Treasury leaders pick automation as their top investment priority in corporate treasury, banking operations: EY Survey

New Delhi [India], September 17 (ANI): Indian treasury teams are at a pivotal point in their evolution, ranking automation as their top investment priority as per the EY India Corporate Treasury Survey 2025. Based on responses from 85 treasury leaders, the survey reveals that Indian treasuries are evolving beyond their traditional role in cash and risk management, and are now investing in AI-enabled transformation, talent upskilling, and shared services to prepare for the treasury of 2030.

"Overall, 82 per cent of organizations are either planning or actively progressing toward AI adoption. Use cases such as forex risk, trade finance, and anomaly detection are gaining traction. This shift indicates that Indian treasuries are moving from AI experimentation to execution, aiming to reduce operational bottlenecks, improve accuracy, and free up resources for strategic decision-making," the survey noted.

Cash forecasting, where 26 per cent of respondents are already piloting AI-led models, is becoming a high-impact application. Early-stage use cases in foreign exchange risk (9 per cent), trade finance (8 per cent), and working capital optimization (6 per cent) reflect a growing ambition to integrate AI across core treasury processes, potentially unlocking efficiency, reducing errors, and supporting faster, data-driven decisions.

Hemal Shah, Partner and Leader, Treasury and Commodity Advisory - Risk Consulting, EY India, said: "Economic volatility, regulatory shifts, and rapid digitization are forcing treasury teams to do more with less - automate without losing control, manage risk while enabling growth, and deliver predictive, real-time insights for strategic decision making. Insights from our report show a major shift toward digitally intelligent treasuries. Majority are planning or deploying AI solutions across cash forecasting, trade finance, and risk management, and redesigning operating models. Future-ready treasuries will go beyond liquidity and compliance management to anticipate risks, shape capital allocation, and safeguard organizational resilience."

The survey indicates a growing recognition that treasury effectiveness requires a blend of functional and technological skills. Around 49 per cent of respondents report a 50:50 split between functional and technology roles, while 35 per cent favour a 70:30 split toward functional expertise.

Organizations recognize the need for treasury professionals who can navigate both finance and technology. Modular and hybrid operating models are becoming the norm, with 35 per cent partially or fully outsourcing treasury technology maintenance, 25 per cent outsourcing back-office accounting, and 11 per cent outsourcing front-office dealing operations. Such moves free internal teams to focus on strategy and value-added activities, while reducing the risk of technology mismanagement and operational inefficiency.

The survey findings reveal that domain knowledge remains foundational in the treasury function, with 50 per cent ranking it as very important, while 52 per cent highlight technical skills as vital. Leadership and change management are increasingly recognized as key to driving transformation. Despite broad ambitions, many treasuries are yet to embed structured upskilling into career frameworks, highlighting a potential risk: without systematic capability building, digital and AI initiatives may not achieve their intended impact.

The survey also underscores critical areas that could hinder progress if left unaddressed. Over 70 per cent of treasury teams still rely on disparate spreadsheets and unconnected historical data, indicating that automation journeys are still in their early stages.

Nearly two-thirds cite weak reporting and dashboarding, pointing to a gap in real-time visibility.

Upskilling and talent transformation lag behind technological investments, and skill-building will be a crucial investment for the future. (ANI)

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