In the last FX-MM issue (September 2017), DataLog Finance introduced the next generation of treasury management systems (TMS), leaning on automation, machine learning, AI (Artificial Intelligence) and blockchain.
Here is the transcript of FX-MM article:
While banks begin to work on blockchain all over the world, the treasury world is about to be disrupted by the advent of “smart treasury”. This concept leans on the automation of many processes related to the treasury, with the help of the new technologies. The most advanced TMS like Treasury Line now look at this case, not only to examine the benefits of blockchain and bitcoin, but also to add Artificial Intelligence and Machine Learning layers in the system. User Experience will then keep improving, functional richness growing, and productivity increasing.
The next TMS will very soon rely on:
1/ Blockchain (and bitcoin, which leans on such an infrastructure): financial exchanges will be even more secured and become almost unforgeable, thanks to advanced cryptography and an independent mining process to check every flow. Moreover, the democratisation of the payments in bitcoins will further rationalise trades between firms, clients and suppliers, making them faster and less and less hazardous.
2/ IA advice: continuously analysing the market evolutions and tendencies (on several days, weeks, months…), the systems are now able to display the treasurers smart audits, proving the legitimacy (or not) of the last investments, even suggesting the next ones with data to back it up, which can spare the Treasurer tedious manual search and analysis.
3/ Machine learning and predictive algorithms: by learning the treasurer’s habits and data context, the software will be able to suggest routines without requiring preset macros or templates. For instance, the system can suggest the choice of an account rather than another according to a transaction profile, to gather payments in a batch depending on its specifics, to track down possible anomalies or even fraud, to classify and categorise datas so that forecasts are automatically generated, or to match and post automatically entries.
These various innovations, which often lean on yet ready algorithms, will lead to even better automation and customization of the treasury processes in the TMS, increasing treasurers’ productivity and precision.
You can also find this article in pdf format.