As payments become real-time, data-rich and programmable, treasurers must decide where modernisation can deliver the greatest commercial value without compromising control.
Manish Kohli, Head of Global Payments Solutions at HSBC, shares his insights on how treasuries worldwide are being redefined.
Redefining treasury is not simply about giving the function a broader mandate. It reflects a more fundamental change in how treasury contributes to the business. Payments, liquidity and data are becoming increasingly connected, bringing treasury closer to decisions about market entry, digital commerce, customer experience and operational resilience.
Payments change is no longer cyclical or incremental. It’s structural, it’s commercial and it’s accelerating.
“Payments have moved from being a back-office utility to becoming a strategic capability that shapes client experience, working capital, resilience and growth,” he adds.
HSBC’s latest Global Payment Trends Report identifies four forces driving that transition: rising client expectations; disruption from fintechs and new infrastructure providers; emerging technologies including AI and digital currencies; and a more active regulatory environment.
These forces are reinforcing one another. Businesses expect faster and more transparent payments, while technology is enabling transactions to become more deeply embedded in commercial processes. The result is a shift towards what Kohli describes as “one intelligent, always-on payments ecosystem” connecting payments, data, liquidity and digital channels.
This creates practical questions around how companies collect locally, fund operations, convert currencies, pay suppliers and concentrate liquidity. “Treasury teams are no longer simply supporting the business after a decision has been made,” says Kohli. “They’re helping determine how fast, how safely and how profitably companies can scale internationally.”
Global e-commerce is projected to reach US$156 trillion by 2033, including more than US$106 trillion of B2B activity. As commercial journeys become increasingly digital, payment choice, acceptance, settlement and reconciliation can directly influence conversion, client retention and working capital.
Expectations created by domestic instant payments are also carrying into cross-border activity. According to a recent study from SWIFT, 76% of consumers and SMEs want cross-border payments settled within minutes, while 65% would change provider if they could not track their funds.
Transparency is becoming as important as speed.
A payment may move quickly, but limited visibility can still create customer enquiries, manual investigations and uncertainty over the company’s cash position.
APIs, virtual accounts and richer ISO 20022 data can improve payment tracking and reconciliation. Embedded finance can also bring payments and funding options directly into procurement platforms, marketplaces and digital sales journeys.
Always-on payments allow companies to manage liquidity more dynamically, but they also reduce the time available to detect errors and fraud. In 2024, 79% of organisations experienced payment-fraud attacks.
AI can improve forecasting, anomaly detection and exception management. It can also be used by criminals to create more convincing scams. Faster execution therefore needs to be matched by beneficiary validation, appropriate transaction limits, continuous monitoring and clear escalation procedures.
In a market that is changing this quickly, clients need more than products or solutions. They need perspective.
Treasury teams must decide where to modernise, how to prioritise investment and whether their operating model is ready for continuous activity.
Potential applications include 24/7 settlement, real-time liquidity movement and programmable payments triggered by commercial events. This could allow companies to automate liquidity sweeps, conditional supplier payments and settlement processes without waiting for conventional cut-off times.
“Digital currencies will not replace traditional payments overnight,” says Kohli. “I see them as complementary capabilities that will sit alongside today’s payment rails and gradually transform specific use cases where they deliver clear value.”
He also cautions against innovation without discipline. “Trust, safety, resilience and regulation are absolutely essential.”
The strongest treasury modernisation programmes will not pursue every emerging capability. They will connect investment to clear commercial outcomes while strengthening visibility, control and resilience.
As Kohli puts it: “Treasury teams that are best positioned for the future will be those that treat payments not just as execution, but as a strategic lever for growth, resilience and competitive differentiation.”