Identity fraud, COVID-19 and the Pivotal role of Digital Identity

16-11-2020 | treasuryXL | Refinitiv |

Financial crime, including identity fraud, is growing as sophisticated criminals exploit the ever-expanding capabilities of emerging technology. The COVID-19 crisis has only served to increase opportunities for criminals to benefit from fear, uncertainty and desperation, but digital identity solutions offer banks and financial institutions (FIs) a chance to fight back.


Financial crime and identity fraud: fueled by the digital revolution

As digital connectivity continues to redefine every aspect of our lives, quick, seamless digital experiences have come to embody our new normal. This digital revolution is being driven by a host of interconnected factors, including a changing regulatory landscape and emerging technology that creates an environment with low barriers to entry. Other factors are also at play, including ever-increasing connectivity between entities, increased cross-border activity, and tech-savvy consumers who demand choice, fairness, flexibility, and an omnichannel experience across all areas of their lives. Consumers accustomed to digital retail experiences expect the same 24/7/365 digital experience in other areas of their lives, such as banking and wealth management. Moreover, they increasingly expect tailored, highly personalized experiences.

The result of enhanced connectivity, convenience and increased consumer engagement is a real need to protect against highly sophisticated financial criminals who are harnessing the same digital capabilities to defraud both organizations and individuals. Put simply, the technological advancements that make our lives easier can also benefit criminals, making it easier for them to commit financial crime. According to the World Economic Forum, fraud and financial crime constitute a trillion-dollar industry, and private companies spent approximately US$8.2 billion on anti-money laundering (AML) controls alone in 2017.

Refinitiv’s own research, presented in our 2019 report, Innovation and the fight against financial crime, confirms that financial crime is indeed pervasive and costly. Our findings were collated from a survey of more than 3000 managers with compliance-related responsibilities at large global organizations. We found that nearly three-quarters (72%) of respondents were aware of financial crime taking place in their global operations during the 12 months preceding the survey, even though the same companies spent an average of 4% of turnover on customer and third-party due diligence checks. Looking specifically at identity fraud, the Federal Bureau of Investigation (FBI) has revealed that synthetic identity fraud – where criminals manufacture a new identity using both legitimate and false information – is the fastest growing crime in the U.S.2

COVID-19 has upped the ant

Following the rapid spread of the epidemic , financial crime has accelerated as criminals have found new opportunities to exploit fear, uncertainty and desperation. The FBI provides various innovative examples relating to how criminals are using COVID-19 to defraud individuals, including government impersonators who aim to extract personal information for illegal purposes. And work-from-home fraud, in which victims are asked to send or move money, effectively becoming money mules and enabling criminals.

Forward-thinking banks and FIs are already beginning to accelerate their existing digital transformation programs to mitigate the higher levels of risk anticipated during and after the pandemic. In particular, we expect a significant uptick in the use of digital onboarding and digital identity solutions as more consumers are forced to transact online as a result of lockdown and social distancing requirements; choose to do so for fear of contracting or spreading the virus; and/or are seeking better security when asked to prove their identity.

Even before the pandemic, many firms were increasingly using digital innovation to fight financial crime, including digital identity solutions in the client identification space. Digital identity solutions offer fast, reliable digital identity verification and screening; transcend geographies; boost operational efficiency; and remove the human error factor. Moreover, digital identity helps financial institutions optimize compliance models, improve risk mitigation and protect customers from identity fraud. As the world grapples with the effects of the pandemic, banks and FIs have a real and immediate opportunity to review their systems and controls, while simultaneously accelerating digital transformation and moving away from old-school manual Know Your Customer (KYC) processes.

The far-reaching effects of identity theft

Organizations across the financial services industry are facing a range of common challenges, including rising competition, tightening margins, strict regulatory expectations, the need for greater operational efficiency, and pressure to reduce costs. There is the added fundamental requirement to ensure that the client experience is positive. Customer abandonment levels remain unacceptably high, with over half (56%) of consumers in the UK abandoning bank applications in 2018. Our research suggests that traditional KYC and due diligence processes – which can be time-consuming, inefficient and costly – have contributed to this.

While firms are increasingly aware of the need to ensure better experiences for clients, they also need to consider the ever-growing security threats such as large-scale data breaches, phishing and social engineering attacks. These crimes have made it easier for fraudsters to assume the identities of legitimate account owners via account takeover fraud. The impact of identity fraud is far-reaching, with victims experiencing both financial and psychological damage that can severely impact their behavior and future brand loyalty.

There is therefore an urgent need for banks and FIs to prioritize customer identity protection alongside the accepted need to ensure a positive experience. Many banks and FIs are not moving fast enough to address this issue – and need to become more aware of the wider social risks of identity fraud.

On a more positive note, a highly encouraging finding from our survey was that technology, including digital identity solutions, is increasingly able to help organizations fight back against financial crime while improving client relationships. A significant 94% of survey respondents agreed that the technology they use to detect financial crime is also enhancing customer engagement.

Digital identity: who can benefit?

Digital identity solutions continue to grow in popularity and offer numerous benefits to different industry participants, including retail banks and wealth managers.

Retail Banking

Retail banks, for example, can benefit from enhanced speed, efficiency and security when using digital onboarding and digital identity solutions during customer account opening, where it is necessary to verify and prove the identity of new customers who apply for new bank products and services. Digital identity is also invaluable for customer re-verification and authentication in instances where existing customers seek to make changes to their personal information.

Wealth management

Turning specifically to the wealth industry, the benefits are equally clear. The wealth arena is operating against a backdrop of unprecedented uncertainty as wealth transfer from baby boomers to millennials brings far-reaching changes to business models, in line with the expectation that a new generation requires new strategies and alternative data.

We commissioned research from global research and advisory firm Aite Group, which collated the findings from executive interviews with leading wealth management firms around the globe. The research found that 100% of respondents consider wealth transfer to be one of their top-three concerns. This report also revealed that financial advisors are becoming less product-focused and more relationship-oriented. As the wealth industry continues to shift away from products and towards services, the role of financial planning is taking center stage in the client/advisor relationship. Advisors are increasingly shifting focus from administrative duties and investment selection to client service. Digital identities can enable the shift of work from financial advisor to less expensive parts of the value chain, enabling them to concentrate on areas of added value.

A strong belief in technology

Our research shows that firms overwhelmingly believe in the power of technology in the fight against corruption: 97% of all respondents in our innovation survey said that technology can significantly help with financial crime prevention. There are of course still challenges in adopting digital solutions – nearly three-quarters (73%) reported concerns or obstacles when harnessing technological advancements to reduce risks and costs.

Respondents revealed that only about half (51%) of the data and legal documentation needed to carry out due diligence is obtained, but creating more difficulties, only 54% of this is in a digitized format. While remedies will take time, the digitization outlook is positive with 60% of organizations prioritizing automation and digitization for investment. Respondents indicated that spending on customer and third-party due diligence checks was expected to increase by 51% in the year following the survey, with technology being the biggest investment area. This data was gathered prior to the onset of COVID-19 and is expected to accelerate further as a result.

Digital identity solutions deliver diverse benefits

Digital identity solutions tick many boxes, including:

  • Faster turnaround times. Using digital identity accelerates the pace of business, benefits all stakeholders, and means that banks and FIs can onboard and service more customers, more efficiently.
  • Improved accuracy. Human error is unavoidable in manual identity procedures, but digital equivalents reduce manual keying errors, ultimately leading to better compliance.
  • Better security. Old school security features, including passwords and knowledge-based authentication (KBA), not only cause high levels of frustration among clients, but are also often unsecure.
  • More streamlined operational costs. Digital identity solutions boost efficiency levels, leading to more optimal deployment of resources and cost savings.
  • A more favorable customer experience. Faster turnaround times, fewer touch points and a seamless digital experience all contribute to higher levels of customer satisfaction.

Refinitiv’s digital identification and verification solution, Qual-ID delivers in each of these areas. Built specifically for FIs, Qual-ID enables secure, digital identity verification and screening to boost compliance team efficiency. The solution focuses exclusively on consumer identity. Qual-ID helps with identity verification, document verification, enables anti-impersonation checks to be performed in a variety of robust yet consumer friendly ways.Qual-ID also leverages our market-leading World-Check Risk Intelligence Database to enable screening for financial crime risk within the same solution.

World-Check delivers accurate and reliable information compiled by hundreds of specialist researchers and analysts across the globe, adhering to the most stringent research guidelines as they collate information from reliable and reputable sources, including watch lists, government records and media searches. Incorporating World-Check capabilities into Qual-ID means that customers can verify identity against trusted sources, proof legal documents and screen for regulatory and financial risk – all in one transaction, via one API.
This unique combination of elements delivers a holistic digital identity and screening solution that assists our clients to comply with their legal and regulatory requirements at the time of onboarding.

Technology’s significant and tangible impact

Only 53% of respondents in our innovation survey confirmed that they conduct KYC checks on client identity during onboarding but worse still, only 46% of these checks are considered successful. While these figures are alarmingly low, our research did reveal that those organizations that use technology are almost twice as successful at performing KYC checks on client identity (47%) as their counterparts who don’t use technology (28%). These findings are a clear indication of the significant, tangible impact that the right technology can have in the client identity space, and ultimately in thwarting financial crime.

What is certain is that the digital transformation will continue to gather momentum – digital commerce is expected to grow globally at more than a 20% CAGR by 2022, reaching nearly US5.8 trillion in value. Alongside this growth, another certainty is that sophisticated criminals will continue to exploit emerging technology to advance their illicit activity, both now and after the COVID-19 pandemic. Forward-thinking banks and FIs must therefore harness the power of the best available technology and solutions to prevent financial crime and protect their customers – and digital identity solutions offer an immediate opportunity for success in this critical area.

Online Open Evening, 19 November: Treasury Management & Corporate Finance by VU Amsterdam

| 12-11-2020 | VU Amsterdam |

Are you up for the next step in your career? Would you like to further develop your knowledge, skills and professional view on this fast changing world?

That’s why we invite you to join our Online Information Session on Thursday, November 19th 2020 from 19.00 – 20.00 hrs. Get inspired by our teachers and programme director and ask your questions during a livestream Zoom session.

REGISTER HERE FOR THE ONLINE INFORMATION SESSION

or

REQUEST THE BROCHURE ON OUR WEBSITE

We are looking forward to welcoming you at Online Information Session.

 

 

 

When Dealing with Foreign Exchange, Don’t Forget About Compliance

12-11-2020 | treasuryXL | XE |

What’s the most common problem in foreign exchange? It may not be glamorous, but one of the most common problems is regulatory delay—and it can have a major impact on your supply chain, cash flow, and relationships with suppliers and customers.

In the previous installments of our blog series on foreign exchange risk management, we’ve discussed several of the most common (and costly) mistakes that businesses make when making international payments and dealing with foreign currencies. Today, we want to take a closer look at regulatory compliance: what it is, what you need to do to be compliant, and what can happen to your business if you don’t take the necessary steps.

What do you need to know?

Financial institutions and other FX providers must comply with strict regulations while conducting foreign exchange transactions on behalf of their customers. Under know-your-customer (KYC) and anti-money laundering (AML) rules, they are required to verify the identities of all the parties they deal with, including the foreign parties with which your business may have contact. Additionally, there are overseas banking details to consider. While bank identifiers in the UK, for example, are standardised around account numbers and sort codes, the equivalents vary from country to country internationally. Depending on where you’re doing business, you may need to deal with data such as international bank account numbers (IBANs) and bank identifier codes (BICs).

The bottom line: your foreign exchange providers will legally require certain information so that they can transact on your behalf, and your business will need robust processes in place to generate said information and ensure that there aren’t any delays in business.

What happens if you don’t have the right policies in place?

Regulatory delay is one of the most common (and expensive) FX problems for businesses. If your business doesn’t know what it needs to do to be compliant and have policies and procedures in place to ensure that all business is up to regulatory standards, then you could see consequences. What’s the most likely outcome? Your payments won’t go through on time. Consider how that could impact your business, your cash flow, your supply chain, and your relationships.

What can an FX provider do?

If you’re not well-versed in everything you have to do to remain compliant while conducting business as usual, a specialist FX provider is the way to go. An FX provider can help you handle the various regulatory requirements and remain compliant in every country that you do business with.

For example, do you have online systems in place to automate data entry and quickly identify mistakes or missing information that may get in the way of your payments being made on time? Does your provider offer simple, easy-to-understand advice on the information you require from foreign counterparties and where to find it? Can you store payment details so you don’t have to keep re-entering them each time a transaction is due (and potentially leave room for human error)?

You don’t need to be an expert on regulatory compliance. However, if your business engages in any degree of foreign exchange, then you will need to pay special attention to regulatory compliance. If you don’t currently have the knowledge or resources to take care of compliance on your own, an FX provider is the way to go to ensure that your business won’t be disrupted by regulatory delay.

Get in touch with XE.com

About XE.com

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

Deciding when to make an international payment and at what rate can be critical. XE Business Solutions work with businesses to protect bottom-line from exchange rate fluctuations, while the currency experts and risk management specialists act as eyes and ears in the market to protect your profits from the world’s volatile currency markets.

Your company money is safe with XE, their NASDAQ listed parent company, Euronet Worldwide Inc., has a multi billion-dollar market capitalization, and an investment grade credit rating. With offices in the UK, Canada, Europe, APAC and North America they have a truly global coverage.

Are you curious to know more about XE?
Maurits Houthoff, senior business development manager at XE.com, is always in for a cup of coffee, mail or call to provide you detailed information.

 

 

Visit XE.com

Visit XE partner page

 

 

 

Ripple Blockchain and Payments Report 2020: from rippling to spreading out

| 11-11-2020 | Carlo de Meijer | treasuryXL

Ripple, the blockchain payments platform, recently launched its third annual “Blockchain in Payments Report 2020: From Adoption to Growth”. The survey that was conducted in the August-September period this year amongst 854 respondents from payment services providers in 22 countries gives us some interesting and positive insights in the global adoption of blockchain-based payments and digital assets. Ripple believes that the COVID-19 pandemic has accelerated positive change in the global payments industry towards accepting blockchain technology.

Present challenges in payments

The respondents in the survey highlighted blockchain’s increasing role in payments. They are nowadays confronted with a number of challenges limiting their growth possibilities, including finding international partnerships, pre-funding accounts, accessing working capital, and building payment technology. According to the respondents blockchain technology could be the solution that would enable payment providers to overcome these challenges.

State of Adoption

The report found that the blockchain industry is in its final phase of adoption. Survey results show that the majority of the survey respondents are adopting blockchain for production use. It shows that 34% of participants are in the production of some solution with blockchain technology. 24% of the participants expect to complete production and move on to a pilot test and a proof-of-concept (POC) within the next two years. The rate of adoption across business types differs slightly, with digital banking/fintech businesses leading. They are followed closely by retail banks, and money transmitter or payment providers.

In emerging markets, 37% of participants are in production to implement blockchain technology. Asia and the Pacific (APAC) is thereby the leading region with 41%, followed by Latin America (LATAM). Emerging markets are recognizing that responsible usage of blockchain and digital assets can “unleash tremendous potential for their economy”. Both will drive greater financial inclusion and economic growth. Mature markets stand to benefit as well.

Use Cases

Of the respondents 59% is in production or near production for blockchain-based payments related use cases. Slightly over one-third of the report’s respondents currently use blockchain technologies for sending or receiving payments for customers.

But a key point revealed by the Ripple report is the diversification in use cases by companies using this technology. The survey showed that blockchain is now scaling beyond just payments. 98% of respondents running a payments blockchain POC have also deployed the technology for non-payments use cases – the most common ones being supply chain management (62% in production) and trade finance (51% in production). This demonstrates that blockchain can be leveraged across the enterprise.

Cross border Payments

Blockchain technology is not just adopted for in-country uses. As blockchain payments solutions continue to solve for many of the pain points related to cross-border payments, adoption has steadily grown. In fact, real-time settlement for cross-border payments is seen as a business necessity for many, as well as in demand by consumers and businesses.

Digital Assets

Another key finding in the report is that digital assets are increasingly being considered for facilitating payments, especially when connected with blockchain technology. As there has been an increase in education and blockchain experience in the industry, both payment providers and consumer confidence in digital assets have risen. Business interest in digital assets has grown sharply as early adopters look to increase the speed in payment settlements. Across the board, the report found openness to more digital asset types whereby various whereby  cryptocurrencies, as well central bank digital currency and stablecoins were considered. Almost all respondents (99%) said that their respective institutions would consider using digital assets to instantly process cross-border payments or as a medium of exchange (up from 94% recorded in 2018).

“Companies view digital assets as a means to accelerate expansion to other countries and currencies. Interestingly, 82% of respondents not yet in pilot or proof-of-concept responded with the second highest interest in leveraging digital assets in cross border payments. Early adopters recorded the highest interest. Respondents are seeing the success of early adopters and looking to kick start their own adoption—with a large majority open to leveraging more digital forms of currency.” Ripple Report

For those making cross-border payments using digital assets, financial inclusion, reduced cash usage and availablity of liquidity are strengths that rank relatively high as well, but still below the transaction features of speed and security that make blockchain so popular for domestic payments.

What is driving adoption?

There were four key benefits mentioned driving blockchain adoption, namely, improved data quality, increased data security, cost savings, and business growth.

For digitally-led businesses, transparency, security and networking are key benefits of adopting digital assets in payments. Those who are not digitally-led especially value factors like speed. Many of these institutions surveyed adopted blockchain technology to increase speed to make cross-border payment transactions (40%), achieve high levels of reliability (27%), improve data transparency and realize long-term operational cost savings (32%). Interestingly, respondents from Latin America stood out by ranking growth as the highest benefit, followed by cost-savings, whereas more mature markets ranked cost savings and data transparency as the greatest benefit of blockchain adoption. Other key contributors to the success of blockchain are a variety of blockchain technology providers that are facilitating easier implementation through APIs, hosted services, and standardization.

Growth drivers

Ripple’s report identified that blockchain adoption is key to successful growth strategies for financial institutions. Nearly half of the respondents have said that they view blockchain technology as the fuel for business growth. Nearly four out of five (79%) of blockchain-based payment businesses reported growth in 2020, despite the impact of COVID. Blockchain solutions continue to scale as businesses introduce new services to existing customer segments or expand existing services into new regions. 44 percent of respondents have said that they have recorded strong business growth in the past year, citing innovation in payment tech as a key growth driver.

Early adopters of blockchain-based payment solutions have witnessed the highest levels of growth year over year. In the past 12 months, early blockchain adopters reported nearly twice as much business growth over other respondents. 45% of survey participants that were processing digital transactions, recorded a large amount of growth. The market opportunity for innovators in fintech/retail banks and those located in emerging markets is quite significant with expectations of strong, continued growth. First movers in blockchain payment adoption and less mature markets are likely to see the most growth going forward according to the report.

Obstacles/Barriers

Among the main obstacles to blockchain adoption, participants mentioned a lack of regulatory clarity, the amount of investment required to implement the technology, and security. This year, the report also revealed that price swings experienced by the top two digital assets (Bitcoin and Ether) influenced respondents’ perception of volatility, which posed an issue. However, the results show that digital assets are increasingly becoming an important part of the development of the blockchain industry especially in emerging markets. Less than half of the respondents in Latin-America and APAC worry about price volatility, possibly these regions use digital assets as a hedge against their own local fiat currency.

Forward Thinking

“What the Blockchain in Payments 2020 report makes abundantly clear is that blockchain is no longer an exotic, emerging technology. It is a mature technology that is being battle-tested and continues to advance, both in terms of use cases and adoption. And if 2020 is any indication, blockchain will play an increasingly vital role in payments in the years to come.” Ripple Report

What is also clear is that blockchain proof of concepts (POC) are becoming a thing of the past. Today, blockchain initiatives are “leap frogging into production, moving swiftly along the adoption curve towards the late majority phase”. Not only is growth indeed possible for blockchain and digital assets initiatives, but familiarity and positive sentiment continue to spread as well, accelerating the adoption growth path.

Ripple is also spreading out!

 

Carlo de Meijer

Economist and researcher

 

 

 

Miltenyi Biotec standardizes corporate payments and bank management with new payments platform

| 10-11-2020 | TIS |

Globally operating biotech company consolidates its banking landscape and creates more transparency and security in finance and international payments with TIS (Treasury Intelligence Solutions).

Walldorf, November 10, 2020. Miltenyi Biotec, headquartered in Bergisch Gladbach, Germany, has selected the TIS payments platform to manage all its bank accounts, bank statements, payments and conduct detailed financial analyses. The decision for TIS was made after thorough market observation. Its usability, high security standards, and effective SAP integration clearly stood out.

Miltenyi Biotec has grown steadily in recent years, especially in international markets. The company was founded in 1989 in Bergisch Gladbach, Germany, and specializes in products and processes for cellular research and cell therapy applications. Today, it has more than 3,000 employees worldwide, with 700 employees in research and clinical development. Miltenyi Biotec distributes its products through direct sales in 28 countries. The company’s ongoing growth, increasing number of affiliates, banking partners and accounts led to a need to standardize the company’s finance processes and to make them more efficient.

Besides accounts and payments consolidation, the company also wanted to make its payment processes more professional. In Germany, payment processes were structured with the Treasury Management System. Internationally, however, subsidiaries and affiliates used SAP and other ERP systems for payments and connected to banks via different online banking tools.

Daniel Pier, Group Leader Treasury at Miltenyi Biotec: “For our renewed banking landscape we looked for a centralized payments platform to make international payments more transparent and secure. With TIS, we can automate and standardize payments and monitor the processes from group treasury whenever necessary. For us, the core value of this solution is to enable us to follow closely the company-wide liquidity status at the push of a button.”

Jörg Wiemer, co-founder and Chief Strategy Officer at TIS: “For fast growing companies, it is especially important to manage resources efficiently and meanwhile also ensure security and transparency in corporate payments and liquidity management. With its effective SAP integration and extensive bank connectivity, TIS offers powerful benefits to its customers. We are happy to welcome Miltenyi Biotec, a leading innovator in biomedical research and cellular therapy, to the TIS community.”

About TIS

TIS (Treasury Intelligence Solutions GmbH), founded in Walldorf, Germany in 2010, is a global leader in managing corporate payments. The Financial Times named TIS as one of “Europe’s Fastest Growing Companies” for 2019 and 2020. Offered as Software-as-a-Service (SaaS), the TIS solution is a comprehensive, highly-scalable, cloud platform for company-wide payments and cash management. The TIS solution has been successfully used for many years in both large and medium-sized companies, including Adecco Group, Hugo Boss, Fresenius, Fugro, Lanxess, OSRAM and QIAGEN. More than 25% of DAX companies are already TIS customers.

Your world of Payments. ONE Login.

https://www.tis.biz

Press contact

Treasury Intelligence Solutions GmbH

Liang Fang

Altrottstrasse 31

69190 Walldorf

Germany

If you want to know more about TIS, visit www.tis.biz

Read the complete press release also here

 

Partner Interview Nomentia | Best-of-breed cash & treasury management solutions

10-11-2020 | treasuryXL | Nomentia |

It has been a crazy year for OpusCapita with a lot of positive changes. OpusCapita recently joined forces with Analyste and merged into Nomentia.

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

AN INTRODUCTION TO…

 

Meet Jukka Sallinen , Deputy CEO at Nomentia.

Jukka is a cash management domain expert with a strong hands-on background from international and complex payment factory and SWIFT projects. Previously Jukka had been working in various R&D roles, focusing on bank and ERP integrations and security topics.

” We are the bridge between finance and treasury ”

 

 

We asked him 9 questions. Let’s go!

INTERVIEW

1. Nomentia, what is the core business and what is its mission??

Our vision is to create solutions that make the life of modern CFO’s and Treasurers easier. We provide best-of-breed cash and treasury solutions that are the bridge between Finance and Treasury. Best-of-breed means that we focus on challenges that matter for modern CFO’s and treasurers to stay ahead of the curve and help their business to prosper.

We solve the challenges that professionals face in their daily work:

End-to-end & total visibility of cash flows is ever important. By visibility we of course mean visibility to cash flows, bank accounts, payments and future cash flows. But today, visibility is also more and more a risk & compliance related challenge. To whom I am going to pay? How do I mitigate the risk of fraud? Another visibility challenge is the whole topic of working capital where cash & liquidity forecasting & analytics solutions will play a role.

While visibility could be classified as internal challenge an example of external challenge Treasurers are facing is financial crime which is globally a trillion-dollar industry. Payment fraud and cybercrime faced by corporates remains significant and growing problem. To fight back corporates are mitigating these risks by harmonizing bank connectivity & payments into a centralized payment hub.

Finally, finance organizations seeking for return of investments from their Treasury or Finance solutions typically look increasing automation and efficiency in financial processes. Automating & harmonizing bank statement processing and accounts receivable reconciliation (automatic matching) holds typically largest savings potential.

By focusing on these challenges that matter to modern CFO and Treasurers, Nomentia is different. Monolithic finance and treasury systems are not quick and flexible enough to face the challenges of today and thus remain largely un-used.

2. OpusCapita recently formed a new company together with Analyste. What was the main reason for this? 

There is a growing need for choosing best-of-breed cloud solutions to solve particular business challenges today’s organizations are facing, which cannot be addressed by traditional monolithic tools. And treasury and finance organizations are no different. We are in a journey to create a leading cloud native cash management company as one.

3. What constitutes this Nordic powerhouse?

We took the best practices of both companies and combined them into one integrated solution for Finance and Treasury professionals. Nowadays, companies need multiple tools and systems. Is anyone convinced that the trend would go backwards? I mean look at your mobile phone. More apps keep coming and we as consumers add more. As business consumers we don’t want to be different, right?

A modern company needs a sales and customer relationship management, marketing automation tools, billing systems, project management tools, HR systems and various business solutions – and Finance & Treasury are no different. Often at some point we fall into the trap of looking for one platform to solve all challenges. But there never will be one, because we cannot possibly know everything a platform needs to solve to adapt in changing business environment. You end up using only small fraction of such monolithic platform with a very high price tag or building very customized solutions.

4.You talk about best-of-breed, what does it mean and what is the customer benefit?

Now, what does this mean for treasury and cash? A one-for-all solution would be a single solution to solve all your finance & treasury & cash management issues. That at least used to be sort of IT’s dream come true. One can clearly see benefits such as having less systems to integrate or less business partners to deal with. Also, commonly heard argument is to claim you would have “all the data at your hand in one place” which often shrinks into a mere sales argument.

While choosing best-of-breed companies can build network of integrated products and solutions. Benefits are often ones like paying and implementing only what you really need, much quicker implementation time and thus quick payback time, more standard features and no customization and vendor locking. Even the integration – a classical tarpit in IT projects – is often surprisingly simple because best of breed providers works very well together

Treasury or Finance is not an island. It is not the treasury that really is changing but the world around it. How companies are purchasing goods, sales are becoming digital, buying journey shifting to marketplaces and technology and software connecting everyone and concerning almost any business will sure keep changing the work that needs to be done by Treasury and Finance teams. Our claim is that networks and best-of-breed is more adapted to change.

5. How does the customer journey look like from start till end? And how long does a project take?

This really depends on the customers and their needs and how their internal processes look as well. We adjust to our customers’ needs.

6. Can you give us an outlook on the product developments that are scheduled?

The most important achievement is that we’ve now released our first versions from next generation Nomentia products that are based on a modern cloud architecture. We have been working on for the last four to five years to come up with the next generation – which is by the way already fifth generation if we look how our products have evolved from 80’s. Our customers should expect a whole new user experience from all our applications as many modules have not only got a completely new front end in HTML5 but a backend and business logic as well.

One of the new developments our customers should be looking carefully is that we are bringing better productized analytics capabilities to our next generation product as we speak. With analytics capabilities we mean payment behavior analytics and statistics, performance analysis and working capital related key performance indicators.

7. What has been your best experience in your career at OpusCapita, now Nomentia?

Next spring shall mark me already fifteen years in the company. Both OpusCapita and Analyste had gone such an exciting journey first as an independent company and then as part of larger enterprises, and finally again independent but together. It’s hard for me to rank all the memories I’ve collected with such a fantastic team and individuals that have participated into this journey. However, I still do remember with warmth some of the early development projects that helped us to become more international, such as joining to SWIFT Lite 2 program as global early adopters in 2013. And of course, winning the hearts of first global customers for the new service back then.

I’ve always got inspiration from challenging projects, working with new technology, and working to productize something that no one has done before. I feel that our employees at Nomentia are in a privileged position, since we work with such an exciting customer base and deliver software for so critical processes.

8. What has been the biggest success story of OpusCapita, now Nomentia, so far?

Although both Analyste and OpusCapita  have their roots in early 80’s we’re truly living the moments of biggest success right now. The company has never been filled with such a talented people, have such great solutions, and finally a market position to grow and create a European (or rather global) Fintech success story.

9. The year is 2025, what have been the OpusCapita/Nomentia successes over the last years?

The world of CFO and Treasurer is changing probably faster than never. Our five-year plan is obviously to grow significantly, which means double-digit revenue growth year-on-year. Much of our growth comes from international markets where I would expect us to cement our positions in several new markets as a viable and market leading choice of a modern CFO.

We will be significantly larger and stronger European Fintech company than we are today. When it comes to successes, I believe it is all about the journey rather than single events. We must work hard every day to win our customers hearts, and to have an atmosphere where employees find it exciting to wake up every Monday and be a part of our success story. Work hard, learn something new every day, and do it with a smile, and the journey will reward you.

 

Which funding will be best for Entrepreneur Bert? (dutch item)

| 09-11-2020 | Stichting MKB Financiering | treasuryXL

Ben je ondernemer met plannen en ideeën? Wil je uitbreiden, groeien, investeren? Wat let je? Goede plannen verdienen het om uitgevoerd te worden. Immers, een goed plan levert rendement op. Je weet precies wat je wil en je weet wat het effect zal zijn van de investeringen. Nog één ding even regelen: de financiering. Want de vraag is: krijg je de financiering rond en zo ja bij welke geldverstrekker en tegen welke voorwaarden? En hoe belangrijk is de prijs?


Wat is de best passende financiering?

Ondernemers met een financieringsvraag doen er goed aan om tijd en rust te nemen om naast de goede investeringsbeslissing óók de beste financieringsbeslissing te nemen. De vraag is: wat is de best passende financiering? We zijn gemakkelijk geneigd te kijken naar de prijs, maar is dat het beste beslissingscriterium?

De context bepaalt

Een voorbeeld, je wilt een fiets kopen, splinternieuw. Je hebt de keuze uit twee modellen: model I is een stadsfiets van € 950, model II is een tourfiets van € 3.450. Welke kies je? Zonder nadere specificatie is die keuze niet te maken. Het maakt nogal verschil of je de fiets 1x per week gebruikt om wat boodschappen te halen, of dat je dagelijks 30 km naar je werk op en neer fietst. De modellen I en II zijn beide een fiets, maar als product zijn de verschillen groot. De context bepaalt mede welke fiets je koopt en welk bedrag je uiteindelijk besteedt.

Prijs alleen is niet belangrijk

Bij het aantrekken van een lening is dat niet anders. Het verschil van aanbieders vertaalt zich niet alleen in de prijs (de te betalen rente), maar ook in bedrag, looptijd, voorwaarden, zekerheden en snelheid van proces.

Kijk ook naar de voorwaarden

Een voorbeeld: Bert heeft de keuze uit twee leningen van € 500.000. Financier I vraagt 3,5% rente, Financier II vraagt 6,5% rente. Waarom zou Bert überhaupt de dure lening II overwegen? We kijken naar de voorwaarden:

Lening I Lening II
Hoofdsom € 500.000 € 500.000
Rente 3,5% 6,5%
Aflossing 60 maanden 60 maanden
Vervroegd aflossen Boeterente Boetevrij
Zekerheden Verpanding inventaris
Verpanding voorraad
Verpanding debiteuren
Verpanding creditgelden
Medeschuldenaar: holding Bert
Borgstelling: Bert privé  € 125.000		 Geen zekerheden
Duur aanvraagprocedure 7 weken 1 week

Bij Lening I zijn Bert, zijn Holding en de werkmaatschappij met handen en voeten gebonden. Als het ooit fout loopt, is hij privé aansprakelijk en zal ok zijn personal Holding worden aangesproken. Bij Lening II betaalt hij wel meer rente, maar daar staat tegenover dat hij persoonlijk geen enkel risico loopt. Voor de “afkoop” van dat persoonlijk risico betaalt hij een premie van 3% extra rente. Is het dat waard?

Keuze van financiering is persoonlijk 

Dat is een persoonlijke afweging. Een gevoelsmatige afweging. Dát is de context waarbinnen een ondernemer een financieringsbeslissing neemt. Voor Bert was de keuze eenvoudig: rust en vrijheid zijn hem extra rente waard. Lening I is in feite een volstrekt ander product als lening II. Een ander product heeft een andere prijs, net zoals bij het eerdere voorbeeld van de fietsen. Bert kan zich de luxe van Lening II veroorloven.

 

Bron

Cashforce webinars on hot Treasury Topics | Anytime, Anyplace, and Anywhere

| 09-11-2020 | Cashforce

Cashforce is a smart cash flow management and cash flow forecasting platform for working capital intensive businesses. Cashforce is unique because it offers full transparency into what exactly drives the cash flow of complex. Over the past months, Cashforce has presented a few interesting Webinars on the following topics:

  • Working Capital Management
  • Treasury
  • Artificial Intelligence & Cash Forecasting
  • Supply Chain Management

Missed these Webinars? Don’t Worry.

Here is your opportunity to watch all these recordings:

✈️ Working Capital Management – Navigating Your Company Towards Brighter Skies 

? How Treasury Is Dealing with The New Normal 

☕️ Coffee & Algorithms: An AI-powered Cash Forecasting

? Building a Resilient Supply Chain 

 

Make sure to subscribe to their NextGen newsletter ? as well to stay informed on their new platform? and upcoming events: https://lnkd.in/dbCiCmQ

What is remittance?

05-11-2020 | treasuryXL | XE |

Remittance payments, which are essentially sending money home, are easier than ever when you choose Xe.

In a nutshell, payment remittances are expatriates sending part or all of their foreign wages to friends or family back home. Technically, remittance can be defined as any such payments, whether or not the money crosses an international border. But in almost all cases, when people talk about money remittances, they are talking about financial transfers, usually wages, from a developed country to a developing country.

Many people are surprised to learn that developing nations receive more capital from money remittances than from any other source. For example, in 2018, low- and middle-income countries received about $345 billion USD in foreign aid and foreign investment. Financial remittances to these countries exceeded $525 billion USD.

Most of these remittances were transfers to individuals. Many countries, most notably India, China, and the Philippines, have large overseas diasporas. Additionally, many companies have more international connections than ever, making remittances more common.

When you choose a remittance of funds provider, convenience, cost, and security are usually the three most important factors. Xe remittances feature all these things. Our online portal, which features bank-grade security, is available to account-holders 24/7/365. Furthermore, we do not charge additional fees for many electronic transfers to one of the 130+ countries we are connected to.

What should you know about remittances?

The aforementioned convenience is the biggest remittance pro. Many transfers require only a few minutes. Additionally, the currency transfer is usually seamless. The sender transfers native currency, and the recipients usually gets the funds in native currency.

Largely because of the high volume of remittance transfers, there are occasionally calls for better regulation. Since many international transfers are under the radar, remittances are a popular tool for money launderers and terrorist financiers. For these reasons, FinTech companies like Xe keep a close eye on transfers to multiple different recipients or transfers to organizations instead of individuals.

On a related note, many people send money to groups, or join groups, which have hidden sinister agendas. Technically, these links run afoul of American and international laws and standards. But if your affiliation is tied to one specific aspect of that group, such as its support for refugees, you are typically okay.

High fees for small transfers are an issue as well. The average provider charges over 7 percent for transfers of $200 or less. That’s significantly higher than the average fee for larger transfers. Low income families are very vulnerable in this area. Seven cents out of every dollar is not much for wealthy families, but could be a week’s worth of gasoline for a poor family.

In addition to the fee, many countries directly tax remittance payments. These rules obviously vary significantly in different places. Additionally, even if the remittance is a gift, it is normally taxable income.

Understanding the Terms and Conditions

We won’t deny it: financial language can get a little dry. Frequently, remittance transfer agreements involve so much technical jargon that they appear to be in a different language. Here are some common remittance terms and what they mean:

  • ABA Number

    All American banks, and most foreign banks, have nine digit codes used in electronic transfers. If you do not know the ABA number, a/k/a the routing number, ask Google. You might also need your account number, and if you don’t know that, you’ll probably need to visit a branch in person.

  • AML

    As mentioned, money laundering is a serious problem in this area. So, many institutions have Anti Money Laundering protocols. These protocols usually involve transfer limits and transaction verification.

  • KYC

    Similarly, many institutions have Know Your Customer protocols. Common KYC items include text message verification, username/password authentication, and security questions, like your mother’s maiden name.

  • Recall

    If you transfer funds in error, it’s technically possible to cancel the transaction and retrieve the money. But the process is complex and there are no guarantees. So it’s best to get it right the first time.

The more comfortable you are with the lingo, the easier it is to send a remittance abroad.

How to send a remittance

Cash pickup, usually through a company like Western Union, electronic transfers, usually through a FinTech like Xe, and bank transfers are the most common forms of remittance payments.

In terms of the infrastructure, most remittances use Society for Worldwide International Financial Telecommunication (SWIFT) or Electronic Funds Transfer (EFT). Most cash and bank transfers use the SWIFT network. These transfers often involve a third party. These third parties do not work for free, so the fee could be higher. Xe and other online institutions normally use EFT transfers. Generally, these transfers are much more direct.

Cash pickup is usually the fastest and cheapest way to remit money overseas. It’s also the most cumbersome and least convenient way. Most recipients can only use cash for some in-person transactions. And, transferees must always travel somewhere to receive their money. On the other hand, bank transfers are extremely convenient. However, they are only available to certain people.

On the plus side, cash and bank transfers normally accept many different payment methods, such as cash, credit/debit card, cash, money order, wire transfer, or even personal check. These options normally require face-to-face transfers, as such payment methods are difficult or impossible to use online.

Xe remittances essentially combine the low cost and fast speed of cash transfers with the convenience of bank transfers. That combination makes Xe an excellent way to send money overseas.

 

Get in touch with XE.com

About XE.com

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

Deciding when to make an international payment and at what rate can be critical. XE Business Solutions work with businesses to protect bottom-line from exchange rate fluctuations, while the currency experts and risk management specialists act as eyes and ears in the market to protect your profits from the world’s volatile currency markets.

Your company money is safe with XE, their NASDAQ listed parent company, Euronet Worldwide Inc., has a multi billion-dollar market capitalization, and an investment grade credit rating. With offices in the UK, Canada, Europe, APAC and North America they have a truly global coverage.

Are you curious to know more about XE?
Maurits Houthoff, senior business development manager at XE.com, is always in for a cup of coffee, mail or call to provide you detailed information.

 

 

Visit XE.com

Visit XE partner page

 

 

 

treasuryXL announces collaboration with Treasury Delta

| 5-11-2020 | treasuryXL | Treasury Delta | VENLO, The Netherlands, November 5, 2020 – treasuryXL, the community platform for everyone who is active in the world of treasury, and Treasury Delta, an Irish FinTech company, which has brought to market an innovative platform that uses digital technology to connect companies, banks and treasury management […]

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