Download Whitepaper

August 2018

Imagine a world of real-time treasury – one where cash is sent and received in real time, and updated automatically on centralised dashboards for all stakeholders to see

In a new paper, entitled: “The road to real-time treasury”, Deutsche Bank combines recent research with Euromoney and expert views to assist corporate treasuries to plan for the future real time world.In this future, FX conversions are carried out automatically and in real time, with hedges generated instantly to address risky exposures. Surplus funds are invested automatically according to treasury-determined preferences for risk, return and diversification, while cash-flow forecasts are generated and updated in real time – pinpointing when and how much borrowing is required.

The real time treasury is a concept that has grown in popularity over the last few years, yet it remains, in the minds of many, a long way down the road. In reality, however, the industry has made considerable progress along this road – either developing or already providing the majority of supporting services required for real-time treasury management. Though a far-flung vision to some, the real-time treasury is quickly becoming a reality.

Realising the real-time treasury

Real-time payments are proliferating widely – with 45 schemes up and running worldwide – while the rise of open banking, powered by advancing technology and regulations such as the second payments services directive (PSD2), is further simplifying payments processes and enabling treasurers to aggregate banking services onto a single dashboard to achieve a clear overview of cash positions.

“As instant payments schemes continue to roll out across the world, this not only impacts B2C companies, but also has a knock-on effect on the full value chain of globally connected corporates” comments Shahrokh Moinian, Head of Cash Products, Global Transaction Banking at Deutsche Bank.

Real-time liquidity management capabilities are also starting to take shape, with intra-day sweeping already available as part of some banks’ cash-pooling services. These will eventually progress to real-time automated sweeps, or be emulated by the implementation of virtual accounts – another solution already on the market – to facilitate instant cash concentration.

The FX space is also rapidly approaching the realm of real-time operation – with Deutsche Bank already offering 24/7 conversion of inbound and outbound FX payments, along with a platform for calculating companies’ net currency exposure and applying tailored hedges within seconds.

With these base components already in place and developing at a rapid rate, the real-time treasury vision is closer than many realise – indeed, it is almost within our grasp. And with it comes the chance for treasurers to step back from rote tasks, and deal only with exceptions. The time saved presents a chance to seize an opportunity – and commit themselves to the strategic responsibilities that are increasingly coming to define their role.

Click below to download our white paper on the subject. The road to real-time treasury starts here.

Shahrokh Moinian

Global Head of Cash Products | Cash Management | Deutsche Bank

Shahrokh Moinian

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