Michael Brady , Executive Director , Liquidity and Account Solutions at J . P . Morgan Payments , Explains how Treasurers can Leverage Technology Transformation
J . P . MORGAN PAYMENTS
Michael Brady , Executive Director , Liquidity and Account Solutions at J . P . Morgan Payments , Explains how Treasurers can Leverage Technology Transformation
As a leader in payments with nearly 150 years of experience , J . P . Morgan Payments has a deep understanding of the impact of technology on Treasurers and their partners . This technology , when implemented correctly , can enhance a Treasurer ’ s ability to perform their core responsibilities , and their value to the organisation .
Michael Brady , Executive Director , Liquidity and Account Solutions at J . P . Morgan Payments , says better technology and data leads to more informed decision making , resulting in better forecasting and improved control .
“ At their core , a Treasurer is responsible for ensuring the company has the right amount of money , in the right entity , in the right currency , in the right location and at the right time to ensure financial obligations are met ,” says Brady .
“ Having the right technology infrastructure can unlock the data and insights necessary to more accurately view current cash positions and forecast future cash needs . This ultimately leads to freeing up working capital , improved FX hedging , and overall improvements in capital efficiencies . Additionally , technology can reduce operational risks associated with manual processes and , ultimately , free up resources .”
The key phrase there is “ the right technology ”. With so many solutions on the market , Treasurers can easily find themselves swamped with disjointed systems that lead to unnecessary complication and inefficiencies .
Brady backs this up , saying that the issue J . P . Morgan Payments hears of most often is fragmented platforms that lead to lack of both centralisation and visibility into cash positions globally .
“ This lack of controls results in excess cash buffers , which has become increasingly punitive in an elevated rate environment ,” explains Brady .
“ Along with lack of control / visibility , we also see an increased focus on the move towards real-time data to help further reduce idle cash . The main reason for these challenges is twofold . First , lack of understanding the art of the possible and keeping up with new trends in treasury technology , and second , lack of availability of resources on the treasury and technology side of companies .”
Application programming interfaces , or APIs , allow applications to speak to one another and can therefore support digital transformations such as real-time payments and real-time visibility into cash positioning . These innovations can be good news for both partners and Treasurers , but they do require Treasurers to have a foundational understanding of APIs – as well as which ones are most useful when it comes to meeting business goals . Treasurers need to be able to communicate confidently about APIs with technology leaders within the organisation .
64 February 2024