Leveraging the Power of AI in Treasury: The Key to Unlocking Potential and Maintaining a Competitive Edge

Featuring

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Juan Saudino

VP, Professional Services

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Prasanna Boni

SVP, Product

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Cash Forecasting has been underserved by technology:

Despite technology advancements in various aspects of Finance and accounting, Cash Forecasting has historically been underserved in numerous factors:

  1. Reliance on spreadsheets: Manual cash forecasting methods rely on spreadsheets and are time-consuming and error-prone. They involve manual data entry and consolidation, leading to delays, inefficiencies, and inaccuracies.

  2. Limited integration and data accessibility: Scattered data across systems hampers effective cash forecasting due to integration challenges, impacting accuracy and timeliness.

  3. Inability to handle complexity: Traditional technology struggles with complex cash forecasting across multiple entities, currencies, and geographies. It doesn't provide flexibility in modeling scenarios, incorporating seasonality, and considering external variables.

  4. Limited predictive capabilities: Traditional cash forecasting technologies prioritize past performance and lack predictive capabilities. There has been a limited application of advanced techniques like machine learning and predictive modeling for accurate future predictions.

Treasury Management is ready for mainstream AI adoption to solve the Cash Forecasting challenges:

Treasury management, including cash forecasting, is poised for widespread adoption of Artificial Intelligence (AI) solutions to overcome its inherent challenges. The application of Domain-specific AI technologies offers several key benefits:

  1. Advanced data integration and analysis: AI automates integration and analysis of diverse data sources, identifying patterns and trends for accurate, real-time cash forecasting.

  2. Predictive modeling and forecasting: AI-powered models improve cash flow predictions by analyzing historical data and external variables like seasonality, market conditions, customer behavior, and economic indicators, providing precise and reliable future projections for treasury professionals.

  3. Scenario modeling and risk assessment: For treasury professionals, Big Data Storage technologies enable scenario modeling using granular data. AI-driven Big Data models can generate highly accurate outcome predictions, enhancing risk assessment and decision-making.

  4. Automation & Efficiency: AI automates cash forecasting tasks, reducing errors and enhancing efficiency. Real-time updates and alerts keep cash forecasts current and aligned with the latest financial and market information.

Welcome to the World of Autonomous Treasury:

How does HighRadius’ Cash Forecasting come into play?

Autonomous Treasury enables automated, daily cash flow forecasting through domain-specific AI Models. The Rivana AI platform has experience dealing with AR data from banks, ERPs, and AR Forecasting (invoice-level payment predictions). This drives highly accurate forecasts of complex cash flow categories like AR AP, etc.. Users can easily create, run, and compare forecast scenarios through the LiveCube No Code Platform - through familiar Excel-like Functions. The result is that a company can see global or regional cash forecasts into the future, ranging from 1 day up to 6 months.

HighRadius Autonomous Treasury Product Suite delivers the following benefits to companies:

  • Make better Short and Long-Term Investment Decisions with AI- Companies can make better borrowing/investment decisions through AI-driven daily Cash Forecasts. Companies would be more confident committing to longer durations, instruments leading to 30%+ higher yields vs. a money market sweep.

  • Automated Daily Forecasts through Livecube no Code Platform - Automated processing of all banks’ statements presented on an Excel-like user interface. Pre-built classification algorithms to classify bank statements, resulting in 90% automation.