Post-HBO Masterclasses Treasury Management 2020

| 12-11-2019 | treasuryXL | Hogeschool Utrecht

The HU University of Applied Sciences in Utrecht scheduled 4 Post-HBO Treasury Management Masterclasses in 2020. The first masterclass will start on April 16, 2020. You can find all information below (in Dutch).

Bent u een controller, accountant, financieel adviseur, cash manager of bankier met enkele jaren ervaring en ambieert u op termijn een functie als financieel directeur van een grotere (internationale) MKB onderneming of non-profit organisatie? Of wilt u gewoon meer kennis opdoen over Treasury Management (TM) om dit binnen uw eigen werkgebied toe te passen, dan is de Post-HBO Leergang TM iets voor u. Gedurende een viertal masterclasses verdiept u zich in de belangrijkste onderdelen van TM, zoals corporate finance, cash management, valuta en rentemanagement

De cursus wordt afgesloten met een opdracht uit de eigen praktijk van de deelnemer die gepresenteerd en beoordeeld wordt. Naast de bedrijfsopdrachten van de cursisten zelf maakt ook een treasury simulatie op het gebied van cash management onderdeel uit van het programma.

Tijdens de leergang komen vele praktische vraagstukken aan de orde, zoals:

  • Bankrelatiemanagement: opbouwen en onderhouden van een goede relatie met de bank.
  • Alternatieve financieringsmodellen: SME bonds, Crowdfunding, Blockchain, Impact Investing.
  • Rentederivaten: niet alleen woningcorporaties hadden een probleem.
  • Dé manier om debiteuren (sneller) te innen: international cash management.
  • Een transparante rapportage: inzicht bieden voor alle stakeholders.
  • Internationaal zakendoen: forex risico en -hedging, investeringen met rendement.
  • Behavioral finance: inzicht krijgen in hoe financiële beslissingen worden beïnvloed door biases en wat daaraan te doen.

De masterclasses (met ook Engelstalige literatuur) vinden plaats op donderdagen in april, mei, juni en oktober 2020.

De opleiding bestaat uit de volgende onderdelen:

  1. Corporate Finance (Frans Boumans)
  • Hoe wordt een onderneming gefinancierd?
  • Nieuwe financieringsvormen (crowdfunding, private equity, peer-to-peer lending, fintech)
  • Overname- en buy out financiering
  • Het belang van Investor Relations
  • Hou houd je de relatie met de bank goed?
  1. Cash management (Michiel van der Ven)
  • Het opzetten en forecasten van cash budgets
  • Ins en outs van credit management
  • (international) betalingsverkeer
  • Netting en cash pooling
  1. FX-, interest rate risk management (Annette Prinsen)
  • Financial risk strategie en policy
  • Vreemde valuta- en rente riskmanagement (hedging instrumenten)
  • Investeringen van overtollige liquiditeiten
  • Pensioenverplichtingen
  1. Consultancy assignment and personal development (Frans Boumans en Janneke Nonkes)
  • Presentatie en feedback op een eigen praktijkonderzoek over een treasury naar eigen keuze
  • personal development gesprek

De docenten zijn allen langdurig in het bedrijfsleven werkzaam (geweest) als financieel directeur, treasurer en bankier en hebben tevens ruime ervaring in het hoger onderwijs.

Data: donderdagen 16 april, 14 mei, 18 juni  en 15 oktober 2020, van 15.30u tot 20.00u van 15.30u tot 20.00u, kort onderbroken voor een lichte maaltijd, in Utrecht.

Prijs: € 1975 (inclusief persoonlijk assessment)

Locatie: Hogeschool Utrecht, Heidelberglaan 15, Uithof, Utrecht

Toelatingseisen: HBO-diploma, ca. drie jaar relevante werkervaring

Tijdens een adviesgesprek kijken we samen of de opleiding aansluit bij uw ambitie én of u past bij de opleiding. Door de interactieve colleges leer je van elkaar, dus de samenstelling van de groep is van belang. Gestreefd wordt naar een diverse groep deelnemers verschillende sectoren van het bedrijfsleven en de non-profit sector.

More info and registration here

 

Why You Don’t Need a Treasury Workstation

| 11-11-2019 | treasuryXL | BELLIN

Location dependence vs. universal collaboration and access

Often times, terms and definitions change over time; and sometimes terms remain the same but their meaning shifts. Take for example the word “bookkeeping:” accountants nowadays no longer put pen to paper and make manual entries in a book. Transferring this concept to treasury, we only need to look at the name of the department itself. Treasurers no longer watch over dungeons filled with treasure troves and other valuables (maybe with the exception of Fort Knox). But that’s not the only shift in meaning: we can also come across obsolete terms and definitions when it comes to the digitalization of treasury tasks and specifically with the term: treasury workstation.

Looking at search requests in Google, one of the most commonly searched terms in treasury is “treasury workstation” – a term that has been in use for treasury systems for many years. However, we need to ask ourselves if the term and the understanding of technology and processes associated with it are still appropriate today. Should they have long been replaced by other terms?

“Treasury Workstation” – is that what treasury is?

“Treasury workstation” contains the element of “station” that appears to have no place in today’s treasury world: mobile communication and the flexible use of systems are such obvious characteristics of our daily work that a “station” clearly no longer delivers. A workstation is literally stationary and therefore limited: it sits in one single place and is only available right there. Conversely, this is precisely where modern systems differ: they’re web-based and can be used from any mobile device without any limitations regarding security, user-friendliness, and functionality. Indeed, the very fact that modern systems are not stationary makes them so powerful. They’re mobile and any number of people can make use of them from anywhere.

Today, large departments and units need to be able to readily collaborate and exchange knowledge and data; a workstation seems inappropriate to meet these demands and stands for a status quo that IT has long left behind. No one wants to install software on a workstation anymore; no one wants to be tied to a desktop computer. The internet with all its enormous potential drives the optimization of business processes and data communication to the point where companies can no longer afford to back workstations, in particular in treasury.

Collaboration with a Treasury Management System

At BELLIN, their system, tm5, is not a physical workstation limited to a specific location. The system is a web-based and dynamically-integrated platform that excels in ensuring global visibility, maximized security and uncapped work-hours saved. The key ingredient in regard to this article is that the system is web-based, yet accessibly by anyone company wide. We call this our Load Balanced Treasury approach which means no per-user licenses, ensuring subsidiaries can share data seamlessly, profit from real-time transparency, and maximize global security.

While many treasurers still refer to modern platforms as workstations, the distinction is important. Modern, web-based systems are platforms for collaboration, for cooperation and for uniting internal and external parties and partners who all contribute to treasurers always having the information they need to do their job: make decisions that reduce business risk, optimize asset management, manage funding and hedging and give the company the overall stability to meet the company objectives.

This is by no means limited to treasury. Unlike a workstation that is only ever available to the people in one particular office, treasury management systems serve the entire company and people from any department can be involved where needed. This allows treasurers to share the workload, get information first hand and have a fully integrated and connected workflow that ultimately benefits everyone.

Conclusion

Treasury workstations are a thing of the past and platforms like the BELLIN tm5 have long become established as industry standards. Consequently,  it is time we reflect that fact in our terminology in order to find what businesses really need and stop searching for things that were modern years ago. “Station” ultimately suggests inflexibility, stagnation. As time goes by, both terminology and processes are subject to change and move forward – just as treasury does. Perhaps this is just a semantic error or term that has stuck over the years? Either way, as treasury enthusiasts and experts, we are keen to help the industry acclimate to the existing technological ecosystem.

Martin Bellin

CEO

BELLIN logo

Proud media partner of the SCF Forum Europe 2019

| 08-11-2019 | by Kendra Keydeniers |

treasuryXL is media partner of the SCF Forum Europe, the world’s leading supply chain finance conference and awards.

The conference will take place on November 28th, 2019 at the Beurs van Berlage in Amsterdam, The Netherlands.

The SCF Forum & Awards brings together over 300 of Europe’s treasurers, procurement directors, banks, technology vendors and academics to learn from each other and set out the future of Supply Chain Finance. Now in its seventh year, SCF Forum has grown to become Europe’s leading supply chain finance event.

SCF Forum is different from other conferences: with an agenda driven by leading business schools and an ethos that is about learning and networking rather than selling, it attracts the treasurers and procurement directors of corporations that are serious about understanding what supply chain finance can do for their businesses.

See an overview of the event speakers here.

Download the full agenda of the conference here.

The SCF Awards presentations will take place at the end of the conference, showcasing the best examples of supply chain finance from around the world.

Keynote speeches, corporate case studies, plenaries and workshops, together with three breakout streams, make up the most comprehensive review of the state of Supply Chain Finance available anywhere.

REGISTER HERE 

and be part of the SFC Forum Europe 2019. We are happy to provide our readers with a 25% discount code on regular tickets. Use the code TXL25 at checkout.

Already registered? Download the SFC Forum Europe app on your mobile (apple or android)  and receive an exclusive offer by treasuryXL.

Looking forward connecting with you at the SFC Forum Europe 2019.

Kendra Keydeniers
Community & Partner Manager at treasuryXL

 

Open banking and APIs: transforming the future of treasury

| 05-11-2019 | treasuryXL | BELLIN

Open banking is about much more than advanced technology. It has an impact on business models, processes and ways of thinking – and it will definitely have a huge impact on treasury.

The EU’s revised payment services directive (PSD2) has forced European banks to set up standardised interfaces, so-called APIs, to enable third parties’ technological access to bank accounts. This is an attempt to break up the banks’ monopoly and boost competition amongst payment service providers.

When it comes to payments, PSD2 APIs are currently limited to single Euro payments area (SEPA) single payments. Simply put, they are generally ill-suited for corporate payment processing. Nevertheless, open access to customer and transaction data for third parties represents a radical change that threatens traditional banking business models.

While in the past, banks reigned freely over their customers’ financial data – often keeping them in the dark about margins, fees and transaction routes – open banking makes banking fundamentally more democratic and gives companies much more freedom and flexibility.

How does a company want to handle its payment processing? With open banking, it will be of little relevance to corporates exactly how their payments are processed. As long as the payment goes from A to B, the back-end technology being used is up to the service provider. What will be more significant for corporate treasury departments when it comes to payments is how quickly this information becomes available to them.

Open banking’s impact on cash management

Today, treasurers are blind when it comes to intraday cash flow movements. Depending on the bank, they only receive balance information a few times a day at specific times. This has always been as real-time as it gets. Treasurers who would like to know their account balance at any time and in ‘real, real-time’ need to request this information. But how can you know when to best inquire about your account balance when you have no idea when money will be credited?

Some companies make use of automated requests, managed in their treasury management system (TMS). The system sends scheduled requests to the bank, for example every minute, to check if any new information is available. An analogy would be sending round a company postman to empty the letterbox every few minutes without knowing if anyone has actually posted a letter. This leads to enormous amounts of data and clogs up communication channels and systems, without really solving the issue.

A much more intelligent solution would be to not request the information until it is actually available. For that to work, there would need to be some kind of signal that data has come in – just like the signal flag on American letterboxes. New technologies, such as APIs and WebSockets, enable this kind of reversed order. The bank signals that a new balance is available as soon as money is credited to or debited from an account, and treasurers and other finance professionals can then take action. The same is true for payments, where status notifications for a transaction would be available straight away.

The future of APIs

What will the future look like for banking communication? Will APIs relegate existing technologies, such as electronic banking internet communication standard (EBICS) or SWIFT, to the sidelines? APIs’ greatest downfall is their lack of standardisation. Conversely, complete and powerful standardisation across the SEPA area is the biggest asset of these established communication channels.

In the context of PSD2, there have been various European initiatives to achieve standardisation, for example those of the Berlin Group. However, there is no comparable global initiative, and when BELLIN recently analysed the open banking offering of the ten most relevant banking groups, the discrepancies were staggering. What is needed are suitable enhancements of established technologies that could then be combined with new technologies, for example combining the EBICS protocol with API technology.

And this future is not far off. Massive changes that will impact treasurers’ day-to-day work significantly are just around the corner. Large retailers have already implemented instant payment solutions using APIs that not only enable them to transfer money, but also to receive notifications when a payment has come in as soon as it does. This has enabled them to fully connect payment processing, real-time balance information and customer service.

Direct communication of data between companies and banks is likely to have other, far-reaching consequences for treasury, for example when it comes to FX and risk management. Real-time corporate-bank communication definitely brings challenges for cash management. Banks will have to solve how cash pooling is handled in the future whilst also determining the time on which interest calculations are based. However, with new standards for speed, efficiency and data quality, open banking will continue to revolutionise treasury far beyond 2020.

Karsten Kiefer, Product Manager Solution Management, BELLIN

Karsten Kiefer

Product Manager Solution Management

 

College Tour International Cash Management 2019

| 04-11-2019 | treasuryXL | Vrije Universiteit

The treasurer’s professional environment is changing rapidly. Alongside the classic management of capital flows, treasurers are confronted with ever-increasing legislation. In addition, fintechs and cryptocurrency offer solutions which compete with traditional banking services. The International Cash Management module of the RT programme covers these topics extensively, clustered in several units. The Cash Management Fundamentals unit includes working capital management, liquidity forecasting and liquidity management. In addition, the structure of international banking is covered in detail. The role of correspondent banking, the principles of international payments and the main payment systems are examined in depth. In this context, the module also deals with the information technology which businesses require to create the interface with banking payment systems. Naturally, this covers the latest technological developments, including blockchain. The module also expands on netting and cash pooling techniques, the relationship with financial institutions and the organisation of an international treasury department. An overview of the legal and fiscal aspects is also included. Case studies are used to supplement the extensive practical knowledge provided.

Course Content
  • Management Account Structures: pooling Techniques, cash pooling, netting, tax and accounting impact
  • Working Capital Management: cash conversion cycle, working capital management, short term finance
  • Trade & Commodity Finance: identifying trade risks, trade instruments, trade finance solutions
  • Payment Services: payment instruments, collection instruments, clearing, bank connectivity
  • Relevant regulatory environment: Basel III, PSD2, bank relationship management
  • Cash flow forecasting methods
  • Treasury Management Systems: overview, treasury functions and evolution, selection of a treasury management system, implementation
  • Fintech: Payment innovations, Blockchain, Crypto currency

Course features

Primarily, the course gives an overview of this treasury
discipline, focussed on everyday practice and the latest
developments in this area. Sessions are interactive and
delivered by lecturers active in this field. There is an
opportunity to put knowledge sharing into practice with
the help of a game and case studies.

Exam/exemption

There will be an end-of-module examination. Participants
passing the examination will receive a certificate. This
certificate counts towards an exemption when enrolling
for the post-doctorate Treasury Management & Corporate
Finance programme; course language – English.

Coordination and lecturers

Professor Wilko Bolt (DNB) and Professor Herbert Rijken
(VU) will be the key lecturers for this module. Other lecturers will
include Rolf Michon and Nanno van der Werff.
Sybrand de Groes is responsible for the coordination of
this module. Maximum number of participants: 25

Admission requirements

The course is at Bachelor level. It is assumed that you
have work experience in the field of cash management.

Tuition fees & registration

The tuition fees are € 3,950. If there are enough places,
non-DACT members may also participate. The tuition
fees for non-members are € 4,750.

Send an email to [email protected] if you wish to register.

Location

VU Universiteit, Hoofdgebouw, Agora Zalen Complex,
De Boelelaan 1105, Amsterdam.

Course schedule

The course includes 8 double lectures (2 x 2 hours) each
week on Thursdays, starting Thursday 14 November 2019,
ending on Thursday 16 January 2019 (note: the lecture
planned on Thursday November 14, 2019 will be organized
in De Leeuwenhorst in Noordwijkerhout where the DACT
Treasury Fair will be held). Lectures are from 15:30 –
17:30 hours and 18:15 – 20:15 hours, including a meal.
The examination date is on Thursday 23 January 2020.

DOWNLOAD COLLEGE TOUR LEAFLET

Top 10 Treasury Priorities in 2020

| 29-10-2019 | TIS |

It’s webinar time! Our partner TIS will organize their next webinar on November 20, 2019.

The evolution of the Treasury function continues to accelerate with process automation and AI touching all aspects of Treasury Operations, and expectations to deliver more value across the enterprise.

How do you leverage technology to mitigate time spent on non-value add activities?

How do treasury professionals build the right relationships to deliver forecasts that matter, manage cash and bank relationships, and manage financial risks while communicating with impact to deliver business analysis that impacts performance?

Join Giancarlo Laudini, SVP Global Sales & Marketing Operations, TIS and Ernie Humphrey, CEO, 360 Thought Leadership Consulting to discover our ten priorities for Treasury teams for 2020 to tackle in order to deliver strategic value while facilitating a culture of collaboration and data-driven decision making within and beyond Treasury

 

Register here!

Date: Wednesday, November 20, 2019

Timing: 5.00 PM – 6.00 PM CET

 

 

 

 

 

 

8 Driving Factors for a Lean and Agile Treasury

| 28-10-2019 | treasuryXL | BELLIN

Dynamic processes in today’s world need lean and agile organizations. We have compiled 8 driving factors how the treasury department can achieve this goal easily.

1 Agile treasury thanks to simplified global statement collection

For businesses, a daily, group-wide, global financial status can now be a reality. It neither requires tedious manual data entry in Excel nor collecting data from subsidiaries by email.

Corporates can share their very own SWIFT BIC with all the banks they have accounts with worldwide and request to receive their account statements to this address (ideally in an MT940 format). One by one, all their banks are going to adopt this way of communication, and everything else is a question of technological automation.

2 Agile treasury thanks to netting and its effect on FX and cash management

Anyone still processing subsidiary payments as if they were customers or third-party suppliers is missing out on a number of potential benefits. This goes for anything from the reconciliation of invoices, to payments, optimized forward cover and efficient cash management. With the right intercompany netting setup, uncertainty and unknown quantities in relation to the amount, date or contents of a payment quickly become a thing of the past.

3 Agile treasury thanks to integrated IC trade documentation

Almost all group companies make use of intercompany loans – agreed to in writing, by email or by phone. If you’re lucky, the subsidiary in question can still find the agreement or has created an Excel sheet reminding them of their interest payments. If you’re unlucky, the auditor has to go in search of the correct documents, and tax authorities are knocking on your door to establish whether or not everything is compliant with the arm’s length principle. This is exactly the kind of scenario the BELLIN treasury management system can help you prevent: it creates a platform that allows both parties to demonstrate that payment dates, conditions and permissions in connection with IC loans are met and complied with, and that everything is documented properly.

4 Agile treasury thanks to digital matching

Exchanging confirmations for FX and Money Market deals is nothing new: for years, banks have been sending confirmation documents to their customers who had to return a signed copy. Ever since EMIR, this is no longer feasible and no longer makes sense. BELLIN’s treasury management system tm5 offers integrated electronic matching and has automated and digitized deal confirmation – technology that is easily implemented, saves time and identifies any errors in real time, in turn reducing risks.

5 Agile treasury thanks to collaboration and spreading the workload

The principle of Load Balanced Treasury® allows you to organize processes in a way that best meets skills and capacities. Depending on your Treasury Policy, you could for example delegate responsibility for local payments to subsidiaries or share responsibility, based on the permissions defined in the system. You can set the system up so that central treasury is automatically notified whenever they need to intervene – so they have the overview and the control.

The platform-based collaboration simplifies complex tasks, such as liquidity planning, for the whole group. Simply use the chat function to organize intercompany reconciliation and set up regular “information cycles” for funding requirements and the use of funds. This way you can stay on top of cash flows and obtain a quick and efficient overview of liquidity developments and any deviations from the planning scenario – so you are alerted straight away and can always react quickly.

6 Agile treasury thanks to agile reporting

The business world over, reports are considered time-consuming and tedious – but they don’t have to be. With all relevant data already entered and available in the system, you have everything you need to create reports at the touch of a button – tailored to the needs of your businesses. This way, you can keep all stakeholders in the loop directly from your treasury management system without the need for an additional tool.

7 Agile treasury thanks to automated processes

Repetitive user actions and recurring tasks can be done by a technological solution. The automation service schedules and automates recurring treasury tasks, such as market data import, account statement import and export, entering bulk payments or importing deals traded via a trading platform. The system automatically takes over tasks that would normally have to be done by a user. While process automation is not suitable for every task, it is also not necessary to do everything manually, again eating up resources; some tasks can easily be performed by the system.

8 Agile treasury thanks to mobile connectivity and payments authorization

Frequently, your financial challenges no longer play out behind a desk but in transit between business meetings or on your way to and from work. Or you are simply the one in charge of making that final decision based on the data gathered by your trusted team. On top of your agenda: mobile access to clearly presented information, the ability to focus on specific processes, and most importantly the knowledge that all your data and all your processes are secure!

The BELLIN Connect app allows users to access certain tm5 functions to facilitate remote working and to boost security. A straightforward interface presents data clearly, selection and configuration options are streamlined and processes are targeted and accessible.

Blockchain: the 10 Commandments for CIOs

| 25-10-2019 | Carlo de Meijer | treasuryXL

In my last blog about Gartner and Blockchain I mentioned the importance of the role of CIOs. They are supposed to play a leading role in determining if this technology could be of use for their business. Great question is: are CIOs already prepared for that role. In this blog I will sum up ten commandments for them that should be prerequisites for successful implementation of blockchain technology in their company.

1. CIOs should study blockchain, potential benefits, opportunities and use cases for their business

In order to get grip on blockchain and what it could mean for their business, CIOs should investigate what blockchain really is, that means the ins and outs, its characteristics, how it works, how to integrate blockchain into existing legacy systems etc. CIOs should put real thought into how this technology could potentially benefit the business, asking themselves why they need it, and what value it offers over legacy database or other technologies

While in the next few years blockchain will mostly affect how an organization executes its business, longer term  blockchain will eventually change the core of a business. They therefore should start focusing beyond solely on how this technology is being used today. CIOs should look for opportunities to leverage blockchain technology for deeper business changes that can drive real value.  They should focus on areas where blockchain could strengthen the organization’s value proposition. CIOs should figure out which use cases are most appropriate, , and propose projects that could truly differentiate the organization.

2. CIOs need to understand how blockchain will impact key parts of the business

The opportunities for blockchain technology are massive. It can significantly impact many parts of the business. The most important question for CIOs is how these changes might affect the enterprise and how can the organization exploit the technology?

CIOs need to start thinking about what value blockchain can add to their organization and how to tackle the challenges over the next five years. They should plan for incremental evolution of their own blockchain strategies. For that they should carefully look at the stages in which blockchain  technology is situated. The Gartner Blockchain Spectrum distinct four phases: blockchain-enabling; blockchain-inspired; blockchain-complete and blockchain-enhanced. We are now half way i.e. in the blockchain-inspired phase. Technologies in this stage combine some elements of blockchain, but lack two core elements:  decentralization and tokenization (see my blog: Gartner Blockchain Spectrum: a great tool for CIOs March 18, 2019).

3. CIOs should look at the potential gaps, weaknesses and hurdles of blockchain

Blockchain is not there yet. And – next to that – this technology is not a panacea for all companies problems.  CIOs should be aware of that.  One of the main elements of blockchain is decentralization. It removes central authorities from the process and enables a level of trust between two parties who have never done business before. The definition of participant will – as a result – expand beyond individuals and businesses to include things like smart contracts, distributed ledgers, connected things and DAOs.

Blockchain will facilitate the interactions between all of these participants and enable a new society, but cannot solve all trust problems. CIOs therefore should create a map that highlights potential gaps and weaknesses.

CIOs should also be aware of the various hurdles that prevent massive adoption. It will take a number of years before this technology will enter the maturity stage. Considerable work needs to be completed in ‘non-technology-related activities’ such as standards, regulatory frameworks and organization structures for blockchain capabilities to reach the Gartner Hype Cycle Plateau of Productivity. This is the third stage now also including the previous lacking instruments: decentralisation and tokenization. In a recent blog, Gartner listed eight hurdles needed for the technology to deliver its promises, including technically scalable blockchains, advances in smart contract technology, transaction risk assurance, data confidentiality, and an efficient consensus algorithm.

For effective rollouts, CIOs also need to keep in mind that blockchain is not secure in and of itself. Blockchain is a complex technology, and can lack the clarity of oversight and auditability that more traditional systems offer. As a result, compliance and enforcement costs may increase with blockchain implementation, and some regulatory environments (such as GDPR) may require oversight that is difficult to achieve with the technology. This is exacerbated by a lack of common standards or legal frameworks. CIOs should look at methods to manage these blockchain-related risks.

4. CIOs should brief their CEOs on the strategic implications of blockchain

Company boards will have to make strategic decisions on blockchain in a climate of uncertainty. Many boards of directors will therefore call upon CIOs to brief them on blockchain due to current market hype. CIOs should therefore regular update their CEOs on new developments. The difficult task as a CIO is to explain the strategic implications of blockchain without getting stuck in its technical aspects. Board directors do not want a lot of detail. They just want the high-level issues, implications and suggested actions. CIOs should thereby focus on three main areas: a description of blockchain, frictionless markets and the cross-industry business impacts of a programmable economy. The reason for this is that blockchain has the potential to create cross-industry, transparent and frictionless markets, where transactions have almost no costs and restraints. However, be aware that the future business climate, risks and legal status of blockchain remain unclear.

5. CIOs should warn their board not to underestimate the impact of blockchain

CIOs should warn their board not to underestimate the impact of blockchain. Blockchain for most industries remains ‘mired between inflated industry expectations and general disillusionment’ with regard to how it can improve business processes. While most have heard about blockchain, few understand the technology and its implications for business. This bears the danger that they are underestimating the impact of blockchain. Enterprises run the risk of having their business disrupted if they do nothing about blockchain; however, undertaking a blockchain initiative carries risks too. It is important for CIOs to discuss the areas where blockchain will affect the board’s risk calculations.

CIOs should also determine and inform their CEOs whether blockchain could solve business problems and whether they really need this technology. Existing systems may look much more efficient, or could be managed cheaper compared to blockchain solutions.

6. CIOs should think and work towards a new blockchain-based business model

Once decided to implement blockchain in their company, the greatest challenge for CIOs will be thinking about and working towards a new blockchain-based business model. As blockchain is a collaborative issue, main question for CIOs is, how they could come up with a business model in which companies in an industry can agree on common standards and operate together.  This asks for a strategic approach. By focusing on a number of key areas early in their blockchain efforts, CIOs can lay the foundation toward successful execution. These areas include: make the blockchain business case, build an industry ecosystem, determine the rules of engagement, and, navigate regulatory uncertainty.

First of all CIOs should give strategic clarity when presenting their business case. This should ensure that their blockchain initiative has a business purpose around which they and other participants can align. For that it is needed to identify the business value. To get the most out of blockchain, collaboration between (previous) competitors is key. This should result in building an industry ecosystem, aimed to meet industry-wide challenges. For that it is important that CIOs discover the benefits of collaboration.

A third area of attention is to determine the rules of engagement. Every blockchain will require rules and standards, particularly around what various participants will be able to access and how they can engage. CIOs should thereby explore potential blockchain models and chose that one that fits best. Finally, CIOs need to “stay agile” to meet regulatory requirements as they evolve in the years to come. They should understand the shifting regulatory landscape.

7. CIOs should focus on the various challenges when implementing blockchain

Despite the potential opportunities of blockchain technology, organizations still face a number of important challenges when it comes to implementing blockchain. CIOs should focus on these challenges, that should be identified well in advance, in order to get the best out of this technology.

A first challenge – and not the least one – is the possible lack of skills. Because blockchain is still young and not yet a mainstream technology, there are very few professionals with skills in this area. This asks for intensive education, setting up internal and external courses, hiring externals etc.

Another challenge is the non-existence of a  universal standard for blockchain. This limits the usability of blockchain in and between companies. Until you have standards, you really can’t share information in the classical sense. Though one uniform standard is still far away, Gartner predicts that there will be four main standards in about five years’ time. A third challenge is that blockchain must integrate with legacy technologies so that businesses can exchange information in a meaningful way. In some industries, this is a major obstacle. People just don’t understand the technology, or know what it is good for.

8. CIOs should continue to develop proofs of concept internally as well as part of market consortiums

In order to get grip on blockchain and what it can mean for their business, CIOs should continue to develop proofs of concept to test blockchain’s business worthiness. Thereby they should take into account that different industry domains (upstream, midstream, downstream and marketing) and functional areas (such as commodity trading, cash management, supply chains and data integrity) are expected to adopt blockchain on different timelines.

For enterprise success, blockchain needs to be a consortium effort – not something that is used only internally. CIOs should be aware that the transformative nature of blockchain works across multiple levels simultaneously (process, operating model, business strategy and industry structure), and its success will depend on coordinated action across multiple companies. The way to create a multi-company blockchain consortium however is a very difficult one.

9. CIOs should look to combine blockchain technology, Big Data Analytics, IoT and AI

Blockchain should not be looked at in an isolated way. In order to get the most out of blockchain technology, CIOs should investigate integrating this technology with other ones like Big Data Analytics, the Internet of Things (IoT) and Artificial Intelligence (AI).

Once blockchain has been combined with the Analytics, IoT and AI, blockchain has the potential to change business models forever, impacting both data and monetary flows and avoiding centralization of market power (see my blog: Blockchain and Big Data: a great marriage, January 29, 2019).

10. CIOs should be aware of the changing world in which business exist.

Finally, CIOs should be aware of the changing world in which business exist. Not only because of blockchain, but also triggered by other technologies. The reality is that blockchain and its core elements will radically alter not only the business world itself. The future might eventually lay in a more decentralised programmable economy, that may evolve into digital societies that have a legal standing equivalent to today’s corporates and individuals. These digital societies will set the terms of competition in the future. CIOs should realise that, not  only by developing the technology, but also the ethics and practices to exist in the digital society.

What does this all mean for CIOs?

CIOs are counted on for innovation in their company. Related to blockchain, there however will be a need to  a different approach, away from present blockchain tech-of-the-day approach to a more methodical one to innovation. This asks for a new type of CIO. To deliver, CIOs should realise and recognise that their ability to innovate is nowadays restricted by an organisation that lacks flexibility and agility. CIOs should instead become more flexible and agile and deliver an operating model that is fast, connected, and insights-driven.

 

 

Carlo de Meijer

Economist and researcher

 

Recap ATEL Annual Conference 2019

| 22-10-2019 | François de Witte | treasuryXL |

Each year in the 3rd week of September, ATEL, the Luxembourg Association of Corporate Treasurers, organizes its Annual Conference. This year the ATEL Annual Conference was held on September 19, 2019. It was a very special edition, as it coincides with the 25th anniversary of the creation of ATEL. There were over 200 participants, and this was a good opportunity to have snapshot of some recent tendencies in treasury.

“The annual conference is a great way to take stock of the sector’s developments while celebrating our quarter-century run in a friendly atmosphere,” stated François Masquelier, Chairman of ATEL and Deputy Chairman of the EACT.,

The Conference started with a series of workshops. I followed the one on Cybersecurity in Treasury, given by BNP Paribas, and the one on “®evolution of Payments” given by BearingPoint.

BearingPoint expect major changes due to Instant Payments. The existing solutions to obtain customer information on the receipt of payments are not enough anymore.  Corporations require immediate information on received payments. The Westhafen Expert Dialogue has defined immediate customer information of received payments as a best practice. The format used is the Credit-notification N54 defined based on the camt.054. The proposed transmission channel is either via API: Incoming payments are transferred from the bank to the corporation via a web-service-notification (HTTPS, push) or the through the banking server (EBICS.

The plenary session started with a video of Finance Minister Gramegna congratulating the association on its 25th anniversary and coming back on the establishment of the euro as a great accelerator for the profession and underlining Luxembourg’s key role in maintaining a positive environment for treasurers.

Isabelle Badoux presented Sanofi’s treasury transformation journey focusing on centralized treasury, central bank interaction and the conception of a “payment factory.”

Luca Lazzaroli, then presented the EIB, the largest multilateral lender and borrower in the world. The institution invests over € 1.2 trillion in innovation, environment, infrastructure and SMEs with a special accent on sustainable growth in Europe.

Vincezo Dimase from Refinitiv concluded the plenary session by presenting the challenging transition from LIBOR the so-called ARR (Alternative Reference Rate – e.g. the ESTER – Euro short term rate, which will replace the EONIA). By the end of 2021, the financial sector will abandon the IBOR, and this will have a major impact on the corporate treasurers, as several long-term contracts using the IBOR go beyond end 2021.

Following on this conference we had a nice get together with all the participants where I had interesting exchanges of experience. The ATEL Annual Conference was a very good event.

I am impressed by ATEL, who proves to be able in the small country of Luxembourg to group top experts along hot topics in treasury. On 26/9/2019, we also had at the Luxembourg House of Training the official Ceremony where 13 treasury professionals received their “Certified Path in International Treasury Management and Corporate Finance“, organized in collaboration with ATEL. A new session of this Certified Path will be held starting from January 2020. All practical information and program are available here. I was also part of the lecturers and of the jury.

Will you join next year?

François de Witte
Founder & Senior Consultant at FDW Consult
Managing Director and CFO at SafeTrade Holding S.A.
treasuryXL ambassador
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The restyled Treasurer Test and new website

| 21-10-2019 | by Kendra Keydeniers |

The Treasurer Test has been tested successfully by four different peer groups with each different treasury knowledge and experience. Finishing this test period with the peer members was a huge milestone for everyone who has been working on the Treasurer Test. By achieving this milestone we could take the next important steps in the Treasurer Test process:

  • Analysing the Treasurer Test results in each peer group, compared with peer group members from the same and different peer groups
  • Analysing the questions in both the Treasury Technical Knowledge part and the Personality Profile part
  • Receiving feedback from peer group members, scientists and industry experts
  • Translating input into improvement of the Treasurer Test and the Result Report

The last months during the ‘summer period’ we have been working on these next steps which resulted in a restyled Treasurer Test. We are very proud to launch our new:

  • Candidate Result Report
  • Website
  • Logo
The Changes

Candidate Result Report
We made a huge improvement with the Treasurer Test Result Report. Besides the restyling in the layout of the report, we improved the results display in the Treasury Technical Knowledge part. We received feedback on how the displays with the semi circles were presented with statistical and analytical data. The candidates were sometimes confused in how they actually made the Treasurer Test. Was it good, ok or bad? We have cleared this up and the results display now presents a clear overview of the Treasury Technical Knowledge of the candidate with a stronger comparison component.

DOWNLOAD  the Treasurer Test dummy report.

Are you one of our highly valued peer members? You can now download your enhanced report in your Treasurer Test account. If you need any help, contact us via [email protected].

Website
The Treasurer Test has been uncoupled from the treasuryXL.com website, treasurertest.com is officially launched. The reason behind this is that Treasurer Test is an exclusive assessment product brand that has been grown and has its own identity. Where treasuryXL is expanding with the Dutch market as a basis, the Treasurer Test has been designed to serve the global market from the start.

Logo
New colors, new style and of course a new logo. The new Treasurer Test logo is developed with the idea that it needed more class now The Treasurer Test has been improved.  A logo redesign was a matter of course.

We are very happy and proud on our redesign and now truly confirm what is indicated on our new homepage: “ Measure the technical knowledge in treasury and the personality of the candidate “.
Of course we will keep on developing and innovating and are open for feedback anytime.

TreasurerTest.com is live, for you, for your recruitment, your career advancement.

On behalf of Team Treasurer Test,

Kendra Keydeniers
Community & Partner Manager at treasuryXL

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