Cash management trends in 2025

The value of cash management: Trends and drivers of 2025 

How much cash do we have available right now? What are our short-term liquidity needs? How can we reduce the cost of capital? There are a number of questions cash managers, treasury, and finance teams must know how to answer. Who's doing the asking? CFOs, Finance Directors, and Treasures. And for good reasons.  

With increasing uncertainty, knowing is half the battle. Being ready for the cash management trends of 2025 is the other half. 

Let's explore:

Cash management in 2025

Before we dive into the trends, let’s clarify a couple of terms. 

Treasury management refers to the strategic oversight of a company’s financial assets and liabilities. Think functions like: liquidity management (making sure the company can meet its financial obligations), risk management (hedging against currency fluctuations and interest rate shifts), but also investment and debt management. Financial planning and analysis, like forecasting future cash flows and financial needs are also a part of it. 

Cash management, a subset of treasury management, on the other hand, focuses specifically on managing company's cash flow. Think cash positioning (tracking and managing cash balances), taking care that collections and payments are made on time and managing relationships with banks and other financial institutions. And of course, investing surplus cash in short-term instruments for returns. 

Some break this down even further into daily cash management, which deals with the nitty-gritty of day-to-day cash management operations—think payroll, supplier payments, and collecting receivables. It’s all about keeping track that there’s enough cash on hand for immediate needs while keeping everything balanced and in check. 

The 2020s: A turning point for cash management?

A few years ago, we at Nomentia predicted the increasing centralization of cash management as companies looked for ways to improve profitability. Cash management centralization, we suggested, could introduce not just greater operational flexibility during times of economic upheaval or restructuring but also help minimize idle cash. With cash management centralization, economies of scale come into play and allow larger groups to negotiate better loan rates with reduced costs. 

Another prediction we made was around corporate payments — specifically, the move toward greater control via payment hubs or in-house banking systems. Automation was (as it still is) a central theme, considering the significant gains it can bring to matching and reconciliation processes. We weren't alone in this projection.

J.P. Morgan, writing in 2020 about what treasury could look like in 2025, expected much of the daily tasks of a treasurer, from cash forecasting to payments and reporting, to be enhanced with automation. In the wake of the COVID-19 pandemic, McKinsey & Company also echoed the notion of automating cash management as much as possible and reducing human errors and costs associated with the payment process.  

While much has changed, the new normal looks to be structured around certain themes. As an example, Deloitte's Global Corporate Treasury Survey from 2019 listed the top five challenges facing treasury as follows: visibility into global operations and cash risk exposures, liquidity management, FX volatility, inadequate treasury systems, and cash repatriation. Fast forwarding to 2022, and while cash repatriation was replaced by digital capabilities, the rest remained unchanged. The 2024 survey shows a similar pattern: visibility, digital capabilities, liquidity, inadequate infrastructure, and FX volatility continue to dominate.  

Looking at the priorities of treasury as reported by Deloitte's annual Treasury Survey, it’s clear that cash and treasury functions are focused on enhancing liquidity management, improving cash forecasting, optimizing capital structure, optimizing working capital, and mitigating market risks — very much in line with the findings of PwC’s 2023 Global Treasury Survey and EACT's Treasury Survey as well. The priorities across the board remain consistent: cash and liquidity management, funding, and financial risk management. 

Nomentia's CEO, Jukka Sallinen, also recently shared some thoughts on the drivers of modern cash management. "In the wake of the Covid-19 pandemic, resilience and being prepared for the unexpected has become increasingly important," he says. "Not just about having systems and processes in place, but also ensuring they can respond quickly and effectively to market changes. There's no one-size-fits-all solution anymore — cash management strategies need to be flexible enough to adapt to the unique cash flow needs of each business — from economic conditions to regulatory changes." 

So... 

What are the top cash management trends in 2025?

No matter whether companies are looking to maximize their available cash, accelerate receivables, defer payables, or make sense of their current cash flow situation in order to decide how much cash they should keep on hand, in 2025, cash is still king. And the top cash management trend is: 

1. Liquidity 

In times of economic instability, having liquid assets provides a buffer for covering expenses. When the market conditions change and require rapid decisions to be made, liquidity allows businesses to respond. As the business environment grows more global and complex, liquidity makes managing international transactions and currency fluctuations that much easier. Keeping liquidity ratios high keeps investors and creditors happy and makes it easier to negotiate better financing terms and capital access. Just imagine a company that operates in multiple countries. Due to a sudden economic downturn, sales drop sharply in one of their key markets. Because the company has maintained a high level of liquid assets (cash and other easily sellable investments), it can still cover its payroll, rent, and other operating expenses in that region without needing to scramble for emergency loans. 

Paying attention to liquidity can help businesses to tackle critical questions like: 

• How much liquid cash do we have available across all accounts and regions right now?
• What is our liquidity ratio, and how does it compare to industry standards or investor expectations? 
• Do we have enough liquidity to cover upcoming expenses, including debt obligations and operational costs, during periods of economic uncertainty? 
• How quickly can we access additional liquidity through financing options or the liquidation of assets in the event of a sudden cash need? 

2. Cash flow forecasting 

As fluctuating interest rates and inflation cause the level of financial uncertainties to rise, businesses should be able to predict their cash flow accurately. Accurate cash flow forecasts allow companies to plan their operations and prepare for potential cash shortages, but most importantly, cash forecasting can be used to inform strategic decisions. Can we invest to grow or expand? Do we have enough cash to pay our bills? Do we need to borrow? These are all questions cash forecasting helps businesses to answer. Just think of a mid-sized manufacturing company that is planning to open a new factory. Interest rates are on the rise, though, and inflation is wreaking havoc on the cost of materials. By forecasting cash flow, the company is able to predict whether it will have enough cash on hand to cover the initial setup costs and ongoing operational expenses. Their forecast reveals a potential shortfall in three months. The forecast allows them to secure extra funding ahead of time or adjust their investment plans to avoid running out of cash when it's most needed. 

Cash forecasting can help businesses answer essential questions like: 

• What is our projected cash flow for the next 30, 60, and 90 days, and how confident are we in these forecasts?
• What assumptions and variables are driving our cash flow forecasts, and how sensitive are they to changes in market conditions (e.g., interest rates, inflation)?
• How accurately have we forecasted cash flow in the past, and what adjustments have we made to improve future accuracy?
• What are the potential cash shortfalls or surpluses we need to prepare for, and what strategies do we have in place to address them? 

3. Automation 

Increasing the automation level, particularly in corporate payments and reconciliation, is an ever-green trend in cash management. Businesses are looking to reduce manual labor and free resources towards more strategic tasks. As automation increases, the costs of erroneous payment data entry, non-compliance, and fraud decrease. Being able to identify and address discrepancies quickly protects working capital and reduces the risk of financial losses. For example, we can take a look at a construction firm that's handling multiple large projects across different locations. Each project involves coordinating payments to subcontractors, suppliers, and labor teams on a regular basis. In the past, the company's finance team had to approve and process each payment manually. With the number of payments they had to process, delays and even occasional errors, like duplicate payments, were impossible to avoid completely. After introducing a payment system, which automates much of the payments and reconciliation, their efficiency and accuracy have increased significantly. Payment automation makes sure that the right amounts are paid on time, with near-naught errors. Also, by setting rules and conditions for their international transactions, the company can automatically schedule payments when exchange rates are most favorable and reduce the impact of currency volatility on overall costs. 

Answering the following questions can significantly solidify the business's approach to cash management automation:

• Which cash management processes, payments, reconciliation, or cash positioning are we currently automating, and where can further automation provide the most value? 
• How much time and cost are we saving by automating routine tasks, and how has it impacted error rates and fraud risk? 
• What level of visibility do we have into real-time cash positions and financial data as a result of automation? 
• How is our automation strategy integrated with other systems (ERP, treasury, banking platforms), and are there any gaps or inefficiencies? 

4. Cash concentration and capital structure optimization 

Centralizing cash and liquidity management is becoming an increasingly strategic tool. Cash concentration helps optimize a company's capital structure but also improves liquidity management, reduces financing costs, and enhances financial flexibility—all of which are critical in today's business landscape. Just imagine a globally operating company that has subsidiaries in multiple countries, each holding separate bank accounts. By centralizing their cash management, the company is able to pool all the excess cash from its subsidiaries into a single corporate account. The benefits can be significant: the company can get better terms on loans or negotiate higher returns on surplus cash investments. With greater control over their cash flow across the business, they can reduce financing costs and have more flexibility in responding to investment opportunities. 

Cash concentration and capital structure considerations to address: 

• How are we pooling cash from different subsidiaries, regions, or accounts, and what centralization tools (e.g., virtual accounts, automated sweeps) are we using? 
• What impact has cash centralization had on our ability to optimize working capital and reduce financing costs? 
• How quickly can we access and reallocate centralized cash to different parts of the business to meet urgent liquidity needs? 
• How do we ensure compliance with local regulations when centralizing cash across different jurisdictions? 

5. Risk management and fraud prevention 

As the global economic landscape is becoming increasingly more volatile, with inflation and fluctuating interest rates taking their toll, but also geopolitical tensions impacting financial stability, doing business becomes more risky. With stricter regulations and compliance requirements, companies must secure their cash management practices not just to manage external factors but internal ones as well. Just picture a company sourcing raw materials from several countries. Because of geopolitical tensions, the currency of one of its supplier countries becomes highly volatile, straining its cash flow. At the same time, a growing number of cyber-attacks hinder their work and increase the likelihood that fraud goes unnoticed. By setting up currency netting (or currency pooling) to consolidate multiple international transactions between subsidiaries and matching payments and receivables in the same currencies, the business company can reduce the total number of currency conversions, which minimizes its exposure to volatility. With centralized cash management processes in place, the company is also able to set up intelligent rules that detect and prevent fraud attempts and protect working capital. 

Risk and fraud questions for all businesses to answer: 

• What systems and processes do we have in place to identify, mitigate, and monitor financial risks like FX volatility, interest rate fluctuations, or market instability? 
• How are we safeguarding against fraud in payment processing, and what internal controls are in place to detect and prevent unauthorized transactions? 
• How are we managing compliance with evolving global regulatory requirements related to financial transactions and reporting? 
• What role does automation play in our fraud prevention efforts, and how effective is our technology in detecting suspicious activity or discrepancies in real-time?

Real-world drivers of cash management trends

Considering how ever-green certain cash management trends have been in the recent past, it's reasonable to ask: 

Why is cash flow forecasting the bedrock of effective cash management? 

To illustrate the concept, you could imagine a mid-sized electronics company that enjoyed steady growth until 2019. Their finance team often overlooked cash flow forecasting because they had abundant cash reserves and easy access to low-interest loans. They focused on other priorities, assuming they could always "figure out the cash situation." However, when the COVID-19 pandemic hit, everything changed. Supply chains were disrupted, markets became unpredictable, and loans became more challenging to secure. With poor visibility into their cash flow and outdated forecasting methods, the company struggled to keep up with sudden changes in demand and vendor payments. They realized that had they focused more on accurate cash forecasting, they could have anticipated cash shortages and better managed their resources. 

Now, with 2025 on the horizon, the company relies on detailed cash flow forecasting supported by automated systems. This allows them to predict future cash needs with greater certainty. For businesses of today, getting their cash projections right isn't just about survival—it's even more about gaining a competitive edge. Those who can forecast cash needs accurately can invest in growth at the right time, navigate the global economy, be agile, and make faster decisions than their competitors. But... 

How does cash positioning ensure a business stays agile? 

The importance of business agility can be understood if we, for example, look at a global fashion retailer that operates in 12 countries, each with its own bank accounts, currencies, and financial processes. Without a real-time view of their cash positions, they often face delays in accessing funds to pay suppliers or make payroll. One time, the company needed to make an urgent payment to secure new stock for a big sale, but it turned out they had insufficient cash in their European account, while excess funds sat unused in their Asian subsidiaries. This delay caused the company to miss out on valuable inventory, impacting their sales. 

After implementing a modern tool to increase visibility into their global cash positions, the company could instantly see where cash was available and transfer funds between accounts as needed. With accurate cash positioning, they remained agile, making the right decisions at the right time and improving their relationships with suppliers, all while ensuring they could cover any operational needs without scrambling for cash.  

What is the role of automation in payments and reconciliation? 

Our following example, an international logistics company, used to manually process thousands of payments every month to different suppliers worldwide. This was not only time-consuming but also prone to mistakes—occasionally, suppliers would receive incorrect amounts, or payments would be delayed. These errors eroded trust and increased costs when erroneous payments needed to be clawed back from annoyed counterparties. To improve their efficiency, the company adopted an automated payments and reconciliation system. Now, payments are processed in a harmonized manner, quickly and accurately, while any discrepancies are flagged in real time. 

The system's built-in fraud detection and sanctions screening have significantly reduced payment related risks, ensuring compliance with international regulations. For frequent cross-border transactions, the business was able to optimize timing of payments, adjusting for favorable exchange rates. Automation has revolutionized the company's cash management by speeding up payment processes, cutting down on errors, and protecting against fraud. 

What role does cash concentration play in maximizing liquidity? 

Imagine this: A globally operating company has its cash spread across multiple subsidiaries in different countries. Each division managed its own funds, making it difficult to access the collective cash for strategic investments. Because of this the group was often forced to borrow at high interest rates to cover their short-term needs, while large sums of cash sat idle in other regions. 

By implementing a cash concentration strategy, the company pooled all excess funds from its subsidiaries into a centralized account. By doing this they increased their overall liquidity and allowed them to self-fund investments, rather than relying on external borrowing. With virtual accounts and automated cash sweeps, they maximized their working capital and optimized their cash for strategic growth opportunities.  

How does bank connectivity and system integration improve cash and treasury operations? 

A multinational firm works with dozens of banks globally, each with its own banking platform. Reconciling accounts and managing payments was an administrative nightmare, as it often required manual updates across multiple systems. Delays were common and, as was limited cash visibility, and frequent errors in payment data. 

To solve this, the company integrated its treasury system with all of its banking partners through a single platform. This seamless connectivity enabled real-time data exchange and provided an up-to-date view of all their cash across the company’s accounts. The end result wasn't just faster processing of payments and more accurate reconciliations but streamlining the company's entire treasury operation. 

Top Nomentia tools for cash global management

Liquidity

Nomentia liquidity consolidates all cash flow data, providing comprehensive visibility into liquidity, cash flows, and FX positions while optimizing funding strategies. It automates data collection, analyzes historical cash flows, and monitors global cash positions to identify and mitigate liquidity risks. This solution enhances decision-making, improves efficiency, and ensures better cash flow management.

Cash forecasting 

Nomentia's comprehensive cash flow forecasting solution can automatically collect data from various sources like entities, banks, and ERP systems and run automated projections and variance analyses to compare actuals with forecasts. It allows for flexible forecasting at any level and time horizon, incorporating historical trends, seasonal patterns, and external factors while also capturing cash flows in transaction currencies to manage FX exposure. This cash flow forecasting solution benefits businesses by providing accurate working capital projections, enabling scenario analysis, and integrating data from balance sheets, P&Ls, and intercompany reconciliations to create short-, medium--, and long-term forecasts. 

Payments 

Nomentia's payment hub solution centralizes and automates payment processes and reconciliation, allowing for both automated and manual payments, and integrates seamlessly with various treasury management systems and payment schemes like SEPA, P27, and instant payments. It ensures smooth two-way communication with banks through file format conversion while also providing a distribution point for bank statements and maintaining uninterrupted bank connections. This solution enhances payment efficiency, reduces errors, and provides a single platform for all bank communications. 

Cash visibility 

Nomentia's cash visibility solution provides instant global cash visibility and centralized control by connecting to any bank, ERP, or treasury management system, allowing comprehensive monitoring and analysis of all cash management data in one place. It enhances financial oversight by enabling detailed analysis of daily statements, payments, and cash positions and supports efficient account clearing with automated reconciliation and clearing proposals. This solution offers complete visibility into financial status at both group-wide and entity levels, facilitating detailed monitoring of various financial transactions and positions, from bank accounts to intercompany loans and investments. 

Bank connectivity 

Nomentia's bank connectivity solution supports global connections via host-to-host, EBICS, or SWIFT and enables seamless integration with various banks worldwide. It facilitates two-way communication between banks and financial systems, automates payment file transfers in the required formats, and receives confirmations in your system’s format. It supports multiple communication protocols (SFTP, FTP, APIs ensuring flexibility and efficiency in managing financial transactions. 

In-house bank 

Nomentia's in-house bank centralizes and automates payment processes, allowing for both automated and manual payments using templates and providing a single platform for bank communications. It enhances control over cash movements, optimizes working capital, and offers real-time payment balance information while also enabling centralized execution and collection of payments on behalf of subsidiaries. This solution increases operational efficiency and reduces the number of bank accounts and dependency.

Cash management in 2025: How to stay ahead?

While technological solutions have revolutionized much of the work of cash management, they are not a panacea for all of its challenges. Many companies fall into the trap of believing that adopting advanced tools and automation is enough to address inefficiencies. However, the true complexity of cash management stems from more profound, more structural issues — ones that technology alone cannot resolve without strategic insight and proper alignment with business objectives. 

1. Understanding the fundamentals: Cash management is not simply about processing payments or managing liquidity in real time. It requires a solid understanding of the underlying factors of cash flow forecasting and liquidity management, not to mention process consolidation. If businesses don't fully understand these core areas, no amount of technological sophistication will compensate for that lack. Technology can make improvements possible on paper, but it cannot define what cash management should look like without these foundational factors. 
2. Doing more with less: Cash and treasury teams are rarely growing, and it has become something of a trend of its own that organizations expect them to accomplish more with fewer resources. In such an environment, adding new technology might feel like the right step, but it doesn't address the root of the problem. In this kind of situation, the real challenge lies in prioritizing tasks, rationalizing workflows, and deciding which processes should be automated versus those that require human expertise. Cash management solutions might handle routine tasks, but critical thinking and experience are necessary for higher-level decision-making. 
3. The gap between awareness and action: It's one thing to recognize the need for improved cash management; it’s another to know how to effectively address it. While technology can deliver visibility into financial operations, it doesn’t inherently provide a blueprint for success. Companies must first identify their specific pain points and the inefficiencies plaguing their operations before they can expect any system to offer meaningful improvement. Without clarity on priorities, even the most advanced cash management tools can leave organizations struggling with the same problems.
4. The right partnership matters: Choosing the right technology provider is as important — if not more so — than choosing the right technology. Companies should look for vendors that bring deep expertise in cash management, not just technical capabilities. The right partner will have a clear understanding of what to prioritize at each stage of implementation and can offer valuable guidance on how to align technology with broader business goals. Experience, industry knowledge, and a clear focus on outcomes are just as critical as the software itself. 

Ultimately, while technology can be a great enabler, it is no substitute for the strategic decision-making, expertise, and partnership required to truly transform cash management practices. Without these elements, staying ahead of cash management trends and delivering real value is nigh impossible.

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References

• Nomentia predictions: Cash management trends of 2023
• The future of corporate cash management
• J.P. Morgan's Treasury in 2025: What it could look like
• McKinsey & Company: Moving from cash preservation to cash excellence for the next normal
• Deloitte's 2024 Global Corporate Treasury Survey
• PWC's Global Treasury Survey 2023
• EACT Treasury Survey 2023