UK corporates seek better cash returns amid rising market uncertainty

By Divya Shah

UK corporates are sitting on liquidity, but a new study from MillTech suggests much of that cash is not being managed as efficiently as it could be, creating a growing opportunity for FinTechs focused on treasury, cash management and liquidity optimisation.   

MillTech’s inaugural 2026 UK Cash Management Report, based on a survey of 125 senior finance decision-makers, found that corporates hold an average of £1.12 billion in cash, with nearly a quarter of firms holding more than £1 billion. Despite reviewing cash positions an average of 63 times a year, many treasury teams continue to struggle to maximise returns on excess liquidity.   

The study revealed that 82% of corporates believe they are missing out on potential income because their surplus cash is not fully optimised. Four in five respondents expressed concerns that they may not be achieving the best available returns, while 78% said they believe better yields are attainable. 

For FinTech providers, these findings point to a growing market need for technology that can simplify treasury operations and improve capital allocation decisions. As interest rates remain elevated and economic uncertainty continues, treasury teams are increasingly under pressure to ensure that idle cash contributes to overall financial performance rather than remaining underutilised. 

However, operational complexity remains a major obstacle. According to the study, the most common barriers preventing firms from optimising cash include the difficulty of opening money market fund accounts, limited visibility across multiple banking relationships and a lack of internal resources to manage increasingly complex treasury activities.  

Neil Gallacher, Co-Head of Cash Management Solutions at MillTech, said, “Where cash sits has never been more pertinent. Inflation, interest rates and geopolitical disruption have pushed questions around the returns cash generates and how quickly it can be moved higher up the CFO agenda. With corporates holding significant sums, optimising excess cash has become an essential part of protecting value and improving financial performance.” 

 Onboarding was identified as one of the biggest pain points. Corporates reported that it takes an average of 3.2 months to onboard a new cash management provider or money market fund. Lengthy due diligence procedures, compliance checks and legal documentation requirements continue to slow adoption of new investment partners and treasury solutions. 

The findings suggest that FinTechs capable of simplifying onboarding, automating compliance workflows and delivering consolidated visibility across accounts could gain a competitive advantage. Demand is increasingly shifting toward platforms that provide a single view of cash positions across multiple institutions while enabling faster allocation of funds into yield-generating instruments.  

The study also highlights a broader shift towards technology-driven treasury management. Nine in ten organisations already automate at least part of their liquidity and cash management processes, while more than one-third describe their operations as fully automated. 

Artificial intelligence is emerging as the next battleground. Among respondents, 42% identified AI-driven liquidity optimisation as the technology likely to have the greatest impact on cash management over the next five years, ahead of real-time analytics and automation platforms. This reflects growing interest in tools that can analyse liquidity positions, identify yield opportunities and automate investment decisions in real time. 

Matt Shapcott, Co-Head of Cash Management Solutions at MillTech, said, “While corporates are reviewing their cash positions regularly, execution is still falling short. The bigger the treasury operation, the harder it becomes to move quickly across multiple accounts, entities and providers. What firms need is technology that enables faster onboarding, better visibility and more connected processes, so they can effectively turn cash oversight into action.” 

Market volatility is further accelerating this trend. Finance leaders reported increasing allocations to money market funds, Treasury bills and government securities amid ongoing geopolitical and economic uncertainty. Notably, 93% of corporates expect their use of money market funds to increase over the next two years, signalling rising demand for digital treasury solutions that can facilitate access to these products. 

For FinTechs, the message is clear: corporate treasury is becoming a major innovation opportunity. As enterprises seek better returns, faster onboarding and greater visibility over cash positions, providers offering AI-powered treasury management, liquidity optimisation and embedded investment solutions are well positioned to benefit. The challenge is no longer convincing corporates to optimise their cash; it is providing the technology that enables them to do so efficiently and at scale.