The future of Working Capital: from visibility to intelligence

Traditionally, working capital was a focus during downturns or cash squeezes, then sidelined during growth periods. That approach is rapidly changing. Jenny Shutt (Cash and Working Capital Practice Transaction Services, KPMG), Mariya Vasileva (Domain Advisory, Treasury & Working Capital, SAP), Ray Suvrodeep (Treasury Solutions Group & Liquidity Solutions GPS, HSBC), and Jonathan Denny (Treasury Solutions Group, HSBC) highlighted that working capital is becoming a permanent strategic priority, shaped by real-time data, automation and evolving business models. The future will be defined by instant visibility, AI-driven decisions and a more active role for treasury and credit teams.

In the past, working capital optimisation was a periodic, reactive process. Now, advances in analytics and data availability are making it a continuous, embedded practice. Real-time insights into cash, receivables, payables and inventory enable proactive liquidity management. Better data and analytics are turning capital optimisation into “business as usual” rather than disruptive, one-off projects.

The panel agreed that the future starts with data. AI and automation deliver value only when organisations have reliable, real-time information and integrated processes across finance, procurement and supply chains. Improved data quality and standardisation are essential. With better visibility, finance leaders can monitor cash, forecast liquidity and model scenarios more accurately. Over time, AI will move from providing insights to recommending actions, such as optimising cash pooling or launching supply chain finance programmes.

Treasury and credit teams are taking on a more strategic role, moving beyond traditional financing to influence operational decisions. By leveraging data, they help commercial, and procurement teams understand the cash impact of their choices and identify ways to improve performance. This active involvement also boosts investor confidence and capital efficiency. With greater visibility into cash flows and funding needs, organisations can optimise their capital structure and reduce the cost of capital.

AI is already assisting with insights, forecasting and anomaly detection. In the future, more advanced AI could automate end-to-end processes across cash management cycles. Early use cases include automated reconciliation and predictive liquidity planning. However, human oversight remains crucial. AI will support, not replace, decision-makers. Treasurers will still determine strategy and manage risk, using AI to enhance speed and accuracy.

Broader economic shifts and new business models, like e-commerce and ‘everything-as-a-service’, are changing payment cycles and cash flow patterns. While the fundamentals of working capital remain, organisations must adapt to more dynamic environments. Technologies like blockchain and digital currencies could further disrupt and streamline supply chains.

Cash flow forecasting is becoming more accurate thanks to machine learning, reducing reliance on manual inputs. Improved forecasting enables more effective liquidity management through cash pooling, real-time payments and automated funding decisions.

Ultimately, the future of working capital is about mindset as much as technology. Organisations that treat working capital as a strategic discipline, and invests in data, skills and collaboration, will be best positioned for growth, resilience and value creation.

As the financial and digital landscape rapidly evolves, corporate treasurers are at the forefront of navigating emerging payment trends. To succeed, preparation is key.