Meet our Expert | 8 questions for Jermal McDaniel

14-03-2022 | Jermal McDaniel | treasuryXL | LinkedIn |

 

We are happy to interview treasuryXL expert, Jermal McDaniel.

Jermal is an accomplished Finance practitioner with over 16 years of Treasury operations and Finance experience.

Jermal is an innovative visionary who utilizes a “Think Tank” methodology to generate ideas and action plans designed to streamline and automate manual processes to facilitate department efficiency.

How did his career in Treasury start and what is his best experience working in Treasury?

We asked him 8 questions, let’s go!

INTERVIEW

 

1. How did your treasury journey start?

My Treasury journey started when my agency recruiting career ended in 2003. I did not set out to be a Treasurer, I kind of found myself in the Treasury field and I am blessed to still be a part of the Treasury Community.

2. What do you like about working in Treasury?

I love the sense of urgency, the attention to detail, and the camaraderie/synergy needed to be a successful Treasury department. I often tell my staff that Treasurers are not born, they are made, and if you are detail-oriented, can work well under pressure, and are timely and accurate, I can give you the rest of the tools to be successful.

3. What is your Treasury Expertise and what expertise gives you a boost of energy?

My Treasury experience is Mortgage-related. When studying for the CTP it gave me a lot of insight into FX transactions, Short Term liquidity investments, and optimal Debt vs Equity financing philosophies for Firms, but my expertise is in managing all aspects of Treasury including Banking relationships and building well run cross-functional Treasury Teams.

4. What has been the best experience in your treasury career until today?

My best experience has been seeing a few of my former employees take the knowledge and guidance that I have given them and parlay that into Sr. Manager and Director of Treasury roles.

5. What has been your biggest challenge in treasury?

Data mining, and consistently getting timely information reconciled and into a useful form for Senior leaders to use for decision making.

6. What’s the most important lesson that you’ve learned as a treasurer?

You cannot perform all of the Treasury functions on your own and if you do not have a cross-trained Treasury team, there will be a high probability that important transactions will fall through the cracks tarnishing the reputation of your team and the department.

7. How have you seen the role of Corporate Treasury evolve over the years?

I am excited to see that Firms are really beginning to value what a good Treasury department means to the Firm. As the stewards of the Cash, making sure that there are enough funds to satisfy all of the financial obligations is Paramount to the success and reputation of the Firm.

8. What developments do you expect in corporate treasury in the near and further future?

There is a big push to bring on more Fintech resources to help with recording and reconciling all of the day-to-day cash movements. Treasury Management Systems are helping to streamline cash forecasting and reconciling by becoming a “Single Source of Truth” where information can be accessed by all of the Stakeholders making everyone involved more self-sufficient.

 

Get in touch with Jermal
Click here for his Expert Profile

Thanks for reading!

 

 

Kendra Keydeniers

Director Community & Partners, treasuryXL

Example Question #1 | Treasurer Test

09-03-2022 | treasuryXL | Treasurer Test | LinkedIn |

How is your Treasury knowledge? Today we investigate your Treasury Expertise and ask you an example question that you might face when taking the Treasurer Test…

Read more

The Do’s and Dont’s of Pricing with an FX Rate

09-03-2022 | treasuryXL | Kantox | LinkedIn |

Give up your time-driven rules for pricing with an FX rate and go for a data-driven approach instead!

In this article, we are going to highlight the challenges faced by treasurers as they seek to manage pricing risk. According to Toni Rami, Kantox’s co-founder and Chief Growth Officer: “Understanding pricing is perhaps the most crucial element in order to design a great FXRM program

Credits: Kantox
Source

Click on the image above for the corresponding episode of CurrencyCast

Pricing risk

Pricing risk is the risk that —between the moment an FX-driven price is set and the moment it is updated— shifts in FX markets can impact either a firm’s competitive position or its profit margins.

 

The natural way to reduce it is to increase the frequency of price updates. After all, the price itself is a potent hedging mechanism. But that is not an option for companies that wish to keep steady prices during a campaign/budget period or during a set of campaigns/budget periods linked together.

We will discuss this situation in further articles. Today we want to highlight the shortcomings of the most widely used criteria for pricing updates: time-driven criteria.

Shortcomings of time-driven criteria

A time-driven rule to manage pricing risk consists in setting a time frame between the moment an FX-driven price is set and the moment it is updated. It can be every 24 hours, every week, every month. Quite obviously, the longer the time to the update, the higher the risk.

At Kantox, we are convinced that this approach is arbitrary, that it doesn’t protect you against FX risk, and that it does not reflect the business or financial needs of the firm. Take the 24-hour rule. Why not 23 hours or 25 hours instead? A time-based approach does not eliminate risk: a  sharp move in markets can well take place inside a very short time span before prices are updated.

Another way to see this is that it makes it more difficult for the firm to react to favourable moves in FX markets. Take the case of a firm that prices and sells in EUR and buys in USD, using the EUR-USD currency rate as a key pricing parameter. A rise in the EUR could allow it to outsmart the competition by pricing more competitively without hurting its budgeted profit margins.

Failure to take advantage of this type of opportunity is a serious shortcoming in terms of pricing strategies, at a time when —according to consultants McKinsey— pricing is becoming a key strategic element in today’s competitive landscape.  

The alternative: data-driven criteria

At Kantox, we believe that such arbitrary time-driven rules should give way to a data-driven approach that consists of setting boundaries around an FX reference rate, such that prices are updated only if the market moves beyond the upper and lower bounds of those boundaries. The system then serves a new reference rate and dynamically adjusts the upper and lower bands around it.

If FX markets remain relatively stable, then the firm can keep steady prices, something that is attractive in many B2C setups. This approach also allows treasurers to take advantage of favourable moves in currency markets while protecting budgeted profit margins, independent of when these movements occur.

How far or close to the reference rate these boundaries are set reflects risk managers’ tolerance to FX risk. In addition, the pricing configuration can be adjusted according to the goals of management in terms of:

  • Setting the pricing markups per client segment and per currency pair that the business strategy requires.
  • Selecting the tenor of the FX rate used in pricing. Do you wish to price with the spot rate? Or with the three-month or six-month forward rate instead? If your company is based in a strong currency area such as North America or Europe, and it sells into Emerging Markets, pricing with the forward rate will protect it from adverse interest rate differentials. Firms that lack this possibility may be tempted to apply too drastic markups, thereby unnecessarily damaging their competitive position.

While most Treasury Management Systems lack what we call a ‘strong FX rate feeder’, Currency Management Automation solutions —working alongside your existing systems— allow finance teams, among many other things, to set up an efficient data-driven solution to manage all the aspects of pricing with FX rates, including pricing risk.

Worried about your FX risk health? Take our free assessment and get a personalised insights report in minutes. 

Interest payments – How to calculate the days

| 07-03-2018 | Lionel Pavey | treasuryXL | LinkedIn

When entering into a financial transaction you need to be aware of the settlement dates. If you have a contract that states that you must pay on the 1st day of every month what do you do when that date is a non-working day? Furthermore, to be able to calculate the interest owed on a loan, you also need to know what the denominator is – the number of days in a year for the particular product and contract. When a payment cannot take place on a particular date – because it is not a recognised business day, you need to know the convention that the bank uses to adjust the payment date. Here is an overview of the most commonly used business day conventions (which determine how non-business days are handled) and calculation bases.

Business day conventions | Modified Following

Preceding – the first preceding day that is a business day
Following – the first following day that is a business day
Modified Following – the first following day that is a business day, unless the days falls in the next calendar month, in which case the date will be the first preceding day that is a business day

Furthermore reference will be made to the applicable currency calendar for determining non-working days. For EUR this would mean TARGET, for GBP this would mean London, for euro USD this would mean London and New York.

Calculation basis

Actual/360 (Money Market) – the coupon payment is calculated using the exact number of days in the period divided by 360. The start date is included in the calculation, but not the last day.

Actual/365 (Fixed) – the coupon payment is calculated using the exact number of days in the period divided by 365. The start date is included in the calculation, but not the last day

Actual/Actual (ISDA) – the coupon payment is calculated using the exact number of days, with the portion of days belonging in a non-leap year divided by 365 and the portion of days belonging in a leap year divided by 366. The start date is included in the calculation, but not the last day.

Actual/Actual (ISMA) – the coupon payment is calculated using the exact number of days divided by the length of the year, where the length of the year is equal to the number of days in the coupon period multiplied by the number of coupon periods in the year.

30/360 (Bond basis) – the coupon is calculated over 30 days for every full calendar month and the actual number of days for the remaining fraction of a month, divided by 360.

30/360E (Eurobond basis) – the coupon is calculated on the basis of a year of 360 days with 12 30-day months, unless the end date is the last day of February, which is not lengthened to a 30-day month.

Coupon calculation conventions

Adjusted – Interest is calculated on the effective payment date adjusted for the business day

Unadjusted – Interest is calculated on the theoretical payment date, regardless of the effective payment date.

If you are interested to know what the effect of these changes can be on a coupon payment and calculation, please contact us for more detailed information.

Lionel Pavey

 

Lionel Pavey

Cash Management and Treasury Specialist

 

Your new home for fixed income

07-03-2022 | treasuryXL | Refinitiv | LinkedIn | Your new home for fixed income

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Treasury Delta and Blokken Partnership

03-03-2022 | treasuryXL | Treasury Delta | LinkedIn | Treasury Delta, our Irish fintech partner, recently formed an alliance with Blokken, a Dubai-based fintech aggregator. This strategic partnership will bring further innovation and digital technology deployment to the corporate treasury ecosystem within the Middle East. Credits: Blokken Source

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Live Webinar on March 10: A to Z of Secure Corporate Treasury Payments

03-03-2022 | treasuryXL | Aico | LinkedIn |

 

Ensuring manual payments are secure is a common concern for treasury, internal controls teams, and accounts payable process owners. While for some companies, manual payments cases are few and far between, others perform regularly and in large amounts and thus are at high risk of mishandling funds. In this webinar we will present:

  • Some of the most common use cases for manual payments.
  • Fraud risks associated with manual payments.
  • End-to-end software solution to safeguard manual payment process.

What are manual payments?

Manual payments are often required for one-time vendors, where they are not set up in your ERP system, but a payment needs to be made. Whilst these tend to be infrequent in nature, the process still needs to be carefully managed to ensure internal controls are applied, and the risk of errors or even fraud is minimised.

The Aico solution provides a Manual Payments module to fully support this process, and in this Webinar, we will show you:

  • A configurable template to raise the request with defined workflows to be followed.
  • The ability to validate and approve the payment request, and add all relevant supporting evidence.
  • The ability to automatically create the appropriate PAIN file which can be sent to the bank for processing.
  • Automation to create and post the appropriate journal entries to your ERP system following successful payment.

Webinar presenters:

Sarah Bellerby, Solutions Consultant at Aico

As a qualified accountant with a background in Audit, Sarah started her career working in organisations with extremely manual and fragmented processes. For the past 10 years, Sarah has been driven by her passion for identifying and implementing intelligent solutions to streamline financial processes, mitigate risk and increase compliance. For the past 2 years, Sarah has been working specifically in the Record to Report arena, supporting customers in their Finance Transformation projects to implement intelligent financial close automation solutions.

Aico leadership team

Shivam Dosa, Head of Service Delivery at Aico

An ACCA qualified accountant with a passion for RPA and improving productivity in the workplace by utilising technology. Shiv has a broad background, spanning from working in Corporate Finance to Financial Control to Project Implementations, This experience has given him a solid foundation for Financial Close Automation within Aico.

 

About Aico

We help enterprises simplify financial close and record-to-report (R2R) accounting processes. The result is less manual work and faster period-end financial reporting with the assurance of compliance and data accuracy.

Our software platform includes solutions for the key R2R processes – Account Reconciliation, Closing Task Management, Journal Entries, Intercompany Invoicing and Manual Payments.

Unique real-time integration to multiple ERP systems brings increased automation levels and reduces IT system complexity to our customers.

With teams and a network of partners across EMEA, we deliver high-complexity projects for enterprises with a global footprint.

Visit aico.ai for more information about Aico.

Visit Aico resource library for eBooks and webinars on R2R and financial close best practices.

Join us on LinkedIn.

GTreasury Announces New Partnership with Infor to Streamline Digital Treasury Workflow and Data Integrations

02-03-2022 | treasuryXL | Gtreasury | LinkedIn |

The partnership is designed to help customers visualize, analyze, and act on their cash positions with automated data integration between GTreasury and Infor

CHICAGO, Ill. – March 2, 2022 – GTreasury, a treasury and risk management platform provider, today announced its partnership with Infor, a global leader in industry-focused business cloud software solutions. The deal enables GTreasury and Infor customers to benefit from new automation and data integration between GTreasury’s digital treasury platform and Infor’s powerful cloud-based ERP platform. The integrated workflow will help eliminate the challenges of relying on various siloed systems to accomplish business-critical treasury and accounting tasks.

With this partnership, the GTreasury platform will utilize an application programming interface (API) to connect data from Infor’s cloud financials ERP solution, Financials & Supply Management. This data includes bank statements, payments (accounts receivable and accounts payable, along with bank confirmations), Positive Pay automated fraud detection, and general ledger (GL) journal entries that encompass applicable treasury management system sub-ledger entries such as cash, financial instruments, treasury payments and settlements, and hedge accounting.

The integrated data visibility and automated command across applicable balances and transactions give GTreasury and Infor customers the ability to analyze and act on cash positions quickly and confidently. Customers can also access all of the treasury, finance, accounting, and risk management products available through the GTreasury platform.

“Infor continues to build on its well-earned reputation as a modern cloud ERP platform that enables a global and diverse customer base to leverage modern technologies,” said Terry Beadle, Global Head of Corporate Development at GTreasury. “As corporate treasurers and the office of the CFO accelerate digital transformation initiatives throughout their departments, Infor and GTreasury deliver an especially compelling cloud-based solution built to add new connectivity and capabilities. We are proud to partner with Infor and look forward to more organizations discovering the efficiency and performance gains that GTreasury’s complete digital treasury ecosystem delivers.”

“We believe the automation and synergy this partnership provides will enable customers to significantly streamline their treasury and accounting operations,” said Joe Simpson, Vice President of Product Management at Infor. “Organizations will have data visibility and workflow tools to help make business-critical decisions based on their cash positions. We’re excited to provide the transformative capabilities offered by this synergistic collaboration with GTreasury, a leader in providing modern digital treasury solutions to organizations around the world, and to see how customers utilize the benefits of our powerful technologies in tandem.”

About GTreasury

GTreasury is committed to connecting treasury and digital finance operations by providing a world-class SaaS treasury and risk management system and integrated ecosystem where cash, debt, investments and exposures are seamlessly managed within the office of the CFO. GTreasury delivers intelligent insights, while connecting financial value chains and extending workflows to third-party systems, exchanges, portals and services. Headquartered in Chicago, with locations serving EMEA (London) and APAC (Sydney and Manila), GTreasury’s global community includes more than 800 customers and 30+ industries reaching 160+ countries worldwide. Visit GTreasury.com

About Infor

Infor is a global leader in business cloud software specialized by industry. We develop complete solutions for our focus industries, including industrial manufacturing, distribution, healthcare, food & beverage, automotive, aerospace & defense, and high tech. Infor’s mission-critical enterprise applications and services are designed to deliver sustainable operational advantages with security and faster time to value. We are obsessed with delivering successful business outcomes for customers. More than 65,000 organizations in 175+ countries rely on Infor’s 17,000 employees to help achieve their business goals. As a Koch company, our financial strength, ownership structure, and long-term view empower us to foster enduring, mutually beneficial relationships with our customers. Visit www.infor.com.

 

Trade Finance & rethinking digitalisation (Dutch Item)

02-03-2022 | Ger van Rosmalen | treasuryXL | LinkedIn |

 

Ruim 30 jaar geleden mocht ik in een panel vertellen over Bolero. Bolero staat voor “Bill of Lading electronically” in die tijd nog een toekomstdroom. Toen werd er al gesproken over digitalisering van handelsdocumenten. Nu, ruim 30 jaar later komt er eindelijk beweging in.

Al geruime tijd zijn er regels van de Internationale Kamer van Koophandel om die digitaliseringsslag wereldwijd te begeleiden[1]. Er zijn al diverse innovatieve en vooruitstrevende bedrijven die digitalisering hebben omarmd door initiatieven en oplossingen op het gebied van elektronische handtekeningen, digitale “originele” documenten en volledig digitale Letters of Credit. Tegelijkertijd zijn banken en bedrijfsleven echter vaak nog afwachtend als het gaat om het loslaten van papieren documenten. En dat is jammer. De afgelopen jaren laten soms namelijk ook zien dat “papieren” handelsdocumenten kunnen zorgen voor vertragingen, extra kosten en daarmee ontevreden klanten.

Fouten ontstaan bijvoorbeeld door vanuit andere systemen handmatig informatie over te typen op papieren documenten. Dan is een vergissing bij het overtypen van bijv. 100 containernummers snel gemaakt, met alle gevolgen van dien.

Voordelen van digitalisering zijn dan ook:

  • Sneller (geen oponthoud zoals bij traditionele “papier-route”)
  • Voordeliger (minder afhandelingskosten)
  • Grotere kans foutloze uitvoering
  • Duurzamer dan papier

Hoe komt het dan, dat we toch vaak blijven vasthouden aan die “papierwinkel”? Dat komt onder meer door de vestigingsplaatsen van contractpartners en hun banken. Een voorbeeld: In sommige landen, vooral de “emerging markets”, zijn papieren handelsdocumenten nog vereist. Lokale wetgeving verhindert voorlopig de stap naar verdere digitalisering. Maar een groot deel van de wereld staat wel open voor digitalisering van Trade Finance. Bij een aanzienlijk deel van uw trade transacties zijn dus voordelen te behalen. Dus wat weerhoudt ons nog?

Op een bepaalde manier lijkt ons brein ingesteld op beperkingen, bedreigingen en beren op de weg. Eigenlijk niet echt vruchtbaar want het maakt ons voorzichtig, argwanend en sceptisch bij nieuwe ontwikkelingen. We voelen ons vertrouwd in onze bekende omgeving en dat maakt dat we eerder kijken naar problemen dan kansen en oplossingen. Dat vergt  “omdenken”[2]. Omdenken is een andere basishouding namelijk denken in kansen, nieuwe mogelijkheden en oplossingen. Het zorgt voor innovatie, vernieuwing en creativiteit. Dat is geen kwestie van een knop omzetten maar met nieuwe ogen kijken en met elkaar in gesprek gaan. Met elkaar open staan voor vernieuwing en enthousiasme om nieuwe mogelijkheden te gaan toepassen.

De poort tot digitalisering staat open. Begin eens met een rustig ritje op deze digitale snelweg met een beperkt aantal klanten of landen. Ik nodig u uit om te gaan ontdekken wat digitalisering u te bieden heeft en ga het gesprek graag met u aan over digitalisering. Ook blijven wij u ondersteunen bij de traditionele Letters of Credit daar waar de papieren handelsdocumenten nog wel even een rol blijven spelen. Bel (0613377921) of mail ([email protected]) voor een vrijblijvend gesprek.

 

Ger van Rosmalen

Trade Finance Specialist

 

 




[1] Supplement to the Uniform Customs and Practice for Documentary Credits for Electronic Presentation (e-UCP), Uniform Rules for Collections Supplement for Electronic Presentation (e-URC), Universal Rules for Bank Payment Obligations (URBPO) en Uniform Rules for Digital Trade Transactions (URDTT)

[2] De grondlegger van het omdenken Berthold Gunster heeft hierover een aantal inspirerende boeken geschreven.

Meet our Expert | 8 questions for Patrick Kunz, the Passionate Treasurer

01-03-2022 | Patrick Kunz | treasuryXL | LinkedIn |

 

We are happy to interview treasuryXL expert, Patrick Kunz.

With Patrick’s impressive career within the World of Treasury, you can really say that he lives and breathes Treasury.

Patrick is performance driven. He is an open minded, outgoing, rational person who is comfortable communicating and convincing on all levels of management.

Patrick is owner of Pecunia Treasury & Finance with several independent treasury and finance consultants and founder of treasuryabonnement.nl. Furthermore he owns an online FX trading and payment platform with a connection to a big FX broker.

Patrick has worked with both international corporates from all fields of business as well as national non-profit organisations.

We recommend to visit Patrick’s LinkedIn profile to see his stunning career and activities. But first….

We asked him 8 questions, let’s go!

INTERVIEW

 


1. How did your treasury journey start?

During my study at Maastricht University I knew I wanted to work in the “world of finance” and more specifically trading or investment banking. In my 3rd year of university I got the opportunity to work as an intern for a Swiss Investment bank in Zurich which was a great first experience into wealth management and client exposure with high net worth clients. It also showed me that the client comes first, even though the client was not always right. This made me wonder if it was more fun on “the other side” at the buy side. It slightly frustrated me that a bank would not always provide the best solution.

 

After graduation I left on a trip around the world backpacking for 1,5 years. Enjoying ultimate freedom and fun before starting a career. When I came back to the Netherlands I applied for treasury roles at multinationals and landed my first job as cash & treasury manager at the German multinational Metro Group (the wholesaler, not the Dutch free newspaper). This was the start of my treasury career which until now I would never leave.

 

2. What do you like about working in Treasury?

It’s the core of a company. In the end its all about the money. Independent on what products you are selling and how you are selling them. Cash in vs Cash out. Without cash a company has a problem. Cash is king and profit is an opinion so in my opinion managing cash is very important and therefore fun. The more complex the more fun. Managing a multinational company with hundreds of bank accounts in different currencies around the global; finding the optimal treasury setup and solutions is great fun. Lastly, treasury teams are smaller compared to accounting or controlling, which make the lines shorter and the team tighter.

 

3. What is your Treasury Expertise and what expertise gives you a boost of energy?

I started in cash management and FX trading which are great basic skills for every treasurer. My first company also had very short treasury lines and I quickly was involved in global treasury solutions, financing solutions and group companies corporate finance. When I moved on to my second role as group treasurer of a regional housing association, I also got exposure to interest rate derivatives and guarantee management. Afterwards when I started my own consultancy and interim management company 8 years ago I got to do the full spectrum of treasury. So without arrogance I can say in treasury I have done it all. The last years I am doing a lot of TMS/Payment hub implementations, which I enjoy doing. After finishing an implementation it is nice to look back and compare the old way of treasury processes and the new and see how it improved after a couple of months. Very rewarding.

 

4. What has been your best experience in your treasury career until today?

Building a treasury from scratch is most rewarding and fun to do. 2 years ago I got the opportunity to build the treasury role at the Dutch born AEX company Takeaway.com. There were treasury processes in place but scattered in different departments. Also some of them were sub-optimal. My role was to bring them together and optimize them. Besides increasing the reporting and importance of treasury to management this also brought significant cash savings on bank and FX costs. A couple of months into the rule, the merger/acquisition of Just Eat was approved and the integration with the existing treasury team in London could start, making the team suddenly 400% bigger. After 5 months my work was far from finished but it was time to hand it over to the existing/new team. Looking back what was done in this short time this was one of my greatest experiences in treasury. And a great company to work for.

 

5. What has been your biggest challenge in treasury?

Nowadays: Opening a company bank account in a short timeframe without difficult KYC questions, especially for companies with difficult or complex structures. I was with a client last year, a scale-up, that moved fast in several countries in Europe. Treasury processes needed to be implemented from scratch in each country while operations was much further ahead but legal and treasury still needed to start. Working with this fixed go live we had to make sure we could receive payments from day 1 onward. In one country we were actually live on day -1 with no room for error. Stressful but successful.

As a consultant I sometimes face tight deadlines or difficult projects that need to be delivered but are dependent on other stakeholders. That is not always easy but this gives me energy to make it happen.

 

6. What’s the most important lesson that you’ve learned as a treasurer?

You can go fast on your own but you go far together. Sounds cliché but it is especially true in treasury as the treasury department is dependent on data from other departments to make it function. You cannot run risk analysis if you have no exposure data. Same for FX. Doing cash flow forecasting? You need data from procurement, AR and FP&A.

Also visibility and transparency is key. Even the other financial departments accounting and controlling sometimes see treasury as this special people that they have no idea what they are exactly doing. Make sure they understand (and vice versa) what each department does and how you can work together and what data can be shared. Also to avoid duplicating work. So leave the ivory tower and go out there and collaborate.

 

7. How have you seen the role of Corporate Treasury evolve over the years?

The speed and amount of information has increased and is increasing. Also the complexity of treasury departments. Luckily also the solutions available to manage them has improved. Next to swift solutions we now see advanced TMS solutions or payment hubs that can be implemented within a couple of months giving you full visibility. A treasurer nowadays needs some tech skills to be able to understand the information to implement the TMS or hub. Because the tool will be only be as good as it is being used; garbage in is garbage out. During the many implementations that I have done I have learned a lot about technical connections (sFTP, h2h, API), information exchange formats, XML file types, swift messages etc. This knowledge now helps me a lot in implementations and supporting the IT department determining the information needs and sources.

 

8. What developments do you expect in corporate treasury in the near and further future?

Instant payments are a big thing in treasury which is cool but will not necessarily bring much added value to the treasury. Instant information processing is more important especially in e-commerce. Clients expects instant service. If they pay online they expect to get the service or goods asap. Treasury can help with this by connecting their PSP’s or bank information to their systems. Not necessarily linking the payment to an invoice which is an accounting reconciliation process. More importantly linking the positive acknowledgment (the customers has paid) to the sales. Customers start demanding this more and more and treasury has to adapt to this instant world. This means more automation.

Clients also demand more payment options, some of them are not available at banks. This means that treasurers will have to move away from the traditional model of banking partners for cash management but to a more hybrid model of cash at bank, cash in transit at PSP’s, virtual credit cards, wallets etc. Maybe even crypto or CBDC deposits/balances. This will all add to the complexity of the cash and risk management.

 

Isn’t treasury the best department to be in? 😊 I already get excited saying this.

 

Get in touch with Patrick
Click here for his Expert Profile

 

Join Patrick and experts from Kyriba and Deloitte at the Panel Discussion: How Can Treasurers Overcome Today’s Security Challenges?

When? March 9
Start: 4.00 pm CET

Register here

Thanks for reading!

 

 

Kendra Keydeniers

Director Community & Partners, treasuryXL