Rent a Treasurer, Plans & Success

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| 03-03-2020 | treasuryXL | Pieter de Kiewit

You might remember our previous blogs about the Rent a Treasurer. In this joint effort with Treasurer Search, we make high calibre treasury expertise available for organisations with treasury exposure without a specialist on board. Treasurer Search is in constant communication with the treasury labour market and knows who has what expertise and is available. treasuryXL has a wider network that includes CFOs of mid-sized companies and a very strong communication machine. Combining both enables the Rent a Treasurer service.

What we notice in our market research is that treasury is not well known by these CFOs, so they do not put it on their priority list. But CFOs do understand quickly the upside when speaking with and learning from a treasurer. Often not wanting extra headcount is mentioned as a reason not to act upon treasury opportunities. And many specialized treasury consultants are a better match with multi-billion corporates and costly. So mid-sized companies often rely on bankers and auditors. But many bankers focus too much on revenue and the knowledge of auditors is often not deep enough.

Currently we work with a core team of eight bringing the Rent a Treasurer concept to the next level. Six team members cover various subsets of treasury tasks and complement each other. Kendra represents treasuryXL and I work on behalf of Treasurer Search. We are the support. Our goal is to organise more meetings with CFOs and help them successfully save costs, mitigate risk and create opportunities through appropriate treasury solutions. We tell interesting stories, on a regular basis, to decision makers who might be interested and we will increasingly do so.

It gives me great pleasure to inform you that one of the team members,  Niki van Zanten, currently works as a Rent a Treasurer on two different assignments where FX risk has the most prominent focus. With the first client, he has been able to save substantially on cost already in his first week. Niki is the perfect example of an expert who learnt in the Champions League, with Cisco & Philips, and applies his knowledge helping mid-sized companies.

If you want to know more about Rent a Treasurer or introduce us to your business network, please let me know. I am convinced many more can benefit from good treasury. We will keep you updated.

 

 

Pieter de Kiewit

Owner at Treasurer Search

 

 

 

Corporates: Caveat IBOR and Build-Up Your IBOR Knowledge!

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01-03-2021 | treasuryXL | Enigma Consulting |

Last year November we published the article ‘Corporates: Caveat IBOR!’ regarding the IBOR phase out and the impact on corporates. Let’s have a look why today’s corporate treasurer should be even more aware of IBOR interest rate benchmarks.

It is highly likely that your organisation will be affected by the IBOR transition. Most corporate organisations underestimate the impact, thinking that the ‘only’ thing that will change is a base rate and its calculation method. Before you join their ranks, take some time to reflect on the following:

The IBOR will cease to exist, starting on the 31st December 2021 and be replaced by Risk-Free Rates (RFRs) with a different basis for calculation:

  • These changes will impact financial (e.g. bond, (intercompany) loan, (multi-currency) credit facility) contracts as well as commercial contracts with an IBOR related ‘late payment clause’
  • This in turn will impact processes in the Treasury functions, with knock-on effects to supporting departments, Legal, IT systems, accounting, and tax reporting to name just a few
  • IBOR transition is progressing at a different pace across jurisdictions and financial products (e.g. loans, bonds, and derivatives), adding to the complexity of managing the transition
  • The Working Group on Sterling Risk-Free Reference Rates (RFRWG) published the following milestones regarding GBP LIBOR:
    • By end-Q1 2021, all legacy GBP LIBOR contracts expiring after end 2021 that can be actively converted need to be identified, and progress active conversion where viable through to completion by end-Q3 2021
    • Active steps to enable a shift of volumes from GBP LIBOR to SONIA in non-linear derivative markets: by end-Q2 2021, initiation of new GBP LIBOR linked non-linear derivatives that expire after the end of 2021 will be ceased; and, by end-Q3 2021, complete active conversion

The good news is that there is still time to assess the impact of the pending IBOR changes on your organisation and to act upon it if needs be. The sooner you have a plan for the potential consequences for your organisation, the sooner you will be able to mitigate these. This understanding will also give you more leverage in the coming discussions with your bank(s).

Moreover, the IBOR phase out may bring a golden opportunity for corporates to re-evaluate the current contract agreements and look for better deals. Consider this: during the IBOR migration contracts are in fact ‘renegotiated’ and banks will need to come up with a new offer. Will you take that offer as a corporate client? That all depends on your level of understanding and preparation.

What should you do to prepare?

As the deadline approaches, you will need to know your level of exposure and impact in order to prevent surprises. What will the impact of the IBOR transition be on your TMS and ERP systems, your credit facilities, bank loans, cash pooling, bonds, ISDA agreements and intercompany agreements? What impacts will these have on your processes and supporting systems? Which complexities will need to be managed?

 

 

Having this information at hand will enable you to be a proper sparring partner for your banks when they renegotiate contract terms.

Depending on the complexity of your contracts, the IBOR phase out could substantially affect your corporate organisation. Prevent unnecessary loss by preparing yourself, following this five-step approach:

 

  • IBOR phase out knowledge build-up

Corporates should start to build-up their knowledge regarding the IBOR phase-out and get up-to-speed with developments related to different kind of products and RFRs in order to be able to assess the IBOR phase-out impact. Each corporate organisation has a different situation and a variety of financial contracts. Complexity depends on the type of business. A larger organisation active across multiple regions in the world with more complex non-Euro instruments will be impacted higher than a smaller organisation that only is active locally within the Eurozone. Thorough knowledge about IBOR is a key starting point to assess the impact on your organisation and to be able to assess, plan and implement the migration to alternative reference rates.

  • Assess impact

The second step you should take is to analyse the IBOR related contracts in use throughout your organisation. Determine which contracts have an IBOR related component and the size of the exposure. Once you have assessed the complexity of your IBOR related contracts, analyse the impact on related areas (ranging from Tax and Legal to IT systems, and procedures, reporting, accounting (e.g. hedge-accounting), and the like).

  • Become a prepared discussion partner for your bank(s)

The third step is to be prepared for a call with your bank to discuss an RFR offering! The magnitude of change is well-recognised by banks and financial institutions, and they are demonstrating an increasing sense of urgency to address contracts maturing after 2021. More and more newly issued IBOR related products by your bank(s) will refer to a new alternative reference rate during 2021.

  • Plan actions

Knowing the alternative RFRs is an important input on creating a detailed action plan. Define a project team governance to manage this action plan and the status of the transition across different areas, business lines, and geographical locations. In particular, take care to ensure external resource availability regarding e.g. Legal counselling and system provider experts, as demand for these specialists will rapidly increase as the IBOR transition deadline approaches.

  • Act and implement

Step five is the implementation of your action plan throughout the affected areas of your organisation. In this ‘Act’ phase it is important to maintain the conversation with external parties, such as banks and system providers. It is also of vital importance to support the implementation across all relevant business lines and functions, maintaining support for go-live readiness in line with the defined action plan and deadlines.

A golden opportunity starts with IBOR knowledge build-up

Enigma Consulting supports you in knowledge build-up by providing ‘tailor-made’ workshops in order to discuss the impact on your corporate organisation related to different RFRs for different products based on your specific situation and to help you to prepare and become a discussion partner with your bank.

IBOR may well be a golden opportunity, but it is up to you as a corporate treasurer to seize it by acting rather sooner than later! Corporates: Caveat IBOR and build up your knowledge!

If you are interested in how we can help you to build-up your knowledge and to assess your IBOR related contract complexity or if you want to understand how we can support your corporate organisation in the IBOR phase out transition, you can contact us on:

dpluta@enigmaconsulting.nl or look at www.enigmaconsulting.nl

Daniel Pluta

 

 

 

Kyriba Webinar: How Connectivity-as-a-Service Can Help In ERP Migration

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25-02-2021 | treasuryXL | Kyriba |

4th March • 2pm GMT • 3pm CET

In this webinar Kyriba and Deloitte will discuss some of the challenges and time constraints faced in bank connectivity and outline how Kyriba’s Connectivity-As-A-Service can accelerate global banking connectivity projects by more than 80%.

The agenda will follow:

  • The Connectivity-as-a-Service challenges
  • The Kyriba Connectivity Network
  • A case study on implementation with Deloitte

REGISTER NOW to understand more of the issues related to cost-control, deployment, security and bank connectivity when embarking on large-scale ERP cloud migration projects.

Date:

March 4, 2pm GMT/ 3pm CET

Contact:

SurePay | Prevent fraud and errors with The IBAN-Name Check for Organisations

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24-02-2021 | treasuryXL |

Award-winning Fintech company, SurePay, integrates the IBAN-Name Check into your business processes. This prevents fraud and errors and allows you to realize more efficient processes.

SurePay was founded in 2016 and has been providing the IBAN-Name Check to all major Dutch banks since 2017. In the years that followed, the group of customers expanded to corporates and partners. Today, SurePay provides the Confirmation of Payee service in the UK, while at the same time introducing new services in the Netherlands. At the beginning of 2020, SurePay became a Private Company and an independent part of the Rabobank Group.

Experience the benefits of the IBAN-Name Check in your business processes

Entering, using and checking customer data is often labor-intensive. By integrating the SurePay IBAN and name check into your systems, you make your processes more efficient, safer and reduce the risk of fraud.

This way, the online registration of new customers runs more smoothly, you collect from and you pay to the right person. Moreover, you know whether you are dealing with a private or business account! Various organisations, like insurers, municipalities and energy companies already use the IBAN-Name Check for organisations. The same solution makes sure that the Covid-19 payments are delivered safely, at scale and to the right people in both the Netherlands and the UK.

2020 recap at a glance

SurePay saw a spectacular growth of 1719% in the number of checks for organisations. More than 125 organisations now use the IBAN-Name Check.

See the complete 2020 year report here.

They use the service in the onboarding process of new suppliers and customers (KYC), in claims and payout processes, in direct debit processes and in fraud investigations. This makes processes more efficient, safer and reduces the risk of fraud and misdirection, avoiding all the damage and hassle that goes with it.

The results are impressive:

  • 90% less drop-outs during onboarding
  • 80% less fraudulent onboardings
  • 50% less uncollectible invoices

Want to know more about the IBAN-Name Check for Organisations?

To know more about the IBAN-Name Check like features, roadmap, use cases and the team behind this proven solution, click here

Thanks for reading, take care.

 

 

Kendra Keydeniers

Director, Community & Partners treasuryXL

Nomentia Webinar: Payment Templates

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| 15-02-2021 | treasuryXL | OpusCapita |

Live Demo: Unleash your payments with payment templates

Maybe not quite unleash but the better word might be superpower. Because payment templates are truly what will take your set-up to the next level. We are continuing our popular live demo webinar set-up where our solution managers will provide a quick deep dive into one topic and how this is working in our solution.


Payment templates allow you to publish templates for manual payment that you can use to process payments.

In this webinar we will show you how you can:

  • Lock and hide fields, and mark the desired fields required. You can also define whether a section is automatically expanded or not when a payment template is selected.
  • What type of security settings you can and possibly should set up for payment templates.

And on top of that we will provide a practical application to how those templates can make your daily life easier.

When?

  • February 18th, 2021
  • 13:00 CET / 14:00 EET

Who should attend?

Cash Managers, Treasurers, and anyone looking to optimize their payment processes.

Meet the speaker

Jouni Round

Jouni Kirjola

Jouni is Solution Manager at Nomentia and has over 10 years of experience in corporate cash management and has deep expertise in cash forecasting, payment factories and in-house banking, and process development. Previously Jouni has worked in product management, consulting and R&D.

Register Here

About Nomentia

Nomentia is a Nordic powerhouse for global cash management. We believe in a world in which businesses can make the right decisions no matter how unpredictable the times are. Our SaaS-based platform offers solutions for cash forecasting and visibility, global payments with bank connectivity, reconciliation, in-house banking, guarantees, and FX dealing. We serve 2,300+ clients in over 100 countries processing more than 200 billion euros annually. Cash is king!

Treasury Desk from our partner ILFA (Dutch item)

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12-02-2021 | Ilfa |

Ilfa beschikt over een team van treasury specialisten. Naast dat zij u kunnen ondersteunen met advies, kunnen de specialisten ook taken overnemen. Met de juiste kennis, hun uitgebreide ervaring en de AFM vergunning kunnen de specialisten van ILFA ingezet worden waar u dat nodig acht. Of u nu behoefte heeft aan een treasurer die een grote transactie afsluit, een treasurer die deelneemt aan uw treasury commissie of specialisten die uw cashmanagement overnemen, het ervaren team kan u ondersteunen waar en wanneer u dit wilt.

 

 

Jeroen de Backer is als hoofd van de Treasury Desk met zijn team verantwoordelijk voor de doorlopende processen die wij voor klanten verzorgen en is hét aanspreekpunt wat betreft inhoudelijke vragen over cijfers en de dagelijkse gang van zaken. In dit interview vertelt Jeroen alles over het werk van de Treasury Desk.

 

 

 

Jeroen, jij bent het hoofd van de Treasury Desk, maar wat doet de Treasury Desk precies?

De Treasury Desk functioneert als een soort financiële spin in het web. Ons team gaat naast de ondernemer staan en kan treasury taken en werkzaamheden voor klanten uitvoeren. Hierbij moet je denken aan cash management, bijvoorbeeld het beheer van rekeningen, het aanvullen van saldi en het voorbereiden van betalingen.

Dat is best een grote verantwoordelijkheid die je op je neemt.

Dat klopt, maar daar hebben wij de juiste kennis en protocollen voor in huis. Zo is er altijd een scheiding tussen de voorbereiding en autorisatie van transacties. De klant is in control en bepaalt in welke mate wij taken overnemen. Ook signaleren we grote of afwijkende bedragen. Enerzijds kunnen we zo voorkomen dat we te ver afwijken van de gemaakte prognoses en anderzijds houden we op deze manier ook potentiële fraude in de gaten.

Zijn jullie ook betrokken bij internationale betalingen?

Wij zijn betrokken bij alle geldstromen. Daar horen ook internationale betalingen bij, want we kunnen ook het valutabeheer doen. We doen betalingen en zorgen dat overschotten en tekorten van valuta bij de bank terug in balans komen. Als een klant bijvoorbeeld handelt in euro’s en wij signaleren dat er om dit moment te veel dollars zijn, wisselen wij die om bij de bank.

Kort gezegd kan de Treasury Desk alles wat een treasury afdeling binnen een bedrijf doet overnemen. En de klant blijft in control, zonder zelf de handelingen te moeten doen.

Jullie nemen dus veel dagelijkse taken over?

Ja, maar dat is afhankelijk van de wensen van de klant. Het kan voorkomen dat een klant eenmalig om ondersteuning vraagt bij complexe transacties. Wij kunnen daarbij helpen door onder andere inzichtelijk te maken wat de koersen van de bank zijn. Zo kun je als klant geld besparen bij het sluiten transacties met banken.

Uiteraard kunnen wij ook zorgen voor rapportages ter ondersteuning van de treasurer of cashmanager. Zij kunnen deze inzetten bij het maken van rapportages die zij intern nodig hebben. We kunnen zelfs aansluiting naar de boekhouding mogelijk maken. De rapportages zijn aan te passen naar wens en geven snel overzicht in hoe het ervoor staat.

 

Ilfa maakt koersen niet alleen inzichtelijk voor klanten. Ten behoeve van elk bedrijf, elke organisatie en instelling publiceren wij wekelijks een actueel marktoverzicht met tarieven op valuta- en rentemarkten. Het overzicht vindt u hier: ilfa.nl/marktkoersen.

Het werk van de Treasury Desk is erg gevarieerd. Is er een bijzondere transactie die je kunt uitlichten?

Nee, want ik wil niet te specifiek worden. We hebben te maken met gevoelige informatie. We gaan een vertrouwensrelatie aan met onze klanten en daar is anonimiteit een onderdeel van. Maar wat het werk vooral leuk maakt is de afwisseling van producten en volumes. De ene keer doe je een hele kleine transactie en de andere keer bereid je een transactie voor van honderden miljoenen. Het aantal en het soort producten is heel breed, vooral op het gebied van rente en valuta. Dat je van een relatief standaard naar een hele unieke transactie beweegt houdt ons scherp.

Dan zijn je dagen ook niet standaard in te plannen.

We hebben te maken met dagelijkse afspraken. De medewerkers van de Treasury Desk zorgen dat voor bepaalde klanten elke dag werkzaamheden gedaan worden. Naast deze standaard werkzaamheden bekijken we de rest van het programma. Dat kan van alles zijn, van het maken van rapportages tot het sluiten van deals met banken. Tussendoor zijn er altijd klantvragen die we meteen kunnen oppakken.

Eigenlijk is geen een dag hetzelfde. Klanten mogen ons altijd bellen en er kan altijd spoedgeval tussenkomen. Dat pakken we dan naast onze vaste afspraken direct en goed op. Vooraf kunnen we eigenlijk nooit zeggen hoe onze dagen gaan lopen.

Hoeveel contact heb je met klanten?

 Dat mag een klant bepalen. We maken vaste afspraken, maar indien gewenst kun je contact hebben wanneer je wilt. De ene klant wil ons graag dagelijks spreken en de andere klant hoort graag enkel van ons als er wat speelt. We zorgen wel dat het niet te lang stil blijft, we blijven altijd een vorm van contact houden. Zo kunnen wij garanderen dat de wensen van de klant en ons aanbod goed afgestemd blijven.

Het Treasury Desk-team is jong. Wat voor effect heeft dat op jouw rol als hoofd van de Treasury Desk?

Wij hebben een jong, getalenteerd team waarin ieder zijn eigen krachten heeft. Stap voor stap krijgen teamleden meer verantwoordelijkheden richting klanten, waardoor uiteindelijk alle werkzaamheden die wij verrichten door meerdere personen uitgevoerd kunnen worden. Ik ben altijd bereikbaar voor het team voor vragen over de werkzaamheden of achterliggende en historische redenen waarom taken op een bepaalde manier worden uitgevoerd. Zo probeer ik ook een stukje ervaring en geschiedenis van de klantrelatie te delen.

 

Naast Jeroen bestaat de Treasury Desk van Ilfa ook uit onder andere Roy, Joran en Alexandra. Zij zijn niet de eerste jong professionals die hun eerste stappen in treasury zetten op de Treasury Desk en zullen ook zeker niet de laatste zijn.   

 

                    
 

Meer lezen over het Treasury Desk-team? Een overzicht vindt u hier: ilfa.nl/over-ons.

Werk je binnen llfa veel met andere afdelingen samen?

We hebben dagelijks contact met onze consultants. Vaak worden er werkzaamheden voor dezelfde klant uitgevoerd. Zo kunnen wij op de Treasury Desk werk voorbereiden wat de consultant kan gebruiken in de totale, complexere opdracht. Het kan ook zijn dat iemand van de Treasury Desk samen met een consultant aan zo’n opdracht werkt. In het verleden is al gebleken dat dit een succesvolle combinatie is.

Ook zijn we onlangs bezig geweest met een leuke interne ontwikkeling. De afgelopen maanden is de Treasury Desk namelijk in nauw overleg geweest met het IT-team van Ilfa. Samen hebben we grote stappen gezet om nog sneller goede oplossingen voor klanten te creëren.

De consultants waar de Treasury Desk het meest mee samen werkt zijn Arnoud Doornbos, Gerard van Baar en Jean Pierre Renard.

 

                          
 

Meer lezen over de experts van Ilfa? Een overzicht vindt u hier: ilfa.nl/over-ons.

De onvermijdelijke vraag op dit moment, hoe hebben de coronamaatregelen jouw werk beïnvloed?

Eigenlijk nauwelijks. De software die wij gebruiken kan ook vanuit huis ingezet worden. Uiteraard moesten wij hiervoor wel de nodige veiligheidsmaatregelen nemen, maar hiervoor waren al de nodige voorbereiden getroffen. Telefonisch contact met klanten is nog steeds mogelijk en overleg doen we nu online. In die zin is er in het dagelijks werk niet veel veranderd. We kunnen onze klanten nog steeds aanbieden wat we altijd al deden.

De enige grote verandering is dat we elkaar en klanten nu niet meer fysiek zien. Dat speelt vooral bij de treasury committee. Deze afspraken worden nu ook online gehouden. Dat bevalt overigens dermate goed dat we ook na het einde van de maatregelen waarschijnlijk ook online contact zullen houden.

Zoals je al aangaf zijn je dagen en werkzaamheden gevarieerd. Met welk type transacties heb je zoal te maken?

Wij zien heel veel soorten transacties voorbijkomen. Sommige types uiteraard vaker dan anderen, maar wij moeten van elke soort transactie op de hoogte zijn en voldoende kennis hebben.

In de afgelopen jaren is het klantenbestand behoorlijk gegroeid en zijn er steeds meer bedrijven en organisaties bij gekomen die hun treasury geheel of gedeeltelijk hebben uitbesteed aan de Treasury Desk. Het aantal types transacties is daarmee ook uitgebreid.

 

De medewerkers van de Treasury Desk beheren samen veel geldstromen. Hieronder is een overzicht te vinden van de verschillende financiële transacties en het volume die per 1-1-2021 in beheer waren.

Bewaakte cashflows

Op jaarbasis gaan er geldstromen in totaal ter waarde van 7 miljard euro over de bankrekeningen die de Treasury Desk in beheer heeft. Het overgrote deel van deze geldstromen bestaat uit euro’s, namelijk ruim 97 procent. Het overige deel bestaat uit Amerikaanse dollars, Zweedse kronen, Britse ponden, Singapore dollars en Japanse yen.

FX opties, FX swaps en FX spots

De Treasury Desk sluit FX opties, swaps en spots; de afgelopen 12 maanden in totaal 164 transacties ter waarde van circa 380 miljoen. FX swaps komen het vaakst voor, gevolgd door FX opties en FX spots. Het meest wordt gehandeld in dollars, gevolgd door Zweedse kronen.

Leningen en derivaten

De totaalwaarde in euro’s van leningen en derivaten dat de Treasury Desk beheert is ruim 3,2 miljard. De verdeling tussen leningen en derivaten is ongeveer gelijk.

 

Wilt u meer weten over de Treasury Desk, cijfers of Ilfa’s diensten? Ga dan naar www.ilfa.nl of neem contact op via info@ilfa.nl of +31 85 130 26 55.

 

 

Rowan Hermes
rowan@ilfa.nl
085 – 130 26 55 (general number)
treasury.ilfa.nl (In Dutch)

 

 

 

 

Nomentia – Treasury Trends 2021

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| 10-02-2021 | treasuryXL | Nomentia |

Recently, Nomentia held a webinar about the key Trends in Treasury and Cash Management. The recording of this webinar “Treasury Trends 2021” is now available for you on demand. Feel free to rewatch it as much as you like!

Watch The Webinar

About Nomentia

Nomentia is a Nordic powerhouse for global cash management. We believe in a world in which businesses can make the right decisions no matter how unpredictable the times are. Our SaaS-based platform offers solutions for cash forecasting and visibility, global payments with bank connectivity, reconciliation, in-house banking, guarantees, and FX dealing. We serve 2,300+ clients in over 100 countries processing more than 200 billion euros annually. Cash is king!

The Case for a Global Payment Hub

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02-02-2021 | treasuryXL | Kyriba |

Global corporate payments technology is changing at a rapid pace. So rapidly, in fact, that internal IT-managed platforms are not able to keep up and the challenges that ensue are left for the IT team to sort out.

These challenges include:

  • Insufficient Controls
    It is up to IT to protect assets from digitized fraud capabilities that are able to penetrate the standard four-eye principal and, in order to do so, IT will need to enhance controls.
  • Custom Banking Formats
    Each bank has its own specific requirements that, even within the same bank, may differ depending on payment type and bank branch location. The number of custom formats needed can make it difficult for IT to meet all global banking format customization requirements.
  • Infrastructure Costs
    The cost of building and maintaining payment connectivity infrastructure, especially given the customization requirements, can easily exceed what a company anticipated.
  • Delayed Project
    Established bank connections will need to be rebuilt as ERPs migrate to the cloud, which can greatly delay the project. And, rebuilding the connection is often made more difficult as employees leave and retire, taking with them the tribal knowledge of how the original architecture was deployed.

Let’s evaluate some of these in the context of the return on investment (ROI) your organisation would achieve by deploying a connectivity as a service global payment hub.

Enhancing Controls

The most common vulnerabilities to fraud include technical, process and simple human mistakes – and, worst case scenario, internal collusion. All of these become significantly more vulnerable when corporations rely on internally built systems and processes that depend on human control workflows with multiple checkpoints.

Today’s fraudsters are more sophisticated, able to easily penetrate corporate infrastructure and pass internal human dependent control workflows. They utilize social networks to penetrate organisations with phishing schemes that include email, as well as deep fake voice simulation software via phone that can sound exactly like your CFO or CEO requesting payment execution.

The best payment hub solution will aid the human dependent controls with machine learning technology, bringing to their attention anomalies that they must further investigate.  The solution must be able to keep up with technical assets at the fraudster’s disposal – for example, based on history alerts related to banking change and volume as well as OFAC exception.  Payment hubs with machine learning capabilities have demonstrated the ability to reduce corporate fraud exposure by at least 70%.

Payment Connectivity Complexities  

Global banking format customization requirements are extremely complex with very limited, if any, corporate tribal knowledge related to the technical architecture and deployment. Each bank has their own specific requirements. In many cases, there may even be differences of formats within the same bank depending on branch locations. The cost of building and maintaining payment connectivity infrastructure given the customization requirements can be in the millions of dollars.

Payment hubs eliminate this cost in several ways:

  • IT no longer has to manage bank connectivity with outsourced development and maintenance of bank payment formats to the hub solution. Developing this internally can take up to 9 months for each bank at a cost of up to $150K+ per bank, not including any ERP consultant fees.  A payment hub solution will be able to deploy connectivity within weeks and provide 24/7/365 maintenance and support at a fraction of the cost.
  • Multiple systems that previously sent payments to banks can be consolidated down to one. IT will only have to manage one format which is to the payment hub.
  • Treasury can optimise banking services and remove duplication caused by the multitude of systems (including treasury and ERPs) that connected to the banks. This will standardise and enhance controls and auditability of internal workflows.

ERP Cloud Transformation

If you are considering an ERP cloud transformation or are in the process of the transition, all of the bank connectivity that is established in the current environment will have to be re-built.  Given the considerations highlighted earlier tied to the complexities, re-building all of the connections internally will be costly and risk go-live.

Connectivity as a service with the right payment hub will de-risk and accelerate cloud transformation projects. In fact, payment hub solutions provide a more than 80% improvement in time-to-value related to payment go live. This return on investment is inclusive of internal man-hour efforts, external consultant fee elimination, as well as the speed of bank on boarding timelines from up to 9 months to only a few weeks.

In conclusion, payment hubs enhance controls and keep up with the ever-changing fraud environment, eliminate any risk tied to business continuity due to internal infrastructure or tribal knowledge, and finally enable a successful ERP cloud transformation deployment eliminating any risk to internal timelines or objectives.

 

Cashforce & TIS – Partnering Up to Deliver Best-of-Breed Technology

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| 29-01-2021 | treasuryXL |

In July 2020, Cashforce, the “next generation” cash forecasting & working capital analytics company and TIS, well known as a leading bank connectivity & payments provider formed a strategic alliance. This collaboration provides a unique solution for corporates looking for a rich cash forecasting and payment experience with seamless integration to their banks and enterprise systems (ERP, TMS etc.).

Join the webinar with Nicolas Christiaen, CEO & Co-founder at Cashforce and Jörg Wiemer, CSO and Co-founder at TIS and get to know more about this best-of-breed approach and how this partnership can help you tackle your challenges in cash forecasting and corporate payments.

Register Here

 

Date and Time
  • Tuesday, March 2nd 2021
  • 16:00-17:00

 

 

 

How can businesses protect their bottom line against the currency markets?

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28-01-2021 | treasuryXL | XE |

Does your company have an exposure to foreign currencies? Wybe Schutte explains in below interview how business can tackle the complexity of FX.

AN INTRODUCTION TO

Wybe Schutte is head of Business Development Europe at XE.com. Wybe’s career has always centered around international business development and managing relationships. Within XE.com both play an important part as globally we XE is the trusted partner of many business in helping them manage & mitigate the risk that is associated with dealing with multiple currencies, be this through simple rate regulation or looking at high level currency risk management & hedging solutions.

We asked him 10 questions. Let’s go!

 

INTERVIEW

1. Can you tell something about XE and its mission?

At Xe, we live currencies. Most people know Xe from the currency converter, however we also provide international money transfer services for business for over 25 years.  Xe’s Business Solutions supports company’s that have an exposure to foreign currency, supporting them to safeguard profit margins and improve cashflow through quantifying the FX risk they face and implementing strategies to mitigate it. So that our clients can focus on their core business and do not have to worry about their FX.

2.What kind of FX risk types exists and how does XE deal with it?

We look within each business to see where the currency risks are, and whether these can be offset. For example, any sales made in Euros could be offset against Euro costs. If there is still an exposure this is where products such as Forward Contracts can be considered in order to provide protection against the risk. Currency risk can be divided into three types: Transactional Risk, when a business deals in a country that differs to their base currency; Transnational Risk, when a business has an asset or liability overseas on their balance sheet, and Economic Risk where a movement in the exchange rate can give a business a competitive advantage when competing for a particular market.

3. How can you measure the different types of FX risk?

FX Risk can either have a negative or positive impact on a business’ bottom line. If you look back over the last 10 years you can understand what the potential impact could be in the most extreme, least extreme and average scenarios over your given timeline.

This can be done by looking at the high & low points of the market and a business’ FX exposure. This step helps companies to understand what the impact of the net exposure can have on the bottom line.

4. What are the most common critical FX problems that businesses have?

Businesses that have a transactional exposure to the currency markets can differentiate between committed and forecasted exposures. A committed exposure is when the price for a good or service in a foreign currency is known and contracted. Therefore, any movement in exchange rate has a direct impact on their profit or cost unless hedged. A forecasted exposure is when a business looks to the period beyond the committed period to see what their requirements may be. Confidence levels into forecasted periods can vary largely and it is normally the case that the further out a business forecasts, the lower the confidence levels.

5. How can businesses protect their bottom line against the currency markets?

There are a number of key stages that a business can look to follow in order to mitigate FX volatility. Firstly, Identify the type of risk, quantify the risk elements, and then look to build a strategy and agree the implementation process. These stages will allow you to decide the products that are most suitable, so you can then move to market timing and execution. Lastly, you should look to review, revise and adjust your approach on a regular basis. It is important to remember that it is not about market speculation but about mitigating your risk.

6. What is, in your perception, the biggest benefit of a working Foreign Exchange strategy?

Given the ever-uncertain world in which we currently live in, finance departments and treasury centres could be looking to build a strategy to deal with currency fluctuations, which over time could have a considerable impact on your company’s bottom line. A structured approach to foreign exchange risk can enable your business to make strategic planning decisions, rather than attempting to respond to day-to-day developments in the market.

7. Do you experience differences in FX before COVID19 and the time we live in now? What are the differences?

There has been significant movements in the currency markets during the Covid19 period and there are still many factors that influence the daily rates. During these uncertain times our clients are looking for certainty and stability. And although price is always important, other key factors like security and credibility became more important. Naturally each of our clients has been impacted very differently and we have worked with them to provide the solutions and flexibility they needed. We have welcomed many new clients from new geographies? as they were growing, and we supported existing clients that were growing or adapting their business models to suit the changing market.

8. The market is always changing, how does XE stay top of mind of the latest developments in the currency world?

We work closely with our clients to continuously understand their needs and adjust accordingly. Our expert Dealers keep a close eye out on the market. Understanding the movements, resistance levels, and key economic & political updates that can influence the market so that our clients do not have to worry about that. Xe also works closely with our sister companies and parent company Euronet Worldwide.

9. How does the future of FX look like in your perspective?

The near future could be set to weather extraordinary levels of balance sheet expansion and recession, potentially leading to a longer stimulative/expansionary monetary policy which could in turn depress currency rates of the countries that bear them. Near to medium term impacts of this could include a lack of major economic expansion as capital returns are often negative when factoring inflation. This may mean that we see a re-composition of FX strength toward commodity-based currencies (CAD/AUD/NZD) and alternative safe havens (CHF). However, we could see this shift in the longer term as public debt, in particular, becomes more tenable and attractive at such low interest rates and could invite broader investment for countries and to a degree private industry.

We have witnessed ample FX market volatility from an increased reliance on a more narrow data core. Inflation and interest rates and also public debt and balance sheet expansion narratives are having the most impact on rate movements. With this in mind; where much of the corrective forces required are formed around policies related to these key issues, it appears that volatility could behere to stay for at least the coming 6-12 months and beyond.

10. What has been your best experience ever in the world of currencies?

Supporting a scale-up with their complex FX requirements and enable them to grow their business in a short period of time by eliminating the FX risk and provide significant costs savings along the way.

 

About XE

At XE, they live currencies. XE provides a comprehensive range of currency services and products, including their Currency Converter, Market Analysis, Currency Data API and quick, easy, secure Money Transfers for individuals and businesses. They leverage technology to deliver these services through their website, mobile apps and over the phone.

Last year, XE helped nearly 300 million people access information about the currencies that matter to them and over 350,000 people used XE to send money overseas. Thousands of businesses relied on XE for information about the currency markets, advice on managing their foreign exchange risk or trusted XE with their business-critical international payments.

International Payments & FX Risk management for business

XE Business Solutions can help safeguard your profit margins and improve cashflow through quantifying the FX risk you face and implementing unique strategies to mitigate it. We provide a comprehensive range of currency services and products to help you access competitive rates with greater control.

At XE, they share the belief that behind every currency exchange, query or transaction is a person or business trying to accomplish something important, so XE works together to develop new and better currency services that put their customers first.

XE is proud to be part of Euronet Worldwide (Nasdaq: EEFT), a global leader in processing secure electronic financial transactions. XE is part of the Money Transfer Division of Euronet and is the unification of HiFX and XE.com.

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