Pay360: ION Treasury Drives Digital Transformation
In an exclusive interview with FinTech Magazine at Pay360, ION Treasury Product Strategists shared insights on how standardised data formats are transforming corporate treasury operations through integration with cutting-edge technologies.
Saurabh Singhal, Product Strategy, ION Treasury, emphasises that ISO structures provide the foundation for real-time treasury operations.
"ISO structures really provide a strong foundation that enables real-time treasury operations. You could couple ISO structure with technologies like APIs and even more sophisticated technologies like AI and ML to really boost your real-time treasury operations," he explained.
AI Applications in Corporate Treasury
While artificial intelligence offers numerous applications in treasury management, corporates are taking a measured approach to implementation.
Sourabh Verma, Product Strategy, ION Treasury, notes that despite possibilities in predictive analytics and dynamic hedge adjustments, treasuries are focusing on practical applications first.
"For AI and machine learning, there are a lot of applications for corporate treasuries. You can talk about predictive analytics for FX and interest rates, dynamically adjusting your hedge positions, scenario analysis or stress testing," says Verma.
"But corporate treasuries haven't been deploying that actively in today's volatile market landscape. Instead, they're prioritising cashflow forecasting, liquidity planning and payment anomaly and fraud detection."
Enhanced Data Structure Improves Compliance
The structured data format provided by ISO standards significantly improves compliance processes, particularly in sanctions screening, according to the executives.
"With ISO, you're essentially restructuring information," Verma explained. "Previously, data fields like addresses weren't consistently recorded. Now with ISO, you're enriching that information by segmenting it into different data fields.
“With clearer address data, you can apply sanction screening checks much more easily, resulting in higher hit rates and fewer false positives. That's a significant win, and ION has been innovating in areas like sanction screening and machine learning for some time now."
"As corporates adopt digital technologies, we're already seeing considerable convergence of data and processes between corporate treasury and other finance systems"
The adoption of these standardised formats extends beyond just treasury operations. Singhal sees ISO standards as a catalyst for broader digital transformation initiatives, especially in payment processing.
"As corporates adopt digital technologies, we're already seeing considerable convergence of data and processes between corporate treasury and other finance systems," says Singhal.
"ISO could really act as a catalyst in bringing a broader digital transformation, especially on the payment side. With more rich and granular information available, it could lead to the readiness of end-to-end payment processing chain. Corporate treasurers could also analyse rich payments data to make more informed cashflow forecasts."
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