As digital technology advances, some of the biggest recipients of its transformative benefits are sitting in the finance function.
After all, digital payments bring with them a wealth of data — data that chief financial officers (CFOs) and treasurers can unlock to drive competitive differentiation and growth.
“We do see a real evolution into more sophisticated tools and ways to manage your money,” Albert Acevedo, senior vice president of treasury services at Priority, told PYMNTS. “We’re seeing the merging of payment processes with source data to create efficiencies.”
As embedded finance evolves beyond its traditional association with payments, he said, it is encompassing sophisticated, data-driven treasury solutions.
Modern technology and the capacity to collect and utilize data more precisely are enabling embedded finance platforms to transcend their original scope, positioning them to be instrumental in areas such as cash flow management, fraud protection and risk management.
This shift marks a significant step forward for businesses seeking to streamline their financial operations by integrating innovative technology into their treasury management functions.
Data has always been central to treasury management, but as modern systems and platforms become more sophisticated, they can produce more detailed, actionable insights. Embedded finance platforms, Acevedo said, leverage this real-time data, enabling treasurers to enhance cash positioning, forecasting and risk management.
“Traditionally, a lot of time was spent just gathering data,” he said. By embedding business intelligence (BI) tools, companies can access faster, deeper information. These tools not only aggregate data for trend analysis but also provide insights into specific departments or transactions, allowing businesses to make informed decisions swiftly. This approach is helping finance teams shift from time-consuming spreadsheet use to integrated BI tools, providing greater accuracy and efficiency.
One key factor behind this evolution is the rapid advancement in FinTech. Companies like Priority are integrating modern tech stacks with traditional payment rails, creating comprehensive, one-stop-shop solutions that not only generate reports but also facilitate real-time fund movement. This integration, Acevedo said, is crucial for businesses as they navigate fluctuating interest rates and other economic challenges.
The past four years have seen a dramatic shift from record-low to record-high interest rates, which has increased the demand for precise treasury and cash flow management.
To address this need, Priority has “had a lot of success in merging traditional banking functionality with our technology, turning data into something usable for businesses,” Acevedo said.
And the shift to embedded treasury solutions also addresses traditional pain points like fragmentation. Acevedo acknowledged that businesses face challenges when integrating new solutions, particularly when these solutions must align with existing processes. “The tool set you have has to be compatible and merge into your existing processes,” he said. Instead of overhauling everything, Acevedo advises companies to adopt an incremental, proof-of-concept approach, addressing critical issues within their treasury continuum, such as payables or receivables.
Ultimately, he said, a key element of success lies in cross-functional support. Treasury solutions are most effective when viewed as business imperatives rather than standalone finance functions. Demonstrating the broader value — such as how digital payments can enhance customer relationships or improve vendor management — can secure buy-in across departments.
The shift is toward real-time finance, with T+1 settlement cycles becoming standard across multiple jurisdictions. For businesses, this means adapting treasury solutions to ensure they have the real-time insights needed to not just survive but thrive. Acevedo said traditional batch processing is becoming obsolete as data and payments move in real time.
Technological advancements such as APIs and webhooks are crucial in this evolution. They facilitate the real-time transfer of data, which, when paired with faster payment systems, allows businesses to manage intraday cash positioning effectively.
“It’s about moving things within a network, not waiting until the end of the day,” Acevedo said, noting that this shift enables companies to outmaneuver competitors and optimize their risk profiles through proactive, rather than reactive, cash management.
However, real-time processing also introduces new risks. With payments happening instantaneously, there is little room for error. This is where data-driven risk management becomes crucial. By integrating real-time data models, businesses can monitor transactions and identify potential anomalies, ensuring compliance and reducing fraud risk. “Understanding what the risks are in real time is where data comes into play,” Acevedo said.
As the digitization of financial operations continues, Acevedo envisions further integration of automation and AI into treasury management. “There’s a lot of automation decision-making already in place,” he said, with AI becoming instrumental in enhancing forecasting and pattern recognition capabilities. The challenge lies in incorporating these new technologies into existing processes effectively, ensuring they complement rather than disrupt business operations.
Whether it’s optimizing cash positioning or enhancing risk management, Acevedo said the integration of advanced treasury solutions is set to reshape corporate finance over the next decade, providing businesses with the tools they need to not only keep pace but lead in a rapidly evolving landscape.
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