{"id":353408,"date":"2024-09-23T07:21:43","date_gmt":"2024-09-23T01:51:43","guid":{"rendered":"https:\/\/dripp.zone\/news\/genai-and-real-time-data-expand-treasurers-toolkit-crypto-news\/"},"modified":"2024-09-23T07:25:35","modified_gmt":"2024-09-23T01:55:35","slug":"genai-and-real-time-data-expand-treasurers-toolkit-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/genai-and-real-time-data-expand-treasurers-toolkit-crypto-news\/","title":{"rendered":"GenAI and Real-Time Data Expand Treasurer\u2019s Toolkit – Crypto News"},"content":{"rendered":"

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Data<\/a>. Generative artificial intelligence<\/a>. Regulations<\/a>. Cash forecasting<\/a>.<\/span><\/p>\n

If you recognized the chief financial officer in that series, you\u2019re not wrong. If you saw the new world of the CFO<\/a> as well as the corporate treasurer<\/a>, go to the head of the class.<\/span><\/p>\n

The only thing that has changed about the treasurer\u2019s job is everything. In an era of rapid technological<\/a> and data advancement, corporate treasurers find themselves at the forefront of change in their <\/span>own<\/span> roles and responsibilities. As two <\/span>J.P. Morgan<\/span><\/a> executives, <\/span>Maria Chavez<\/span><\/a>, head of payments for core middle market and specialized industries, and <\/span>Janette Hutton<\/span><\/a>, head of international payments for U.S. corporations, told Karen Webster, the cornerstone of this transformation<\/a> is the increasing availability and use of data, which includes generative AI. The fundamental step of identifying available data and its potential applications is crucial for treasurers <\/span>looking to use<\/span> analytics<\/a> for strategic decision-making.<\/span><\/p>\n

\u201cIt\u2019s all a matter of understanding the vastness of the data that exists within your <\/span>own<\/span> warehouse \u2014 the data lake of information,\u201d said Chavez, who noted that once that data\u2019s in hand, companies can begin to realize the various use cases that can be fueled by that data, optimizing days payable outstanding and other components of the cash flow cycle.<\/span><\/p>\n

Cash management is the key to planning for uncertainty, buffering against exogenous shocks and managing inconsistencies across markets, while triaging counterparty risk, she said.<\/span><\/p>\n

For treasury professionals, there\u2019s value in helping client firms stay on top of best practices and understanding where tools and technologies can be used to improve operations and returns on investment for data initiatives, including generative AI, Chavez <\/span>and<\/span> Hutton said.<\/span><\/p>\n

The goal, according to Chavez, is to \u201ctruly identify patterns in terms of your inflows and be able to get even closer to forecasting.\u201d<\/span><\/p>\n

This improved forecasting capability can lead to more efficient cash management and better-informed strategic decisions.<\/span><\/p>\n

The<\/span> common thread that runs through it all is maximizing working capital<\/a><\/span>, Chavez said<\/span>.<\/span><\/p>\n

Moving Beyond Legacy Processes<\/span><\/strong><\/h2>\n

\u201cIt\u2019s not just about the typical treasury workstations and ERP systems,\u201d said Chavez, who added that \u201cit\u2019s about data analytics and business intelligence, robotics and AI<\/a>.\u201d<\/span><\/p>\n

The workstations and direct feed into ERP systems, she said, will always continue to be necessary. But now they\u2019re being augmented with real-time access via plugins and APIs. The result is that the volume of products and services is stripped down and streamlined so that virtual and notional pooling can replace the juggling of thousands of demand deposit accounts.<\/span><\/p>\n

Harnessing that data and using it wisely has been a challenge for J.P. Morgan\u2019s corporate clients, said Chavez, who added that her <\/span>own<\/span> firm endeavors to help those enterprises get the data in hand \u2014 and then learn what to do with it.<\/span><\/p>\n

AI stands out as a prime example, said Hutton, who added that what AI can do for the treasurer has \u201ccompletely transformed\u201d the role away from transaction and task orientations \u2014 the hallmarks of the past. Now the treasurer has become a key decision maker, a nimble voice at the table to help craft corporate strategy.<\/span><\/p>\n

AI also has helped build up fraud defenses<\/a>, with the ability to keep fraudulent<\/a> wires from moving overseas, avoiding the costs and time spent \u201cpulling\u201d back those funds once sent, by using advanced tech to constantly monitor outbound payments, ensuring compliance each step of the way \u2014 with real-time updates.<\/span><\/p>\n

The ROI of GenAI<\/span><\/strong><\/h2>\n

Generative AI is emerging as a powerful tool for treasurers. A series of research projects from PYMNTS focused on CFOs\u2019 attitudes and use of <\/span>generative AI<\/span><\/a>, which is also relevant to the rest of the senior-level finance department. The studies found that most CFOs surveyed from firms annually generating at least $1 billion in revenue reported that implementing AI remains critical for their strategic planning. As of June, firms are increasingly using generative AI for medium-impact tasks, such as financial reporting and data visualizations, surpassing the share using it for more routine tasks. That type of use was the norm just a few months ago.<\/span><\/p>\n

Despite this deeper integration, many CFOs reported limited return on investment from generative AI. Just 13% said the ROI was very positive. However, CFOs shared their commitment to investing in fully integrating the technology into their organizations.<\/span><\/p>\n

The subject of ROI for generative AI was covered in Webster\u2019s conversation with the two J.P. Morgan executives regarding applications ranging from fraud detection to regulatory compliance.<\/span> Hutton highlighted the potential of AI in fraud prevention.<\/span><\/p>\n

\u201cIf you look at fraud in and of itself, and just use AI from a fraud mitigant tool and build a business case on, if we manage to keep one fraudulent wire from going overseas and save the amount of money and time resources that it would take to pull that back, it\u2019s exponential,\u201d she said.<\/span><\/p>\n

Chavez added that AI can be used for various treasury functions, including \u201canalyzing buying patterns and spend patterns and product quality and balancing inventory levels.\u201d This broader application of AI extends the treasurer\u2019s influence beyond traditional financial management into areas like supply chain optimization. However, both executives cautioned that generative AI implementation requires careful consideration.<\/span><\/p>\n

Hutton pointed out that securing funding for these technologies can be challenging.<\/span><\/p>\n

\u201cOne of the key things we always hear is how do we get at the forefront of that technology budget,\u201d she said.<\/span><\/p>\n

To address this, treasurers are increasingly building business cases around specific use cases, such as the fraud prevention example or regulatory compliance.<\/span><\/p>\n

Navigating the Regulatory Landscape<\/span><\/strong><\/h2>\n

The regulatory environment for corporate treasurers is becoming increasingly complex, especially for multinational corporations. For example, Hutton noted that J.P. Morgan is still waiting for clarity around new payment regulations in Canada and Brazil. Elaborating on the pace of regulatory change, she said, \u201cAt least weekly we\u2019re getting updates on something changing somewhere in the world.\u201d<\/span><\/p>\n

This rapid evolution of regulations presents a challenge for treasurers operating in multiple jurisdictions. Hutton highlighted the inconsistency across markets.<\/span><\/p>\n

\u201cIt\u2019s extremely complicated,\u201d she said. \u201cDoing business in one market may preclude you from doing business in another market depending on your model and your infrastructure.\u201d<\/span><\/p>\n

Chavez emphasized the importance of understanding \u201cthe full dynamics of not just from an operating perspective and cashflow perspective, but then also from a counterparty risk perspective.\u201d<\/span><\/p>\n

\u201cFrom a controls perspective, again, the regulatory landscape is changing,\u201d she added. \u201cSo, knowing how those are going to impact the providers that you\u2019re using within those markets, it could cause a big issue.\u201d<\/span><\/p>\n

Beyond compliance, Hutton pointed out that regulatory changes can also present opportunities.<\/span><\/p>\n

\u201cHow are you staying on top of that, ensuring that you have straight through processing, ensuring you\u2019re on top of the change in the regulations and taking advantage of them?\u201d she said.<\/span><\/p>\n

Chavez also touched on the different regulatory scrutiny faced by banks and nonbank providers.<\/span><\/p>\n

\u201cBanks and nonbank providers \u2026 they\u2019re not on a level playing field <\/span>in terms of<\/span> like regulatory scrutiny,\u201d she said. \u201cSome could think that the banks are over scrutinized or overregulated, but then when there\u2019s an event, you want that protection <\/span>for sure<\/span> at your fingertips and on your side.\u201d<\/span><\/p>\n

Strategic Conversations<\/span><\/strong><\/h2>\n

When discussing strategic initiatives with treasurers, both Chavez and Hutton highlighted the importance of adaptability and forward thinking.<\/span><\/p>\n

Chavez said clients are looking to J.P. Morgan for guidance on industry trends.<\/span><\/p>\n

\u201cI think clients leverage us for education, right?\u201d she said. \u201cThey want to <\/span>make sure<\/span> that they\u2019re staying on top of the best trends, and they understand where the industry is going.\u201d<\/span><\/p>\n

This educational role is crucial in helping treasurers navigate the rapidly evolving technological landscape.<\/span><\/p>\n

She said conversations often revolve around \u201cmaximizing their working capital\u201d and ensuring accessibility and use of available resources. The focus on working capital optimization reflects the growing strategic importance of the treasury function in overall business performance.<\/span><\/p>\n

Hutton posed a critical question to treasury teams: \u201cHow nimble are you?\u201d<\/span><\/p>\n

She emphasized the need for treasurers to quickly adapt to changing business conditions, whether it\u2019s integrating newly acquired companies or responding to potential fraud events.<\/span><\/p>\n

\u201cWe have to be nimble,\u201d she said. \u201cYou have to be nimble. Everything\u2019s changing so quickly.\u201d<\/span><\/p>\n

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Data. Generative artificial intelligence. Regulations. Cash forecasting. If you recognized the chief financial officer in that series, you\u2019re not wrong. If you saw the new world of the CFO as well as the corporate treasurer, go to the head of the class. The only thing that has changed about the treasurer\u2019s job is everything. In […]<\/p>\n","protected":false},"author":2,"featured_media":353420,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[188,183,185,186,187,184,189,150,182,190],"class_list":["post-353408","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-blockchain-tech","tag-blockchain-technology","tag-crypto-technology","tag-cryptocurrency-technology","tag-metaverse-technology","tag-nft-technology","tag-soul-bound-token","tag-tech","tag-technology","tag-token-technology"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/353408","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=353408"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/353408\/revisions"}],"predecessor-version":[{"id":353421,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/353408\/revisions\/353421"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/353420"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=353408"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=353408"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=353408"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}