Treasury teams are under pressure to navigate high interest rates, market uncertainties, and growing efficiency demands. Deloitte’s 2024 Global Corporate Treasury Survey, featuring insights from 213 organizations worldwide, offers a clear view of how treasurers tackled these challenges.

Liquidity risk management remained a top priority, while cash flow forecasting has been a pain point—less than a quarter of organizations rate their capabilities as “above average.” Generative AI is emerging as a game-changer for forecasting and risk management, though adoption is still in the early stages. Treasury tech adoption is growing, but many companies still rely on spreadsheets. Outsourcing operational tasks is also on the rise, signaling a shift in how treasuries operate.

This article dives into Deloitte’s findings and what they mean for 2025. If staying ahead in the Treasury game matters, you’ll want to keep reading.

2024 Treasury Focus: 56% of CFOs Prioritized Liquidity, ESG Rose!

Liquidity risk management led 2024 priorities, with 55.9% of CFOs marking it as critical, driven by volatile markets and rising interest rates. Treasury’s role as a strategic partner to the CFO (51.6%) and steward of risk management (47.4%) also remained key. Governance over domestic and global operations was considered important by 63.4%, though fewer (30%) rated it critical.

ESG efforts (Environmental, Social, and Governance) rose, with 64% viewing them as important, reflecting their growing influence in rating criteria. Scalable treasury for growth surged to 48.8%, increasing by 10% since 2022. Meanwhile, the profit center role diminished, with 71.4% marking it unimportant as treasuries focused on liquidity and risk-adjusted returns.

96% of CFOs Relied on Treasury for Value-Add Roles, But Strategic Alignment Remains Key

The survey revealed that 96% of respondents considered being a value-added partner to the CFO as part of the treasury’s mandate. Operational treasury tasks, such as cash positioning and bank relationship management, were the most commonly performed by treasury teams, with nearly 100% involvement. Similarly, 90% of teams were responsible for financial risk management, including FX and currency hedging.

• 75% of treasury teams were involved in debt capital markets activities, such as long-term debt issuance and rating agency relations.
• The following strategic areas showed lower engagement: capital allocation (50%), investment and pension fund management (40%), and credit and collections (30%).
• 60% of treasury teams performed return-to-shareholders strategies, such as dividends and share repurchases, reflecting a moderate focus on shareholder value creation.

These trends indicate a strong operational focus but highlight opportunities to improve strategic alignment with CFO priorities, especially in capital and investment strategies.

Top Challenges for Treasury Teams in 2024

• 58% of treasury executives cited visibility into global operations, cash, and financial risk exposures as the top challenge.
• Digital capabilities were identified as a concern by 48%, followed by liquidity concerns at 47%.
• 44% highlighted inadequate systems infrastructure as a key challenge.
• 39% noted FX volatility, underscoring the need for better tools and processes to navigate volatile markets.

Key Priorities for the Next 12 Months

• Enhancing liquidity management was the top priority for 62% of treasurers.
• Improving cash forecasting capabilities was a critical goal for 46%.
• 35% of treasurers aimed to optimize capital structure.
• Operational efficiency improvements (31%) and market risk mitigation (30%) reflected a focus on agility and resilience.
• Implementing new technologies was a priority for 23%, addressing the need to overcome current challenges.

2024 Treasury Maturity: 56% Excelled in FX Risk, Only 18% Nailed Cash Forecasting

Treasury functions showed varying levels of maturity across key operational dimensions. Cash flow forecasting remained a significant challenge, with only 18% of respondents rating their capabilities as above average or best in class, while 38% said they required development. Cash positioning, surprisingly underdeveloped for a core function, saw 22% needing improvement, particularly among larger companies.

• Cash concentration exhibited better maturity, with 54% of respondents rating themselves as above average or best in class, driven by tools designed for efficient cash aggregation.
• FX and interest rate risk management demonstrated the strongest performance, with 56% excelling, although smaller companies struggled with volatile currencies.
• Bank account administration lagged behind, with 57% citing inefficiencies and manual processes, highlighting the urgent need for better Treasury Management Systems (TMS) to address these challenges.

Gen AI in Treasury: 72% Had Yet to Implement!

Generative AI (GenAI) adoption in the treasury was early, with 72% of companies under $10 billion and 67% of mid-sized firms ($10-$50 billion) yet to implement it. Large companies (> $50 billion) led adoption, with 35% reporting mature use and realizing benefits.

The most impactful use cases identified included cash flow forecasting, highlighted by over 70% of respondents, offering predictive analytics and factoring in FX variability and vendor trends. Cash positioning followed, cited by 50%, with potential trade-offs such as connectivity investments in Treasury Management Systems (TMS).

Steps for successful adoption included defining business use cases, identifying cross-functional benefits, and ensuring governance structures to mitigate risks. Companies leveraging AI foresaw improvements in operational efficiency, cost reduction, and data accuracy.

89% Automate Accounting, but 47% Use Spreadsheets for Forecasting

Treasury technology adoption shows significant variation across functions. While treasury accounting and payments lead with high levels of automation, critical areas like cash flow forecasting and bank administration lag. These gaps highlight opportunities to improve efficiency and reduce reliance on manual processes.

• Treasury Accounting & Payments: Lead with adoption rates of 89% and 88.7%, driven by TMS and ERP systems.
• Cash Positioning: 74.8% use technology, but 23.3% still rely on spreadsheets, signaling gaps in optimization.
• Investment & Debt Management: 70% adoption, with 35.7% leveraging TMS solutions for better efficiency.
• FX and Interest Rate Risk Management: 66% adoption, though 25.4% depend on spreadsheets, highlighting areas for improvement.
• Bank Administration: Only 56.5% adoption, with 32.9% reliant on spreadsheets, underscoring inefficiencies.
• Cash Flow Forecasting: Lowest adoption at 46.7%, with 47.1% using spreadsheets, pointing to an urgent need for advanced tools.

To bridge these gaps, targeted investments in treasury technology, particularly in cash flow forecasting and bank administration, are critical to enhance efficiency, accuracy, and overall treasury functionality.

From Automation to Risk Mitigation: Treasury’s Top Technology Drivers

Automation of manual processes emerged as the top benefit of adopting new treasury technology, with 35% of respondents prioritizing it. This reflected a strong focus on streamlining operations and eliminating inefficiencies. Risk mitigation, including enhanced security and reduced human errors, ranked second, cited by 18% as the most critical driver for adoption.

• Visibility and improved reporting capabilities ranked third, valued by 15%, emphasizing the need for transparency in treasury operations.
• Scalability to support growth was cited by 14% as a notable benefit.
• 9% highlighted 24/7 operational efficiency as a key driver.
• Cost reductions (3%) and employee satisfaction from reduced repetitive work (1%) were less significant drivers.

Conclusion: Preparing for a Strategic Future

The 2024 Deloitte Global Treasury Survey provides a comprehensive roadmap for treasury professionals navigating a challenging yet opportunity-filled landscape. From liquidity risk management to Generative AI adoption, the survey highlights the critical areas where treasury departments can make impactful changes.

The data is clear: organizations that invest in advanced technologies, close maturity gaps, and embrace outsourcing where appropriate will be best positioned to thrive. As treasurers continue to balance operational responsibilities with strategic mandates, the insights from this survey will serve as a vital guide for shaping treasury functions in 2025 and beyond!