Digital Transformation in the ‘New Normal’: The Future of Treasury

By Karibi Iketubosin

As the world adjusts to life amid COVID-19, banks are accelerating their digital transformation efforts. Treasury operations in particular have had to evolve rapidly to support customers and manage risk remotely. In this forward-looking commentary, I discuss how treasury departments can seize the “new normal” to build more resilient, digital-first operations.

One clear shift is the expectation of real-time access to information. The pandemic proved that treasury functions cannot rely on weekly or even daily data. We upgraded our MIS to deliver intraday cash flow reports and risk metrics. Now, senior management expects live dashboards showing liquidity across all business units. This trend will continue: moving forward, we will tie our treasury MIS into enterprise data lakes and cloud analytics platforms. By feeding in non-traditional data (such as real-time commodity prices or supply chain indicators), we can anticipate funding needs more accurately.

Real-Time Data and Analytics

Another big trend is API-driven banking. Open banking initiatives and fintech collaborations are changing how treasurers interact with the market. In banks, we have already integrated APIs from our payment providers, enabling automated reconciliation of incoming remittances and instant clearing of internal transfers. In practical terms, this means our corporate treasurer clients can see their daily cash positions updated without any manual file uploads. Going forward, I expect treasury teams to partner closely with fintechs and technology providers. This will allow banks to offer APIs for treasury-to-treasury communication between institutions, speeding up liquidity pooling and cross-border hedging.

Top Trends Shaping Treasury in 2021

Cloud and SaaS Platforms: Banks are moving treasury systems to the cloud to achieve scalability and remote access. Cloud-based treasury management systems eliminate the need for on-premises servers and allow real-time collaboration across geographies.

Machine Learning and AI: Advanced analytics are being applied to treasury data to detect fraud, optimize investment decisions, and forecast cash flows. Machine learning algorithms can analyze patterns that humans might miss, such as micro-fluctuations in currency flows, enabling preemptive hedging strategies.

Real-Time Payments: The expansion of instant payment networks (like Nigeria’s NIBSS instant payment, as well as global rails) means treasurers must manage liquidity in seconds, not minutes. Real-time gross settlement (RTGS) systems and faster clearing alter daily liquidity profiles.

ESG and Sustainable Finance: Increasingly, treasuries are incorporating environmental and social governance factors. For example, treasury investment portfolios are being evaluated for carbon exposure. Sustainable finance instruments (like green bonds) require new reporting capabilities within treasury systems.

Cybersecurity and Resilience: As digital channels proliferate, treasury systems become a target for cyber threats. Robust cybersecurity measures , from multi-factor authentication to AI-based threat detection , are now essential aspects of treasury infrastructure.

Some of these trends were underway before 2020, but the pandemic acted as a catalyst. For example, while many banks had started cloud migrations, the urgent need for remote work forced us to accelerate those projects. Similarly, we expanded our use of electronic payment methods: contactless corporate payments, QR-based merchant solutions, and virtual accounts to minimize physical interactions. These changes have now become standard; I anticipate continued innovation, such as integration with digital identity platforms and biometric security for high-value transactions.

Accelerating Existing Trends

Cross-border liquidity management is also entering a new phase. The combination of volatile currency markets and travel restrictions has highlighted the need for decentralized treasury operations. Our bank is exploring a multi-currency digital cash pool that allows central visibility without a single physical hub. This concept, once futuristic, is enabled by blockchain-like ledgers and cloud connectivity. If widely adopted, such systems would allow central banks and regulators to monitor cross-border flows in real time while giving each local entity autonomy.

Global Liquidity Innovations

Finally, I advise treasury leaders to invest in talent and culture. Digital transformation can only succeed if staff have the right skills. To that end, we launched an internal training program covering data science, cloud computing, and digital project management. Treasury analysts are now expected to not only understand finance but also code and data. The modern treasury desk resembles a cross between a bank and a tech startup.

Investing in Talent and Culture

In conclusion, the “new normal” post-2020 will be defined by speed, automation, and data-driven decision-making. Treasury departments that embrace cloud, APIs, AI, and robust cybersecurity will provide their banks with critical advantages. As I continue to lead our treasury operations into the future, I remain guided by the principle that digital infrastructure and liquidity management go hand in hand , each strengthening the other for a more resilient future.