This lesson examines the trends shaping the future of treasury, focusing on digital payments, AI, and evolving market developments .

8.1 The Digitisation of Treasury

Treasury is undergoing rapid digitisation, driven by advances in technology and changing market expectations. Key developments include:

  • Real-Time/Instant Payments: The increasing availability of real-time payment systems that enable 24/7/365 fund transfers, requiring treasury to adapt cash positioning and forecasting to this new environment .

  • Digital Payments: The growing shift from paper-based to electronic payments, with developments in ACH, wire transfers, and card-based collections .

  • Artificial Intelligence: AI is emerging as a transformative technology for forecasting, anomaly detection, and automating routine tasks.

8.2 International Payment Vehicles

Treasury managing cross-border payments must understand the complexities of different payment vehicles. The ACT syllabus covers “International payment vehicles” such as foreign currency cheque collection, international wire transfers, international ACH, and international trade finance instruments like letters of credit and documentary collections .

8.3 The Changing Regulatory and Market Environment

Treasury must also adapt to evolving market conditions. Significant changes include:

  • Replacement of Benchmark Rates: The phasing out of LIBOR and other IBOR reference rates has required treasury to update hedging strategies and financial modelling .

  • Evolving Risk and Compliance: Increasing regulatory expectations on transparency, reporting, and conduct require treasury to remain adaptable .

  • Blockchain and Digital Assets: Emerging technologies like blockchain and cryptocurrencies are being explored for applications in treasury, including cross-border payments and trade finance.

8.4 Developing Treasury Capabilities for the Future

To succeed in this dynamic environment, treasuries must prioritise talent development, technology investment, and continuous improvement. Collaboration with internal stakeholders (accounting, IT, legal, and tax departments) and external service providers (advisors, consultants, and banks) is key

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