J.P. Morgan Payments Executive on Leveraging Technology for Treasury Transformation
Michael Brady, Executive Director, Liquidity and Account Solutions at J.P. Morgan Payments, emphasizes the impact of technology on Treasurers and highlights the role of the right technology in enhancing their core responsibilities. Brady discusses how improved technology and data can lead to more informed decision-making, better forecasting, and improved control for Treasurers.
Key Points:
- Core Responsibilities of a Treasurer: Treasurers are responsible for ensuring the company has the right amount of money, in the right entity, right currency, and at the right time to meet financial obligations.
- Role of Technology: The right technology infrastructure unlocks data and insights for accurate cash positions and future cash needs, freeing up working capital, improving FX hedging, and enhancing overall capital efficiencies.
- Challenges with Fragmented Platforms: Brady notes that fragmented platforms often lead to decentralized cash positions globally with minimal visibility, posing challenges for Treasurers.
- APIs in Treasury: Application Programming Interfaces (APIs) play a crucial role in supporting digital transformations, real-time payments, and visibility into cash positioning. Treasurers need a foundational understanding of APIs and their potential in treasury transformation.
- Benefits of Real-Time Insights: In a rapidly changing economic environment, real-time insights into cash positions are invaluable for reducing capital buffers and creating operational efficiencies.
- J.P. Morgan’s Approach: J.P. Morgan Payments has built a virtual solutions platform in-house, offering flexibility and continuous development of new features to meet clients’ needs.
- Treasury Transformation Approach: Treasury transformation is not a one-size-fits-all approach; it requires considering the art of the possible and working backward to address current and future needs.
Brady highlights the significance of APIs in driving the evolution of treasury, providing real-time insights, and reducing the burden of manual processes. The emphasis is on creating flexible structures and partnering with a bank that invests in its platform to adapt to evolving technology and virtual solutions.
Note: This summary is based on an article that features Michael Brady’s insights into leveraging technology for treasury transformation.
