The Emergence of Liquidity Planning
In this Elire Treasury Experience session “Cash Forecasting 2.0: The Emergence of Liquidity Planning” Bob Stark of Kyriba and Elire’s Abdel Saafan discussed the evolving nature of cash forecasting in response to significant macroeconomic changes, notably rising interest rates and inflation pressures.
With a focus on enhanced liquidity planning, the presenters emphasize that today’s Treasury departments must extend beyond mere cash forecasting to incorporate action-oriented liquidity management strategies. This shift addresses the increased demand for precise, real-time cash predictions across longer time frames and supports critical decision-making regarding borrowing needs, debt reduction, and overall cash flow optimization. The discussion highlighted that while historical forecasting relied on basic visibility, modern treasury teams are now expected to provide deeper insights on managing liquidity within rapidly changing economic conditions.
Our presenters introduce several technology-driven approaches that are enabling this new level of forecasting sophistication, including APIs, AI, and advanced analytics. APIs streamline data integration from various sources, enhancing real-time cash management and providing Treasury teams with immediate visibility into financial flows. AI tools are becoming capable of predicting and generating cash flow patterns based on historical data, while analytics tools allow for the modeling of complex scenarios and potential impacts of market changes. Together, these technologies allow organizations to develop a more holistic understanding of cash flows, enabling proactive adjustments to align with strategic goals and avoid costly borrowing.
By implementing robust data strategies and leveraging advanced tools, treasury teams can present the CFO and other stakeholders with comprehensive, actionable data. This approach not only supports more accurate long-term cash forecasting but also enables Treasury departments to play a central role in strategic financial decision-making. The adoption of AI and analytics in forecasting represents a move toward a proactive, scenario-based liquidity management approach, preparing organizations to better navigate economic uncertainties. For more information on leveraging tools for liquidity planning, reach out to Elire’s treasury team by emailing [email protected] to see how Elire can help your organization.
