Treasury and liquidity management have undergone extraordinary changes in the last few years. Manual processes are levelling up with automation, and payment service providers (PSPs) have begun implementing AI in meaningful ways for the first time. Treasury teams are also focusing on real-time data to optimise liquidity in an era of real-time payments.
To understand some of the drivers of this transformation, we spoke to Richard Wiltshire, former Global Head of Cash and Liquidity Management at HSBC. Here are the highlights.
From pen and paper to real-time intelligence
“Thirty years ago, it was a piece of A4 paper, a pen, and an adding machine,” Richard recalls. “Fast forward to today, and we’re talking about real-time intraday reconciliations.”
The shift from end-of-day batch processing to real-time is a big deal. Expected versus actual flows can now be reconciled by teams in a live environment, creating a detailed and accurate picture of liquidity.
Decisions based on yesterday’s data are decisions made too late.
Real-time decisioning lowers risks, reduces costs, and futureproofs liquidity management for a landscape with increasing instant payments.
Regulation is a catalyst for change
“Post-2008, regulation forced banks to rethink liquidity practices,” said Richard.
Regulatory pressure rightly enforced stronger liquidity controls, but global adoption hasn’t been uniform. The UK, Switzerland and Singapore led the way with reforms, while other markets, such as the US, took a ‘wait and see’ approach. This makes it hard for global banks to build scalable operating models but leaves no room for complacency for these larger institutions.
“The old adage of ‘too big to fail’ was proven wrong,” said Richard.
Regulatory expectations will continue to tighten, and PSPs need agile systems with accurate and timely data to be compliant and avoid costly penalties.
Instant payments are a 24/7 challenge
Instant payments are revolutionising the industry and the customer experience. But they’re a headache for liquidity managers.
“Settlement is instantaneous now,” Richard explains. “Balances can change in front of your eyes.”
As adoption of instant payments inevitably increases, PSPs need to address their operational resilience and liquidity buffers, especially over weekends when central banks are closed. Treasury teams need access to reliable data and have capable technology to protect the integrity of their liquidity processes and status.
Data quality: The silent risk factor
“If you have poor data, you’ll make poor decisions,” Richard warns.
Poor data quality carries a range of consequences, from causing inaccuracies in forecasts, additional costs, as well as lack of confidence, both with internal and external stakeholders. The impact of this will, in turn, put PSPs under the regulatory spotlight. Fragmented systems make this dynamic worse.
PSPs must prioritise the way they integrate their data, while closely monitoring its quality.
Real-time, high-quality data is no longer ‘nice to have’; it’s the foundation for effective liquidity management.
AI and Automation: Buzzwords or business imperatives?
We all know the AI buzz is palpable, but the ability for businesses in all sectors to successfully harness and implement AI is under scrutiny. In fact, the Merriam-Webster Dictionary word of the year was ‘slop’, in reference to the poor results AI has become notorious for producing.
Automation is no longer optional. Treasury teams need repetitive tasks, such as reconciliations and reporting, to be automated to free up resources for nuanced work and strategic analysis.
“Automation is essential. AI will be the future,” Richard predicts.
“While full automation of critical decisions may be premature, AI can already help identify patterns and predict liquidity needs.”
identify patterns and anomalies faster than humans can. And while it’s still evolving, the potential is huge. Imagine if AI could facilitate the movement of funds based on specific factors, manage payment flows or flag anomalies in seconds. In years to come, these capabilities will become the standard.
Building the treasury team of the future
So, what skills will tomorrow’s teams need? Hybrid talent is key. Teams must carry an adaptable mindset and be open to learning and adopting new technologies and approaches. This is especially pertinent in treasury, where systems have traditionally remained unchanged compared to other areas of the PSP.
Finance expertise alone won’t cut it. People need to understand technology, data analytics and automation. In 2026, the most successful PSPs won’t be afraid of challenging the status quo and embracing innovation. Treasury teams will see the benefits when they work closely with tech specialists and view technology as a coworker that helps optimise productivity, do the heavy lifting, and produce powerful insights.
Key Takeaways for 2026 and Beyond
In summary:
- Real-time data is non-negotiable. Manual processes are becoming a thing of the past.
- Regulatory scrutiny will intensify. Prepare yourselves by building agile systems and accurate reporting.
- Instant payments demand PSPs to have sound operational resilience and faster decision-making when it comes to liquidity management.
- Nurture knowledgeable hybrid teams. Finance, tech, and data expertise combined.
- AI and automation are the future. Start small, but start now, but remember…
- …Quality data is the foundation.
Liquidity management is entering a new era. In 2026, PSPs that focus on combining subject matter expertise with digital intelligence will succeed in reducing risk, increasing efficiency and unlocking insight from reliable, live data.
Richard concludes:
“Subject matter expertise will always be the foundation. But the future belongs to organisations that embrace innovation, leverage real-time data, and partner experience with digital intelligence.”
Listen to Richard discuss liquidity management in 2026 with Planixs CEO Neville Roberts on our Liquidity Talks Podcast.
