PNC 2025 Outlook: Treasury Management

This story is part of a series of 2025 outlooks from PNC Corporate and Institutional Banking.

The digitization journey will continue in 2025 for many businesses, as they focus on optimizing usage of digital solutions in their treasury operations. The forms this is likely to take may range from leveraging sophisticated technology, such as artificial intelligence, to simply moving toward pursuing a paperless strategy.

“What we are really hearing from companies is that they want to more fully optimize their systems and other digital platforms to do as much as possible, and they are looking to their banking provider for practical guidance and deeper knowledge,” said Emma Loftus, head of PNC Treasury Management. “It ultimately comes down to a desire to manage their company’s finances as efficiently as possible in an economic environment that continues to have a lot of uncertainty.”

Loftus added that evolving expectations are also reshaping the treasury management landscape. “Companies are looking to communicate with their bank and other third parties in new, modern, and safe ways. There is a consumer mindset in play that you should be able to manage your banking information and activity at a moment’s notice, completely digitally, and that’s what is driving our digital onboarding process and other ongoing initiatives in PNC Treasury Management. It’s about building a relationship banking model digitized for the future.”

Embedded Finance

Embedded finance continues to gain traction among businesses, especially those seeking more efficient and streamlined operations. Embedded finance solutions integrate banking services, such as payment acceptance and initiation and balance and transaction reporting, directly into business processes and systems. These solutions utilize API (application programming interface) and platform connector technology to integrate functions across multiple systems so that they can be managed through a single Enterprise Resource Planning system or treasury workstation. The ultimate goal is streamlined functionality, reducing the need to use multiple systems and creating a more direct and comprehensive view of a company’s financial information. APIs can also play a critical role in helping businesses innovate to create new and differentiated experiences for their own customers.

Evolving Payments Strategy

Nowhere has the push for digitization been more tangible than with companies’ accounts payable processes, especially given a growing list of payment options. As companies continue to evaluate the right payment ecosystem for their business, the most efficient and successful strategies are likely to leverage newer payment types, including instant payments, alongside traditional payment options. There is a larger toolbox for payments now available to help improve experience and efficiency, and, in PNC’s view more businesses will likely be ready to use them in 2025.

Protection Against Fraud

While efficiencies and integrated access to banking information are top priorities for businesses, the ongoing proliferation of fraud underscores the importance of good treasury hygiene to help prevent improper payments and having a safe, secure connection for sharing data. As businesses look for ways to manage risk, evaluating banking relationships should be an important part of the equation, according to Loftus. “As technology evolves, risk keeps pace with it, so it’s essential to be able to rely on your bank or other partners that provide digital solutions to optimize operations in safe and secure ways.”

Sound Approach to Working Capital

As the economic environment evolves, businesses will continue to think strategically about how they manage cash. The high rate environment that characterized much of the last year made borrowing more expensive, which led companies to focus on deposit yields and invested cash. There may be a shift in strategy if rates continue to drop in 2024, but lower rates do not negate the need for a well-orchestrated working capital strategy. In 2025, businesses are likely to focus closely on managing liquidity levels in order to seize growth opportunities.

Brilliant Begins Here

PNC’s team of industry specialists is available to unlock business potential, navigate new technology, and overcome the challenges that come along with digital transformation. No matter the company's industry or size, PNC Treasury Management platform solutions are flexible in scope and geared towards driving measurable results and improving key performance indicators. For more information, reach out to your PNC Relationship Manager, or contact us.