Many treasury systems were designed around business-day constraints, with cut-off times, overnight batch cycles, and static reporting. In a 24/7 economy, that no longer holds up. It’s a reality we also face at Scotiabank: outdated systems aren’t just frustrating; they quietly constrain what’s possible across the treasury function. Yet many corporate treasury teams are still being asked to innovate with real-time payments, API integrations, and AI-powered forecasting on systems that were built in the 1990s.
Trying to innovate on outdated infrastructure is like running a modern business on dial-up. It's slow, fragile, and simply not built for today’s demands. When you're making high-stakes decisions based on last week’s data, your ability to think and act quickly on your feet is compromised. Smart growth starts with stronger foundations. Having been in the corridors of commerce across Canada, Latin America, and the U.S. for generations, we understand the challenges treasurers face because they’re not too different from our own. And we’re investing in a next-generation foundation to serve the region like no other bank can, from the inside out.
Why Your Treasury Tools May Be Underperforming
You wouldn’t build a skyscraper on a foundation of sand. The same principle applies in corporate treasury. Even the most advanced tools and real-time money movement, intelligent cash forecasting, and embedded finance won’t deliver full value if the systems beneath them are outdated.
Corporate treasury leaders should begin with a clear-eyed assessment: Which tools are still effective? Which systems are slowing you down or isolating your data? Modernization starts with understanding your current toolbox and then identifying what upgrades can deliver early value.
From there, you can chart a path forward: upgrading your TMS, enabling API connectivity, unifying data to power analytics and AI, or piloting real-time payments. Strategic moves today can improve visibility, reduce risk, and position your organization for smarter, faster decisions in what is increasingly a volatile macro environment.1,2,3
The Cost of Relying on Legacy Infrastructure
Outdated systems such as COBOL-based core banking platforms, mainframes, and custom-built applications from the 1990s continue to run many treasury functions today. The problem: these systems are difficult to connect with modern platforms, lag behind business demands, are expensive to run, and depend on a shrinking and retiring pool of developers to stay operational.4
Not so distant history shows what can happen when critical infrastructure falls behind:
- In the 2008 financial crisis, major banks like Lehman Brothers and Bear Stearns relied on fragmented risk systems that couldn’t provide real-time visibility into exposure.5,6
- During the COVID-19 pandemic, the IRS’s decades-old tax systems caused massive delays, while several U.S. states issued urgent appeals for COBOL programmers to patch unemployment platforms overwhelmed by demand.7
These moments underscore a truth corporate leaders can’t ignore. Treasury resilience isn’t just about front-end features, it’s about the infrastructure decisions made years ago. That’s why true modernization starts beneath the surface, with architecture built for speed, scale, and clarity.
What Modernization Looks Like at Scotiabank
Scotiabank is making targeted investments to modernize the infrastructure that supports corporate clients across North America. Under the leadership of our U.S. Cash Management team, we’re investing in our core infrastructure to make it cloud-native, scalable, and flexible across the Americas. This is part of a global effort to modernize all our critical functions, starting with payments.
We’re upgrading our Payment Systems and surrounding ecosystem so that it can meet future demands for speed, transparency, and cost efficiency. Our vision is to process global transactions with resiliency and 24/7 availability, because that's where the world is headed.
Recent client-facing innovations include:
- A Real-Time Payments API that enables clients to initiate instant payments of up to $25,000 directly from their platforms via Interac e-Transfer† for Business eliminating traditional cut-off times and enabling 24/7/365 disbursements.
- Connectivity Services, a plug-and-play solution that embeds our payment capabilities and account data directly into ERP systems like SAP, Oracle, and Microsoft Dynamics. This has reduced integration time by up to 80% and improved productivity by as much as 90%.8
These Canadian innovations reflect the same principles guiding our broader modernization strategy across the Americas – with an emphasis on embedded, scalable, real-time capabilities.
It’s a clear signal of what’s possible when treasury infrastructure is built to support real-time operations, particularly with the flexibility needed to respond to a rapidly changing world. Strengthening the foundation ensures optimal and lasting business growth.9,10
Data Strategy is Now Mission-Critical
Behind every treasury function lies one fundamental asset: data. Yet for many treasurers, access to that data remains fragmented, delayed, and difficult to act on in real time.
It’s no longer enough to ask for flat files from your bank. Treasurers need real-time access, the ability to embed insights directly into ERP or TMS systems, and the flexibility to pivot quickly when conditions change.
That’s why Scotiabank is investing in data-first architecture and that helps positions businesses for AI-readiness. We're focused on:
- Streamlining how data is captured and organized across treasury workflows
- Ensuring consistency and quality (data hygiene) across all channels
- Delivering data that is embedded, actionable, and predictive (not just historical)
Without clean, timely data, AI is meaningless. But with the right data strategy in place, treasurers can automate, forecast, and take decisive action faster than ever before.
Take Action: Build a Stronger Treasury Foundation
Modernizing treasury operations doesn’t have to mean ripping everything out and starting from scratch. But it does require intentional steps to build a more responsive, connected environment.11,12
Here’s where to begin:
- Audit your current environment. Identify outdated systems, manual processes, and integration gaps that slow decision-making.
- Prioritize foundational upgrades. Focus on modernizing your TMS, enabling API connectivity, and embedding real-time payment capabilities.
- Start small, scale smart. Pilot improvements within your existing workflows like ERP integrations or real-time disbursements to build early wins and momentum.
Is Your Treasury Infrastructure Keeping Pace?
As treasurers look to the future, our goal at Scotiabank is simple: deliver the speed, visibility, and flexibility needed to help them succeed in real time, every time.
As you evaluate the next phase of your treasury strategy, consider the following:
- Are we making decisions based on real-time insights or on delayed reports?
- Where are manual processes creating friction in our operations?
- Do our systems integrate easily with our ERP and banking platforms?
- Are we prepared to respond quickly to volatility and disruption?
Treasury teams can’t afford to operate at dial-up speed in a high-frequency world. The journey starts with fixing the foundation – and building for what’s next. Answering these questions can help uncover where modernization efforts will have the greatest impact and where to begin.
Let’s Build a Smarter Treasury Together
Learn more about how Scotiabank’s treasury solutions can support your modernization journey and unlock new value across your operations.
This article is provided for information purposes only. It is not to be relied upon as financial, tax or investment advice or guarantees about the future, nor should it be considered a recommendation to buy or sell. Information contained in this article, including information relating to interest rates, market conditions, tax rules, and other investment factors are subject to change without notice and The Bank of Nova Scotia is not responsible to update this information. All third-party sources are believed to be accurate and reliable as of the date of publication and The Bank of Nova Scotia does not guarantee its accuracy or reliability. Readers should consult their own professional advisor for specific financial, investment and/or tax advice tailored to their needs to ensure that individual circumstances are considered properly, and action is taken based on the latest available information.
