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Case study
AI Copilot for Treasury Operations at a Spanish Payment Orchestration Platform.
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Challenges
- Forecasting Limitations: Manual cash forecasting achieved only 68% accuracy beyond a one-week horizon, forcing excessive cash buffers that reduced investment returns.
- Currency Exposure Challenges: Growing multi-currency operations created complex FX risk management requirements that exceeded the capabilities of spreadsheet-based analysis.
- Decision Speed Constraints: Treasury decisions required consolidating data from multiple systems and manual analysis, creating delays that limited optimization opportunities in fast-moving markets.
Aspagnul Solution
- AI-Enhanced Cash Forecasting: Sophisticated machine learning models analyzed transaction patterns, seasonal factors, and business drivers to predict cash positions with 90 %+ accuracy up to 60 days forward.
- Multi-Scenario Decision Support: The system enabled treasury professionals to model different strategies for liquidity management, currency hedging, and settlement timing with a comprehensive analysis of financial implications.
- Treasury Workflow Integration: Rather than creating a separate analytical tool, the solution embedded intelligence directly into existing treasury workflows, providing decision support at the precise moments when key judgments occurred.
Timeline & Process
Integration Approach
The treasury intelligence system is connected with the client’s financial ecosystem through multiple secure integration points. A comprehensive data integration layer established connections with the settlement platform, banking systems, and accounting software to create a unified view of liquidity positions and movements. The solution implemented specialized API connections with market data providers for real-time rates, yield curves, and FX information essential for accurate modeling.
Custom database integration provided access to historical transaction patterns and seasonal factors while maintaining strict security controls. The implementation included flexible export capabilities to existing treasury management tools and reporting systems, enabling seamless incorporation within established workflows.
All integrations maintained end-to-end encryption with comprehensive logging for audit purposes.
Compliance Considerations
The solution addressed multiple regulatory and governance frameworks relevant to treasury operations:
International Financial Reporting Standards (IFRS)
Ensured appropriate treatment of financial instruments, currency positions, and hedging activities in alignment with accounting standards.
Payment Services Directive 2 (PSD2)
Maintained compliance with requirements regarding settlement funds, safeguarding, and payment institution operational obligations.
Bank of Spain Reporting Requirements
Satisfied Spanish regulatory expectations for liquidity management, currency exposure, and financial position reporting.
General Data Protection Regulation (GDPR)
Implemented appropriate data handling practices for all information within forecasting and decision models.
Corporate Treasury Best Practices
Aligned with EACT (European Association of Corporate Treasurers) guidelines for liquidity management, risk assessment, and governance.
Results
01
Liquidity Optimization:
- Improved cash forecasting accuracy from 68% to 93% at a 30-day horizon
- Reduced required liquidity buffers by €18.7M (32%)
- Increased yield on treasury investments by 47 basis points
- Optimized settlement timing to improve average daily cash position by 28%
02
Currency Management:
- Reduced FX-related costs by 22% through improved timing and execution
- Decreased maximum currency exposure by 41% without increasing hedging costs
- Improved hedge effectiveness by 35% through more precise position management
- Created a 15-minute early awareness of significant market movements
03
Operational Enhancement:
- Reduced time spent on routine forecast preparation by 85%
- Decreased decision analysis time from hours to minutes for complex scenarios
- Improved treasury reporting quality while reducing preparation time by 68%
- Enabled daily strategy adjustments versus weekly review cycles
Client Impact
The treasury intelligence system transformed the company’s financial operations from a necessary support function into a strategic value center. The dramatic improvements in liquidity management directly enhanced company profitability through reduced borrowing costs and improved investment returns, contributing an additional 0.4% to overall company margins in a business with traditionally thin profit structures.
The enhanced forecasting and decision-support capabilities enabled the treasury team to implement more sophisticated strategies previously considered too complex for practical implementation. This capability provided a particular advantage during market volatility periods, with the company maintaining optimal positions while competitors struggled with reactive approaches.
Perhaps most significantly, the improved treasury performance supported the company’s international expansion strategy by efficiently managing multi-currency operations without proportional increases in team size or risk exposure.
Based on these results, the client expanded their engagement with Aspagnul to implement similar intelligence capabilities across their financial planning and merchant analytics functions.
