Getting ready to launch the Treasurer Test!

| 07-08-2018 | by  Pieter de Kiewit | treasuryXL |

Roughly 60% or more of the hiring managers we work with does not have experience in corporate treasury. Less than 20% of people working in corporate treasury received extensive professional treasury education. The rest did not. How can we measure whether a candidate has the knowledge to be able to do the job? Currently this is done, also by us, by looking at their experience: screening CV’s, checking references, etcetera. I think there is room for more thorough measuring.

After talking with many experts the idea of the Treasurer Test arose. We created a group of enthusiasts and started building. The core of the group consists of:

  • academic treasury experts of VU University (Vrije Universiteit) Amsterdam, responsible for the Register Treasurer Program, and The University of Applied Science (Hogeschool) Utrecht, organizer of the Minor Treasury Management;
  • assessment psychologists with a degree in test development;
  • IT experts using software and methodologies also used by dozens of international universities who can build an on-line assessment environment;
  • treasuryXL, their and our network of corporate treasurers as well as professional bodies.

Within a month we will start with the first test of a new and I think exciting measurement tool. It combines measurement of treasury knowledge & skills with a Big 5 personality test. The results of the treasury part of the test are presented both with absolute scores, as well as with a peer group comparison. Peer groups are formed upon experience: up to two years, three to eight and over nine. The results of the personality test are compared with a general population as well as the treasury population who already did the test. This way we can make statements like “he didn’t answer a lot of questions correctly on the topic cash management but others with less than 2 years’ experience score even worse” or “she is an introvert in comparison to general population but in comparison to other treasurers she is quite extroverted”.

We are close to asking the first peer group to do the test and expect a larger scale introduction around October 2018. treasuryXL will be the home of the Treasurer Test. I am quite excited about this project and think it can all help us in making career / recruitment decisions, choose proper education and shape treasury teams. There is a lot more to tell about the project, I will keep you updated and am available for questions or input.

On behalf of Team Treasurer Test,

Pieter de Kiewit

 

 

Pieter de Kiewit
Owner Treasurer Search

 

 

Evolution not revolution: Financial services of the future

|06-08-2018 | Reuters | treasuryXL |

 

The story surrounding the banking battle to keep customers happy, as challenges emerge from FinTechs, is not a new one. However, Barclays is embracing this competition – not to mention the other winds of change, such as Brexit and new regulation across Europe.

 


Collaboration over competition

Barclays’ recent strategic partnership with PayPal is indicative of the continuing evolution, rather than the need for total revolution. It gives consumers and business customers a new, seamless way of linking their two accounts. It’s an example of how banks can transform and make their trusted brands stronger, wherein banking experience and innovation are key – this evolution isn’t a full-on collision with large technology companies.

Banks are part of the solution

“FinTechs still need banking payment rails. It’s not in their interest to completely destroy banks. There is still a need for them to be part of the solution. The more we look at collaboration, innovation will enable us to thrive alongside FinTechs,” says Martin Griffiths, Head of FinTech at Barclays. He adds, “There will be new business models – maybe it won’t be all about payments. We’ve got to be open to thinking about what consumers need, what the experience is that the end users want.”

Trust, above all

As established financial services companies strive to stay relevant in a disruptive world, FinTech start-ups would do well to draw on the histories of these corporations and learn how to build businesses that last. Security, privacy and compliance — these are core issues that are hard to replicate. “Consumers trust banks and until some of these businesses have the same scale and the same level of trust, they’re not going to be looked at as the first alternative for most consumers, for quite some time. I think the crypto space is seeing that. Who do you turn to when things go wrong? The banks have got a longstanding reputation for servicing problems,” according to Barclays’ Martin Griffiths.

Visit the website of Reuters to read the full article.

 

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Best read articles of all time: Do treasurers really need instant payments? some implications.

| 03-08-2018 | Patrick Kunz | treasuryXL

 

 

Per 13 January 2018 we have a new payments service directive (nr. 2) live in the European union, PSD2 for short. One part of PSD2 is the possibility for banks to offer instant payments between banks in the EU. Within max 10 seconds money flows from one bank to the other, also on weekends and on holidays. In this paper I want to discuss the implications for treasurers of instant payments.

Cash flow forecasting

Forecasting is an important part of the daily/weekly routine of a treasurer. He/she needs to predict the future to know his cash/risk/financing position. On the ultra-short term spectrum of this forecast a treasurer might use intraday bank statement (MT942) to take into account the incoming funds during the day. These are often updated hourly. With instant payments a treasurer can have a look at their bank account and the balance that is showing is the real-time balance with all incoming transactions being settled. As said before a treasurer might already have intraday statements but there is (1) a time lag in those and (2) there might be transactions not processed yet. Bottom line this difference amounts to several hours lag. Depending on the size of the company and the amount and size of transactions there is some impact but not very sizeable. Furthermore, those treasurers that do not use intraday balances for their forecasting have no impact of instant payments. However, how about the due payments on non-working days? In the future these are normal payments dates. Previously due payments on weekends are either set on Friday or Monday depending on the terms of the contract. These could now be forecasted on the exact day. But that depends, payments are often done during business hours, so it is possible that nothing changes. Depending on the size of the transactions there is importance to check this with your suppliers and clients. This also depends on bank processing of yourself and your client/supplier.

Bank processing

Instant means instant in time but also in days. In the past we were dependent on the opening hours of the banks and later of the ECB. That could mean that if we send money just after close on Friday and there was a public holiday on Monday we would only see the money coming in on Tuesday. The money was “lost in translation” in between. This is not very modern in an age where we send an email from Tokyo to South Africa in minutes but not money. We could literally fly there with cash and be faster. After all banks have implemented PSD2 money flows 24/7. So also in the weekend and on holidays. This has an impact on the processing of your bank statement. You now receive bank statement for Saturday and Sunday. Most accounting/treasury departments do not work on the weekends so there is a chance that these statements are not processed. This means you must process 3 statements on Monday. Some companies have automatic processing of bank statements, so the weekend statements might be processed but not (automatically) consolidated leading to more open positions on Monday. Ok big deal, there is more work to do on Monday due to more bank statements. But there is more: not necessarily for treasury departments. Think about customer services (helpdesk) departments. If a client with an overdue payment calls it would be great if the helpdesk employee is able to verify statements of the customers if the says he has paid or will pay immediately. This however only works if processing is automatic or if the helpdesk employee can access/search the incoming payments on the bank account (which might not have processed in accounting). Not all companies will have this yet. Overdue calculations might be faulty in some ERP systems as only working days are considered. If a payment is due on Sunday, you can pay on this Sunday and not necessarily on the Friday before.

Conclusion

Instant payments are only a fraction of PSD2 which is often not very interesting for most treasurers. They get some information faster but that does not really help them too much. There is however more to it. Since payments can now arrive and be made in the weekends the cash flow forecasting should now contain 7 days in a week instead of 5. Payment can be spread out more but also receipts will be. Bank processing is more work; 7 daily statements per bank account per week instead of 5. Extra processing or extra automation needed. The extra information might be needed by other departments too even though the treasury/accounting department is not working.

Overall the implications could be bigger then you might think and are different for every company and depending on their existing (bank) processing.
Most bank are planning to introduce weekend reporting by H2 2018 while instant payments are due beginning 2019. For business transactions this might even take until H2 2019.

Some time left but a good time to already think about your current processes in comparison to the new reality under psd2. Treasury is moving to a 24/7 information economy. It’s about time.Time will tell if there will be fintech’s stepping in helping with above issues with direct connections to the bank, which is another important part of PSD2 but not within the scope of this article.

If you need help with automating your bank statement processing or with your cash flow forecasting, then look at this author and other Flex Treasurers on this website for answers.

Patrick Kunz

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

 

 

Media partnership treasuryXL en Reuters Plus

| 02-08-2018 | Reuters Plus| treasuryXL |


Met het vooruitzicht dat de Brexit steeds dichterbij komt, staat Europa aan de vooravond van een transformatie. Als belangrijkste verschaffer van banen en economische groei spelen Europese bedrijven een cruciale rol bij het bepalen van de samenstelling van het Europa van de toekomst.

Op hub website wijdt Reuters Plus gedeelte aan het informeren over de gevolgen van de Brexit. Hier komt informatie van verschillende bronnen samen, deze informatie bestaat uit artikelen en podcasts op het gebied van FinTech tot big data. De artikelen zijn niet specifiek bestemd voor de treasury community, maar door de raakvlakken met het treasury vakgebied wel erg waardevol. Dit is ook de reden dat treasuryXL en Reuters Plus een media partnership zijn aangegaan met als doel zoveel mogelijk relevante informatie met de community te delen.

Verder wordt er in september ook een event georganiseerd door Reuters Plus dat gericht is op de treasury community. Een aantal experts zullen hier de veranderingen bespreken die er moeten komen ten gevolge van de Brexit . Meer informatie over dit event kunt u vinden op onze website.

 

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EVENT: THE WORLD’S LEADING INTERNATIONAL TREASURY EVENT @ EUROFINANCE

| 31-07-2018 | Eurofinance | treasuryXL |

Join the global treasury community at EuroFinance’s  27th International Treasury Management conference. This year, we look at how to prepare treasury for the future – because it is no longer enough to just deliver on treasury’s core responsibilities.

New technology, business model disruption and unprecedented compliance, regulation and geopolitical issues will change the profession beyond recognition. Treasury needs to react and adapt.

  • Discover which tech is relevant to you and how to future-proof your treasury
  • Hear how to be proactive, work with the rest of the business and keep treasury relevant
  • Learn how others are seizing the opportunity to review everything from staffing to structures

This fresh new programme is based on over 1,000 interviews and discussions with treasury professionals around the world. It will deliver cutting-edge content, real-life case studies and thought provoking big picture sessions.

Network with an unparalleled senior audience of 2100+ delegates from over 50 countries. Find out what to expect here: https://bit.ly/2Nv8RI3

For more information or if you want to register for the event visit the events website.

 

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Corda Enterprise blockchain platform: unlocking new opportunities

| 30-07-2018 | Carlo de Meijer | treasuryXL

Early this month R3 announced the launch of Corda Enterprise, a commercial version of its open-source Corda blockchain platform, which aims to help a wider range of business use blockchain in their sector. With the launch of Corda Enterprise, companies can now select a version of Corda that fits their unique needs – regardless of their industry, size and stage of development. It however took more than a year hard working, because of the various challenges, such as scale, security and privacy.

Corda Enterprise brings greater enterprise capabilities to the Corda platform. Built upon the existing Corda’s functionality, it is thereby enhancing availability and performance. These extra features may enhance security and make Corda Enterprise easier to scale. Next to the We.Trade platform for trade finance (see my recent blog: We.Trade on blockchain: yes we can), Corda Enterprise is the second commercially available blockchain platform for business, specifically optimised to “meet the demands of modern day businesses”, especially complex regulated institutions.

Why Corda Enterprise?

The whole idea of the original Corda platform (see my blog: R3CEV Corda Platform: the blockchain app store, 9 October 2017) was to enable businesses to transact directly and privately, reducing transaction costs and streamlining operations. Many large users however are facing technical, regulatory and compliance issues that prevent them from using blockchain internally at scale. Not all businesses can realise the full potential of blockchain because of technical constraints like their existing IT systems and complex infrastructures, as well as issues around privacy, scalability and interoperability between systems. R3 is therefore launching Corda Enterprise and has implemented additional functionalities so that every business can benefit.

 

Read the full article of our expert Carlo de Meijer on LinkedIn

 

Carlo de Meijer

Economist and researcher

 

Best read articles of all time: Financieringsstructuur: solide fundament of kaartenhuis?

| 25-07-2018 | Bianca van Zeventer | treasuryXL

Leningen worden vaak gezien als een goede manier om lange termijn investeringen te financieren. Een (gecommitteerde) meerjarige lening levert veelal zekerheid voor de middellange termijn. “Voor meerdere jaren vastgelegd” blijkt in de praktijk vaak niet waar te zijn. Leningen worden afgesloten als een aanvullende vorm van financieren, naast rekening courant, lease en/of andere leningen. Hoewel het aangaan van de meerjarige financiering ‘an sich’ niet heel risicovol hoeft te zijn, zijn de voorwaarden dit soms wel.

Elke vorm van financiering heeft zijn eigen voorwaarden. Aan de verschillende leningen worden specifieke voorwaarden toegevoegd. En dan zijn er nog de algemene (bank)voorwaarden.
Veel bedrijven nemen onterecht aan dat dit ‘standaardvoorwaarden’ zijn en er maar beperkte onderhandelingsruimte is.

De voorwaarden van de verschillende arrangementen spreken elkaar vaak tegen, zijn niet zoals beoogd en/of dienen niet het doel en het belang de onderneming.

Financiering in welke vorm dan ook blijkt vaak een kaartenhuis. In plaats van mooi gestapeld, zijn de arrangementen een domino met de eerste steen in handen van de kredietverlener.

Wanneer uw onderneming onverhoopt in zwaarder weer terecht komt, dan is het belangrijk dat het staat op een solide financieel fundament.
Voorkomen is beter dan genezen geldt hier ook. Beter vooral goed uit-onderhandeld dan later de financiering amenderen of herstructureren. Of zelfs geen keuze meer hebben. Uw bank of financier eenzijdig de mogelijkheid geven alle financieringen te herroepen of betaalbaar te stellen, biedt geen financiële stabiliteit.

Maar vaak blijken de verschillende voorwaarden zodanig in elk kaar te grijpen, dat dit wel het geval is.

Een FlexTreasurer met gespecialiseerde financieringskennis, kan u helpen een snelle scan te maken van uw financieringsstructuur, aanbevelingen doen voor aanpassingen en/of financieringsarrangementen namens u of samen met u (her)onderhandelen.

 

Bianca van Zeventer

Treasury and Finance Specialist / Owner of CuCoFin

 

GDPR: From compliance headache to business opportunity

|24-07-2018 | Reuters | treasuryXL |

The Information Commissioner’s Office has described the new GDPR laws as “the biggest change to data protection law for a generation”. Businesses will face a maximum fine of up to £17 million or 4% of global turnover, if they breach the EU rules. These are critical, but turbulent times for businesses across Europe. However, if organisations of all sizes play their cards right, GDPR can be transformed from a compliance nightmare, into a business advantage.

Competitive advantage

“General Data Protection Regulation is generally seen in a fairly negative light, particularly by organisations. But I think there is a huge opportunity to differentiate services based on trust. The consumer gains from interaction with any institution,” according to Managing Director and Data Protection Officer at Barclays, Jon Rees. He adds: “Our recent research has shown that the number one concern – across many different demographics and usages – is security of customer information, and how it’s being used. There’s a competitive advantage to be had by applying GDPR in a positive way.”

Consistency by design

As a ‘complex corporate’ itself, Barclays has seen another major benefit of GDPR, and that’s the obligatory enforcement of good practice and consistency by design across organisations, in terms of the harmonising of data systems. While it’s still early days, transparency is fast-becoming the buzzword of GDPR’s inaugural year.

Consumer confusion

There are, predictably, some areas of confusion that are emerging, especially for consumers – in part accelerated by miscommunication. People are confused about what their individual rights are when it comes to personal data and consent, and right to deletion. Some are interpreting consent as: ‘unless I’ve given a firm my approval, it has no right to use my data’. While this is not correct, the lack of understanding is unsurprising, given the complexities of GDPR and it being in its infancy. However, this is where businesses can once again shine. Those that are helpful, and offer clear communication with their consumers on GDPR, will come out on top as trustworthy brands that always put the customer first. A more consumer-centric approach is, after all, at the heart of GDPR.

Visit the website of Reuters to read the full article.

 

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Heeft u een bankkosten strategie?

|23-07-2018 | by  Pieter de Kiewit |

Als niet-benoemd ambassadeur van het corporate treasury vak wil ik een lans breken voor de bewustwording over bankkosten. In mijn beleving wordt hier te weinig aandacht aan gegeven met onder andere als consequentie grote risico’s, te hoge kosten en onnodige afhankelijkheid van de huisbank. Een les die we, denk ik, allemaal wel hebben geleerd intussen is dat we niet moeten kopen wat we niet begrijpen. Laat me een paar voorbeelden geven.

Sinds de Vestia bom barstte is er veel gebeurd rond het thema derivaten. Niet alleen grote organisaties bleken deze bankproducten te hebben afgenomen. Soms werden ze aangeschaft omdat er klakkeloos werd geluisterd naar een bankier (die werd beloond voor het zoveel mogelijk verkopen). Soms omdat er werd verwacht dat de rente zou stijgen, terwijl hij verder daalde, met grote kosten tot gevolg. Soms goed doordacht en volledig terecht. Deskundigen met enig begrip van het Uniform Herstel Kader verdienen nu een goede boterham met de reparatie van de derivaten chaos.

Tot op heden kopen veel ondernemingen hun vreemde valuta bij hun huisbank zonder te vragen naar transactiekosten en het verschil tussen aan- en verkoopkoers. Men gaat ervan uit dat de bankier de oprechte adviseur is en negeert dat hij wordt beloond op marge omzet. Intussen zijn er diverse partijen die betere koersen bieden, wat mijns inziens niet direct betekent dat ze de betere partij zijn.

Het laatste voorbeeld dat ik wil benoemen is dat iedereen begrijpt dat een piano vervoeren geld kost maar dat men niet beseft dat een betaling doen, oftewel geld vervoeren, ook met een prijs komt. Mogelijk wordt dit veroorzaakt omdat retail banken in Nederland van oudsher geen kosten aan hun klanten berekenden voor het aanhouden van een rekening courant, terwijl dit in het buitenland wel de standaard is.

Hoe hiermee om te gaan? Vanzelfsprekend kan ik hier niet uitputtend over zijn. Een goed begin is nadenken welke financiële producten uw organisatie afneemt: financiering, cash management en risk oplossingen. Heeft u ze daadwerkelijk nodig, wat kosten ze en waarom worden ze afgenomen bij een specifieke partij. En let wel, kosten overwegingen hoeven niet de dominante te zijn. Gemak, expertise en, ook al klinkt het onzakelijk, het goede gevoel zijn ook belangrijk. Boerenverstand is een goed startpunt en van daaruit kan overwogen worden expertise in te kopen. Dat kan zeer laagdrempelig (zie de Flex Treasurer) tot en met zeer hoogwaardige consultants. Sommigen bieden hun diensten no-cure, no-pay aan.

Ik nodig u uit om kritisch te zijn en stel mijn netwerk graag tot uw beschikking.

 

Pieter de Kiewit

 

 

Pieter de Kiewit
Owner Treasurer Search

 

 

Brexit – Cash Pools geplaatst in Londen

| 19-7-2018 | Kasja Reinders | treasuryXL

Iedereen hoor je erover maar wat komt er nou eigenlijk bij kijken en welke scenario’s hebben we? Veel internationale bedrijven denken na over wat ze moeten gaan doen als ze hun Cash Pool hebben in Engeland. Hier rijzen een aantal vragen:

 

Harde Brexit

Dan ligt het voor de hand om de bankrekeningen van non UK-entiteiten die in de UK worden aangehouden over te plaatsen naar Nederland of een ander Europees land.

Dit heeft veel impact;

  • Nieuwe Masteraccounts moeten geopend worden
  • Nieuwe bankrekeningen voor de affiliates moeten worden geopend
  • Sweep documentatie moet geregeld worden
  • De nieuwe rekeningnummers communiceren naar de klanten en/of leveranciers.
  • Briefpapier aanpassen
  • Interfaces naar de desbetreffende TMS/ERP Systemen en GL Ledgers
  • Interne policies moeten worden aangepast

Soft Brexit

Het is niet duidelijk wat de consequenties zijn. Als bedrijf kun je besluiten om de Master Accounts te verplaatsen en de bestaande lokale bankrekeningen te laten sweepen naar deze Nederlandse Master Accounts.

Later kan het bedrijf de lokale bankrekeningen overplaatsen naar Nederland en dan kunnen de klanten en/of leveranciers geïnformeerd worden. Briefpapier laten aanpassen, interfaces in de desbetreffende TMS/ERP systemen implementeren en GL Ledgers, etc.

In deze situatie heb je als bedrijf gewoon meer tijd om de zaken goed te regelen.

Geen Brexit

Als de Brexit niet doorgaat zul je je als bedrijf moeten afvragen of je toch je Cash Pools in Engeland houdt of veranderd naar Nederland met inachtneming wat er veranderd moet worden en welke impact dit heeft op resources, kosten, etc.

Timing:

Belangrijk is dat je als bedrijf nu al een plan gaat maken wat je eventueel voor 29 Maart 2019 geregeld moet hebben.

 

Kasja ReindersKasja Reinders – Treasury/Cash Manager

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