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How Technology Helps Modern Day Treasurers Unlock Liquidity & Improve Cash Flow

How Technology Helps Modern Day Treasurers Unlock Liquidity & Improve Cash Flow

Ensuring the organization’s liquidity and smooth cash flow is of paramount importance for corporate treasury. As a leading industrialist says, “Never take your eyes off the cash flow because it is the life blood of the business.” Managing working capital, cash and liquidity management rank as some of the most important responsibilities of a treasurer.

However, treasurers often have to face critical challenges with regards to trapped liquidity. The term ‘trapped liquidity generally describes all cash that is not available for an organization’s daily cash cycle. This is not a new problem for treasurers, and it isn’t going anywhere anytime soon. In some instances, cash is trapped in another country due to capital or currency controls. Trapped liquidity is an ongoing challenge for companies of all sizes, regardless of the economic conditions.

Releasing Trapped Liquidity with Technology

There have been many technological advances that help treasurers step out of the old-paradigm of Excel sheets and disjointed, outdated views. Utilizing the latest technology can help treasurers overcome the challenge of trapped liquidity and ease cash mobility.

Leverage Best of Breed Solutions that provide a Centralized View

Managing working capital and operating cash balances at local, regional and global levels is a massive undertaking with high levels of complexity. Given the legacy of spreadsheets and disjointed systems, treasurers struggled with decentralized systems that simply did not provide comprehensive visibility.

The ideal solution is a consolidated system, or at least a centralized view based on a solution that connects the dots across the enterprise. Cloud-based treasury solutions provide this much-needed functionality, providing a real-time, updated view of cashflow and liquidity across the entire organization. They also help with consolidating cashflow and liquidity across currencies, ideally in a single base currency. Such centralized systems provide the visibility needed to identify trapped pools of liquidity, which may be in the same country or trapped internationally.

Software that integrates with the other systems of an enterprise is a crucial piece of the puzzle, and the latest treasury software offers such integrations through APIs. So, it’s well worth the cost of investment to upgrade to, or implement such software, in order to achieve comprehensive visibility and identify trapped liquidity. Doing so enables treasurers to mitigate risk, and take advantage of market opportunities based on real-time information, as well as liberate liquidity to avail such opportunities.

Visibility is Power

Many organizations do not have an accurate picture of their cash and liquidity position. Leveraging the latest treasury software that integrates with other systems provides enterprise-wide visibility. This helps shine a light on hidden pockets of trapped liquidity. Such software also provides a high-level of granularity, enabling better analysis and decisions. This visibility provides knowledge and insights that drive more informed decision-making and helps treasurers identify and liberate trapped liquidity.

Automation of Data Gathering

Traditionally, a great deal of treasury operations focused on data gathering. This was time-consuming and error-prone, requiring a lot of manual effort through spreadsheets. Thankfully, the latest treasury software automates much of the work of data gathering. This provides a real-time, comprehensive view of cash across the entire organization. Such functionality is invaluable to modern day treasurers – it empowers them to focus on analysis while automation does the heavy lifting for data gathering, presenting it in convenient, flexible views that support decision-making. In other words, thanks to automation of data gathering and a seamless flow of information, treasurers can identify trapped liquidity much faster and either take action to liberate it, or make informed decisions based on this data.

Enhanced Foreign Exchange Data Management Tools  

These tools give the treasurer the ability to move money around the clock and in real-time into and out of the currency markets. Once trapped liquidity has been identified in other countries, such functionality is useful to transfer funds quickly, liberating this liquidity.


With new technologies and more sophisticated functionality for understanding cash, liquidity and trapped liquidity, treasurers can discover the hidden cash in the organization and put it to use as required.

If you’re interested in a solution that provides comprehensive cash and liquidity through deployment of a best of breed solution and real-time dashboards, we can help you. T-Solve provides this functionality and more using convenient cloud-based technology, helping treasurers overcome many challenges and optimize cash flow. For more information please contact us.

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