The premise of the 2002 film “Minority Report” revolves around using advanced predictive technology to stop crimes before they occur.
While the story, originally by sci-fi writer Phillip Dick, focuses on law enforcement, its underlying principles — data analysis, risk management and proactive decision-making — bear a surprising and striking resemblance to the role of a modern CFO or treasurer tasked with ensuring financial stability and growth by anticipating the future.
After all, with the news that as many as 285,000 businesses are using The Clearing House’s RTP® instant payments network each month, the confluence of real-time payments and real-time financial data is increasingly providing finance professionals with an unprecedented ability to monitor and manage liquidity, a core determinant of financial health and operational success.
In “Minority Report,” the PreCrime division exists to mitigate risk, stopping crimes before they cause harm. This mirrors a CFO’s role in managing financial risks — be it credit risks, market volatility or operational inefficiencies. CFOs continuously analyze data to make risk-informed decisions, much like how PreCrime uses insights to prevent disasters.
As businesses grapple with volatile markets, evolving regulatory landscapes, and the demand for immediate financial decision-making, real-time data and faster payments are emerging as essential tools for maintaining agility and resilience.
The Liquidity Management Imperative
Liquidity performance sits at the heart of treasury management. It is the barometer of an organization’s ability to meet its obligations, fund growth opportunities and weather unforeseen disruptions. Traditionally, liquidity management relied on batch processes and historical data, leaving treasurers reacting to issues rather than proactively addressing them.
Real-time data helps change this dynamic by enabling treasurers to access up-to-the-minute financial information. Paired with faster payment capabilities — facilitated by innovations such as real-time payment networks and APIs — finance teams can now execute transactions and optimize cash positions in ways that were previously unimaginable.
PYMNTS Intelligence has found that treasurers with high levels of influence are far more likely to report that their companies have predictable cash flows, expect revenue to increase and are agile in responding to shifting marking conditions.
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