Premium APIs in Corporate Treasury

Premium APIs support in making relevant information available in real time. However, there are several obstacles.  

Data is the modern business asset. Yet, you need to understand the data to reveal its true value. So, it is no wonder that data-driven automation has become an integral part of companies’ treasury activities. Not simply to increase efficiency, but above all – to remain competitive.  

Internal company processes, including those associated with financial services, are increasingly tailoring their offer to the demands of digital businesses. Operational models may, for example, be an automatic currency exchange when a specific balance threshold is reached, or automatic reconciliation of payments to continue the delivery process. 

When using a Treasury Management System (TMS), companies are provided with a good overview of their total liquidity, currency positions and individual transactions. This involves the system working across multiple countries and banks. Premium APIs provide the icing on the cake by delivering relevant information in real time right where it is needed. This saves time, as there is no longer a need for manual processes to distribute the information internally. For treasurers it is also easier to forecast the future financial status of various divisions. 

The automated and structured processing of financial data delivers numerous advantages. For example, account structures can be individually tailored to complex projects, allowing direct access without slowing the transactions in question. Likewise, cashflows can be reviewed and monitored without delay, as individual transactions are mapped in real time using APIs. On top of this, liquidity and currency positions held at different banks and in different countries can be examined simultaneously without manual effort. 

A lack of standards 

To benefit from these and other advantages of premium APIs, it is necessary to overcome several obstacles. For instance, there are still no universal standards for bank APIs. Companies must be prepared for format conversions potentially being necessary and for them, internally, running into obstacles when they are integrated into the existing system landscape. 

The banks themselves face the task of not just meeting the demand for external premium APIs but also reshaping the internal infrastructure so that it is suited to a scalable business based on internal API functions – a trend which is already being followed by many and which will continue in the coming years. 

The switch from batch-based and manual processes to fully automated, event-driven processes will therefore tend to be gradual. A crucial aspect in achieving success is constructive cooperation and the exchange of experiences between companies, banks and system providers – innovative ideas about which technical solutions can be used in future in data-controlled financial management. 

Harri Rantanen
Business Developer Corporate Banking at SEB in Helsinki. 
harri.rantanen@seb.fi  

Anders Ahlgren
Business Developer Corporate Banking at SEB in Stockholm.
anders.ahlgren@seb.se 

(First published in Issue 2/2024 of “DerTreasurer”, Germany)