Maximising ROI on Treasury Automation Investments in 2025

The financial landscape continues to evolve rapidly, and CFOs and treasury managers increasingly lean on technology to handle more complex financial scenarios and processes, delivering measurable results. On the flip side, with tighter budgets, technology investments are now under stricter scrutiny. Justifying spending on yet another financial tool, such as a treasury management system, requires demonstrable, measurable results, a challenge that is no small task. This trend is likely to continue as we step into 2025. While finance and treasury automation offers a compelling solution to many pain points plaguing treasury departments, enabling efficiency, scalability, and profitability, finance and treasury professionals must be equipped with the knowledge to select the right tools and back their investments effectively.

In this article, we explore strategies CFOs and treasury managers can use to maximise ROI on their investments in treasury automation, providing tips for quick wins, benchmarks, and more.

Recent years have seen a major shift in the role of corporate treasury departments. Treasurers are no longer just custodians of company funds, responsible for liquidity and risk management, they have evolved to become integral to strategic planning, forecasting, and business growth. Automation is a prerequisite for enabling treasury operations to be more strategic and proactive. It facilitates real-time data access, predictive analytics, and streamlined workflows across multi-subsidiary enterprises.

However, the problem arises when more and more companies look for a different tool for each problem they are trying to solve, ending up with a complex and expensive multi-tool, multi-tech stack.

In this scenario, treasury managers and CFOs must answer some key questions as we head into 2025:

Which of these tools deliver measurable ROI?

Are the tools future-proof and scalable to ensure long-term benefits as the organisation grows?

Finally, how can spending on these tools be justified to stakeholders amidst budget constraints?

When treasury and finance departments look to justify investments in treasury and finance tools, a go-to strategy is identifying the ‘low-hanging fruit.’ These areas are where treasury automation can bring the most immediate and tangible results. Experts recommend focusing on the following:

1. Reconciliation

Reconciliation workflows are still manual in many organisations, whether for payables or receivables, making the process time-consuming and error-prone. This is particularly problematic for multi-entity businesses operating across borders and handling multiple currencies, which complicates cash flows. Automated reconciliation tools integrate with ERP systems for real-time transaction matching and immediate posting, reducing wasted time, lowering operational costs, and eliminating discrepancies.

2. Cash Visibility, Liquidity Management, and Cash Flow Forecasting

To improve cash visibility and agility in decision-making, businesses can turn to treasury automation platforms that integrate with financial institutions and multiple bank accounts via APIs to provide real-time insights into cash positions. These systems eliminate delays caused by manually aggregating financial data from different sources. Better financial transparency ensures funds are deployed effectively to reduce idle cash or avoid costly overdrafts.

3. Compliance and Regulatory Reporting

Automating treasury and cash operations allows businesses to streamline the generation of compliance and audit reports, minimising errors and reducing the risk of penalties. Additionally, in a multi-jurisdiction setup, automation simplifies currency, tax management, treasury reporting and compliance adherence, as tools are designed to adapt to various regulatory environments.

4. Payments

While automation is more common in invoice processing and reconciliation, many companies still rely on batch files and manual data entry to process supplier payments or payroll. Automating these processes with tools that either integrate with other financial systems or offer integrated payment processing alongside payables can remove significant delays and bottlenecks in financial operations. This leads to better vendor relationships, improved payment terms, and enhanced cash flow.

5. Operational Cost Reduction

Automating processes like payments, collections, cash management and forecasting reduces reliance on human intervention and significantly improves cash flow forecasts. This should not be mistaken for job cuts - it allows people to focus on value-added tasks, lowering operational costs and improving efficiency.

Maximising ROI on treasury automation requires diligently measuring benefits against costs post-implementation. The key metrics to assess the actual benefits of a new automation tool for the treasury team include:

Time savings. Track reductions in hours spent on manual processes such as reconciliations, payment processing, data aggregation, and reporting. For example, automating bank reconciliations can cut processing times by over 50%, freeing up finance staff for strategic activities.

Error rates. Compare accuracy in reconciliation, payment processing, and forecasting pre- and post-implementation to identify improvements.

Cost savings. Monitor cost reductions stemming from automation, including decreased bank or transaction fees, reduced interest costs, or minimised FX losses through agile, real-time data-driven decision-making.

Working capital efficiency. Evaluate metrics such as Days Sales Outstanding (DSO) and Days Payable Outstanding (DPO) to determine if automation is optimising working capital.

Employee productivity. Though less quantifiable, this can be observed through faster budget approvals or better, more informed decision-making backed by real-time data access.

ROI is not the only consideration; a treasury automation tool must be flexible enough to grow with the organization and adapt to increased financial complexity without diminishing returns. Scalability is critical, especially for multi-subsidiary businesses operating across jurisdictions.

Key features to consider include:

Cloud-based Infrastructure. Cloud technology is robust and scalable, requiring minimal investment to add new entities, currencies, or geographies.

API connectivity. APIs enable stable, real-time integrations with banks, ERP systems, and other platforms, outperforming custom-built or FTP-based integrations.

Configurable dashboards. Tailored dashboards for specific entities or jurisdictions provide granular insights while maintaining centralised oversight.

Global compliance. Automation solutions often adapt to various regulatory and compliance requirements, essential for cross-border operations.

AMFE Global

AMFE Global, a multinational curator of luxury events, saved 280 hours annually by automating key financial processes such as payables, receivables, and payments. This shift enabled their team to focus on strategic growth with real-time insights into global cash.

Elitavia

Elitavia is a private aviation company with customers and suppliers worldwide. Prior to implementing a treasury management system, they struggled with delayed supplier payments and lengthy compliance processes to gain access to new currencies. With Fyorin’s automated treasury management and financial operations platform they reduced operational costs by 80%.

Shurtape Technologies

Shurtape, a global manufacturer of adhesives, revolutionised their receivables process by automating collections. They reduced late payments by 50%, improved cash flow, optimised working capital and operational efficiency.

In 2025, treasury automation will remain vital for CFOs and treasury managers seeking to maximize ROI in a challenging financial environment. In 2025, treasury automation will continue to be essential for CFOs and treasury managers looking to improve ROI in a tough financial climate. Success starts with a clear needs assessment to identify process challenges, followed by involving stakeholders early to align on goals and timelines. Companies should choose vendors that offer scalable, easy-to-use solutions with reliable customer support. It's also important to set clear KPIs to track improvements in areas like cost savings and operational efficiency.

The journey toward full treasury automation requires planning and investment, but the rewards – ranging from cost savings to enhanced decision-making – make it a compelling case for multi-subsidiary businesses aiming to remain competitive. With a strategic approach, businesses can transform treasury functions into strategic powerhouses.