Introduction of two Community Ambassadors: Francois and Marco

| 11-07-2019 | by Kendra Keydeniers |

treasuryXL is happy to announce a close cooperation with François De Witte and Marco Lassche. As community ambassadors they will contribute to further raise the level of the treasury function, both for the inner circle: corporate treasurers, bankers & consultants, as well for the non-treasurers.

François De Witte has worked over 30 years in banking and is founder of FDW Consult, specialized in finance and treasury consulting. With his broad treasury career, his key areas of expertise are International Payments & Cash management, treasury, working capital management, financing & advisory, open banking, digital banking and IT strategy.

“I am eager to share my large experience in treasury, banking and innovation with the TreasuryXL community” said François.

François will bring added value to the community with its innovative and broad corporate finance and treasury experience. He operates from Belgium.

 

 

Marco Lassche started his ‘World of Treasury’ career in 2002 and has become a professional in  banking, corporate treasury both in large, international corporates as well as mid-sized

companies. In 2018 Marco founded ‘Bedrijfskostenexpert’, a Dutch company specialized in Cost Reduction, working on a No Cure, No Pay

base. Marco his core expertise’s are Cash management, Funding, Risk Management, Setup in-house bank and cost savings.

“I am looking forward being part of this growing treasury community. Let’s take treasuryXL together to the next level as a leading portal for treasurers and non-treasurers.” said Marco

 

Marco will give the community an energy boost and he can’t wait to share his knowledge to enhance the treasuryXL platform. He operates from The Netherlands.

The club of treasuryXL ambassadors now exists out of three: François De Witte, Marco Lassche and Pieter de Kiewit – owner of Treasurer Search.

 

 

“Large corporates invest substantially in continuous improvement and innovation of their treasury function. Mid-sized corporates often miss opportunities in, and pay too much for basic treasury. I think there is a lot to be gained in increasing the acceptance of corporate treasury and its’ development. I would like to contribute.” Said Pieter de Kiewit, owner at Treasurer Search.

 

 

Keep an eye out for these treasuryXL ambassadors, they will deliver useful and inspiring topics throughout the year.

About treasuryXL
treasuryXL is built by treasurers to serve treasurers and non-treasurers. treasuryXL offers:

  • professionals the chance to publish their expertise, opinions, success stories, distribute these and stimulate dialogue.
  • a labour market platform by creating an overview of vacancies, events and treasury education.
  • a variety of services in collaboration with flex treasurers.
  • a broad network of highly valued partners and experts.

 

 

Kendra Keydeniers
Community & Partner Manager at treasuryXL

 

Big tech vs Fintech vs Banks – in international payments

| 09-07-2019 | by Patrick Kunz |

This title makes it sounds like it’s a fight. To be honest: it is! The market for international payments is huge and its lucrative. In a McKinsey report the 2018 market size for payment revenues was close to 2 Billion. Not strange everybody wants a slice of that.

Fintech & Banks

Traditionally the market for international payments was dominated by banks. Recent years and technological advancements has shown that banks are slow to adapt to new technology and market requirements. In some cases it still takes days to transfer money from Europe to Asia, while an email, FB message or picture can be send in seconds. Fintech has tried to fill the gap with innovative tech solutions that solve these problems. Often these companies are lean and mean and adapt to market changes much quicker than the big stable banks. They provide cloud solutions, link to every bank possible and make you more bank independent. Lately we have seen consolidation in the fintech market where players are merging, growing or being taken over by banks. Some banks have started their own fintech. But often fintech only solved a part of the problem and is build on the existing (bank) infrastructure. Banks are also working on innovation: instant payments, swift GPI and PSD2 api’s are helping the customer paying faster and easier. These initiatives are great but have taken years to be implemented.

Bigtech

Then there is a third group of players: big tech. These are the google, facebook and alixpress of our world. These are traditionally IT companies who have a big client base but these companies where not involved in payments (yet). Their edge is size, market access and fast adoption. What happens if they enter the market for payments? Are they likely to win? Look at Alipay, massively successful in China but growing immensely outside Asia to. Why ? because it is easy to use, innovative, low cost and probably most importantly connected with an existing service of the bigtech (alixpress – shopping). The company provides the full customer journey: shopping for product and paying the goods in the most easy way without moving away from the website. Not only via desktop but also via mobile. On the go they make it possible to pay by scanning a QR code, in a grocery store or in a cab. Who needs cash OR a debit card, you only need your mobile phone and an app! Why was this successful? Because the existing customer base was already there they just vertically integrated into the customer journey; easier for the customer and therefore extra revenue for Ali. But also more power for Ali.

Stablecoin Libra

Looking at Facebook and their Stablecoin Libra. Digital currency, unregulated, not based on the traditional banking/payment infrastructure. There are big and significant differences with Bitcoin but the idea is the same: sending and receiving money worldwide in an instant as digital currency. There should be no speculation on the Libra-Rate as the rate of exchange is based on a basket of currencies (EUR, USD, JPY etc). Similar to the old tech Special Drawing Rights from the IMF. So what makes libra different to bitcoin and the other coins? I am not going into the technical differences as that is beyond my scope and would bore you. The main difference is the easy of adoption. New to bitcoin and want to use it: you have to open a wallet, trading account and learn have to transfer the BTC to somebody and the receivers also needs a wallet; a barrier for most. Using Libra will be much easier as it is just an extension of the services of Facebook. Libra potentially has 2,4 billion users (the number of facebook accounts). This is a big competitive advantage. Compared with smart marketing (facebook knows that) and combining it with existing products there is a big potential. Sending money to your facebook friends in Australia or Japan? No problem: in-an-instant via Libra. Besides facebook it is also supported by other big players like Visa, Spotify, Paypall, Mastercard, Vodafone. Is there a future without Libra ? And how many facebook users are there without an bank account. There are 2,4 billion facebook users and 1,7 billion people without a bank account in this world. The reach is already huge so there is low barrier for adoption.

The Battle

Does this mean bigtech will be ‘winning’? In my opinion hard to say. That battle is being fought the coming years. Don’t forgot the power and influence of regulator and governments. Digital payments are unregulated and unknown and could influence the power of governments and the whole banking infrastructure of money regulation, central bank money creation and some even fear de-stabilization of the monetary system as a whole. Regulators could stop/limit the quick steps forward by bigtech.

The coming years will be exiting to see the technological advancements in the battle for payment revenue. The winner will be the consumer; easy of paying will increase further and more importantly the speed will increase. Paying how we want and within a blink of an eye, and this worldwide, will be the new standard within several years.

 

Patrick Kunz

Treasury, Finance & Risk Consultant/ Owner Pecunia Treasury & Finance BV

 

Why Richard decided to explore the World of Treasury

| 08-07-2019 | by treasuryXL | Kendra Keydeniers

The post-graduate Executive Treasury Management & Corporate Finance programme combines two finance disciplines: Treasury Management and Corporate Finance. These disciplines largely overlap and are inextricably connected.

After a successful completion of all required modules, the title of Registered Treasurer (RT) is conferred by the Registered Treasurer foundation.

The course will start on 1 September 2019. Why wait? Apply today!

 

Let’s talk with another RT graduate this week: Richard Blokland started the Executive Treasury Management & Corporate Finance programme in 2007 to become a certified Treasurer. He graduated in 2009.

Richard’s broad professional treasury experience touches several industries like Oil & Gas, Airlines, Real Estate and the Public Sector. His experience brought him to his latest function as a successful Corporate Treasurer at NewCold.

 

 

What was your main reason to start a career in Treasury?

I started within a Treasury Department for my first job and found out that Treasury would offer me the opportunity to combine business economics with mathematics which I was looking for. Besides this, each day within Treasury is different and I really appreciate this aspect.

Why did you start with the RT program?

This program would offer me the opportunity to get the best education in the field of Treasury.

What are key words that you would use to describe the program?

Divers, meeting the requirements for being a Treasurer and fun.

Which topics covered were most interesting?

Cash management (international), business analysis, derivatives and tax.

Can you describe what your research and thesis was about?

My research and thesis resulted in a framework for handling (US) cross border lease within your organisation, and have it embedded in the right way.

How did the education help you in your career?

It helped me a lot as the RT is a highly trained Treasury professional and also puts you in the same league as the RA or RC.

What surprising elements did the program hold that you did not expect?

The elements not typically Treasury but every Treasury professional should at least know about something, and the international aspect in terms of teachers.

Are you still in touch with your peers?

I am with some.

What other treasury education programs did you consider and why did you choose this one?

None as the RT program is all I need.

Can you describe a treasury topic you learned about that you could directly implement in your job?

For example Tax in terms of transfer pricing.

More stories please! Read the RT story of Mathieu here and/or read more info about the RT program here.

 

Why a personality assessment in the Treasurer Test?

| 05-07-2019 | by Kendra Keydeniers |

Our deeper dive into the Big 5 model continues with our next topic:

  • Introduction
  • Why a personality assessment in the Treasurer Test?
  • What do we see in the peer group?
  • The traits measured
  • A connection between traits and skills?

The personality of the candidate you consider for your job opening consists of a set of traits that determine his/her behaviour. As behaviour is essential for success in the new position, we decided a personality assessment would be a huge asset in the Treasurer Test.

Instruments for candidate screening

There are many instruments you can deploy to predict the success an applicant will have upon hire. Best known are cv screening, (structured) interviews, reference checks, diplomas and on-line or other assessments. Research shows that, depending on the position, skills tests are the best predictors of how good a candidate will do, followed by personality assessments. Combining various instruments increases certainty about the expected success. In the Treasurer Test we combine skill/knowledge testing with a Big5 personality assessment thus aiming high. There are other reasons for including Big5.

Personality Assessments

Many of the instruments mentioned to predict the success of an applicant are not stable. They will give different results with the same candidate if done for the second time and are subjective. Especially interviews and reference checks are proven unstable and interpreted differently. Most organisations did not invest in the training of interview skills of staff members: meetings are often improvised. Personality assessments are proven consistent. All involved in the recruitment process will have the same report, decisions will be better.

With on-line technology getting easier accessible and more cost effective, creating this assessment in 2019 is doable, though still not easy. Five years ago it would have been much harder and potential users would have a harder time to accept the concept.

Research of ‘the treasurer’ personality

No well-known research has been done into the personality and skills of treasurers. The population is not compared among each other and to general population. Neither research has been done into the success variables of treasury professionals. The dataset resulting from the Treasurer Test will, taking GDPR into consideration, be used to do quantitative research into the personality of “the treasurer” and other aspects.

Treasurer Test as matching tool

Let’s not forget that in order to reach the full potential of a new employee and related to this the Treasurer Test, the new working environment of the employee should be analysed in order to find out what personality would match best. The Treasurer Test serves as a matching tool, so two sides should be taken into consideration: the position and organisation on one hand, the candidate on the other.

Although user friendly, it cannot be denied that making the Treasurer Test is an investment in time and money. However, let’s think about the following question: can you quantify the investment lost if you hire the wrong candidate?

On behalf of Team Treasurer Test,

Kendra Keydeniers
Community & Partner Manager at treasuryXL

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Facebook and Libra: the new global currency?

| 04-07-2019 | Carlo de Meijer | treasuryXL

Since Facebook announced to launch a new digital currency, the Libra, a complete media craze arose. The one blogger stumbled as it were over the other. And while the one group sings hosanna over this initiative (a salvation for the bankless), warning signals come especially from the supervisors and regulators part (time bomb under the global money system). And next to that there arose a great many discussions on whether or not the crypto character of the Libra. What are the chances that this Libra will really see the light? And if so, what will that mean for the existing financial system? Let’s give it a shot.

What is the Libra?

Libra is the new declared crypto currency (based on blockchain technology) of social technology giant Facebook. Libra is meant to become the in-house currency for Facebook, Instagram and WhatsApp’s combined 2,7 billion users. An alternative digital means of payment to purchase products, sent money across borders or make donations. To enable peer-to-peer payments, a digital wallet, the Calibra will be introduced that will work with Messenger and WhatsApp.

The mission of the Libra project is to come to a simple world currency and a financial infrastructure that may help move forward the millions of unbanked people in the emerging markets. Money transfers by labour emigrants, so-called remittances, are one of the most important income sources for those people. Annually, according to the World bank, almost 500 billion of euros are being transferred via private bookings from rich to poorer countries. And that at very high fees.

The Libra Association

Libra will be controlled by an independent body, the Libra Association, that will be based in Switzerland. The Association nowadays consists of 29 founding members (including Facebook), with big names like MasterCard, PayPal, Visa, Booking Holdings, eBay, FarFetch, Lyft, Spotify and Uber. The intention is to have 100 founding members by the time it launches next year.

The Libra Association will actively manage the Libra currency for stability. Each Libra will be covered by liquid means for the full hundred percent. For every Libra that will be issued, the Libra Association will have to maintain a basket of short term government bonds and (real) fiat currency including dollars, euro and yen. If these Libras are exchanged into fiat currency, then also the coverage disappears.

Reactions

The launch of the Libra, though just in 2020, has triggered a deluge of reactions from governments, supervisory, regulatory authorities and others like the cryupto world, media etc. all over the world. Some are positively optimistic, others reacted cautious but most are sceptic or even negative. Terms like corporatocracy and techno-pocalyps were even mentioned to describe this Libra project. And that is not surprising!

Most intensive reactions came from France where the Finance Minister le Maire said that “Libra cannot  … and must not happen” and that “it was out of the question that the cryptocurrency should become a sovereign currency”. He has asked central bank heads from G7 countries to write a report on the Libra by mid-July.

The BIS already has put a lot of attention on alternative currencies in its recently published annual report. The BIS warned that if big social technology companies like Facebook or Amazon, are going to dominate the financial system, that will increase the risk of system disturbances.

Other international organisations like The International Stability Board are  very sceptical about the Libra plan, while the British supervisor FCA is not yet prepared to accept the Libra.

But most important, we are still awaiting the official reaction of US supervisors. The ambitions are, especial from the US, to halt the Libra development until further investigation offers the well needed answers. For that purpose the Senate Banking Committee has scheduled a hearing for July 16th, while Facebook has been invited to testify at a hearing of the Financial Services Panel on July 17th.

In the UK it could have similar scrutiny, as the Bank of England noted that
“regulators would have to consider how they’d treat this new asset class”. Though they are not that negative, the Bank of England governor Carney stated that Libra would be subject to the highest standards of regulation.

Libra is …..

…. not a cryptocurrency!

From various reactions on the Libra project it was made clear that the Libra is not a cryptocurrency, as was declared by Facebook. While cryptocurrencies are decentral, transparent and anonymous, the Libra has nothing of these characteristics.

It follows the business model of Facebook, being centralised, closed for the external world and almost without privacy for its users. Though the Libra Association in which Facebook just has a very small vote, and it is supposed to have 100 partners in total, the technology and infrastructure is in hands of Facebook.

….  not a (real) blockchain

Looking at Facebook’s Libra, it makes no real use of blockchain technology. The Libra blockchain is a very special one. There is one big block in which all transactions are being stored, very similar to a normal database. Nobody is aware, but the data at Facebook will not be transparent.

…. (more like) a private digital currency

Contrary to the well-known cryptocurrencies like Bitcoin, Ethereum and Ripple, the Libra is covered by financial assets including government debt and fiat currencies. In that sense the Libra is rather similar to private issued  banknotes.

No level playing field for banks

Some see Facebook Libra just like an ordinary bank. With the introduction of the Libra, Facebook will execute the old-fashioned banking matters, in that way that via the Libra app, Calibra one can transfer money globally and instantly. So, the Libra in fact combines digital ease with the structure of a bank.

And who knows if Facebook is going to offer more than just payment services. It is very likely that they will (in the near future) broaden their services by offering credits etc. And if that is the case, Facebook is starting with their creation of money. Imagine a bank with the potential of 2.4 billion of clients that is not subject to regulation and supervision, creating a non-level playing field.

Urgent need for proper supervision and regulation

There are a range of risks when this process takes place without guidance by supervisors and regulators. A new digital currency with the potential capability of the Libra (Facebook has no less than 2.4 billion users), should be  matter of both banking supervisory bodies and monetary authorities.

Think about the following: the Libra has been launched and Libra will have to keep an equal amount of hard currencies in reserve as the brought in money, that should be invested in short term, government bonds in the various currencies incl. dollars, euros and yen. If the components of the basket changes, or the number of Libra brought in by Facebook fluctuates strongly, that might have impact on the financial system.

If the Libra becomes a success it will be crucial for the functioning of the payments system that it should be subject to the highest standards of supervision. Supervisors should therefore soon come with the decision what the Libra now exactly is: a currency, an investment or something complete different.

Should central banks step in?

Another issue is: how should Central Banks react. Introducing the Libra will also cause sensibilities in the monetary field. Question that arise: will the Libra become a – although stable – currency that will be created separately from the existing system or will it be a complement?

With the introduction of the Libra, Facebook is in fact filling the gap left by the central banks on the international payments market. Key question is: what is preferable, a private global digital currency or a public variant issued by central banks.

According to editors of the Financial Times, the “Zuck-Buck” as they call the Libra will be no less than a global shadow currency, a private variant of a global system of central banks, a sort of Federal Reserve.

It is thus high time that the long-lasting debate about a digital currency issued by central banks should gather space with the possible arrival of the Libra. Just staying on the sidelines is no issue any more. The technology is there.

Why not the IMF thinking about creating an international digital currency that brings stability and meet all the privacy challenges.

Hurdles for Facebook to overcome

The Libra is not there yet. Facebook still faces many hurdles and needs to answer many questions.

I admit, there are positive sides to the Libra initiative, such as Libra’s promise to have cheaper – or even no – transfer costs, while Libra payments will be made as easy as WhatsApp. And there are the potential efficiency gains and better entrance to financial products by many unbanked which may lead to economic growth. But there are also many negative issues to be mentioned.

When talking about privacy, Facebook has not a good reputation. How will Facebook handle the privacy rules? And how is Facebook going to convince customers to give their money in play? But also, how can Facebook prevent that the Libra will also facilitate transactions that possibly may be used for criminal purposes. Therefor Facebook should show that for them it is serious in properly meeting the privacy rules.

“This money will allow this company (Facebook) to assemble even more data, which only increases our determination to regulate the internet giants”. French Finance Minister Bruno Le Maire

Another potential legal hurdle for the Libra project is to keep banking and commerce apart. To prevent conflicts of interest payments and banking are separated from the rest of the economy in the US. Depending on what data is visible for the partners in the Libra Association, there may be enough legal issues that should be solved.

And there is the size issue. According to many, Facebook is already too big and too powerful not to be supervised and regulated. In order to get an “ethical banking culture”, it is needed to make sure that institutions, crypto or not, will not be ‘Too big, to Fail’.

Facebook may also count on the appropriate competition. Such as from China by players like Alipay and We Chat. Moreover there is a big chance that also other tech companies will come with their own currency.

By the way, I am also on Facebook and have a lot of friends. Keep it like that!

 

 

Carlo de Meijer

Economist and researcher

 

Be careful what you wish for in crowdfunding

| 02-07-2019 | by Pieter de Kiewit |

Over the last decade bankers have taken over from civil servants and public transport employees as the ones to complain about. Yours truly is also guilty and I still meet bankers who do not like to talk about their profession because they are annoyed about the bashing. Nobody is perfect but haven’t we all been too harsh on bankers?

This question popped up last week when I read about crowdfunding developments. This relatively new form of funding is growing quickly. I see at least three obvious reasons for this. First, regular banks are reluctant to fund SMEs. Regulatory requirements, ROI and risk profiles of their potential clients are some reasons for that. Second, there is a lot of liquidity in the market and it is hard to make proper investments. Third and last, various platforms, with easy accessible IT solutions, facilitate investors finding those who need funds. Why my plea to go easier on the bankers?

With crowdfunding platforms building a track record, issues are becoming very visible. There are two very prominent problems. Many SMEs using crowdfunding facilitate the payment of extremely high interests, the term loan sharks already came up. The other prominent problem is that the credit risk process in crowdfunding is often very weak. This results in the funding of unstable businesses and weak plans, ending up with funders empty-handed.

I am a small business owner, the chamber of commerce sells my address to whoever pays. On a very regular basis I receive mail informing me how much I can borrow. Crowdfunding is not regulated like banks are. Process and expectation management is being done quite aggressively by platforms and I understand problems are becoming obvious as the market matures. I invite you to read input from Lex van Teeffelen and others:

RTL Z/ANP: Failliet door crowdfunding: ‘Hoge rentes nekken ondernemers’
Lex van Teefelen: Dalend rendement crowdfunding 2019 / Flitskrediet: meer vloek dan zegen! 

This brings me back to where I started with: were we right in bashing bankers? Their processes are more sound, their communication is done with more restraint. There were extremes, mistakes were made and greed was obvious. I think most bankers tried and try to do an honest and professional job. Let’s keep each other informed, educated and ask before we judge. Hopefully we will get better in doing a proper funding job.

 

 

 

Pieter de Kiewit
Owner Treasurer Search

 

Why Mathieu decided to explore the World of Treasury

| 01-07-2019 | by treasuryXL | Kendra Keydeniers

 

I am taking you back to our recent post about the Treasury Management and Corporate Finance program at the Vrije Universiteit Amsterdam. We mentioned to share some Register Treasurer (RT) graduate profiles to give you a better insight of treasurer types that are “RT material”. Let’s kick off with the first interview with Mathieu Ummelen.

Mathieu Ummelen is a Treasury and Corporate Finance interim professional who successfully graduated as a RT. We asked him the following questions regarding his ‘world of treasury’ experience:



What was your main reason to start a career in treasury?

My interest in financial markets started when the stock markets crashed in October 1987. As a 15-year-old boy, I was stunned how companies could be worth 20% less overnight. I wanted to know more about that, resulting in a study of business economics at Tilburg University.

I found courses such as corporate finance, treasury management and derivatives the most interesting, so that after my studies I started looking for a position in treasury and I found that as a trainee at FMO. On my first working day I had to analyse the cash position, and when I was allowed to place the excess cash (USD 2 million) on an overnight deposit, I definitely devoted to the profession and I still am.

Why did you start with the RT program?

After a year in the traineeship program, I was asked by the treasurer to quit the program early and join the treasury department. Although I received a great training-on-the-job there, I was also happy to be given te opportunity to follow the post-doctoral Treasury Management course. In the first instance my goal was to gain more specific knowledge about treasury, for example, the legal and fiscal aspects of treasury were not part of the curriculum at the university. But shortly after the start of the course I realized that the interaction with fellow students and building a network of peers were (at least) just as valuable.

Are you still in touch with your peers?

The weekly contact with a group of peers who are in the same phase of their career was one of the most positive aspects of the Treasury Management program for me. It was an ideal way to quickly build a network of peers, and I probably learned more from them than from the theoretical part of the program. The contact has been somewhat diluted over the years, but I still have contact with some.

Did following the program influence your relation with your family, friends and/or colleagues?

Taking the course takes quite a lot of time, not only the number of hours of lecture and travel time, but of course also preparation and studying for the exams. Fortunately, I started the course a year and a half after my graduation, so I was still used to studying. Also, we had no children yet and my wife was also following a course, that made it easier for me to study in the evening or at the weekend than for some fellow students. So, if you are considering to follow the program, my advice would be to do it as soon as you can!

Become a Register Treasurer yourself and apply for the course that will start on 1 September 2019!

More info here

More stories please! Read the RT story of Richard.

Historisch lage rente nu vastleggen in 5 stappen

| 25-6-2019 | ICC Consultants | treasuryXL |

Steeds meer bedrijven, investeerders en instellingen dekken hun renterisico’s (verder) in. De rentemarkten zijn hiervoor aantrekkelijk geprijsd. Gedurende de laatste twee kwartalen zijn de lange rentes zelfs nog iets verder gedaald en is de rentecurve verder vervlakt. Dit biedt mogelijkheden om ‘relatief goedkoop’ van een korte rente (lees Euribor-rente) naar een lange rente te gaan. Belangrijkste doel hierbij is het afgedekt zijn tegen stijgende rentelasten voor de onderneming.

Hoe realiseert u een optimale afdekking van uw renterisico’s? Voorstellen van uw huisbank(en) zijn vaak eenzijdig en moeilijk te beoordelen op de aangeboden pricing. Graag schetsen we hoe u in 5 heldere stappen veel tijd, geld en frustraties kunt besparen.

1    WELKE RENTERISICO’S LOOPT U?

Allereerst zult u voor uzelf een beeld moeten vormen welke renterisico’s u loopt. Wat is de actuele ‘hedgeratio’? Welk deel van de financieringsportefeuille is afgedekt en voor hoe lang (nog)? En wat is de impact van een procentpunt rentestijging op uw resultaat? Hoe zeker is de onderliggende kredietbehoefte en gaat deze toe- of afnemen? Hoe lang heeft uw financier een financieringscommitment gegeven? Hoeveel flexibiliteit wenst u, bijvoorbeeld voor (extra) toekomstige aflossingen?

2    GAAT U UW RENTERISICO AFDEKKEN, OF (NOG) NIET?

Afhankelijk van uw verwachting omtrent verschillende scenario’s voor marktrente ontwikkelingen (Inflatie? Gematigde inflatie? Deflatie? Etc.) dient u te bepalen of u een deel van uw renterisico wenst af te dekken, met welke instrumenten en voor hoe lang? Bedenk dat vooral de swaprentes ongemerkt hard kunnen oplopen. Tegen de tijd dat het Euribor gaat stijgen en uw rentelasten daadwerkelijk toenemen kunt u de huidige ultra lage swaprentes niet meer vastleggen. Deze zullen op dat moment een stuk hoger liggen dan nu.

3    WELK INSTRUMENT KIEST U EN WAT KOST HET?

De volgende stap is hoe dekt u af? Elke onderneming kent hierbij unieke uitgangspunten. De bank biedt echter vaak een ‘standaard’ renteoplossing aan, veelal een Interest Rate Swap (IRS) met een looptijd van 5 of 10 jaar. Het loont om ook naar andere looptijden, dan wel naar andere instrumenten te kijken en ICC kan desgewenst alle voor- en nadelen en kosten van alle instrumenten op een rij zetten. Ook berekenen we de optimale looptijd van de afdekking voor u en werken we meer flexibele mogelijkheden uit, waarbij de onderneming is afgeschermd tegen een stijgende rente, maar tevens (gedeeltelijk) kan meeprofiteren van dalende of gelijkblijvende rentes. U krijgt geen ‘standaard’ renteoplossing, maar een maatwerkoplossing passend bij ùw situatie.

4    HOE SLUIT U DE TRANSACTIE SCHERP AF BIJ DE BANK?

Deze stap is het lastigst om zelf uit te voeren voor een onderneming. De marge voor de bank zit versleuteld in het rentepercentage van de swap die u van de bank aangeboden krijgt en wordt niet nader gespecificeerd. De kale marktprijs van het instrument dat u gaat afsluiten is in een altijd bewegende rentemarkt alleen inzichtelijk met behulp van professionele en kostbare real-time pricing tools. Bankmarges van 20 basispunten en meer zijn geen uitzondering. Dat betekent dat als u een renteswap sluit voor 10 miljoen met een looptijd van 10 jaar u maar liefst 200.000 euro (niet contant gemaakt) marge betaalt aan de bank, welke zij direct als eenmalige inkomsten boekt.

ICC kan desgewenst het volledige traject voor u begeleiden. We kijken naar de (verplichte) documentatie, de inrichting van het transactieproces bij uw bank en doen een zogenaamde ‘dry-run’ (proefpricing). Vervolgens ondersteunen we real-time bij het daadwerkelijk afsluiten van de transactie. U krijgt inzicht in de ‘kale’ marktprijs en bankmarge. Waar nodig ondersteunt ICC in de uitonderhandeling van deze bankmarge naar marktconforme niveaus. Dit kan u al snel een rentevoordeel van tienduizenden euro’s opleveren.

5    HOE LEG IK HET PROCES EN UITVOERING VAST VOOR ALLE STAKEHOLDERS?

Afsluitend kan ICC een sluitende rapportage (een zgn. ‘Trade Recap’) van de afgesloten afdekking(en) verzorgen. Hierin wordt het gehele transactieproces uiteengezet, inclusief de onderliggende berekeningen, welke onderbouwd worden met ‘screenshots’ vanuit onze pricingsystemen. Deze ‘Trade Recap’ is voor intern gebruik en verslaglegging ten behoeve van o.a. de accountant, shareholders en overige stakeholders.

Als u over bovenstaande vijf stappen c.q. het afdekken van renterisico’s met uw bank(en) vragen heeft of vrijblijvend wilt sparren met een ervaren en onafhankelijke rentespecialist, neem dan contact met icc op via telefoonnummer 030-8201221 of mailen naar [email protected]).

Vraag hier het recente Global Financial Markets Rapport aan waarin ICC op frequente basis ook de meest waarschijnlijke rentescenario’s bespreken.

Auke MiddelAuke Middel
Senior Consultant Market Risks | ICC Consultants

 

Duplicate Payments: Instability with Multiple Platforms

| 24-06-2019 | BELLIN |

It is an arduous request for your Enterprise Resource Planning (ERP) payment platforms or IT department to provide ample protection against duplicate payments and cyber-fraud.  Though it can be tempting to assume administrative controls can provide protection, the facts can show otherwise. Supplier invoice payments are typically the largest annual payments and consequently, represent the highest amount of risk.

According to an Acculytic’s report on duplicate payments, “industry studies have shown that the rate of duplicate payments can be as high as 3%. In fact, 20% of the best performing companies, responding to the 2013 ePayables survey performed by Ardent Partners, had an average duplicate payment rate over 1%.”

Acculytic’s report also stated that “the Institute of Finance & Management (IOFM) concluded that a quarter of the respondents reported duplicate payment rates between 0.1% and 0.5%. Applying these rates to different purchase volumes suggests the following rate of duplicate payments may be generally applied across all organizations.”

Rate of Duplicate Payments ($)
Purchase Volume 0.1% 0.5% 1.0%
$10,000,000 10,000 50,000 100,000
$50,000,000 50,000 250,000 500,000
$100,000,000 100,000 500,000 1,000,000

How duplicate payments and payment fraud can bypass controls

Even the most sophisticated controls still have their pain points. Here are 5 ways that duplicate payments and fraud can unhinge even the best administrative controls:

1) Human error transcends even the most secure systems.

Regardless of how technologically-sound and secure an ERP or IT infrastructure is, mistakes can always occur. Such systems can typically alert when duplicate payments occur by executing matching runs. However, matching runs are incapable of determining if there was an error earlier in the submission phase.

2) Multiple systems leading to inefficiency

The presence of multiple systems is not rare with large multinational organizations. Payment processing becomes more complex in terms of ensuring ample security is present. The seamless connectivity between all systems is a paramount function to be able to detect duplicate payments.

3) Platform migration limbo period presents payment risk

When migrating from one platform to another, there is often a period in which one platform is introduced before the initial is removed. That period before the legacy platform is removed causes a risk for duplicate payments.

4) Administrative controls: biggest strength is a potential weakness

Automation comes with pros and cons and is effective with routine tasks but your integrated controls systems can hamper the speed and efficiency of your productivity. Duplicate payments are detected based on the parameters set and if there are too many parameters, a majority of payments will be flagged. With too few parameters, duplicate payments will slip through the cracks.

5) Accounts Payable are susceptible to internal fraud

Automated detection is a first line of defense but cannot factor in employees that are extremely familiar with the parameters and know how to evade detection. Invoices under certain amounts tend to not require secondary approval, leading to undetected invoices being processed.

3 essential ways a centralized platform can prevent duplicate payments

  1. Seamless data extraction for routine analysis that will not slow operations.
  2. Ability to consolidate and analyze data from any subsidiary or location.
  3. Digestible data that is concise with the system providing relevant alerts for fraud or issues in payment processing.

Bonus function: the ability to analyze historical payments and check for duplicate payments, tax or currency problems, contractual compliance, etc.

Eliminate duplicate payments with a centralized platform

For comprehensive protection, BELLIN’s treasury management system, tm5, will seamlessly connect all of your banks and enable you to process payments and view master vendor information. The centralized platform allows you to connect any system to any bank giving you a true, single-window view of your worldwide banking data.

With company-wide visibility as a core competency of tm5, users can monitor payment and vendor information through the entire workflow. Consequently reducing the chance for duplicate payments that originate from external or internal sources.

Treasury management systems are both innovative and extremely helpful. Knowing this, treasurers are tasked with realizing and dealing with the limitations of having multiple systems. Centralizing payment processes with automation that ensures security is an extremely efficient way to maximize controls and minimize the chance for duplicate payments to occur.


Martin Bellin

Founder & CEO at BELLIN

Blockchain: Game-changer for Small & Medium Enterprises?

| 21-06-2019 | Carlo de Meijer | treasuryXL

In many countries Small and Medium-sized Enterprises (SMEs) are the backbones of their economy. Their role is crucial to worldwide economic and social developments, with more than half of the overall world population working in such companies. In the Netherlands for instance, more than 90% of the Dutch companies are SMEs and together they produce 60% of the added value of the Dutch Economy. SMEs however are confronted with a number of important challenges. including limited access to bank loans, inefficient procedures and lack of information necessary to conduct business efficiently.

While most people relate blockchain to large companies, blockchain also opens new opportunities to SMEs in every sector to solve existing challenges and enable them to optimise their business and develop new business models. Up till recently there were several obstacles which led to slower adoption of blockchain and other distributed ledger technologies by SMEs. But that is changing.

Let’s have a look!

SMEs and present challenges

Despite their status as the backbone of any major economy, SMEs face many challenges. They have a great problem in finding  financing, scale their operations, process payments and recruit other ancillary services that are both necessary to grow or go global. For emerging economies, increasing access to credit is key to generate of new jobs and economic growth.

  • Bank loans

 A big problem for SMEs, esp. for beginning entrepreneurs is to get a loan from banks for starting or growing their business. This is why many of the new or ongoing small and medium-sized businesses disappear. Almost 30% of SME companies shut down in the first three years of operation due to lack of funding.

Since the banking (credit) crisis of 2008, banks are inherently risk averse, so their tolerance for SME lending has become relatively low. Last year’s report from the World Bank estimated that 70 percent of small, medium, and micro-enterprises are unable to access the credit they need. While the global demand for SME credit stand at $2,38 trillion, the truth is, only a fraction (about 15%) of businesses actually get the loan that they request from banks.

  • Trade finance

 Another challenge for internationally operating SMEs is to get trade finance. Trade financing, much like many forms of credit providing, is a key component of the success of SMEs, but that key is not always easy to obtain. SMEs face lots of hurdles in their quest for funding, especially when it comes to accessing traditional trade finance products. Trade has changed dramatically in the last 10 years. But trade finance has not. The $1.5 trillion trade finance gap is driven by data shortfalls. The industry is still heavily paper-based and follows outdated processes and procedures. Typical trade finance operations are as a result still time-consuming, bureaucratic, and simply too expensive for new SMEs. This disproportionately impacts small- and medium-sized firms and firms in Asia and the Pacific.

  • Cash flow issues

 Inability to bring in capital continues to cause enormous harm to small businesses–stifling growth and causing cash flow difficulties. In fact, 40 percent of small businesses reported cash flow issues within the past year. Businesses need cash flow to pay for materials, start the production process, pay employees, or cover any other business expenses. For smaller companies a late payment can be the difference between success and failure.

  • Limited alternative financing

 These SME companies nowadays often turn to alternative forms of financing to obtain funds and ease their cash flow issues. In recent years, the peer-to-peer (P2P) lending system emerged as an alternative to the bank loans. And this segment is growing. Crowdfunding has also emerged to fill the gap in the market, but is mainly focused on technology start-ups. This new funding route is closed to most SMEs from other sectors.

  • Personal identity

Personal identity and data control are major concerns for online retailers as most of the interactions between customers, and online retailers are controlled via usernames and passwords stored in centralized platforms. Such platforms are vulnerable to hacking, and user data can be accessed and misused by hackers. Next to that people can easily falsify documentation and identity proofs.

  • Adoption of new technologies

 Another major challenge for many SMEs is how to deal with new trends in digitalization and automation. While large corporates often have the resources to react promptly, experiment and develop new products and services and thus benefit from the new technologies like blockchain, this is not the case for many SMEs.

This while they are experiencing problems for which these solutions including blockchain could be a solution. Many small- to medium-sized companies find it difficult to get started with new technologies since the scale of SMEs is often too small, among other reasons. Most SME’s miss the manpower, skills and knowledge to develop new strategies on such new trends.

 

Use cases

Blockchain presents itself as a solution to these challenges. This technology could solve the problems in the areas of funding and trade finance. Though it makes sense to use blockchain for money-related businesses, they may also be used to solve many of their inefficiency problems. Safe and secure data transactions and smart contracts may optimise supply chains and improve client satisfaction by automated services.

  • Trade finance           

Blockchain could became a game-changer for SMEs that are looking to expand abroad in their search for trade finance. Trade finance products are being made more efficient due to transparency and the consensus mechanisms that replace multiple instances of verification and checking.

A new study by the World Economic Forum and Bain & Company shows that blockchain technology could play a major role in reducing the worldwide trade finance gap, enabling trade that otherwise could not take place. Another finding is that the impacts would be largest in the emerging markets and for SMEs which may display the use of the technology beyond well-established markets and corporations.

The Asian Development Bank forecasts the global trade finance gap currently stands  at $1.5 trillion, or 10% of merchandise trade volume and is set to grow to $2.4 trillion by 2025. But the results from the new study shows the gap could be reduced by $1 trillion using blockchain technology efficiently.

  • Supply chain finance

Blockchain technology may also contribute to solve the problem of getting supply chain finance. A bigger segment of the market is nowadays building open account solutions. But because of the difficulty in tracking how deep the supply chain is, often financing is only offered a few tiers deep. As blockchain is much more flexible with data than existing digital systems, this technology opens up the possibility of this level of financing.

On blockchain, both suppliers and buyers have access to necessary transactional information in real-time. Every step of the supply chain process is time-stamped and verified by all parties, meaning that information is accurate and immutable. This added level of visibility may also mean that businesses will have more invoice financing solutions available, too. This transparency may result in faster transaction processing improved cash flows for suppliers, and potentially better rates from invoice finance providers.

  • Smart contracts

One of the most attractive features that blockchain has is the potential to offer SMEs smart contracts, which not only define the terms and penalties around an agreement in the same way that traditional contracts do but also automatically execute and enforce those pre-agreed terms and conditions (but without the need for middlemen). Many labour intensive and expensive business processes can easily being replaced at little cost.

The largest opportunities could come from smart contracts, single digital records for customs clearance. Smart contracts can represent an invoice, or any similar financial document, and be used as collateral to support a loan. They would help mitigate credit risk, lower fees and remove barriers to trade.

To avoid the initial development costs of building on Ethereum, there are already blockchain companies like Confideal and dApp Builder that make it easy to create and launch a complete smart contract portal with just a few clicks.

  • Funding/collateral

Blockchain technology has the potential to completely “reinvent the wheel” when it comes to SME funding. Blockchain could help revive peer-to-peer lending practices that has emerged outside of the regular banking system, by digitizing what was once a manual process.

Through disintermediation, blockchain makes it significantly easier and faster for small and medium-sized companies – not just technology start-ups – to raise funds through equity. The removal of these barriers reduces the need for complicated paperwork, while the automated nature of the process may mean that  commissions, excessive brokerage fees associated with selling shares, and other overheads can all be left behind.

  • Identity management 

Another area where blockchain could become a game changing factor is in the area of online identity verification. A growing number of SMEs do their business online triggering demand for increased online security. The risk of identity theft and fraud could be eliminated with the use of a decentralized identity, such as blockchain. It allows a more effective and reliable form of identification of a person without the requirement for third party involvement. As well as the benefits in terms of the reliability of the verification, the speed at which checks can be performed is much faster. This can help businesses speed up processes and make them more reliable.

 

SME-focused initiatives/projects

To address the various challenges for SMEs in their search for blockchain solutions, a growing number of SME-focused initiatives have been launched.

  • Blockchers project

One of these programs is Blockchers, as part of the European Horizon 2020 project. Blockchers is a project that will facilitate the revolution of blockchain and other distributed ledger technologies (DLTs) across European SMEs. It is an acceleration process for SMEs and start-ups to build real world use cases of blockchain technologies, thereby financing real world use cases of this technology in traditional sectors.

One of the main goals of Blockchers will be fostering the matchmaking among traditional SMEs and potential DLT specialists, as technology providers, and “sensitize about the benefits and opportunities around DLTs to implement real use case scenarios in a variety of verticals”.

Alastria Blockchain Ecosystem has been chosen by the European Commission as the technological partner for the Blockchers Project. They will  provide the blockchain infrastructure to the start-ups participating in this EU Project, developing blockchain solutions to SMEs.

  • Project Blockstart

To make sure SMEs can experiment “if and which blockchain solution will help to tackle the problems in their activities”, Bax & Company, a leading European innovation consultancy, has set up the project Blockstart. The aim of Blockstart is to increase the competitiveness of SMEs in the health, agro-food and logistics sectors by providing business support, identifying and testing business opportunities from blockchain innovations. Working together, the partners that will form an international ecosystem of business networks, incubators and blockchain experts, will test the market readiness of different blockchain solutions in real-life settings. Blockstart will help small- to medium-sized enterprises (SMEs) strengthen their competitive positions through the use of blockchain technology.

  • Dutch logistic project

And there is the project of RDM Knowledge Center and Sustainable PortCities in cooperation with Windesheim University of Applied Sciences, to investigate the opportunities for SMEs in the Dutch logistics sector to benefit from logistics applications of blockchain. In the project SMEs active in cold chains, the pharmaceutical industry, transport, forwarding and warehousing are involved.

They try to give answer on questions that SMEs ask, including: what are the consequences of blockchain for their business model?; what kind of knowledge should they have about the potential of blockchain?; could blockchain technology improve their logistic processes?; and, how can blockchain technology create added value for their company?

  • Singapore PLMP Project

Singapore blockchain company PLMP Fintech has launched the Blockchain Technology Creatanium Centre (BTCC). BTCC is a blockchain centre, focused on accelerating the blockchain ecosystem for Singapore small and medium-sized enterprises (SMEs) across various industries, allowing businesses to compete on a global level and increase efficiencies in operations and funding. BTCC will also provide education and development as well as house a blockchain and ICO ecosystem.

Similar centres are planned for Indonesia and Thailand.

 

SME-focused blockchain platforms

Furthermore, to help increase blockchain’s adoption across multiple industries and enlighten businesses of the technology’s potential, a large number of open source collaborative blockchain platforms have been created such as Hyperledger, Ethereum etc. Their main goal is allow enterprises to build customised blockchains that would answer specific needs instead of letting companies solve issues on their own. In recent years also platforms specific focused on SMEs have been launched such as We.Trade, Karma and others.

  • We.Trade platform (trade finance) 

Nordea has launched a blockchain-based platform designed to make it easier for SMEs to trade with other companies in Europe. The we.trade platform, a blockchain network for trade finance, is available to all Nordea SME customers, with trading controlled through a set of rules designed to bring security to the process.

The new offering is built on the we.trade platform developed by a group of 12 banks using IBM blockchain technology. The aim of the project is to simplify trade finance processes for SMEs by addressing the challenge of managing, tracking and securing domestic and international trade transactions by connecting all of the parties involved (i.e. buyer, buyer’s bank, seller, seller’s bank and transporter), online and via mobile devices. Providing more companies more efficient access to trade financing and credit across Europe will allow them to grow their business by expanding into new markets and forging new trading partnerships.

  • Karma (funding)

Karma (Russia), launched early 2018, is a true P2P platform which is fully decentralized. By design, the platform is a unique enabler that gives SMEs access to additional liquidity. Based on the blockchain technology, it enables users to invest in any SME. The platform offers its users a wide spectrum of investment opportunities. One of the features that make Karma “stand out of the crowd” is its ability to let investors lend to SMEs anywhere around the world.

  • Traxia (trade finance)

Traxia is a decentralised global trade finance platform. The proposed new blockchain-based system used to assess the creditworthiness of SMEs, will build a bridge between the banks, the SMEs and the data provider.

By using the blockchain, and smart contracts they will be able to offer transparent, fast, and not so costly transactions for small businesses. Thereby solving the long waiting problem by allowing for a transparent platform for invoice trading designed just for SMEs.

The loan system will connect technology to how people think and behave to determine who is credit-worthy. The system will link alternative payment data to accounting certificates to mobile and social data to psychometrics. The alternative payment data thereby looks at utility payments, rental payments and accounting certificates.

  • Blockchain identity platforms

Already, a number of blockchain-based companies are taking advantage of blockchain’s identity tools. Its decentralized nature and security features to provide better and more transparent identification tools, offers a way for customers to identify themselves and have access to certified documents and notaries as well as a marketplace for customers to purchase services and products.

Instead of buying expensive, centralized server architecture or “paying hefty fees” to companies like Amazon Web Services or Google, a comprehensive start-up CEO might instead choose to rent custom-sized decentralized hosting space from a blockchain platform. This provides increased data integrity and a more efficient cost plan as well.

  • Other blockchain-based platforms for SMEs

A group of 11 Indian banks have teamed together to unveil the nation’s first blockchain-linked funding for SMEs. The goal is to revamp lending for “default-prone small firms”, by helping bring forth the virtue of transparency. The blockchain network will allow the banks to access public credit data so they can reduce risks when offering lending. In 2018, the Hong Kong Monetary Authority (HKMA) embarked on a similar undertaking and launched eTradeConnect. The blockchain-powered platform was aimed at solving the various challenges that hamper the link between banks and SMEs.

Later that year, the Abu Dhabi Global Market, another multinational financial hub located in the United Arab Emirates, entered into a joint agreement with HKMA and Singapore’s central bank. They aim to create a blockchain-powered, cross-border trade and finance platform for SMEs hassle-free access to funding.

 

What advantages may blockchain bring for SMEs?

Blockchain has the potential to offer a lot of distinct advantages to small and medium-sized businesses, such as trust, speed, more safety and security as well as risk reduction in terms of lesser identity fraud and hacking, thereby reducing time and unnecessary costs.

This may enable them to solve the cash flow problem, the paperwork issues, as well as the problem to go global (thanks to the globality of blockchain platforms), preventing them from going bankrupt.

  • Available funds

First of all the risk of getting no funds at all will be greatly reduced. Because there is no doubt about when funds will be released, companies can deliver services in time knowing that funds will always be available when they should be. Payments for goods from distant buyers and payroll to overseas employees may become easier and can be completed at a fraction of the current costs. As a result, it can help bring products and transactional services to market quickly and inexpensively.

  • More safe and secure transactions

Security and transparency will also prove to be value-added benefits of blockchain for businesses. For SMEs with global aspirations, blockchain technology using secure communication techniques may guarantee more safety and security in their transactions.

The blockchain technology will assist firms to overcome problems associated with asymmetric information, collateral requirements, a lack of sufficient credit reporting agencies and internet data security and cybercrime. Blockchain technology thereby ensures safe, automated and efficient data transactions that may be used in the exchange of private information, or monitoring goods in transport or tracing the origin of food products.

  • More cost efficient processes

To make their processes more efficient , blockchain applications will definitely streamline business processes and offer a great potential for reducing costs and complexity of processes.

Significantly reducing overhead costs is a major advantage for small businesses hosting services on the blockchain. Using blockchain means reducing the amount of resources and time entrepreneurs put in for administrative tasks. This may contribute to offload the traditionally high costs of security, Know Your Customer (KYC) protocols, data storage and other overheads.

Apart from significantly reducing the investment that founders must make in these support activities, the cost savings can be passed onto customers to make prices more competitive. This may allow SMEs worldwide to compete on a more level playing field.

 

What are SMEs already doing?

A study conducted by the Emory University (US Atlanta) in collaboration with Provide Technologies and Aprio claims that the small and medium enterprises are investing twenty-eight times more in blockchain than large enterprises. The report furthers that most of the blockchain-based projects are aimed towards business process automation while authentication and compliance are the second and the third most significant blockchain usage across the globe. The report also marks that the payments industry stands fifth when it comes to blockchain adoption whereas, identity management and market place governance follow the top tier applications very closely.

There is a growing community of innovative start-ups that are developing SMEs focused blockchain solutions. However, the sectors in which DLTs really make sense, besides fintech, could be those in which existing SMEs do not (yet) have enough knowledge on how DLTs work nor how they could uptake these technologies (traditional SMEs).

Need for regulatory framework

Blockchain SMEs face uncertain regulation that limits their scope of action and imply a risk for their growth. The real challenge, going forward, will be the legality of smart contracts, and a global regulatory framework needed to establish true peer-to-peer lending across borders; just because it is legal in one country, does not make it so in the next.

A “good” regulatory framework should bring more clarity, fostering the uptake and prevent from fraudulent actions such as those linked to the anonymity of users in transactions. In the meantime, the power and potential of blockchain and smart contracts is increasingly being recognized across the business and political spectrum. While it may take regulators some time to catch up, broader adoption will lead to sensible regulation.

Forward thinking

Looking at these advantages, it is easy to see why a growing number 0f entrepreneurs  in the SME world is willing to invest more into blockchain. With the blockchain and related services such as smart contracts, the SME world may expect to see a total transformation of how they nowadays do their business. Blockchain will make international dealings more conducive for SMEs and may allow them to compete in ways that are unthinkable today.

Blockchain is however still in its early stages. The mass adoption of blockchain by SME companies has not yet started, and widespread adoption will take time. For this to happen, the biggest obstacle is getting more businesses to build on blockchain and drive customers toward these solutions. This asks for trust.

Trust will be built over time, and in order for the promises to become a reality, some businesses must start trusting the process. Proving to the world that there is a lot of opportunity in using the blockchain for absolutely everything related to business.  Given how this technology could boost trade by more than $1tn in the next ten years, according to World Economic Forum, this may be a call-up to the big blockchain companies to come up with SME friendlier solutions.

 

 

Carlo de Meijer

Economist and researcher