Organised by treasuryXL and Bound, this live session featured a panel of seasoned experts:


The session focused on FX management tech, highlighting the need for precise data, the challenges of FX risk, and the impact of automation and AI in optimizing treasury operations. Panelists shared practical strategies for effective FX practices and discussed ways to secure organizational support in a rapidly evolving tech environment.

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Key Takeaways

Understanding FX Management

Jesper emphasized the importance of recognizing the psychological aspects of FX management, noting that “treasurers often feel that everyone else does better in FX management, driven by the tendency to share only success stories.” This mindset can create unnecessary pressure, making treasurers feel as though they’re lagging behind their peers. Jesper advocated for a clear understanding of a company’s FX exposure and stressed the importance of real-time data, suggesting a focus on achieving “maybe 80% of your data instead of striving for 100%, as waiting for complete data can lead to inaction.”

Data Integrity and Automation

Chris highlighted the necessity of clean and accurate data as the foundation for effective FX strategies. He argued that “understanding intercompany flows is crucial, as many companies overlook netting opportunities that could reduce FX exposure.” Recognizing these internal flows allows companies to consolidate and offset FX exposures rather than treating them individually. The discussion also touched on automation, which has the potential to streamline FX processes, allowing treasury teams to focus more on analysis rather than manual data entry. Chris reinforced that “there is no best strategy; it all depends on the type of organization and the size of your FX exposure.” Tailoring strategies to the specific nature of the business remains essential.

The Role of Technology

Seth introduced Bound’s innovative approach to FX management, likening it to the passive investment strategies popularized by index funds. Bound’s system automates the hedging process, enabling companies to manage risk without requiring in-depth trading expertise. This approach is particularly beneficial for mid-market businesses that require efficient solutions but lack extensive resources. However, Seth cautioned, “AI will not predict markets; relying on it for market predictions can be dangerous, as larger firms invest significantly more in their models.” This insight highlights the importance of using AI as a supportive tool rather than a crystal ball for market direction.

Embracing Transparency

The panelists discussed the ethical implications of FX management, particularly the importance of transparency and accountability in decision-making. Jesper pointed out that CFOs often focus on historical data, which can hinder proactive risk management. He suggested a cultural shift within organizations to embrace risk management as a shared responsibility, promoting collaboration across teams to manage exposure actively.

Future of FX Management

The conversation concluded with reflections on the future of technology in treasury operations. The panelists agreed that while AI and automation can enhance efficiency, they should not be relied upon to predict market movements. Instead, the focus should be on using technology to support informed decision-making and streamline processes. Seth observed that “many people feel overwhelmed by the complexities of FX management, leading to inaction.” Simplifying FX management tools can empower treasury teams to act confidently without needing expert-level trading knowledge.

For more treasury insights and best practices, stay connected with treasuryXL.

Speakers

Seth M. Philips

CEO and Founder

BOUND

Seth Phillips is the CEO and Co-founder of Bound. Bound helps finance teams hedge their FX risk like pros in just a few minutes per month. Before starting Bound he was part of the management team at Paxos, helping the company grow from Series A to Series D and opening their London office. Prior to Paxos Seth worked at a fintech venture fund in New York City and worked in various venture-backed startups. Seth holds an MBA from Columbia Business School and a B.S. from Brigham Young University.

Jesper Nielsen Terp

Head of Group Treasury

Lunar

Jesper is an International and Experienced Treasury-, Risk-, Cash- and Portfolio Manager/Executive with more than 20 years combined experience from the Corporate Treasury, Credit and Banking/Financial Industry. He recently added strategic education from IMD to his portfolio.

Chris van Dijl

Treasurer, Consultant & Trainer

Cugavadi

Chris van Dijl is the founder of Cugavadi, a firm focussing on consultancy and training in corporate treasury and transaction banking with offices in Dubai and Charlotte, NC

Chris has a long career as in corporate treasury spreading over 20 years and covering The Netherlands, United Kingdom, United States and the Middle East. Before starting his consultancy & training company he spent over 15 years in corporate treasury working his way up from Treasury Analyst to Group Treasurer.

Pieter de Kiewit

Moderator | Managing Director

Treasurer Search

Treasury Aficionado, Recruitment Consultant and Managing Director of  Treasurer Search. Together with his team, Pieter finds candidates for interim assignments and permanent positions in treasury, corporate finance, cash management and related positions. His market focus is the BeNeLux and Germany, his clients are mainly corporates, non-profit and consultancy organizations.

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