Why API and ERP Integrations Are Critical to Corporate Treasury’s Success

There is no dearth of data. 

Automation workflows are in place. 

Yet, treasury teams grapple with ongoing challenges in visibility and reconciliation processes. 

98% of treasurers say they could be more confident in cash flow visibility. 

The need of the hour is to go from next-day visibility to real-time visibility. 

APIs and ERP integrations are critical for this. 

In this article, we will look at how treasury teams can take control of their data by adopting an API-first approach to real-time liquidity management and backing it up with ERP integrations. 

The API opportunity

The prevalence of an API-first culture has skyrocketed, so to speak—a clear sign that APIs are driving companies to a greater level of technology maturity and, in turn, playing a more important role in decision-making. 

Before APIs entered the scene, treasury teams made do with traditional channels. This meant process-heavy tasks and data—largely handled in spreadsheets—owned by individuals and not shared between departments. 

A survey of treasury professionals revealed that 91% of respondents still relied on spreadsheets for forecasting. 

Most companies taking the traditional route used diverse methods for exchanging financial data, including bank portals, mobile applications, host-to-host file transfers, domestic networks, and the SWIFT network. 

In a traditional workflow, treasurers had to: 

• Frequently log into multiple bank portals to collect financial data. 
• Standardise data formats manually to ensure consistency. 
• Created custom reports through extensive modelling and formatting. 
• Face multiple challenges when working with increased transaction volume.  

These traditional digital channels were not capable of delivering on-demand, real-time access to data and extensive digital capabilities. All of which resulted in duplication of effort and extremely slow lead times.

Today, there is an arsenal of data tools available to modern treasurers. For treasurers, the solution is not one that is limited to a single tool but rather to ensure the strategic orchestration of tech-enabled solutions—where and when they are most effective.

So, how then do APIs empower treasury teams? 

API integrations are used to consolidate and normalise balance and transaction data into a multi-bank data lake. 

This further equips the treasury team with a single source of truth for bank and cash data.

The rise of API and ERP integration for treasury automation

APIs create opportunities across various treasury service domains, enabling corporate clients to access banking services directly through their ERP or relevant digital platforms. 

Whether your organisation collaborates with one or multiple banks, an automated cash management platform can link directly to your key accounts via APIs—providing greater visibility and control over your cash flow.

The growing trend towards API-enabled solutions indicates a much-needed step towards modernising treasury practices—making them more agile and responsive. 

This shift also ensures greater collaboration between treasurers and their transaction banks—enhancing overall efficiency across the board. 

The key advantages include: 

• Digitisation of processes: Automates routine tasks, leading to faster outcomes. 
• Centralised banking relationships: Multi-banking becomes more manageable. 
• Self-service options: Empower treasury teams to control their banking data directly. 
• Flexibility: Quick adaptations to changing market conditions and business needs. 

With APIs, corporate clients can access up-to-the-minute account reporting, enhancing financial oversight and decision-making. As a result, APIs transform how corporate clients handle payables and receivables, account reporting, and foreign exchange trades.

Tiding over economic uncertainty with tech-enabled solutions

With businesses expanding globally and establishing relationships with multiple banks and accounts—seamless connectivity with these financial institutions becomes paramount. 

APIs have emerged as a transformative connectivity option, allowing for real-time, integrated, and automated data flows between corporates and their banks. 

Implementing tech-enabled solutions like CredAble’s suite of comprehensive working capital financing solutions increases visibility and optimises payment workflows. This efficiency extends to ancillary operations, such as accounting and compliance as well.  

The benefits are multifold: 

• Reduced operational burden: Lightens the load on treasury and accounting teams. 
• High-level of visibility: Enables treasury teams to optimise how cash is secured and deployed by analysing both short- and long-term financing needs.  
• Optimised payment workflows: Unlocks timely flexible capital and speeds up payment workflows. 

Given the current economic climate—treasury teams must remain sharply focused on the liquidity requirements and the capital objectives of companies.  

They need to have greater visibility and be in a better position to make data-backed decisions to free up cash trapped in the supply chains and eventually enhance the bottom line. 

Treasury teams are now backed by intelligent cash management platforms and supply chain financing solutions such as—invoice discounting programs and trade financing solutions—to maximise cash flow and benefit from settling invoices within stipulated time frames.

Utilising advanced algorithms and digital supply chain financing programs allows treasury teams to improve cash flow and support sales growth.

Deploying liquidity into supply chains unlocks valuable revenue opportunities while proactively managing risks. 

Effective cash flow management can yield a 6.8% higher return on assets

API-backed solutions that integrate seamlessly into corporate ERPs help treasury teams tap into a wealth of data. Taking this focused approach to unlocking liquidity can drive sustainable growth. 

To sum it up, integrating API technology with ERP systems significantly advances corporate treasury management, optimising cash flow management, and enabling organisations to yield a 6.8% higher return on assets. 

Download CredAble’s White Paper—’The Business Value of Working Capital Financing’ to find out how treasury teams can optimise tactical work with tech-enabled working capital financing solutions. 

In this paper, we delve into how treasury teams are becoming more proactive with deep insights and intelligent cash management systems—and ultimately gain greater control and visibility into the organisation’s cash balances, cash flows, and bank accounts.

Think Working Capital… Think CredAble!