes cash management and improves liquidity for financial institutions.
- FIS predicts AI will revolutionize treasury functions and enhance client relationships.
- AI tools help financial institutions optimize pricing models and offer competitive rates.
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.
Photo by Kevin Quezada on Unsplash
United Nations Calls For Global Cooperation To Regulate Earth Orbit Traffic
- Written by Andrea Miliani Former Tech News Expert
A United Nations panel on space traffic coordination declared that urgent measures must be taken by nations and companies worldwide to track and effectively manage satellites in Earth’s orbit. Sharing data to avoid collisions is one of the strategies suggested by the panel in October to avoid the disruption of global communication, scientific exploration, and navigation.
In a Rush? Here are the Quick Facts!
- A UN panel urged nations and companies to share data and find solutions to manage satellites effectively
- There are over 14,000 satellites and more than 120 million pieces of space junk in low Earth orbit
- Experts fear communication disruption due to orbit traffic congestion and its increasing risks of collisions
According to Reuters , the American company Slingshot Aerospace revealed that there are over 14,000 satellites—including around 3,500 that are inactive—in low Earth orbit. Besides the satellites, there are around 120 million scattered pieces and space junk that are difficult to track.
“There’s no time to lose on space traffic coordination,” said Aarti Holla-Maini, director of the United Nations Office for Outer Space Affairs and co-chair of the UN panel. “With so many objects being launched into space, we have to do everything we can to ensure space safety, and that means facilitating the sharing of information between operators, be they public or private, in order to avoid collisions.”
Low Earth orbit could become unusable unless global organizations cooperate as there is no centralized system to coordinate global satellites and particles in orbit. However, many nations and companies refuse to share private data for safety and commercial reasons.
In the past year, the risk of collision has increased by 17% and tens of thousands of new satellites in orbit are expected in the next few years.
Space innovation and global competition have been developing in the past few years, making experts warn about risks and shifting the space technology ecosystem development.
