Picking up the API Call: How Data as a Service Supercharges Real-Time Treasury

Today’s treasury operations are a far cry from your father’s, as the saying goes.

Agility, powered by real-time insights and dynamic decision-making, is increasingly allowing treasury teams to move beyond reactive cash management and take a proactive role in driving value.

Key to that proactive role is a growing reliance on real-time data, a reality that is turning data as a service (DaaS) into a tool for finance functions across industries as they look to mitigate the impact of a persistently uncertain macroeconomic environment, manage evolving regulatory requirements and stay atop of the accelerating pace of digital transformation.

Digital payment platforms, artificial intelligence (AI)-powered analytics and cloud-based solutions have created an expectation of immediacy across financial operations. For treasury teams, this means consolidating data across disparate systems to enable real-time decision-making.

DaaS solutions provide real-time, cloud-based access to critical financial data, eliminating the silos and latency traditionally associated with legacy systems. By enabling treasury departments to integrate multiple data streams — from cash flow records to FX rates and market insights — DaaS helps deliver a comprehensive and up-to-date financial picture.

Read more: How to Take a Flamethrower to Free Trapped Treasury Data

Embracing the Real-Time Imperative Benefits in Treasury

For organizations that fail to embrace treasury agility, the risks can be significant. Static processes and siloed systems may leave businesses vulnerable to cash shortfalls, compliance failures, and missed opportunities. Moreover, as competitors adopt agile treasury practices, laggards may find themselves unable to compete.

“Treasurers want more convenience and access at their fingertips,”  Jennifer Sanctis, head of the CashPro App and personalized technologies in Global Payments Solutions at Bank of America, told PYMNTS.

PYMNTS Intelligence found that treasurers with high levels of influence are far more likely to report that their companies have predictable cash flows, expect revenue to increase and are agile in responding to shifting marking conditions. Those who invest in the tools, talent, and processes to support real-time operations could be better positioned than their competitors who don’t to navigate uncertainty and capture growth opportunities in an ever-changing financial landscape.

“Many treasurers are thinking, ‘Well, how can I extract that last ounce of juice from my financial ecosystem?’” Ambrish Bansal, global head of liquidity and cash concentration products for the Citi Treasury and Trade Solutions business, told PYMNTS.

In this environment, treasury agility has become more than a buzzword — it’s a critical capability for navigating uncertainty and meeting real-time expectations. Agility in treasury operations encompasses rapid decision-making, seamless execution and the ability to pivot strategies as conditions change.

Read more: Treasurers Stuck in Neutral as Commuter Transport Sector Speeds Ahead

Technology as an Enabler of Agility’s Strategic Advantage

DaaS revolutionizes how treasury teams access, process and utilize data by delivering it in real time through cloud-based platforms. By helping to eliminate the inefficiencies of manual data collection and static reporting, DaaS allows treasury teams to focus on strategic decision-making rather than data wrangling.

The PYMNTS Intelligence report, “The Platform Business Data Readiness Survey: How Real-Time Data Can Drive Growth,” created in collaboration with Fiserv, examines the growing importance of data readiness for businesses aiming to optimize operations and unlock market potential.

After all, from inflation spikes to geopolitical tensions, macroeconomic uncertainty has amplified the need for real-time insights. Treasury teams must respond to fluctuating exchange rates, supply chain disruptions and interest rate hikes without delay.

Innovations like APIs enable treasury systems to communicate seamlessly with external platforms, from banking partners to supply chain management systems. These technologies bridge the gap between siloed systems and dynamic decision-making, providing treasury teams with the tools needed to operate at the speed of business.

When combined, DaaS and APIs create a powerful ecosystem for treasury agility. DaaS provides the data foundation, while APIs ensure that data flows seamlessly across systems and stakeholders. APIs automate repetitive tasks, and DaaS ensures these processes are informed by accurate and comprehensive data.

Still, many organizations rely on outdated ERP and treasury management systems that lack API compatibility. Modernizing these systems is often a prerequisite. And adopting new technologies can frequently require a cultural shift within treasury teams, along with training to maximize the potential of DaaS and APIs.

But ultimately, in a world where speed and adaptability are paramount, DaaS and APIs empower treasury teams to move beyond traditional, reactive approaches.