Blockchain and European payments: banks in the defensive mode

| 14-04-2020 | Carlo de Meijer | treasuryXL

The European Banking Federation (EBF), the European Association of Co-operative Banks (EACB) and the European Savings and Retail Banking Group (ESBG) point out that the crisis has brought to the fore the importance of well-functioning payments services.

The three groups have put together their vision for payments in the EU over the next five years, as they “seek to meet changes sparked by a mix of evolving customer needs, regulatory action, technology and innovation, and increased competition”.

Top of the list of priorities is the importance of developing instant payments across the EU that allows for both the differentiation of EU companies and the reduction of dependency on the dominant non-EU payment card schemes.

But reading the document not one single word was mentioned about using  blockchain or distributed ledger technology. It seems banks are increasingly getting in the defensive mode worrying the disruptive impact of this technology on their business.

Some critical remarks

Looking into the report the focus is rather limited. It shows a rather isolated EU-oriented view. It does not take into account the new realities such as globalisation of the payments world, the upcoming of new technologies and the global role of organisations  such as Visa and MasterCard, but also the likes of Facebook and Google.
It is too much EU but above all too much euro-area focused, while not taking into account the cross border element especially towards non-euro EU countries.
The report also does not go into more detail towards the various technologies including Big Data, Artificial Intelligence and above all blockchain.

Present state of EU payments market

But let us first look at the present state of the EU payments market. And what blockchain could mean to improve. As EU banks you cannot deny the outside world. I agree, most European domestic payment systems are pretty efficient. But not where one has to transfer money cross-border, especially where it relates to non-euro countries.

Most established centralised payment systems were designed decades ago, in a completely different world. While they are considered to be reliant, secure and stable domestically i.e. inside individual EU countries, these centralized systems have not been able to catch up with the needs of our digital, open and hyper-connected world.

Banks have continued to use the old-style correspondent banking systems for international payments – despite their inherent weaknesses. Notably, these systems are expensive, slow, and complex. In the correspondent banking system, both the originating bank and the foreign bank retain their own ledgers, from which they make reconciliations and settlements. This may lead to a lack of transparency, but also make them vulnerable for hacks.

According to a SWIFT and EuroFinance joint survey, lack of payments traceability, invisibility on banking fees, and amount discrepancies are the key concerns in cross border payments. It can take days to clear traditional cross-border wire payments, which carry fees as high as 10%. According to a McKinsey Research, cross border-payments take 3–5 days, which is quite long for corporates seeking to receive money. In the event of a dispute or investigation, the duration can be longer.

Disruption

New technologies are revolutionizing the way we pay and transfer money all over the globe. With the advent of mobile banking, e-commerce, and digital wallets, banks have to rethink their correspondent banking system of making cross-border payments. Blockchain is another area that – if adopted in a more massive way – could majorly transform the global payment systems and disrupt banks, causing them to realign  or rethink their products.

SWIFT defensive stance

So it is not that strange banks are increasingly in the defensive. SWIFT is still the dominant payment-processing ecosystem with more than 11,000 banks. Blockchain, through its distributed ledger, however may disrupt SWIFT’s operations in the future. To neutralize the rapid adoption of blockchain in the cross-border payments industry, SWIFT developed a cloud solution called Global Payments Innovation (gpi) to connect all clients in the payment chain. Currently, gpi accounts for more than 55 percent of SWIFT cross-border payments. Half of these transactions are reaching the recipients within minutes, but all of them within 24 hours.

Although SWIFT plans to rely on common standards, core architecture, and APIs to be a leader in the industry, it is also slowly embracing blockchain technology. SWIFT has launched a proof-of-concept (PoC) trial with R3′s Corda platform, which is blockchain-powered, to initiate payments that then go to gpi.

How can blockchain improve payments?

Though blockchain is still in its early stages, this technology has a number of inherent characteristics  presenting a fundamentally new way to transfer information and value over digital networks.

This technology could play a huge and central role in payments, underpinning core market infrastructure as well as end-user products, as a source of efficiency, innovation and competitive advantage.

As it is slowly maturing, blockchain technology could gain the trust of banking institutions and adopted widely in the coming years. From large banks and enterprises optimizing global liquidity, to retail stores accepting payment in digital currencies, to new forms of customer identification for retail transactions, blockchain could permeat the payments landscape at an accelerated space.

New forms of payment rails could “blur the lines” between currencies and countries, while cryptography solutions like zero knowledge proof could shift paradigms in areas such as identity, compliance and data privacy.

What are the real benefits?

Blockchain is a promising technology for payment processing. The broad implications for payments, especially improving settlements’ times, removing the middleman and security of cross-border transactions are hard to ignore.

The ability to speed up the payments process, improve capabilities when it comes to cross-border payments, reducing fraud by using smart contracts and making the whole payment processes more efficient and transparent are all elements that may impact its future potential and use.

Efficiency

Blockchain’s primary feature is its efficiency. Because the core idea of a decentralised ledger technology (DLT) is to forego centralised institutions, paying on a blockchain is “as easy as clicking send.”  The distributed ledger facilitates the bilateral, immutable distribution of value with the assistance of a settlement agency. Blockchain, allows the sender and the receiver, as nodes in the network, to have a complete copy of the ledger. In such a scenario, there are no correspondent banks/intermediaries involved, eliminating any chances of manipulation. The results are no money transfer waiting periods or unnecessary third-party processing fees. Blockchain-based cryptocurrencies can be transferred (and recorded for auditing purposes) instantaneously across the world, increasing liquidity and efficiency in the markets.

Security/Safety

Another important feature of blockchain technology is safety. Blockchain allows for the safe transfer of money between different individuals, currencies and countries by securing all transactions on the network with cryptography. The crux of many of its purported benefits for the enterprise is its decentralized nature, which promotes visibility and makes it more difficult for data to be manipulated. The transactions are linked with previous transactions and are distributed to all the participants in the network. For a hacker to tamper with any transaction, he/she must alter all the previous ones, which is (almost) impossible. Additionally, the use of blockchain smart contracts can halt payments when agreed terms are violated.

Cost reduction

And blockchain may support real-time domestic and cross-border payments at lower costs compared to traditional payment services. Blockchain technology completely eliminates the need for intermediaries and facilitate a direct transfer over the platform, thereby eliminating foreign exchange fees while increasing speed of transfer. Instead of incurring these fees, blockchain allows customers to pay only a nominal fee or sometimes no fee at all.

The present state of blockchain adoption in payments

Of course, blockchain technology is still in their early ages and largely still immature. Blockchain payments are not (yet) mainstream and many banks and payment service providers are just testing it, trying to combine the so-called old monetary system with the new one (blockchain solution based values or solutions). Most institutions are still reluctant to embrace blockchain fully until there is broader support for it.

But what about Ripple?

A leading player in the blockchain payment world is Ripple. Its RippleNet blockchain platform facilitates transaction of global payments at a rapid speed, allows users (mostly small business) make payments across the globe and send and receive money in local currency, requiring lower capital amounts for cross-border payments. The company’s ledger technology secures, tracks and reconciles payments, so small businesses have a transparent history of all incoming and outgoing payments.

RippleNet has a product called xRapid, that is already providing low-cost liquidity to financial institutions responsible for facilitating cross-border payments. xRapid can facilitate the process without relying on mandatory pre-funded nostro accounts, as is the case in a correspondent banking system for the execution of cross-border payments, thereby lowering the cost of cross-border transactions. As a result, the transactions occur in a matter of minutes, saving time on recipients.

Currently, the network of banks and commercial platforms has grown to 365, and they are now able to resolve problems that delayed cross-border payments, such as missing data and compliance checks. As more banks join the network, payment delays will reduce importantly.

The Ripple payment system is still in strong competition with SWIFT but is super-fast and can settle a cross border transaction in a matter of few seconds where SWIFT takes more than 3 days at times. Ripple is much more cost effective as well.

Along with this also blockchain platform Corda R3 is helping financial institutions to settle payments.

From hype to more realism

The excitement about blockchain has subsided over the last couple of years. The blockchain hype is over and we are now in the trough of disillusionment, according to Garner’s Hypecycle. Lots of experiments and R&Ds have been taken place from start-ups to central banks, however no full scale working use case has been presented at the moment.

We now moved into a stage of “rational practicality”. However, that is not all bad for the further development of blockchain, as “in the trough is where the real work gets done”. The industry knows what is possible, but also is learning what is practical given the complexity of cross-border payments. Blockchain — assuming it is attached to relevant, pragmatic use cases — can add incremental value to a business or other organization.

Regulatory barriers

One of the primary barriers is the complex global regulatory framework surrounding money and its underlying infrastructure. Central banks, governments and regulatory bodies around the world have varying perspectives and attitudes towards blockchain and its implications to critical matters such as money supply, privacy and financial crime.

As a result, most payment-related innovations either get trapped in ‘proof-of-concept’ mode with limited options for global scale, or end up buried in complicated cross-jurisdiction approval processes. The question now is not will blockchain work, but rather how do we put it to work to create more efficiency in global payment systems and can we get regulatory bodies on-board.

What should banks do?

Inevitably, banks will have to re-evaluate and revamp their existing payment systems to meet the needs of their customers with or without blockchain. However, it is increasingly clear that the scale seems to be tipping towards blockchain given the various benefits including its transparency, speed, and cost of transactions. In the realm of cross-border payments, some financial institutions are already working with blockchain providers to give their customers fast, secure, and cheap services.

When applied correctly, it has the ability to significantly change the way organizations do business with one another. As the global payments ecosystem continues to transform in response to a rapidly shifting commerce landscape, we may see the number of blockchain applications in payments exponentially growing.

A growing number of financial institutions world-wide have reached the point where they recognize blockchain as something that’s not going away and realize that they have to be involved in it if they don’t want to be disrupted by other payments players that use blockchain to bypass slower-moving banking infrastructure.

So, European banks, if you can’t beat them, join them.

By the way, a joint effort of ECB and European banks in creating a European digital currency would be a great step forward.

 

 

Carlo de Meijer

Economist and researcher

 

 

 

 

Source

LIVE DEMO: Centralized Cash Visibility

| 10-4-2020 | treasuryXL | OpusCapita |

We are excited to announce that our Partner OpusCapita, is organizing a Live Demo: Centralized Cash Visibility, which highlights the use of management tools that enable you to easily manage your liquidity.

The Live Demo takes place on May 12th, at 13:00 CEST / 14:00 EEST and takes 30 minutes.

OpusCapita believes seeing is believing! In this live demo, they show you how their dashboards enable you to easily manage missing statements or get a quick overview of your cash positions in certain banks, business divisions, companies or bank accounts. With their flexible reporting tool, you can build reports with drag and drop-functionality to meet your reporting needs. With their hierarchy-settings design, you can create your own structures of bank accounts, cash-pools and mix of companies to enable a fully customized visualization of cash positions.

In this live demo, the following topics are covered:

  • Dashboards: How to set up Balance Tracker gadgets for monitoring the bank account statement imports
  • Liquidity Reports: How to build the most commonly used Cash Visibility reports using different dimensions (currency, cashpool, company, business division etc)
  • Hierarchies: How to create and manage bank account and company hierarchies for report purposes
  • How to collect your favorite Cash Visibility Reports in a Dashboard

Who should attend:

This webinar is for treasury professionals who are looking for new ways to take their liquidity management forward.

Presenter:

KARL-HENRIK SUNDBERG
Presales Executive Lead at OpusCapita

Karl-Henrik has a background from CM in Transaction Banking followed by 6 years as head of Cash Management at a Corporate Treasury. As CM Presales in OpusCapita he is involved in sales, RFPs, product demos and product development of the next generation Cash Management modules.

Registration, date and time

  • To register, fill out this form.
  • Date: May 12th
  • Start: 13:00 CEST / 14:00 EEST
  • Duration: 30 minutes.

About OpusCapita

OpusCapita enables organizations to buy and pay quickly and securely, with a real-time view of their business. OpusCapita customers use their source-to-pay and cash management solutions to connect, transact and grow. OpusCapita processes over 100 million electronic transactions annually on its Business Network.

Visit OpusCapita

Visit Partner Page

Read Customer Success Stories

What are my International Money Transfer Options?

09-04-2020 | treasuryXL | XE |

When you break it down, all money transfers follow the same core process:

  1. You select your currencies and get your rate,
  2. You provide your information and that of the recipient,
  3. We facilitate the transfer.

However, they aren’t all created equal! Where they differ is when you pay and when the transfer goes out. Depending on why you’re making your transfer and whether you have any time constraints, one type of transfer could suit you better than others.

We’ll start by discussing these three transfer methods:

  1. Spot transfers
  2. Forwards
  3. Market orders

Let’s take a closer look at what these transfers are and when they’d be best utilized.

Spot Transfers

If you just want to make a quick, “on the spot” transfer, you can immediately do so through our spot transfers. You can buy now, pay now, and get your transfer taken care of ASAP. There’s nothing that will affect the transfer process.

When would I use this? Any time you need to make a quick, one-off payment or transfer, and you know you’re ready to send. If your transfer needs are more complex, one of the next two options might be better for you.

Forward Contracts

You’ve got a dilemma. You’ve checked the currency conversion charts, and the rate is in your favor for your transfer—but you’re not quite ready to take the plunge and initiate the transfer. Maybe you’re still building up your savings, maybe you’re still finalizing the details of your upcoming purchase, or maybe you’re concerned about potential fluctuations in your chosen currency.

A forward contract will let you lock in your rate now, even if you aren’t planning on making your purchase just yet. You’d just pay a small deposit now, and the bulk of your payment at a future date.

When would I use this? If you’ve got a big purchase to make, like property or another investment, and you want to make sure you’ll have a great rate.

Market Orders

Let’s flip the last scenario around. You know you want to make a transfer, but you’re not happy with the current exchange rate. Instead of putting your transfer on hold completely, set up your future transfer now with a market order. Specify your currency amounts and desired rate, and the transfer will initiate once that rate is live.

When would I use this? Got time to spare for your transfer? Making a transfer to or from a more volatile currency? Market orders are ideal for those of you seeking the best possible rate, while time is less of a factor.

What about those other transfer types?

If you’ve been researching money transfer, you might be thinking, “Those aren’t the only types of transfer. Why aren’t you mentioning the other types?”

The three transfers described above are all forms of international money transfer that you can easily make on our platform. These other transfers will move your money to another person, but they differ in whether they’re international or domestic, whether there’s any restrictions on the amount you can transfer, and whether they come with an additional fee.

For example, you may have heard about the following:

  • Bank transfer – This refers to any money transfer that is done through a bank. Banks are trustworthy and reliable, but because they utilize the SWIFT network, bank transfers come with numerous additional fees.
  • Wire transfer – One of the oldest and most widely known varieties of domestic and international money transfer, wire transfer allows you to electronically send funds to another person through banks or other wire transfer providers. Wire transfers go through networks such as the SWIFT network, so while they are speedy and secure, they often come with added fees.
  • Money order – This is a paper document that’s used for making payments, not unlike a check. The main difference is that you specify who will receive the money order and how much they will receive, and both you and the recipient must sign for the order. Money orders are a secure way to make domestic and international payments, but they often have a limit of $1000 per order.
  • Cashier’s check – Like money orders, cashier’s checks are a slightly more secure alternative to regular checks. Unlike money orders, you can make larger payments with cashier’s checks, and many people use them to make a down payment, put down a deposit, or purchase high-cost items like cars or boats. Cashier’s checks function by taking the check amount from the paying individual’s account and depositing it into the bank’s account, and then creating a check that draws directly from the bank or institution. The recipient is guaranteed to receive their money, and transactions can settle quickly.
  • ACH payment – Also known as an ACH transfer, this is a direct deposit transfer that is processed within the United States through the Automated Clearing House (ACH) network. While they are quick and easy to manage, they are largely domestic, and would not be the best option for anyone with international transfer needs.
  • Balance transfer – This one’s a bit of a trick—balance transfers aren’t really money transfers. In a balance transfer, you’re transferring outstanding debt on one credit card to a new or different card, typically one with a lower interest rate or other benefits.

How do these other methods compare to Xe money transfer?

Now that you know a bit more about the various types of money transfer, you might be considering what would best suit your money transfer needs.

Here are some of the most important considerations when making a transfer:

  • Speed. Bank, wire, and other transfer types could be delayed by limited hours or holidays. Most online money transfers are completed within the day, and can be initiated 24/7/365.
  • Fees. Banks and other providers will often charge additional fees on top of the initial transfer fee. These fees can add up! When you make an online money transfer, you can trust that you won’t encounter any surprise fees after confirming your transfer.
  • Location & Currency. Not all of the methods listed above facilitate international transfers, or they may not transfer to your country or currency of choice. We conduct transfers to 170 countries in every major world currency.
  • Rates. Not every institution calculates their rates the same way. Our rates come from the live markets and are accurate to the minute, while other institutions may use rates more in their favor than yours.

Now that you know a little bit more about your options, you can choose the type of transfer that best fits you and your needs.

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 multibillion-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

 

 

 

Source

5 reasons why the most qualified candidate does not get the job

08-04-2020 | Treasurer Search | treasuryXL

Kim Vercoulen is recruitment consultant specialized in treasury vacancies for interim and permanent positions. As a recruitment consultant she often experience that the most qualified candidate does not get the job. In her blog below she gives 5 reasons why the ‘perfect match’ is not a matter of course… enjoy!

You may have been in the situation yourself that you read a job description where you find that the requirements match your experience for (almost) 100%.  You get invited for one or two interviews, you think it went great and expect positive feedback. But then.. You receive the call that they will propose an offer to another candidate. You are puzzled and don’t know what you could have done more. As a recruiter I have seen this situation and in this article I will discuss 5 reasons why the best qualified candidate does not always get hired.

1. Interview skills

For starters, getting a job takes a different skill set than doing the job. I see so many jobseekers focused on their previous experience in the field, which of course also is necessary, but getting the job requires you to practise other skills you might not have used in a long time. Skills like how to interview, network and negotiate. Recognize that these are skills that need practice. In a previous article we wrote we give you tips on how to prepare. You can also find a lot of helpful interview tips on the internet.

2. Socially desirable answering

One thing we also see is that people often give socially desirable answers in an interview. They give the answers they think the recruiter wants to hear. This gives the recruiter an unnatural impression and can hurt your credibility. In interviews the feeling you leave your conversational partner with plays a big role, you can imagine that only giving socially desirable answers does not leave them with a good feeling about the interview. They might think you are hiding your true self. That’s why it’s always better too keep your answers honest and authentic.

3. No match with company culture

You can be the perfect candidate on paper but in real life not fit in with the company culture. This could feel as unfair, but for both parties (candidate and company) this is very important in order to make a long lasting match. When you don’t feel at home you will be simply less enthusiastic, less motivated, less productive and will likely end up leaving the company sooner.

4. Lack of enthusiasm

Sometimes we receive feedback from our clients that they think the candidate could do the job very well, but that they did not feel that the candidate was enthusiastic about the company and the job. Do not assume that just because you applied it signals that you want the job. Make sure your verbal as well as your non-verbal communication shows how much you want to be hired. In the end we see that in most cases an employer will pick the enthusiastic though less qualified candidate over the more qualified but tepid candidate. So do not be afraid to explicitly state your enthusiasm for the job.

5. Unrealistic salary indication

Our clients always ask us to introduce candidates with a salary indication to make sure this will not become a dealbreaker in the end of the process. We sometimes speak to candidates who do not know their market value and ask for a too high (or too low) salary based on the market rate. Going too low can lead to underestimation and can result in employers thinking you might not be up for the task, while aiming too high can result in not getting the job because they can’t afford you. Make sure you know your worth before starting with applying by studying vacancies and using online tools. You can always consult us too, we have a good view on the treasury market and can help you with setting a realistic salary indication.

Take advantage with the Treasurer Test

Treasurer Test is the assessment tool for treasurers and it’s integrated in our services. With the Treasurer Test result report you can show your treasury skills at a glance next to your cv and motivation.

Find more info about the Treasurer Test here.

Take a deeper dive into how we integrated the Treasurer Test in our services here.

Author

Kim Vercoulen

 

T: (0850) 866 798
M: (06) 2467 9339
E: [email protected]

How to Recognize and Avoid Online Fraud Attempts

02-04-2020 | treasuryXL | XE |

It’s safe to say that we all have a lot on our minds right now. Unfortunately, whenever there’s a situation that causes people to feel uneasy and panicked, there will be fraudsters and criminals who take advantage.

We have recently seen a surge in demand for our services, and in that surge there have also been vulnerable customers that have been manipulated by opportunists. In addition, the recent uptick in fully remote and online work has also opened doors for online scam and fraud attempts.

At XE, keeping our customers and their personal information safe is our greatest priority. We want to help you to protect yourself from fraud attempts. Take a few minutes to familiarize yourself with some of the most common online scams, and read through our tips to keep yourself and your loved ones safe from fraudulent activity.

Phishing emails

Last year, Microsoft reported that phishing attacks were the greatest online security threat by far, having increased by 250 percent since their previous report.

Usually coming by email, these attacks encourage you to click on a link or attachment and download malicious software, which attacks your device and hacks access to your files. You may also receive an email from someone posing as a trusted figure (such as your employer or a reputable company) and asking you to provide sensitive information.

How to handle these: Verify everything. Reach out to the sender or the company and confirm that this email did come from them. It takes just a few moments, but it can have a huge impact.

Banking and online account scams

Take extra caution when reading an email from a bank. Many scammers send emails or texts that appear to be sent from your bank, highlighting a problem with your account. Often, they will request a verification of your details to resolve the problem. Once they have your details…you can imagine the rest.

How to handle these: Call your bank directly to clarify the issue. Never submit your personal details to this email, or to any email. Most reputable providers will not ask you for sensitive information over email, so that should be an immediate red flag.

Online shopping scams

Online shopping was already on the rise, and now that people are taking the majority of their shopping online, scams in this area have become more prevalent. Scams include selling faulty products, attempting to sell a product to gain bank details, and promising goods at a low price (only for those goods to never arrive and the site to close down after taking your money).

How to handle these: Use your head. If it’s a site or store that you’ve never heard of, research the company and see if you can find verified reviews from other customers. Ask yourself: “Does this seem too good to be true?” If it does, then proceed with caution.

Lottery, competition and inheritance schemes

Say you receive emails stating that you have won monetary prizes in competitions you did not enter, or messages from people overseas claiming that you have inherited money. These are just attempts to obtain your personal details.

How to handle these: Ask yourself, “Did I enter a competition? Do I know these people?” As much as we’d like to believe the fairy tales, winning or inheriting money completely out of the blue is not likely to happen. Once again: if it sounds too good to be true, it probably is.

Charity scams

Scams that take advantage of good-natured individuals often make a special appearance around the holiday season, but these could be active at any time of the year. Scammers will pretend to work for a charitable cause and may even exploit news of a current crisis. Scams surrounding COVID-19 are already in circulation, and seek to prey on people’s fears.

How to handle these: Do your research. If you plan to make a donation, make sure you know who you’re donating to and what your donation will be used for. If possible, make donations only through reputable organizations’ secure sites.

How can you avoid future scams?

When it comes to avoiding online scams, there are some key precautions that everyone should take. Pass these along to your friends, family, and clients, and take a critical eye in your own online habits.

  1. Read every email carefully. Emails are the most common scam vehicle. One way to check whether the message is from a reputable source is by checking the URL before you click. Extra characters and misspellings could both point to a suspicious link. If you’re still not sure, treat it as you would any other scam email. If it’s a sender who claims to know you, check with them before sending money or information.
  2. Never agree to send money to anyone you have only met online. Sending money online is not something you should take chances on. Don’t send anyone money unless you know them personally and are certain that they are legitimate.
  3. Never make a financial decision based on a phone call you receive from a person posing as a relative of someone in prison. This is a common scam that relies on you panicking and rushing to send money as quickly as possible. Take a second to consider the situation. Odds are, it won’t make sense once you think about it. If you’re still unsure, verify the situation with another relative or friend.
  4. Never share login credentials with anyone online. No matter what they promise to do for you in return. No reputable organization will ask you for this information.
  5. Be wary of unsolicited contact. If you don’t know the person or organization who has just contacted you, be cautious while you verify who they are. Don’t respond or provide them with anything until you know they’re legitimate.
  6. Update your devices. If you haven’t been doing this regularly, now is definitely the time to ensure that all of your devices are updated with the latest security measures.

We hope this information helps you and your loved ones to stay safe online. If you need anything, our team is here to help.

Neville Lacey

Global Risk and Compliance Director at XE

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 multibillion-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

 

 

 

Career calibration meetings with Treasurer Search

01-04-2020 | Treasurer Search | treasuryXL

Due to the current economic circumstances it might not feel like the right time to take a next step in your career.

 

It might however make you think about where you are going in your career and how your next step should look like.
If you are one of those people, don’t hesitate to contact Treasurer Search for an online career calibration meeting.

You can contact Kim Vercoulen directly with below contact details.

Contact person

Kim Vercoulen

 

T: (0850) 866 798
M: (06) 2467 9339
E: [email protected]

Blockchain and Corona virus: could it prevent future pandemics?

| 31-03-2020 | Carlo de Meijer | treasuryXL

The sudden emergence and rapid but uncontrolled worldwide spread of the Corona virus shows us the failure of existing healthcare surveillance systems to timely handle public health emergencies.

Though improvements in healthcare surveillance have been realised, these still fall short in preventing pandemonium. Lack of necessary steps taken to ensure containment and tracking of the virus have aggravated the situation.

Blockchain technology is increasingly been mentioned as a tool to assist with various aspects of containing the outbreak. Could the use of blockchain in the health care industry help to prevent future pandemics?

Outdated health surveillance systems

Preventing, and controlling diseases that have epidemic potential is a major public health activity. Many surveillance systems are used to track potential new diseases and control existing diseases. Though governments are doing everything in their power to contain the spread of the Corona virus, their fight is hampered by difficulties in the timely sharing of information with local and international health enforcement agencies on the ground.

Unfortunately, many of these systems are outdated, hard to access, or inaccurate. China’s current disease surveillance system for instance is an updated version of a system that is five decades old. And there is the privacy and security issue when using centralised healthcare surveillance systems. Time however is of the essence when dealing with outbreaks of this sort of deadly diseases.

Main issues

Epidemiologists who study how diseases spread, are being faced with the task of gathering, verifying and cleaning data in an efficient manner.

Privacy and security issues, language barriers, the sheer distance between the geographical location of an outbreak, cultural differences, and many other factors are issues that slow the transmission and exchange of necessary information.

Non-optimal data management
There is the data management issue. Containing the Corona virus could come down to a question of data management. Gathering data, verifying that data, and then cleaning up that data however is far from optimal. Epidemiologists need high-quality data to model viruses; with models, they can provide governments with recommendations about how to contain the disease. But that data is hard to get or its integrity cannot be verified, thus of no use to epidemiologists.

Underreporting
As a result of that the current infection and death statistics are speculated to be much higher than reported. The coronavirus outbreak has raised concerns over the Chinese government underreporting the number of infected and deceased. This underreporting can be caused by many disruptions in the system, such as the lack of data transparency.

But also a shortage of testing kits reduces the number of confirmed cases, and deaths can be attributed to other causes. Unfortunately, it is impossible to know just how serious this outbreak really is without access to a secure, decentralized surveillance system.

Political Complications
And there is the issue of national centralised surveillance systems not talking cross-border. Diseases can spread quickly across political borders. Traditional systems run by governments can miss outbreaks because they happen across physical borders. A decentralized system is the fastest way to report outbreaks.

Lack of innovation in healthcare systems
In many countries healthcare surveillance systems lack innovations, caused by low investments in new technologies leading to less effective healthcare systems. This notwithstanding the upcoming of new technologies including artificial intelligence, big data management and blockchain.

Blockchain could be of help

The time to build borderless solutions based on decentralized technologies has come. Highlighting the need for numerous improvements in the health care sector, the U.S. Department of Health and Human Services’ Office of the National Coordinator for Health Information Technology issued a Shared Nationwide Interoperability Roadmap requesting ubiquitous, secure network infrastructure; verifiable identity and authentication of all participants; and consistent representation of authorization to access electronic health information.

Hereblockchain could offer ways to improve many public health activities associated with preventing and controlling diseases. Blockchain powered solutions could address and tackle various aspects of the issue. Blockchain technology has the ability to improve health, access to information, supply chains and many more.

These expectations are based on the key aspects of blockchain technology, such as decentralized management, immutable audit trails, data provenance, and robustness. Additionally, multiple nodes in a permissioned blockchain have the ability to share and report vital data instantly, while complying with data privacy and security regulation

Blockchain use cases

Blockchain could be used to improve a variety of health care-related processes, including record management, healthcare surveillance, tracking disease outbreaks, management crisis situations and many more.

Record management: single source of information
Containing virus should be looked at as a data management issue. The biggest opportunity for blockchain in the healthcare industry is as a single source of truth for the data provenance, as the whole world is fighting against this outbreak. It could be used for record management purposes, to manage real-time data and importantly, to ensure its integrity, while identifying and eliminate misinformation about the Corona virus.

In emergencies like these, there are high numbers of incoming data, “with not many hands on deck to manage the same”. With the use of blockchain, data collection will become automated and immutability of the ledger makes it impossible to alter any of the records.

By using blockchain technology one could be able to securely manage health records, ensuring interoperability without compromising patient privacy and security. Those records could include patients’ data, treatments given, and any progress detected. Blockchain will also make sure that data are archived and protected by any unauthorised access, but still keeping it available for the whole healthcare system.

It will enable users to see all the data and trends on the virus in real-time including all information about confirmed cases of infected, death toll, recoveries, etc. The exponential growth of connectivity and the access to the wealth of data it offers  would allow health officials to quickly track the spread of disease, giving vulnerable populations vital information. All this information can be used by research labs working on a vaccine.

Blockchain healthcare surveillance system
Blockchain can also be used for surveillance purposes. A blockchain healthcare surveillance system can provide the means to prevent and control future outbreaks. A permissioned blockchain surveillance system would allow local and national health agencies to access the surveillance data.

A global blockchain surveillance system could easily reach areas where connectivity is poor, and costs must be kept low. Local practitioners can receive real-time information on surrounding areas, regardless of governmental or political barriers. In addition, global organizations like the World Health Organization could access the data. Because the system is decentralized and secured through blockchain, data remains secure and multiple organizations can report the data.

Tracking infectious disease outbreaks
Blockchain could be used for tracking public health data surveillance, particularly for infectious disease outbreaks. Increasing transparency will result in more accurate reporting and more efficient responses. They would allow for rapid processing of data, enabling early detection of infections before they spread to the level of epidemics.

Blockchain can help develop treatments swiftly, and help with management when pandemics do occur. This could enable government agencies keep track the virus activity, of patients, suspected new cases, and more.

They could also use the blockchain to track down where the virus originated, probably It could enable doctors to review patients’ symptoms and monitor diagnostic data in real time, integrating patient history information. Information can be collected in a distributed way and have that information available to different parties, including authorities such as the WHO.

Management crisis situations
Blockchain technology can not only help in keeping track of the virus and outbreak activity. Blockchain could also be used to better manage pandemic situations and the dissemination of treatment. It could instantly alert the public about the Corona virus by global institutes like the World Health Organization.

It could instantly recommend a course of activity should an outbreak be detected. Using blockchain could enable to provide governments with recommendations about how to contain the virus. It would offer a platform where governments, medical professionals, health organizations, media, and all the concerned parties can update each other of the situation and prevent worsening of the same.

Securing medical supply chains
The blockchain could also be used for “track and tracing” of medical supply chains. Blockchain has already proven its success as a supply chain management tool in other industries. Blockchain-based platforms could be used to enable the review, recording and tracking of demand, supplies and logistics of epidemic prevention materials. As supply chains involve multiple parties (from donors and recipients, to warehousing and delivery logistics), the entire process of record and verification by each party is tamper-proof, while also allowing anyone to track the process.

It could help streamline medical supply-chains, ensuring that doctors and patients have access to the tools when they need them and preventing contaminated items from reaching stores. A blockchain-based system could ensure vaccines, testing equipment, and other relief efforts are sent to the right places at the right times and in the quantities needed, and have that recorded. Securing the supply chains of these valuable resources could have life-saving effects. Combined with a surveillance system, a blockchain supply management system could change the way the world responds to epidemics.

Prevent zoonotic diseases
Zoonotic diseases like Corona could be caught in animals before they make the jump to humans if veterinary field records were kept on a blockchain surveillance system. Because many animals are migratory – so not staying in the same area – a decentralized blockchain system would allow for greater collaboration and transparency across the world. Diseases could be “flagged” and eliminated in animal populations before they make the jump to humans.

China and blockchain

Chinese organizations are trying to implement blockchain-based solutions to combat the Corona virus and reduce its economic impact on the country. They have rolled out a number of applications for immediate and emergency use, to fight the spread of the corona virus in public institutions, hospitals, universities and the financial sector. These are touted as performing a variety of different functions.

These blockchain solutions are already being used by local authorities to manage identity information and donation platforms. Additionally, multiple countries world-wide are employing blockchain-based tools to track patients diagnosed with coronavirus and identify the people who might have been infected. The apps are designed to ensure people’s privacy, identity, and medical records using the blockchain against Corona virus and other medical conditions.

HashLog
One of the interesting applications is HashLog, a solution launched by Acoer, a developer of blockchain-enabled applications for public health and global health organizations, to fight against the deadly coronavirus.

The HashLog visualisation engine interacts in real-time with Hedera Hashgraph’s distributed ledger technology to ensure real-time logging and data visualization of the spread of the disease. With the help of public data from the US Centres for Disease Control (CDC) and the World Health Organization (WHO), Acoer’s Hashlog Dashboard is capable of providing real-time information for tracking this epidemic. For example, this application is tracing people traveling to and from the country, to pinpoint patients and prevent further infections.

“HashLog allows for the real-time visualization of coronavirus data and trends. This includes the overall number of cases globally, rates of deaths and recovery per infections (where we have reliable data), cases filtered by country, as well as Google trends by interest and region on Corona virus.” Acoer’s CEO, Jim Nasr

This should help epidemiologists verify the integrity of records that have been uploaded to their analytics systems. Each transaction is recorded through a verified hash reference on Hedera’s ledger, meaning epidemiologists can trust data to be legitimate. This allows researchers, scientists and journalists to understand the spread of the coronavirus and its trends over time through visuals presented on Acoer’s HashLog dashboard.

IBM Food Trust
This is not the first time blockchain is being applied to track diseases. There have already been a number of initiatives using blockchain and distributed ledger technology to track the origins of food, for example. The IBM Food Trust has been using blockchain to help improve food safety by managing and conducting food tracings in order to identify sources of contamination for occurrences of Salmonella. By being able to identify the cause quickly and effectively, it is much easier to contain the problem and treat it at the source.

Blockchain preventing pandemics: not yet?

Presently, the authorities all over the world are trying their best to contain the Corona virus as it has shown the potential of turning into a pandemic. And that is where blockchain can help. We have seen that disease outbreaks can happen at any time, anywhere on the planet, with little or no warning. These are natural events that have occurred in the past and will re-occur in the future.

Blockchain will not prevent the emergence of new viruses itself. But what blockchain can do is create the first line of rapid defense through a network of connected devices whose only purpose is to remain alert about disease outbreaks. The use of blockchain can help prevent pandemics by enabling early detection of epidemics, fast-tracking drug trials, and impact management of outbreaks and treatment.

With easy access to such data, the containment of an outbreak becomes manageable and is of great help to the health authorities as well. This instant response capability can represent the difference between quick containment and global contagion.

While blockchain holds promise for the health industry, analyst warn a number of issues, including data standardisation, costs of operation and regulatory considerations, still need to be addressed before this technology is suitable for wide adoption. But with this serious Corona virus pandemic a number of these considerations could be solved rather quickly.

 

 

 

Carlo de Meijer

Economist and researcher

 

Leaving the second Treasury Ivory Tower towards a new adventure

| 27-03-2020 | treasuryXL | Pieter de Kiewit

Corporate treasury deserves a broader audience. And also calibre experts bringing the field to the next level. There are treasury related business opportunities, there is risk to mitigate and costs to be saved. The next level is achieved by, amongst others, the graduates of the post graduate program “Register Treasurer” at the Vrije Universiteit in Amsterdam. Over the last decades I have seen many enthusiastic professionals raising treasury awareness among their colleagues in the large organizations they work in. So very big steps have been made in creating a broader audience. Treasurers are leaving their first ivory tower. In this blog I want to address leaving the second one. This might be a bit harder.

Organisations without own experts experiencing treasury exposure find two major hurdles on their way. The first is that they often do not have the awareness about what they miss out on. There are many priorities on their list and why do bank relations, FX management or alternative funding deserve a spot in their top5? There is no time and these topics are abstract and complex. Nobody they know will inform them.

The second hurdle is, that even if they have awareness, they do not know how to handle the problem or act upon the opportunity. Bankers often went from trusted advisors to sales agents, if they even pick up the phone. Big4 consultants often do not have the proper expertise, charge high fees and send a new youngster every year. High calibre treasury consultants have the proper expertise, but also their hourly rate can be quite stiff.

We will also tear the second  tower down, investing in two paths.

There is a lot of very relevant expertise available. Former bankers, contractors, fintechs are there to step in if a treasury opportunity arises. Permanent employment is not the basis for transferring their knowledge to organisations that need their expertise. So you do not have to hire. Furthermore knowledge can be gained with low threshold education programs, events and through other sources. Parties like Hogeschool Utrecht, Alex van Groningen, treasuryXL and Euroforum open the market for those who are willing to search and learn.

Then there is the awareness issue. First, treasury topics should be addressed in the environment where CFOs, controllers and entrepreneurs are. So not the specialized and dedicated LinkedIn Groups like “Corporate Treasurers” but in “MKB Nederland” (SME The Netherlands). Second, these topics should be described in language that appeals to the target group. So no showing off with specialistic lingo but clear messages telling about cost saving, risk mitigation and opportunity creation. Third, continuous repetition is the basis for awareness. So we should not stop writing, posting and presenting. It can be done!

I am convinced the treasury community will benefit from an increased awareness and knowledge of their field of expertise in the “mid-market”. We can be trailblazers and I invite to you to broadcast your excellent treasury stories about the job you love. Let’s also tear the second ivory tower down!

Cheers,

 

 

Pieter de Kiewit

Owner at Treasurer Search

OpusCapita makes Liquidity Management free for all customers

| 26-3-2020 | treasuryXL | OpusCapita |

OpusCapita makes Liquidity Management in a basic version free for their SaaS customers

OpusCapita, treasuryXL partner and leading cash management solution provider announces today that they have chosen to make their Liquidity Management product free for all customers until the end of the year in order to help treasury and cash management professionals to meet the increased demand on accurate cash forecasts due to the spread of the coronavirus.

“We are living in unprecedented times and we want to help our customers. The demands on treasurers are immense right now and I feel if we can help by making our product for free it’s the right thing to do”, states Jukka Sallinen, Head of Cash Management, OpusCapita.

Liquidity Management will be available in a basic version to allow customers to start using it right away without any implementation or set-up needs.

“We are also looking for ways to enable companies who are not our customers to use this functionality at a heavily discounted price”, states Jukka Sallinen, Head of Cash Management, OpusCapita. 

“I am happy that we can help our customers in these tough times and that we as a company can do our part”, states Patrik Sallner, CEO OpusCapita.

What does Liquidity Management Basic enable you to do?

With the basic package, you will be able to enable your subsidiaries across the globe to manually input (or upload from Excel) their current cash balances and future cash flows (for example AR, AP, taxes etc) in OpusCapita. Once you have this data centralized, the basic package enables you to setup Reports and Dashboards which will automatically consolidate and display all entered balances and cash flows.

In short, this includes:

  • Manually entering cashflows (Liquidity Unit Entry)
  • Manually entering cash positions (Liquidity Balance Entry)
  • Liquidity grid and graph, best-practice Reports such as:
    • Cash Visibility
      • Cash balances per bank account, per bank or per company
      • Actual inflows and outflows on bank accounts (if statements are imported in OpusCapita)
    • Cash Forecasting
      • Total forecast
      • Forecast per bank account, per company or per currency
      • Actual vs Forecast
    • Dashboards for visualizations cash positions and forecast

Three steps to get started

1. Get in touch with us so we can enable Liquidity Basic for you.

2. Add cash flows with pre-built templates or import them from Excel.

3. Build reports with our straight-forward drag’n’ drop functionality.

 

Read more information here.

 

About OpusCapita

OpusCapita enables organizations to buy and pay quickly and securely, with a real-time view of their business. OpusCapita customers use their source-to-pay and cash management solutions to connect, transact and grow. OpusCapita processes over 100 million electronic transactions annually on its Business Network.

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How to build your emergency fund

26-03-2020 | treasuryXL | XE |

Emergency situations often strike with very little warning, leaving you very without much time to adapt or plan. Over this past week, people across the world have made major adjustments to their lives in order to reduce the spread of the COVID-19 coronavirus. From organizations shifting to remote work to government-mandated lockdowns, the world this week is a far cry from what many of us thought to be the norm just a month ago.

Money is one of the greatest concerns for individuals during this uncertain time (along with health). A recent poll found that in the United States alone, 18 percent of people have lost jobs or hours. As more and more governments continue to issue orders to shelter at home, lockdown, or quarantine, this figure will only rise in the coming weeks.

Today, it’s the coronavirus. In the future, there’s always the possibility of a natural disaster or other large-scale emergency forcing you to readjust your habits, spending, and way of life. But for this current situation, here’s some of our advice for budgeting and preparing.

Cash or card?

This has been a common question among people concerned about the spread of coronavirus. Some think that it’s good to have a stash of emergency cash. It prevents you from having to worry about a power outage or business shutdown affecting your bank access, and paying in cash means you won’t be handling your card after it’s been in strangers’ hands or touching the same card reader that everyone’s been touching.

On the other hand, some have raised questions about the possibility of spreading COVID-19 through the exchange of cash, particularly if they’re exchanging bills at busy establishments. However, Emily Martin, associate professor of epidemiology from the University of Michigan School of Public Health, stated to the Wall Street Journal that she “wouldn’t expect coronavirus to travel far and wide on money.”

So, what’s the answer? It doesn’t hurt to have a few days’ worth of emergency cash on your person or stashed somewhere safe. However, if going to the ATM or bank would put you or others at risk, don’t make it a priority.

Anything to avoid?

You mean, besides other people?

In times like these, the first instinct is to grab everything, just in case. But this isn’t the best approach. We recommend avoiding the following:

  • Panicking. We know, it sounds ridiculous to tell you to stay calm in a pandemic. But panicking can lead to impulsive, irrational, and irresponsible financial decisions. Take a deep breath and ask yourself, “What do I need to make it through the day? The week? The month?”
  • Buying more than you (and your household) need. As we’ve seen, grocery stores, pharmacies, and other essential establishments will remain open. Take what you need, take a little extra if supplies allow, but don’t hoard. Does one household really need 500 rolls of toilet paper?
  • Bottled water. If (and only if) your tap water isn’t safe to drink, then you should purchase bottled water. Otherwise, you’ll be fine with the faucet.
  • Frivolous purchases. Think of this as an opportunity to look at your spending and subtract from your budget. For example, many of us won’t be going to concerts, festivals, or bars anytime soon. And you probably won’t need to buy as many clothes if you’re spending all of your time at home. If you can, take this money and put it in your savings, or put it toward other, more pressing expenses.

What if I don’t have an emergency fund?

You’re not alone. Though common advice is to have 3 to 6 months’ worth of emergency money in savings, less than one-quarter of people actually have that. If you’re not happy with the state of your emergency savings, get started now. If you are still working and receiving an income, try to adjust your budget to allocate some or more to your savings each month.

Under normal circumstances, here’s what we’d recommend:

  1. Look at your current budget. Figure out how much you’re making, and calculate all of your normal expenses such as rent, bills, and how much you tend to spend on fun non-essentials.
  2. Calculate what you can save. If you have quite a bit of money left over after expenses at the end of each month, you can set your own goal for how much you’d like to shift to savings. If your budget is limited, calculate how much you could feasibly contribute to a savings account each month.
  3. Put your money into a separate account. If your employer pays through direct deposit, set up an automatic deposit to your emergency savings account. Otherwise, deposit it yourself, and hold yourself accountable. You can withdraw if you need to, but don’t skimp on your savings.
  4. Regularly assess your savings plan. Your saving plan shouldn’t stay the same forever. Every so often, take some time to review. You should reassess your budget and plans any time your financial situation changes, as well as a regular review at least once per year.

However, we recognize that now is not a normal circumstance! In our current situation, here’s what you can do to get your emergency fund started ASAP:

  • See what expenses you can cut. Normally, experts recommend canceling Netflix or other streaming services, but we understand if that’s not doable right now! Instead, take a look at reducing gym memberships or shopping expenses, and take a look at your fixed costs if you need to.
  • Sell a few things. If you have some nice pieces in the back of your closet that you rarely wear, or a few video games that you don’t play anymore, selling those online could help you get a little extra money.
  • Can you find additional income? We understand that this is a difficult time to find employment, even more so than usual. However, if you are really hurting from a lack of income right now, look into essential businesses that need more workers or look for remote work. That said, don’t forget to keep your health and safety a priority.

Ultimately? Anything is better than nothing. Don’t think that you need to have an elaborate plan or a large nest egg for your emergency fund. Every fund starts somewhere, and the sooner you start, the sooner yours can start growing.

If you already have an emergency fund…

…and you don’t need to dip into it just yet, take advantage of this time to continue to build yours. If you’ve been able to cut your expenses during those long days at home, take what you would have spent on non-essentials and add it to your rainy day fund. This situation has offered a lot of us a very close look at what can happen to our lives and finances. If you’re managing to get by now, let’s make sure that you’ll still be fine next time.

If you do need to use your emergency fund? Don’t make yourself feel guilty. This is why you created the fund, after all. Take a deep breath, figure out what you’ll need, and let your emergency fund help you through this.

It’s a tough time right now, and many people feel like there’s no end in sight. But this current situation isn’t going to last forever. We can’t control the world’s future, but we can plan ahead for ourselves (along with a bonus backup plan) to help ourselves face future obstacles.

This is an unprecedented and uncertain time for all of us. We understand the impulse to panic, to overspend, and to worry that we may not have enough to stay safe or keep our loved ones safe. But for most of us, all we can do is prepare ourselves and (safely) support others in any way possible.

Good luck!

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 multibillion-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.

 

 

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