Insights into 2025 from our Experts

As we look toward 2025, the financial landscape is poised for significant transformation, driven by advancements in artificial intelligence (AI), evolving roles of CFOs, platform integration, data management, and global market uncertainties.

In line with the Deloitte 2024 Global Treasury Survey, our experts predict a transformative shift in the treasury function as it becomes increasingly strategic. The top priority set by CFOs for their treasury departments remains enhancing liquidity risk management, a focus intensified by recent global events and volatile interest rates. This aligns with predictions from our Kyriba experts, who foresee a continuing emphasis on real-time risk assessments and strategic planning driven by AI integration.

Furthermore, the survey highlights the rising importance of environmental, social, and governance (ESG) efforts, with 64% of respondents indicating it is a critical mandate—a trend echoed in our discussions on the evolving role of CFOs and their integration of ESG principles. The strategic role of treasurers as value-add partners to CFOs is also emphasized, as they increasingly drive cash culture and capital allocation strategies. This strategic alignment is crucial for maximizing financial efficiencies and supporting organizational growth, a priority that has gained traction as companies navigate the complexities of the post-pandemic environment.

Here are the six trends our experts are watching for 2025:

1. M&A Opportunities: Organizations may use mergers and acquisitions (M&A) to navigate economic shifts, like new tariffs, leveraging high corporate liquidity

2. Uncertainty in Global Markets: Navigating global market uncertainties requires proactive strategies and understanding of trade dynamics.

3. AI in Treasury: AI is revolutionizing treasury operations. The integration of AI offers unprecedented capabilities for monitoring, analyzing, and managing financial risks.

4. The CFO of the Future: The role of CFOs is evolving from traditional financial oversight to strategic business partnerships, driven by the need for data literacy, technical acumen, and global awareness.

5. Evolution Beyond Point Solutions: Effective platform interoperability and scalability are essential for leveraging AI and adapting to evolving business needs.

6. Ensuring Good Data: Ensuring data privacy and empowering customers with high-quality data are critical for making informed financial decisions.

Rising Liquidity Sparks M&A Opportunities

Kyriba proprietary analysis shows the current environment is marked by notable corporate liquidity, with American enterprises at $3.5 trillion out of combined revenues of $16 trillion, reflecting a 20% liquidity-to-revenue ratio, the highest since pre-COVID 2021. Despite this, M&A deals are currently 2,000 fewer total transactions in volume, suggesting a ‘wait and see’ stance among corporations.

However, 2025 holds potential for transformation in M&A activity, particularly as tariffs could cause significant shifts in corporate strategies. Melissa Di Donato, CEO of Kyriba, predicts an increase in M&A, suggesting that “when liquidity rises, deals follow,” which presents both opportunities and challenges in this unpredictable environment.

We are already beginning to see signs of this potential M&A wave, as evidenced by the ongoing discussions between Nissan and Honda, as well as the recent announcement of the Omnicom and IPG merger. These high-profile moves illustrate how companies are leveraging strategic partnerships to navigate economic global market uncertainties and enhance their competitive positions in the market.

Uncertainty in Global Markets

Navigating global market uncertainties demands proactive strategies and a deep understanding of trade dynamics. As geopolitical tensions rise, organizations must prepare for potential disruptions in global supply chains. Dory Malouf, Director of Value Engineering, shares the impact of tariffs and geopolitical factors on trade, emphasizing the need for businesses to adapt to policy changes, saying, “the deep integration of North American supply chains suggests more complex implementation challenges than previous tariff rounds."

Andy Gage, SVP of FX Solutions & Advisory Services, reminds us of the lessons from 2016-2020, where currency volatility was at its peak. “We saw the largest amount of spiky volatility in the market for nearly 30 years,” he recalls. Companies must prepare for similar scenarios, ensuring that their risk management strategies are robust and adaptable.

AI in Treasury and Security

AI is revolutionizing risk management in treasury by enabling dynamic monitoring and predictive analytics. Morne Rossouw, Chief AI Officer, highlights the shift towards real-time risk assessments as a significant advancement in treasury operations. AI’s ability to continuously analyze large datasets helps identify risks that traditional models might overlook, which is crucial in today’s volatile markets.

“AI-driven scenario modeling has transformed our approach to strategic planning, allowing us to simulate multiple economic scenarios with greater accuracy and depth.” - Morne Rossouw

Furthermore, AI’s integration with emerging technologies like robotic process automation (RPA) and blockchain is enhancing security and transparency, particularly in cross-border transactions and regulatory compliance.

In 2025, AI is expected to become more accessible and comprehensible, with AI agents guiding treasury operations in managing risks, optimizing cash flows, and ensuring compliance, as predicted by Rossouw. This evolution will necessitate a renewed focus on aligning AI capabilities with organizational priorities and ethical standards.

The CFO of the Future

The office of the CFO is evolving beyond traditional financial oversight to becoming a strategic business partner, driving innovation and growth. Martin Hoad, Principal Value Engineer, emphasizes the importance of data literacy for future CFOs, especially as data becomes a key financial asset. Understanding ESG concepts and navigating complex regulatory environments will be crucial.

"With the current geopolitical uncertainty, understanding regulations, tax rules, and exchange controls is a challenging task which is only getting harder." - Martin Hoad

CFOs are leveraging technology and data analytics to enhance decision-making and align financial strategies with broader business goals.

Adam Drew, CFO of Kyriba, reinforces that the integration of technology is essential for driving growth and profitability. This shift is supported by trends like digital transformation, real-time financial insights, and sustainable finance.

"The integration of technology is no longer optional. It is essential for driving growth and profitability.” - Adam Drew

Why Point Solutions Are No Longer Enough

Platform interoperability and integration with other financial systems and tools have become critical for enhancing the efficiency and strategic agility of financial operations. Yussuf Ali, Manager, Global Presales Risk and Strategy, highlights that interoperability is vital to unlocking the full potential of data, allowing AI to deliver precise risk assessments and optimization strategies.

"In an AI-powered world, interoperability is the backbone of smarter, faster, and more strategic treasury operations." - Yussuf Ali

AI thrives on vast, diverse datasets to deliver accurate insights and predictions. Seamless integration ensures data flows freely between systems like ERPs, banking portals, and risk management tools, providing a unified and real-time view of financial health.

This connectivity eliminates silos, enhances decision-making, and enables AI to deliver precise risk assessments and optimization strategies. Interoperability also supports agility, allowing organizations to adapt quickly to new tools, regulations, or market shifts. In short, in an AI-powered world, interoperability is the backbone of smarter, faster, and more strategic treasury operations.

Similarly, platforms must be scalable and flexible to meet evolving business needs and market conditions, ensuring long-term viability and responsiveness. Dominique Mouilah, Northern Europe Presales Manager, emphasizes that scalable and flexible platforms are crucial for reducing total cost of ownership and increasing agility. Integrated solutions offer uniform data schema, disaster recovery, and extensibility, allowing organizations to manage evolving requirements efficiently.

Ensuring Good Data

In today's digital era, ensuring data quality and security is essential for effective financial decision-making. High-quality data enables precise forecasting and strategic planning. Shruti Gupta, Principal Business Value Consultant, points out the importance of accurate data input, while Bob Stark, Global Head of Enablement, stresses the necessity of robust data privacy measures to protect against fraud and cybercrime.

“Garbage IN Garbage OUT is a well-known fact. Any financial decision is as good as the input data that was used to make that decision.” - Shruti Gupta

“Our prediction for 2025 is that information security, IT, and finance teams will prioritize protecting payments data and workflows.” - Bob Stark

Empowering leaders with reliable, real-time data enhances cash flow management and liquidity performance, supporting strategic decisions.

Conclusion

As we approach 2025, the financial landscape is set for transformative changes driven by technology and evolving business dynamics. AI is revolutionizing risk management, empowering treasurers with real-time insights and predictive analytics, while CFOs are becoming strategic partners who leverage digital transformation to drive growth.

The shift to integrated, scalable platforms is essential for maintaining agility, allowing seamless data flow and real-time insights. Ensuring data quality and security is paramount as cyber threats rise, and high-quality data is crucial for informed decision-making.

In the face of global market uncertainties, businesses must adopt proactive strategies, anticipating geopolitical and economic shifts. By embracing these trends and challenges, organizations can achieve sustainable success and resilience in an increasingly complex world.