Forward-looking forecast for corporate treasuries anticipates significant shifts within the next three years, with distributed ledger technology (DLT) potentially shaping the landscape.

In a recent report titled "Treasury 2030" by Citi GPS, the potential future changes in the corporate treasury function are explored. The report suggests that the corporate treasury function is likely to undergo significant transformations in the next three to five years, with two key changes expected: the shift from batching to 24/7 activity and the introduction of automation driven by Artificial Intelligence (AI).

The report indicates that 93% of corporate treasurers expect these changes, yet more than half remain uncertain about the specifics. The shift from batching to 24/7 activity signifies a move towards continuous operations, enabling faster decision-making and more efficient processes.

One of the technologies expected to feature in this evolution is Artificial Intelligence (AI). AI can automate repetitive tasks, reduce human error, and provide insights for better decision-making. The report does not, however, delve into the potential impact of these changes on the overall financial stability of corporations.

Another technology that may play a significant role is Distributed Ledger Technology (DLT), also known as Blockchain. This technology can improve transparency, streamline processes, and reduce risks. The report suggests that the corporate treasury function may see the integration of DLT in its evolution, although it does not provide specific details about the regulatory changes that may impact this integration.

The report highlights that improving access to data for decision-making remains a top priority for the corporate treasury function. This is crucial for efficient operations and informed decision-making.

Various industries are expected to adopt these technologies in their corporate treasury functions. Some of the companies leading the way include:

Financials and Banks: Goldman Sachs, JPMorgan Chase, and HSBC are using AI for trade decisions and risk management, while HSBC has already conducted pilot projects with Blockchain for cross-border payments.
Technology Companies: Microsoft, IBM, and SAP are developing AI solutions for finance and using Blockchain for supply chain management.
Insurance Companies: Allianz and AXA are experimenting with Blockchain for insurance contract management, while AXA uses AI for damage assessment and risk management.
Energy and Resources Companies: Shell and BP are using Blockchain for energy trading processes, while Shell has participated in Blockchain platforms to optimize energy trading.
Consumer Goods Companies: Procter & Gamble and Unilever are exploring the use of Blockchain for product traceability, while Unilever uses AI to optimize supply chains.

These companies from various sectors could significantly benefit from the use of AI and DLT in their finance departments by streamlining processes, minimizing risks, and increasing transparency. However, the report does not reveal the number of corporate treasurers surveyed for the "Treasury 2030" study.