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Banking Tech Awards
1st December 2022
Royal Lancaster Hotel

Banking Tech Awards Finalist: Trovata

Trovata has been selected as a finalist in the Best Smart Banking Tech Solution - AI-Driven Data Insights category at the Banking Tech Awards 2022 for their project Trovata.

Trovata

Trovata makes it easy for businesses to automate cash reporting, forecasting, analysis, and money movement to more than 200 corporate clients. By leveraging Open Finance connections to more than 50 corporate APIs, over 2,000 open banking APIs, ERP systems, EBICS APIs, SWIFT files globally, Trovata helps companies gain powerful insights into their cash flows and facilitate better and quicker business decisions.

Now finance and accounting teams have full visibility of all their bank accounts, balances, and transactions in real-time. Using AI and machine learning, the Trovata platform provides its clients with powerful tools to analyse any inconsistencies and forecast their finances in minutes instead of hours or even days.

Through machine learning technology, Trovata generates forecasts utilizing historical bank data and data from clients connected to ERP based on the desired cadence, with options such as daily, weekly, monthly, or quarterly and the number of periods.

Based on patterns within clients' bank data, Trovata then builds out projected cash flow forecasts, enabling client to gauge the effectiveness of potential business decisions. Not only does Trovata project future cash flow, it automatically saves your baseline forecast, amplifying your ability to analyze clients' forecast's accuracy over time quickly. As a next-gen technology platform, Trovata is helping the world’s largest financial institutions digitally transform commercial and corporate banking with its growing network of direct API integrations across US, UK, EU, Australia, New Zealand, Japan and Singapore.

Cash flow is the lifeblood of any business. However, the tools used by finance teams have not been modernised in more than 20 years. At home, we’re used to instant access to ‘always on’ services, to having our questions answered as soon as we ask them. In treasury departments, it’s been different. Held back by legacy technology, treasurers have found themselves relying on spreadsheets and manual processes to undertake tasks that should be fast, smooth, and transparent – in a word, digital. Finance and accounting departments are drowning due to a lack of resources, and automating workflows can help them to work more intelligently.

Typically, 80% of their work is preparing spreadsheets and charts, and only 20% is communicating what the data means for business leaders, the folks on the front lines making the decisions. We want to flip that so that 80% is automated and finance and accounting teams have more time for analysis that feeds faster decision-making.

Cash forecasting is one of the most critical operational reports when it comes to running any business and ensuring that there is always enough cash on hand to cover the day-to-day expenses and to help treasurers prepare for any unexpected scenarios the company might be faced with. And while that sounds simple, it’s continually one of the reasons why most businesses fail within the first five years, while for larger companies it is very hard to create an accurate forecast, often ending up in extra fees for last-minute credits or extra bank fees due to wrong planning. Global businesses have many more key stakeholders, bank accounts scattered across divisions and countries that have to be taken into consideration, making it impossible to forecast an accurate cash-flow without big data inflow and outflow automation.

As our digital world has continued to evolve, the fundamental requirements of modern treasury operations have remained consistent: knowing today's cash position and forecasting tomorrow's as accurate as possible.

While this is still a core requirement, many treasuries are still hindered due to the manual workflows required to build out essential cash management reports and forecasts that are necessary to keep a pulse on the business's cash flow. The fact is that treasuries that can analyze, report on, and forecast cash faster and more accurately than their competitors can better find growth opportunities hidden in their bank data and enjoy a lower cost of capital. Treasuries can accomplish this by digitizing operations with best practices for reporting and forecasting natively built into workflows and operations.

Trovata Platform empowers CFOs, Treasurers, and Financial Professionals with more control over their business with automated multi-bank cash management. Trovata Platform makes it easy for businesses to monitor, analyze, and automate their cash workflows like cash reporting, analysis, and forecasting. By bridging the gap between banks and accounting systems, Trovata aggregates cash and banking information into a single dashboard. In addition, dynamic reporting and artificial intelligence deliver potent insights into company cash flows that drive better and quicker business decisions.

With Trovata's direct API connections to major banks, most new clients are set up in just a few hours with zero IT required. Trovata went live with the first client in 2020 with a basic feature set for corporate clients (multi-banking connectivity, user roles and tagging system). For the past two years, we have significantly extended our functionality, focusing on Data Analysis, Insights and Forecasting to automate as many processes as possible for our clients and provide powerful tools for more accurate decision making.

Currently Trovata has over 100 employees spread across the US, Europe and Australia. Our Product, Engineering, Financial Analyst, Client Success, Data Platform and Machine Learning experts have worked during the last two years on several biggest features Trovata has to date:

  • Auto-categories/tags
  • Reports & Insights
  • Financial Forecast
  • Payments

Clients can perform Google-like searches and automate their categorisation with a powerful Tagging system that uses AI as a basis for transaction grouping recommendations. Trovata provides pre-curated BI tool for cash flow analysis using transaction tagging by type, allowing clients to easily organize primary cash flows (transactions) into a more digestible format. The new version of Reports & Insights launched in 2021, has a comprehensive suite of automated reports, including cash visibility reports by bank, account, currency, entity and region as well as advanced scenario planning capabilities.

Trovata increases transparency into clients' organization's cash flow and helps uncover rich insights by empowering clients with a comprehensive suite of intuitive and automated cash reports. Using AI and ML, Trovata is capable to provide insights on the cash flow anomalies, identifying the potential cause, project balance direction and identify recurring transactions by analazying millions of trasnactions and months-years of historical data of each client.

The V3 of the Cash Flow Forecasting tool launched in Feb 2022 is based on multiple data streams injected in the platform from any subsidiary/division/region/bank our client has, automatically importing invoice data from ERP systems and using Artificial Intelligence & Machine Learning to create 4 forecasting models that provide up to 99% cash forecasting accuracy compared to the typical Naïve approach based on historical bank data that provides 50-60% accuracy on average that does not detect business patterns, such as seasonality or growth.

With automatic bank and ERP APIs connections, Trovata receives the most up-to-date transactions, invoices and cash balance data, which is then utilized by machine learning technology to establish a forecast baseline, analyze historical data trends and calculate the company's actual cash balance within the automated 13-cash forecasts. This makes it easier than ever to perform variance analysis to compare the forecasted cash balance with the actual cash balance over time.

Treasurers also have the ability to drill into the organization's daily cash flows, which helps to understand the reason for the variance and strengthen the 13-week cash flow forecast gradually. Finance departments can build multiple scenarios and forecasts for the overall company activity specific to a given division or region. Trovata gives treasurers the flexibility to apply growth rates and variables to their automated forecasts, empowering them to quickly and accurately forecast around changing scenarios, business decisions, and potential investments. This way, finance teams are prepared for any disaster scenarios and growth opportunities that arrive at the organization's door.

Trovata's Payment feature, launched in July 2022 empowers treasurers and finance professionals to make transfers and initiate payments via ACH, wire, and RTP using the bank API's directly, eliminating the need for a third-party intermediary and additional fees. With payment workflows and templates, users are empowered to implement governance directly within their instance, ensuring all payments adhere to the company's signature authority matrix, treasury policy, and internal controls.

The payments dashboard amplifies a company's ability to track payments from supported banks in one secure platform. Trovata is serving nearly 200 corporate clients with an annual turnover between $100MLN and several billion. Trovata works with Bank-partners, such as JP Morgan, Wells Fargo, Capital One, Santander, NAB, and others to provide its cash management tool to the bank clients. Below are two use cases of our clients and their reason behind using Trovata.

Case Study 1

Over the past year, Trovata has partnered with the Treasury and IT departments at Square to develop a big data platform to improve Square’s cash data quality, latency, and reliability. Square’s complex and global operations span over 20 banks with hundreds of accounts, with payment capabilities that draw enormous volumes of transactions. However, traditional TMS infrastructures that rely on SWIFT MT940 statement transfers, struggled to support Square’s growth within the fintech landscape. Trovata’s rapidly implemented cloud-based solution, Enterprise Treasury Cloud, empowered Square with instant cash visibility across millions of transactions, up-to-the-minute global cash balances, and daily-time analytics empowered by machine learning alghoritmes. Square now has an intelligent bank data lake that makes it easier than ever to monitor, analyze, and automate their cash workflows, giving their employees mastery of outbound payments and inbound banking data.

As a result, Square has saved nearly $1 million in annualized costs over two years with Trovata’s Enterprise Treasury Cloud, and Square’s accounting team has saved 5 hours per day thanks to Trovata’s Natural Language Search and AutoTag automation. "True cash visibility means we can now get cash in the right places when needed. And we can manage modern treasury challenges in daily-time at enterprise scale." said Tim Murphy, Treasurer at Square.

Case Study 2

Eventbrite, the global self-service ticketing platform, has been bringing the world together across 180 countries through live experiences since 2006. While they have continued to scale globally, their treasury systems have struggled to keep up, forcing their teams to rely on manual workflows to get an accurate picture of their cash position across all their bank accounts.

Eventbrite’s treasury team had to spend 2-3 hours per day logging into their various banking portals, downloading statements, and manually consolidating and normalizing their transaction data before uploading it into their treasury management system (TMS). With Trovata, Eventbrite saved 48 hours a month by automating routine and repetitive data processes, empowering them to focus on strategic objectives that propel their business forward. They gained confidence in the accuracy of their cash data with Trovata’s Direct-to-Bank APIs, which updates their transaction data details intraday.

With Trovata handling the setup and maintenance of their direct bank connections, Eventbrite can now trust that their cash and transaction data is 100% accurate, which enables them to feel more confident that they are making data-based cash management decisions. "We know the detail we are getting from Trovata is accurate, thus we know what is going into our reports is accurate. This gives us confidence in anything we are building, as opposed to having to combine and cross reference reports." said Niall Burke, Global Treasury Manager at Eventbrite.

https://trovata.io/