Challenges continue to arise amid digital transformation and continuing shifts in the market.
The integration of AI into the Finance function undeniably has the potential to reshape operational frameworks and decision-making processes. In fact, current industry research suggests that AI technologies are gaining traction among finance professionals navigating a complex landscape marked by rapid change.
These changes, along with others, bring the treasury department to face the inevitable task of building readiness for ongoing shifts.
Aidan McDonald, VP Sales, APAC at Kyriba, believes challenges also open up opportunities, as they push treasury teams to innovate, adopt new technologies, and rethink processes which, in the long run, can make them stronger and more resilient.
Asia at a glance
"As of now, some of the biggest challenges facing treasurers in Asia are really being driven by the broader geopolitical landscape and supply chain disruptions," says McDonald.
"For example, with the recent US tariffs, we’re seeing a direct impact on supply chains and cross-border cash flows. This means treasurers have to stay really agile and responsive in how they manage risk and liquidity."
He recounts, "I was at a conference in Hong Kong recently and the three main topics on everyone’s lips were tariffs, tariffs, and no surprise, AI."
McDonald says another big challenge is the ongoing currency volatility. "Asian markets are incredibly diverse, and with all the global uncertainty, shifts in US-China relations, and changing monetary policies, managing FX risk is more important than ever. Treasurers need robust strategies in place just to keep pace."
Further, liquidity management comes in as a continuous headache, with the region being so fragmented with different countries, different banking systems, and different regulations. According to McDonald, it can be tricky to manage cash efficiently across borders, especially if you’re operating in multiple markets.
Gearing up for digital transformation
Understandably, the banking landscape is evolving rapidly, especially with new standards like ISO 20022, the rise of APIs, and changes in payment formats.
"For corporate treasurers, staying ahead means being ready to adapt to these changes in how banks connect and communicate," says McDonald.
"My advice is to start by understanding what these new standards mean for your business operations and treasury processes. For example, ISO 20022 brings richer data and greater transparency to payments, which can really help with reconciliation and reporting, but it also means systems need to be updated to handle these new formats."
He notes that it is also important to work closely with banking partners and technology vendors to map out a clear transition plan.
"Ask your banks about their timelines for adopting new standards, and check how your treasury management systems and ERPs will integrate with the latest APIs and data formats," he recommends. "Don’t overlook the human factor, make sure your team receives the right support and training to feel confident using new tools and workflows."
Ultimately, for McDonald, digital transformation is not just a technology project, but about building readiness for ongoing changes.
By being proactive, investing in the right skills, and keeping communication open with your banks, treasurers can turn these industry shifts into opportunities for smarter, more efficient treasury operations.
Aidan McDonald, VP Sales, APAC at Kyriba
A balancing act
Balancing security and convenience is one of the biggest topics McDonald discuss with treasurers across the Asia-Pacific region.
"At Kyriba, we recognise that treasury teams need to be both agile and protected, especially in a region as diverse and fast-moving as APAC," he explains. "We also know just how critical the processes we support are, from ensuring payroll runs smoothly for thousands of employees to manage complex FX exposures that can impact your bottom line."
"That’s why our digital solutions are designed to make day-to-day tasks simple and intuitive, like single sign-on for quick access and user friendly dashboards, while still delivering enterprise grade security behind the scenes."
Additionally, McDonald says they embed robust controls such as multifactor authentication, real time fraud detection, and customisable approval workflows for high risk activities. This way, teams can move fast on routine work, while still having the peace of mind that most sensitive transactions are protected.
"We also know technology is only part of the equation. That’s why we work closely with clients to provide ongoing training and support, making sure treasury teams not only understand the tools but also the reasoning behind the controls."
McDonald notes that with the rise of cyber threats and new regulations across the region, they are constantly evolving their platform to keep a step ahead. Their goal, according to him, is to empower treasurers to operate securely and efficiently, so they can focus on strategic priorities and help their businesses thrive.
Addressing skill gaps
As for the skills gaps that are associated with implementing AI-powered financial systems in the diverse Asian workforce, McDonald says these challenges, which include deploying AI-powered financial systems, require a multifaceted approach.
"First, we need to make continuous learning a core part of our finance culture. This means investing in targeted training programs covering both technical skills like AI literacy, data analytics, and digital tools as well as essential soft skills such as adaptability, problem-solving, and collaboration."
He explains that it is necessary to recognise that the pace of AI adoption and digital readiness varies across Asian markets.
"For example, China has made AI education mandatory in schools, which is rapidly increasing AI fluency among younger professionals and will be a significant advantage for the future workforce."
Culturally, Asia’s diversity means one-size-fits-all change management will not work. McDonald believes they must foster an inclusive environment that respects local perspectives, languages, work styles and regulation.
"Open communication, local champions, and tailored training are key to encouraging adoption and reducing resistance. We also encourage peer learning and cross border collaboration to share best practices across regions."
He believes that by combining structured education, a culture of openness, and adaptation to local contexts, finance teams can bridge the skills gap and embrace AI transformation.
Recommendations
To facilitate more seamless dialogue between corporate treasurers, CFOs, and banks in Asia, McDonald highlights the importance of improving dialogue between the parties to make those conversations more regular and proactive.
"I spent the first decade of my career in banking speaking with Treasurers/CFOs and the second half selling technology to the Treasury and CFO community, so this comes from a place of experience," he recounts. "Don’t just wait for the annual review or a crisis, set up frequent check-ins to share updates on your business, discuss market changes, and hear about new banking capabilities."
He says it is amazing how much smoother things go when there is an open line of communication.
"Second, transparency is key. Be clear about your company’s objectives, pain points, and future plans, whether it’s expanding into new markets, managing FX volatility, or rolling out digital transformation projects."
He explains that the more their banking partners understand their business, the better they can tailor their solutions for them.
"Finally, don’t underestimate the value of relationship building. Take the time to meet your banking contacts in person, when possible. It helps build trust and makes problem solving so much easier down the line."
At the end of the day, McDonald says seamless dialogue is about openness, collaboration, and making sure both sides are invested in each other’s success. This is what leads to long-term, mutually beneficial partnerships.
