In the world of business, innovation has become second nature. Technology evolves at breakneck speed, and industries scramble to adopt new solutions to stay ahead. Yet, there’s one area that often lags behind: treasury management. But why has treasury, the cornerstone of organizational finance, been so slow to evolve?
I’ve spent more than two decades navigating the entrepreneurial landscape, and as someone who’s founded multiple startups across Europe, this conundrum resonates deeply with me. It's not that treasury professionals lack the foresight to innovate, it’s that the system they operate in is inherently resistant to change. Let’s dive into the main reasons why treasury innovation is sluggish and explore how businesses, especially startups, can overcome these hurdles.
The Core Issues Holding Treasury Back
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Perceived Role of Treasury
Treasury functions are still seen as cost centers rather than strategic assets. This perception pushes treasury down the priority ladder during organizational innovation, as companies frequently focus on upgrading customer-facing or revenue-driving functions first. -
Risk Aversion
The treasury is built to ensure liquidity and financial stability, and in some cases, the tiniest misstep in cash management could have existential consequences. As a result, the treasury operates with a “better safe than sorry” mentality, which often conflicts with the experimental nature of innovation. -
Over-Reliance on Legacy Systems
Many treasury departments still use outdated, siloed systems that hinder efficiency. These systems may lack integration capabilities and create roadblocks to employing advanced technologies such as APIs or machine learning. -
Complex Regulatory Environment
Regulatory constraints are a major hurdle. Unlike marketing or product departments, which have more operational freedom, treasury teams must adhere to local and international financial regulations. This complexity makes adopting new technologies a daunting task. -
Manual Workflows
According to the PwC 2025 Global Treasury Survey, 74% of respondents still rely on manual workflows for managing foreign exchange (FX) exposure. This reliance increases inefficiencies and reduces the time available for strategic planning.
The Trends Reshaping Treasury
Fortunately, treasury management is slowly pivoting towards innovation, driven by a need for real-time data and automation. Future-savvy businesses are adopting tools and technologies to stay competitive. Here are promising trends that treasury departments should adopt:
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API Integration with Banking Platforms
With many banks now offering APIs, treasury tools can provide seamless, real-time updates on cash positions and transactional data. In-house banks and real-time liquidity tools are breaking down silos. -
Artificial Intelligence (AI) & Machine Learning (ML)
Tools powered by AI can automate cash flow forecasting, anomaly detection, and even reconciliation processes. Leading innovators, like the startup Trovata.io, show how AI can reduce inefficiency at every level of treasury operations. -
Cloud-Based Treasury Systems
Moving away from server-based solutions to cloud-native platforms can transform treasury operations by offering scalability, accessibility, and robust security features.
How Startups Should Approach Treasury Innovation
For startups, taking small but significant steps to modernize treasury functions can create long-term value. Drawing from my experience as both an entrepreneur and the creator of the gamepreneurship methodology, here’s a practical guide:
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Prioritize Cash Visibility
Early-stage companies often overlook the critical importance of real-time insights into cash flow. Integrate tools that give you up-to-the-minute visibility, especially if you’re reliant on external funding. -
Leverage Simple Automation From Day One
Use basic, scalable automation tools for payroll, payments, and expense tracking. Platforms like Modern Treasury offer simple solutions for automating these processes. -
Invest in Scalable Platforms
It may seem tempting to patch together free or low-cost tools, but investing early in a scalable cloud treasury system will save you headaches down the line. -
Collaborate with Financial Experts
Many startups fail to address treasury challenges because these tasks are often delegated to untrained team members. Expertise matters, and collaboration with seasoned financial advisors or CFOs is critical.
Common Mistakes Entrepreneurs Should Avoid
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Underestimating Complexity: Treasury is not just about paying invoices, it’s about liquidity, regulatory compliance, and risk management. Neglecting this complexity can lead to unforeseen crises.
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Delaying Automation: While manual processes may feel “good enough” in the early stages, they are simply not sustainable as the company scales. Start by automating, even if in incremental steps.
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Focusing Only on Cost: Cutting corners with cheap software or avoiding professional advice to save money often leads to financial mismanagement. Treasury is an area where a small investment can yield massive returns.
Insights from a Multidisciplinary Perspective
My background in neuroscience, linguistics, and AI has taught me that any complex problem, like innovating in treasury, requires systems thinking. Businesses and startup founders must consider how treasury management integrates with all aspects of their organization, from sales forecasting to vendor payments. Thinking about treasury as a central part of your company’s nervous system can help you better allocate resources, predict market trends, and innovate faster than your competition.
Moreover, joining networks where you can learn about best practices, such as startup incubators or business accelerators, can provide access to the right mentors and tools. As an advocate for CSR through initiatives like Fe/male Switch, I cannot stress enough the importance of having a solid financial foundation.
Conclusion
Treasury departments cannot afford to be the last bastion of resistance against innovation. While risk management is their priority, relying on outdated tools and manual processes stifles organizational growth and agility. Entrepreneurs, especially in startups, need to start innovating early by investing in scalable solutions, automating cash management, and treating treasury as a strategic asset.
As we enter a future defined by real-time decisions and AI-driven insights, the time for treasury to embrace innovation is not “someday,” but now. It’s no longer just about stability, it’s about agility and survival in an accelerating world.
If your company hasn’t yet prioritized treasury innovation, ask yourself this: Can your business afford to remain slow?
FAQ
1. Why does treasury lag behind in innovation?
Treasury functions are often seen as cost centers with a risk-averse mentality, relying heavily on outdated systems while being constrained by complex regulations. This resistance to change impacts innovation. Read more at Finextra
2. What are the biggest hurdles to modernizing treasury systems?
Key challenges include reliance on legacy systems, regulatory compliance, and the dominance of manual workflows. These factors stifle efficiency and make adopting new technologies daunting. Explore insights at PwC
3. How are emerging trends reshaping treasury management?
Trends such as API banking, AI-powered tools, and cloud-based platforms transform treasury by enabling real-time cash forecasts, automation, and scalable operations. Check out trends at Trovata.io
4. How can startups approach treasury innovation effectively?
Startups should prioritize real-time cash visibility, adopt simple automation tools, invest in scalable platforms, and collaborate with financial experts to avoid mismanagement. Learn more at Modern Treasury
5. What role does risk aversion play in treasury’s slow evolution?
Treasury teams focus intensely on liquidity and stability, making them cautious about adopting experimental technologies, which could expose companies to financial risks. Discover viewpoints at J.P. Morgan
6. Why should manual workflows in treasury be avoided?
Manual processes create inefficiencies, increase the likelihood of errors, and hinder strategic planning as businesses scale, making automation critical. Explore findings in PwC’s Survey
7. What technologies are most transformative for treasury functions?
AI, machine learning, APIs, and cloud-linked systems streamline cash management, allow anomaly detection, and support real-time liquidity updates, pushing treasury innovation forward. Learn more about AI-powered tools at Trovata.io
8. How do regulatory constraints impact treasury innovation?
Treasury departments must comply with international and local financial regulations, making the adoption of new technologies more complex and time-consuming. Discover challenges at Money2020
9. Should startups automate treasury operations early?
Yes, automating payroll, expenses, and cash tracking early can save time, reduce inefficiencies, and enhance scalability as the company grows. Learn more at Modern Treasury
10. What are common mistakes entrepreneurs make in treasury management?
Underestimating complexity, delaying automation, and focusing solely on cutting costs often lead to inefficiencies and financial mismanagement. Early investment in scalable treasury systems can yield significant benefits. Discover practical advice at Finextra
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
- Skill Lab: Micro-modules covering essential startup skills
- Virtual Startup Building: Create or join startups and tackle real-world challenges
- AI Co-founder (PlayPal): Guides users through the startup process
- SANDBOX: A testing environment for idea validation before launch
- Wellness Integration: Virtual activities to balance work and self-care
- Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
- 5,000+ female entrepreneurs in the community
- 100+ startup tools built
- 5,000+ pieces of articles and news written
- 1,000 unique business ideas for women created
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.
