Digital rules (URDTT) for Trade Finance: What, How and When?

10-01-2022 | Wim Kok | treasuryXL | LinkedIn

 

Watch Episode 1 of a series of free, educational videos focusing on Uniform Rules for Digital Trade Transactions (URDTT)

 

 

Trade Advisory Network Limited and treasuryXL Trade Finance experts launched their first episodes of a series of free, educational videos on URDTT. There will be 6 episodes in total covering all aspects of the development, interpretation, and application of URDTT in the context of a digital trade strategy. In the upcoming 6 months you can expect one educational video per month.

What can you expect in the first episode?

This first episode focuses on the background to the decision to create a new set of rules for digital trade transactions and provides definitions of some of the most important terms. Subsequent episodes will focus on the use of electronic records, payment obligations and, the role of banks/non-bank financial service providers.

Duration: 19.20 min

WATCH NOW FOR FREE

Enjoy, explore and develop!

Interested to know more about this topic and the upcoming educational videos? Contact our Expert Wim Kok.

 

Wim Kok

International Business Consultant
Trade Finance Specialist

 

 

 

 

Four Things Every CFO Should Know About Treasury

06-01-2022 | treasuryXL | TIS | LinkedIn |

This article is intended as a precursor to TIS’ latest whitepaper that highlights how CFOs can use their knowledge of the treasury function to spearhead initiatives that drive higher revenue, better financial decision making, and greater process automation and control. After reviewing how modern treasury groups typically operate, we will analyze the main benefits that a fully-optimized treasury team can provide to the CFO and an organization at large. To assess the full suite of data, insights, and commentary, download the whitepaper.


A CFO’s Summary of the Treasury Function

Although most CFOs will (or should) have a robust understanding of how the treasury function operates, let’s start with a quick synopsis for those who may be newer to the role.

At the highest level, treasury is a subset of the finance department that is responsible for safeguarding their organization’s most important asset (cash) as well as providing transparency and control over the day-to-day processes necessary for the company to meet its financial obligations (i.e. payments). This means that at its core, the treasury function most commonly performs:

  1. Cash and liquidity management
  2. Payments and bank account management
  3. Financial Risk, Fraud, & Compliance Management

Of course, certain treasury teams will have additional duties levied onto them depending on the size, complexity, and structure of their organization. For instance, cash flow forecasting, FX trading, debt and investment activity, and cash pooling or netting are all functions that commonly fall under treasury’s purview, but it ultimately depends on the specific makeup of their organization.

Moving beyond these core roles, however, it’s also important to note that treasury groups, even those at multibillion-dollar, multinational companies, often consist of five or fewer individuals. In fact, data from 2020 showcased that the average treasury size for U.S. organizations, regardless of company size or complexity, was just four personnel. Further data from 2020 shows that the majority of these teams are accustomed to working remotely, with team members often located across entirely different regions and time zones.

But while treasury staffing might be kept to a minimum, the best teams still manage to optimize their processes by relying heavily on technology automation instead.

In order to function at the highest level, modern-day treasury teams utilize a variety of digital technologies that range from bank portals and Excel spreadsheets to cloud-based ERPs and TMS platforms, payment hubs, business intelligence solutions, and many other specialty systems. In 2021, the majority of solutions that treasury teams use are SaaS-based and connect via APIs with other SaaS solutions in their company’s environment, including other back-office solutions as well as external partner, vendor, and 3rd party platforms.

Thus, for organizations that are smart about their hiring decisions and that leverage finance and treasury technology in a strategic and efficient manner, even the smallest of treasury teams can excel at their roles and boost financial productivity.

However, on the opposite end, organizations that either ignore or underutilize their treasury group can end up with significant gaps in their financial processes, particularly from a payments, liquidity, and risk management standpoint.

 

Four Things Every CFO Should Know About Treasury

Download our latest whitepaper to gain additional data, graphics, and commentary!

Access the whitepaper.

About TIS

TIS is reimagining the world of enterprise payments through a cloud-based platform uniquely designed to help global organizations optimize outbound payments. Corporations, banks and business vendors leverage TIS to transform how they connect global accounts, collaborate on payment processes, execute outbound payments, analyze cash flow and compliance data, and improve critical outbound payment functions. The TIS corporate payments technology platform helps businesses improve operational efficiency, lower risk, manage liquidity, gain strategic advantage – and ultimately achieve enterprise payment optimization.

Visit tis.biz to reimagine your approach to payments.

 

9th Annual Credit Risk Modelling and Management in a Post-Pandemic Environment

05-01-2021| treasuryXL | marcus evans |

Management of credit risk and models are a top priority for banks.


Amsterdam, Netherlands | Option to attend virtually

21-23 February, 2022 | 08:30 CET


Methodologies to review and refine credit risk models incorporating Basel IV, IRFS9, IRB, climate risk and stress testing regulation

Credit risk modelling and management is an ongoing priority for the banking industry. The true impact of COVID-19 on credit risk is not yet clear. During the pandemic governments across Europe injected a lot of cash into the banking system to support companies and individuals and even though this helped to minimize bankruptcies and defaults, the real economic impact has been masked. Moreover, credit risk models have been tested to the extreme and IFRS 9 models were no exception. If anything surfaced out of this situation for banks, is the need to uncover alternative credit modelling techniques which can help models perform better in various crises scenarios.

The marcus evans 9th Annual Credit Risk Modelling and Management in a post-pandemic environment conference, taking place in Amsterdam, Netherlands and virtually, on 21-23 February, 2022, will provide risk modellers much needed knowledge to improve existing credit risk modelling techniques to make accurate predictions and maintain profitability. Banks will be able to compare and contrast lessons learnt during the pandemic as well as pinpoint key challenges and priorities faced by credit risk modelling managers. Comprehensive solutions regarding modelling techniques, regulatory compliance, climate risk, stress testing and data management will also be offered.

Attending This Premier marcus evans Conference Will Enable You to:

  • Incorporate macroeconomic factors into stress testing
  • Practice and perfect IRB modelling techniques
  • Correct treatment of government schemes in IFRS 9 models
  • Comprehend the new definition of default
  • Interpret regulation and implement practical scenarios
  • Be precise when defining model parameters

Best Practices and Case Studies from:

  • Nick Popov, Managing Director, Rabobank
  • Matt Spencer, Head of Credit Risk Technology, Investsec
  • Stuart Burns, Model Development & Validation, Bank of England
  • Sebastian Ptasznik, Head of IFRS 9 and Non-IRB Risk Validation, Close Brothers
  • Joris Krijger, AI & Ethics Specialist, De Volksbank
  • Alan Forrest, Advisory Senior Manager, Model Risk Oversight, Virgin Money
  • Catarina Souza, Senior Expert Model Risk Management, ING

Special discounts available to Treasury XL subscribers! For more information please contact: Ria Kiayia, Digital Media and PR Marketing Executive at [email protected] or visit: https://bit.ly/3pTHs6p

 

 

 

 

Top 5 most read articles at treasuryXL.com and LinkedIn of 2021

04-01-2022 | treasuryXL |

Welcome in 2022! We are thrilled to share the Top 5 Most Read Articles with you below.

TreasuryXL has grown considerably last year, and our data shows us that our articles have widely been visited. We would like to take you to our most viewed website and LinkedIn articles of 2021. (Treasury Topic ‘What is’ articles excluded).


Top 5 treasuryXL website articles of 2021

  1. What are BIC/ SWIFT codes, how do you find them, and how do they work?

    by Xe

  2. Blank Sheet Treasury

    by  Jesper Nielsen-Terp

  3. 7 steps on how to make Cash Flow forecast a success

    by Bas Kolenburg

  4. Blockchain and the Corporate Treasurer: towards Smart Treasuries

    by treasuryXL, Carlo de Meijer

  5. The principles of multilateral netting: what, why and how

    by Enigma Consulting

 

Top 5 treasuryXL LinkedIn posts of 2021

  1. VU ‘Treasury Management & Corporate Finance’ Programme – Online Open Evening

    by VU

  2. 8 questions for Treasury Expert Philip who won the award for 2020 Best Fintech Solution

    by Philip Costa Hibberd

  3. Webinar Series Treasury Management | “Bitcoin. Is this the New Reality in Corporate Treasury or is it a Hoax?”

    by VU

  4. Interview | 8 questions for Kim Vercoulen, treasury recruitment consultant at Treasurer Search

    by Kim Vercoulen, TreasurerSearch

  5. Treasury: the sad story about the ones that do not get it

    by Pieter de Kiewit, TreasurerSearch


Thank you for being part of the treasuryXL community. Wish you all the best in 2022!

 

Kendra Keydeniers

Director Community & Partners

 

 

 

Wout van Wijlick

Marketing Coordinator

 

 

What are BIC/ SWIFT codes, how to find them, and how do they work?

03-01-2022 | treasuryXL | XE | LinkedIn |

Just booked a rooftop hotel in Manhattan? Or bought an authentic Chinese vase at an auction in Hong Kong? When making an international payment, you need payment details such as BIC (also known as SWIFT address), the country code and IBAN. Not sure where to find this key ingredient to an international money transfer? Our guide will show you all there is to know about SWIFT and BIC codes.

Your bank or other financial institution must know where to transfer money to send or receive money worldwide, but how do they know? Make way, for a BIC/ SWIFT code is about to enter the picture! If you’ve ever used Xe to send money or read our guide on sending money, you’ve probably noticed that you’ll need a BIC or SWIFT code. But what exactly is it, and where would you seek for it?

From what a SWIFT/ BIC code is and why you need one to how to find one quickly and use it for international money transfers, our guide will teach you everything you need to know about this code. It’s time to get ready, get set, and go!

What is a BIC or SWIFT Code?

BIC stands for Bank Identifier Code, and SWIFT stands for the Society for Worldwide Interbank Financial Telecommunications. Sometimes, people use the terms “BIC” and “SWIFT” interchangeably. A SWIFT code or SWIFT ID typically identifies banks and other financial institutions worldwide, for international transactions. More specifically, it says who and where these institutions are, so that your money goes to the correct place – you might even think of it as a global identity card for banks.

The International Organization for Standardization (ISO) recognizes and approves SWIFT codes for financial and non-financial institutions. Right now, there are over 40,000 live SWIFT codes in the world.

What does a BIC/ SWIFT code look like?

SWIFT/ BIC codes contain 8-11 characters that identify your city, country, bank, and the branch of your bank. The code may look something like this: AAAABBCCXXX

All muddled up? Let’s get this BIC format straight:

  • AAAA: 4-letter bank code that’s usually a shortened version of your bank’s name.

  • BB: 2-letter country code that represents the country in which the bank’s located.

  • CC: 2-character location code, pointing to the place where the bank’s head office is situated. It’s made up of letters and numbers.

  • XXX: 3-digit branch code that specifies a particular branch of the bank, usually the bank’s headquarters. These last 3 digits are optional, though.

To help you understand better, we’ve listed out the BIC/ SWIFT codes for a few large banks from around the world:

  • Scotiabank (Canada): NOSCCATTXXX

  • Charles Schwab Bank (US): CSCHUS6SXXX

  • Bank of England: BKENGB2LXXX

  • State Bank of India: SBININBBXXX

Why do I need a BIC/ SWIFT code?

If you want to send money around the world, you’ll almost always need to use a SWIFT/ BIC code. That’s because money transfers technically don’t actually transfer money around the world. Banks securely transmit information to one another through the SWIFT system or their other channels, which lets them know where the money should come from (which account should be debited), and which account should be credited with the money. In short, without this code, your bank won’t know where exactly they should send your money to.

So, it’s important for a bank on one side of the world to find the right bank on the other side, when it comes to international wire transfers, even when you use an international money transfer app like Xe, you’ll have to enter the BIC/ SWIFT code of the recipient’s bank for wiring money to the recipient, because the money will travel from your bank account to your recipient’s bank account.

How do I find my SWIFT/ BIC code?

Don’t worry, you have a few options.

  • Check the bank statements

You can usually find your bank’s BIC/ SWIFT code in your bank account statements. If you’re using an online bank, log into your digital bank account to easily view your bank statement.

  • Check the bank’s official website

Visit the bank’s website and check their Frequently Asked Questions (FAQs) section, international wire transfers, and other related links for their BIC/ SWIFT code. If there’s a search feature on the website, enter “SWIFT code” in the search box.

  • Contact your bank

In case you still can’t find the BIC/ SWIFT code, reach out to your bank via live chat, phone, social media, or email.

How do I verify a SWIFT code?

When sending or receiving money, always cross-check the BIC/ SWIFT code and other details with the recipient or your bank before you or the sender sends the money.

But why should you cross-check it?

As a matter of fact, if you enter a SWIFT code that doesn’t exist, the bank should reverse the payment you’ve made, and return your money. They’ll be charging a specific fee for that, though, and it might take some time before you get your money back.

As soon as it hits you that you’ve entered the wrong code to send money internationally (uh-oh), get in touch with your bank right away. They may be able to cancel the transaction, so keep your fingers crossed.

You can avoid such a scenario if you make sure that the BIC/ SWIFT code has:

  • No typing mistakes

You might think entering a SWIFT code is the work of a moment. But when you finally type it, character by character, it might seem as long as a marathon. Since it’s easy to make a mistake while typing in the code, try to copy and paste the code whenever possible.

  • The correct format

Always stick to the format of the BIC/ SWIFT code that the recipient has given you. For example, don’t type the country code before entering the bank code. And remember, there shouldn’t be any spaces between the characters in the code.

How do I transfer money using a SWIFT code via money transfer apps (like Xe)?

Once you sign up on online money transfer apps like Xe, you need to link your bank account directly to the app. After that, you can send money straight to the recipient’s bank account through a wire transfer, no matter where in the world he or she may be. You’ll usually have to follow these steps for wiring money between banks via Xe:

  • Log in.

  • Confirm which currencies you’d want to exchange. You can use Xe’s free Currency Converter tool for a quick check on the mid-market rate.

  • Enter the amount you wish to send.

  • Enter the recipient’s name and address.

  • Enter the recipient’s bank details, including the BIC/ SWIFT code and the International Bank Account Number (IBAN) of his or her bank.

  • Choose your payment method and confirm the money transfer.

Is IBAN the same as SWIFT?

No, IBAN and SWIFT are 2 different codes, but both of these do the same job – sending or receiving money. Banks use SWIFT codes to identify bank branches for making international payments. On the other hand, IBAN codes specify individual bank accounts for both domestic and international payments.

  • Do I need an IBAN number or a SWIFT code?

It depends on the country to which you’re sending money. For example, banks in the US, Australia, and New Zealand don’t use IBAN numbers, but they use SWIFT codes for different banking services.  But if you’re wiring money to a country within the Eurozone, you’ll surely need a SWIFT/ BIC code along with an IBAN number.

Is a SWIFT/ BIC code the same as a sort code?

Nope, sort codes aren’t the same as SWIFT codes. Sort codes are 6-digit codes that help British and Irish banks to identify bank branches for domestic payments (payments within a country).

  • Do all banks use BIC/ SWIFT codes?

No, all financial institutions, especially some small banks and credit unions, don’t have SWIFT codes. Instead, these institutions contact banks that do have BIC/ SWIFT codes, and ask them to serve as intermediaries for wiring money. You might also come across some financial institutions that use SWIFT for only a certain number of their branches, and not all of them.

Is a SWIFT code the same for all branches?

It depends on the recipient’s bank. Some banks may have one BIC/ SWIFT code for all their branches, while others have unique SWIFT codes for each of their branches. Plus, since all the branches of a bank may or may not use the SWIFT network, the code usually specifies the bank’s head office or primary office. So, are you ready to make an international money transfer using a BIC/ SWIFT code? Download the Xe app or sign up today!

 

 

 

 

 

 

Blockchain for Corporate Treasurers explained by treasuryXL

30-12-2021 | treasuryXL |

 

Though Blockchain is not yet well understood by many treasury people, and tangible real-world applications for the corporate treasurer’s day-to-day activities are still scarce, this technology is getting increased interest in the treasury world.

Click on the image below to learn more about Blockchain for Corporate Treasurers.

  • What is Blockchain?
  • How to use Blockchain in a treasury environment?
  • What Blockchain activities for the corporate world?
  • Why Blockchain for the corporate treasurers?
  • What may blockchain bring for corporate treasures?
  • What benefits may blockchain technology bring?
  • What could it bring strategically?
  • Conclusion

Cash Management explained by treasuryXL

29-12-2021 | treasuryXL |

 

Cash management is the discipline of Treasury that is devoted to the management of planned expenditures, so it is highly focused on operational efficiency and process optimisation.

Click on the image below to learn more about Cash Management.

  • What does a Cash Manager do?
  • Examples of Cash Management activities
  • Frequently asked Cash Management questions
  • Cash Management summary

Working Capital Management explained by treasuryXL

28-12-2021 | treasuryXL |

 

Working Capital Management is short-term financial planning. It is the set of tactics employed by Treasury to meet an organisation’s cash needs over the upcoming 12 months.

Click on the image below to learn more about Working Capital Management (WCM).

  • How and why do you manage your Working Capital?
  • Examples of Working Capital Management activities
  • Frequently asked Working Capital Management questions
  • Working Capital Management summary

Corporate Finance explained by treasuryXL

27-12-2021 | treasuryXL |

 

Corporate Finance is the financing of a corporation’s activities through borrowing and investment. To raise capital for business needs, companies primarily have two types of financing as an option: equity financing and debt financing

Click on the image below to learn more about Corporate Finance.

  • What does a Corporate Finance Director do?
  • Examples of Corporate Finance activities
  • Frequently asked Corporate Finance questions
  • Corporate Finance summary

International Mass Payments for Growing Businesses

23-12-2021 | Xe | treasuryXL | LinkedIn |

Streamline your payment processes, and improve international business partner relationships. Spend more time delivering on your clients’ needs.

Business process outsourcing and business process automation are not new business models. Yet traditionally, they have been targeted at high-volume, manual tasks like data entry, document processing, and bookkeeping. Delegating international transactions to a mass payments service provider like XE saves your business, and often your recipients on each completed transaction.

One of the many benefits of working with a payment service provider which specialises in international money transfer is that we provide services based on transaction volume. A small business will often just need help to expedite the fundamental payment administration and remittance processes. a large business with significantly more concurrent transactions will typically prioritise access to a scalable payments platform that can integrate with their core financial systems.

The executive appeal of subscribing to a mass payments API through a financial services business like XE is that it provides measurable benefits, such as:

  • Cost containment by streamlining payment tasks

  • Greater efficiency and reduced errors

  • The ability to focus full-time employees on more strategic, high-value tasks

  • Reduced training and technology overhead

  • Opportunities to take advantage of volume-based discounts

Is your business looking to find savings opportunities by paying multiple international suppliers, contractors, or employees? Simultaneous payments triggered at optimal exchange rates minimises the impact of unpredictable currency value fluctuations on your bottom line. You can also initialise bulk payments when you feel the time is right, be it after business hours or on weekends.

The Right Payee, in the Right Currency, at the Right Time

XE Mass Payments services are can be made securely to beneficiaries in over 220 countries and territories, in any of 139 currencies. One of our clients increased the efficiency of their international remittances from two days to a mere five minutes.

Consider all the productive work, collaboration, and planning which can be done in those rescued hours which would have been otherwise spent filling out forms, routing payments, and reconciling accounts.

Are you ready to streamline your payment processes, and improve your relationships with your business partners overseas? Do you want to minimise administrative tasks, and spend more time delivering on your clients’ needs?

XE Mass Payments: A Proven Platform from the World’s Trusted Currency Authority

XE Mass Payment API and related services:

  • Are on par with the banks in terms of security, privacy, and regulatory compliance.

  • Rival or exceed bank services in terms of speed. We work to avoid intermediary banks wherever possible.

  • Are less costly for your business, and generally don’t carry recipient fees.

  • Are an excellent way to reduce manual keying errors.

  • Are available to your business on your schedule, during the week or on weekends.

  • Can help you qualify for discounts for prompt payment (such as 2% within 10 days)

  • Can be contracted as a stand-alone online managed service, or as an integrated API solution to interface with your company’s financial ERP and accounting applications.

  • Are a great way to avoid pitfalls many companies make when doing business with trading partners in emerging markets. Late or inaccurate payments to employees, contractors or suppliers are bad for your company’s reputation and can be disruptive to the natural flow of your business.

Here are some additional details about our Mass Payments offering.

Mass payments services are packaged for your company based on:

  • The countries where your suppliers, employees, and other beneficiaries are located

  • The volume of payments you manage per month

  • The channels through which your business payments flow, be it through our APIs or our managed service

  • Any advisory or foreign exchange services which your company needs, be it expanding your payments to emerging markets, risk management, market orders or forward contracts.