For treasury and finance leaders, few responsibilities weigh heavier than ensuring the organization’s cash is both safe and accessible.  The past year has been a reminder that even in times of growth, volatility can emerge suddenly – from inflationary pressures to shifting trade policies.  

The 2025 AFP Liquidity Survey, conducted by the Association for Financial Professionals (AFP) and underwritten by Invesco, confirms what many finance leaders already feel day to day: liquidity strategy is no longer just about preserving capital; it’s about maintaining the agility to adapt in an uncertain environment.  

Survey findings show that treasury professionals continue to put safety and liquidity ahead of yield – with 61 percent ranking safety as their top objective – four percentage points lower than last year’s survey – and 35 percent ranking liquidity as their top objective – higher than in previous years.  That shift reflects the heightened demand on finance leaders to not only safeguard cash but also to deliver clarity, flexibility, and actionable insight to the business.

A Conservative Approach to Cash Management

Survey results show that organizations continue to concentrate heavily on a few core vehicles: bank deposits, government money market funds, and Treasury securities. Together, these account for 80 percent of short-term allocations.

At the same time, nearly 30 percent of organizations are considering changes to their investment policies – exploring options like money market ETFs or adjusting duration strategies.

For finance teams managing these allocations, access to a dedicated money fund portal provides the control and efficiency needed to evaluate options, diversify exposures, and ensure that liquidity remains accessible while capturing competitive yields.

Pressure from Policy and Economic Volatility

Respondents noted that domestic political and regulatory risks – including tariff uncertainty and inflationary pressures – are key drivers behind shifts in cash holdings.  While some companies are holding more cash as a buffer, others are reinvesting to support growth.  The data points to a delicate balancing act: organizations want liquidity close at hand but also need efficient ways to redeploy excess cash when conditions improve.

This is where automated settlement capabilities can be game-changing.  Automated settlement is the act of automatically wiring the money once a customer has purchased a money fund.  It is an administrative function; albeit a very important one.  When it is done manually, it takes time to log in to a bank to initiate the wire, go through the approval process and capture it in the accounting.

The Role of Written Policies and Risk Management

Seventy-four percent of organizations now have written investment policies, with most reviewing them annually. This formalization reflects the heightened need for discipline in a volatile environment. Risk controls such as counterparty and concentration limits on bank deposits are also on the rise, especially as balances often exceed FDIC insurance thresholds.

For organizations navigating multiple accounts and counterparties, bank visibility tools make it far easier to consolidate reporting, track exposures, and ensure compliance with policy limits. Real-time transparency across institutions helps finance leaders enforce the guardrails they’ve carefully designed in their investment policies.

Looking Ahead: Agility Matters

The survey also highlights that nearly one in three organizations expect changes in cash balances in the months ahead, with many citing inflation, tariffs, and capital expenditures as drivers. That uncertainty reinforces the need for treasurers to be agile – able to pivot quickly as conditions shift.

AI-powered investment sweep tools can automate this agility, moving cash intelligently between accounts and investment vehicles to help ensure idle balances are working while liquidity remains readily available.

Moving Forward

The AFP Liquidity Survey underscores a central truth: liquidity management isn’t static. As economic and regulatory conditions shift, treasury strategies must evolve as well. That evolution starts with visibility – into all cash, across both bank accounts and investment holdings. Too many tools solve only half the equation: money fund portals that show investments but ignore cash, or treasury management systems that track balances but don’t natively connect to investments. What organizations really need is a single, modern platform that does both. By coupling comprehensive cash visibility with investment access, automated settlement, and AI-driven sweeps that dynamically allocate idle balances, finance leaders can put themselves in position to optimize liquidity in real time and preserve both agility and control.

Contact us now to get started on your journey to safer, more reliable treasury management.