How can businesses protect their bottom line against the currency markets?

28-01-2021 | treasuryXL | XE |

Does your company have an exposure to foreign currencies? Wybe Schutte explains in below interview how business can tackle the complexity of FX.

AN INTRODUCTION TO

Wybe Schutte is head of Business Development Europe at XE.com. Wybe’s career has always centered around international business development and managing relationships. Within XE.com both play an important part as globally we XE is the trusted partner of many business in helping them manage & mitigate the risk that is associated with dealing with multiple currencies, be this through simple rate regulation or looking at high level currency risk management & hedging solutions.

We asked him 10 questions. Let’s go!

 

INTERVIEW

1. Can you tell something about XE and its mission?

At Xe, we live currencies. Most people know Xe from the currency converter, however we also provide international money transfer services for business for over 25 years.  Xe’s Business Solutions supports company’s that have an exposure to foreign currency, supporting them to safeguard profit margins and improve cashflow through quantifying the FX risk they face and implementing strategies to mitigate it. So that our clients can focus on their core business and do not have to worry about their FX.

2.What kind of FX risk types exists and how does XE deal with it?

We look within each business to see where the currency risks are, and whether these can be offset. For example, any sales made in Euros could be offset against Euro costs. If there is still an exposure this is where products such as Forward Contracts can be considered in order to provide protection against the risk. Currency risk can be divided into three types: Transactional Risk, when a business deals in a country that differs to their base currency; Transnational Risk, when a business has an asset or liability overseas on their balance sheet, and Economic Risk where a movement in the exchange rate can give a business a competitive advantage when competing for a particular market.

3. How can you measure the different types of FX risk?

FX Risk can either have a negative or positive impact on a business’ bottom line. If you look back over the last 10 years you can understand what the potential impact could be in the most extreme, least extreme and average scenarios over your given timeline.

This can be done by looking at the high & low points of the market and a business’ FX exposure. This step helps companies to understand what the impact of the net exposure can have on the bottom line.

4. What are the most common critical FX problems that businesses have?

Businesses that have a transactional exposure to the currency markets can differentiate between committed and forecasted exposures. A committed exposure is when the price for a good or service in a foreign currency is known and contracted. Therefore, any movement in exchange rate has a direct impact on their profit or cost unless hedged. A forecasted exposure is when a business looks to the period beyond the committed period to see what their requirements may be. Confidence levels into forecasted periods can vary largely and it is normally the case that the further out a business forecasts, the lower the confidence levels.

5. How can businesses protect their bottom line against the currency markets?

There are a number of key stages that a business can look to follow in order to mitigate FX volatility. Firstly, Identify the type of risk, quantify the risk elements, and then look to build a strategy and agree the implementation process. These stages will allow you to decide the products that are most suitable, so you can then move to market timing and execution. Lastly, you should look to review, revise and adjust your approach on a regular basis. It is important to remember that it is not about market speculation but about mitigating your risk.

6. What is, in your perception, the biggest benefit of a working Foreign Exchange strategy?

Given the ever-uncertain world in which we currently live in, finance departments and treasury centres could be looking to build a strategy to deal with currency fluctuations, which over time could have a considerable impact on your company’s bottom line. A structured approach to foreign exchange risk can enable your business to make strategic planning decisions, rather than attempting to respond to day-to-day developments in the market.

7. Do you experience differences in FX before COVID19 and the time we live in now? What are the differences?

There has been significant movements in the currency markets during the Covid19 period and there are still many factors that influence the daily rates. During these uncertain times our clients are looking for certainty and stability. And although price is always important, other key factors like security and credibility became more important. Naturally each of our clients has been impacted very differently and we have worked with them to provide the solutions and flexibility they needed. We have welcomed many new clients from new geographies? as they were growing, and we supported existing clients that were growing or adapting their business models to suit the changing market.

8. The market is always changing, how does XE stay top of mind of the latest developments in the currency world?

We work closely with our clients to continuously understand their needs and adjust accordingly. Our expert Dealers keep a close eye out on the market. Understanding the movements, resistance levels, and key economic & political updates that can influence the market so that our clients do not have to worry about that. Xe also works closely with our sister companies and parent company Euronet Worldwide.

9. How does the future of FX look like in your perspective?

The near future could be set to weather extraordinary levels of balance sheet expansion and recession, potentially leading to a longer stimulative/expansionary monetary policy which could in turn depress currency rates of the countries that bear them. Near to medium term impacts of this could include a lack of major economic expansion as capital returns are often negative when factoring inflation. This may mean that we see a re-composition of FX strength toward commodity-based currencies (CAD/AUD/NZD) and alternative safe havens (CHF). However, we could see this shift in the longer term as public debt, in particular, becomes more tenable and attractive at such low interest rates and could invite broader investment for countries and to a degree private industry.

We have witnessed ample FX market volatility from an increased reliance on a more narrow data core. Inflation and interest rates and also public debt and balance sheet expansion narratives are having the most impact on rate movements. With this in mind; where much of the corrective forces required are formed around policies related to these key issues, it appears that volatility could behere to stay for at least the coming 6-12 months and beyond.

10. What has been your best experience ever in the world of currencies?

Supporting a scale-up with their complex FX requirements and enable them to grow their business in a short period of time by eliminating the FX risk and provide significant costs savings along the way.

 

About XE

At XE, they live currencies. XE provides a comprehensive range of currency services and products, including their Currency Converter, Market Analysis, Currency Data API and quick, easy, secure Money Transfers for individuals and businesses. They leverage technology to deliver these services through their website, mobile apps and over the phone.

Last year, XE helped nearly 300 million people access information about the currencies that matter to them and over 350,000 people used XE to send money overseas. Thousands of businesses relied on XE for information about the currency markets, advice on managing their foreign exchange risk or trusted XE with their business-critical international payments.

International Payments & FX Risk management for business

XE Business Solutions can help safeguard your profit margins and improve cashflow through quantifying the FX risk you face and implementing unique strategies to mitigate it. We provide a comprehensive range of currency services and products to help you access competitive rates with greater control.

At XE, they share the belief that behind every currency exchange, query or transaction is a person or business trying to accomplish something important, so XE works together to develop new and better currency services that put their customers first.

XE is proud to be part of Euronet Worldwide (Nasdaq: EEFT), a global leader in processing secure electronic financial transactions. XE is part of the Money Transfer Division of Euronet and is the unification of HiFX and XE.com.

Visit XE.com

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Banks are increasingly looking for an Ecosystem strategy

27-01-2021 | treasuryXL | Enigma Consulting | Paul Jans

Banks are increasingly developing an ecosystem strategy to realize competitive advantages. They use partners, software suppliers and BPO providers and link plug-and-play solutions.

“These ecosystems are the foundation of their changing business model (‘open banking’) and facilitate innovation. The basis for this development is a stable core banking and payment infrastructure that does not require all means in terms of budgets and resources, ”says Paul Jans, Managing Director at Enigma Consulting. The article continues in Dutch…

Hij vervolgt: “In onze gesprekken met klanten is dat de belangrijkste motivatie om tot outsourcing van deze non concurrentiele diensten over te gaan.” Jans verwijst in dat kader naar onderzoek van PwC, waaruit blijkt dat “de belangrijkste strategische reden voor banken om samen te werken met derde partijen is om het productaanbod van de bank te verbeteren (juli 2020).”

“De belangrijkste strategische reden voor banken om samen te werken met derde partijen is om het productaanbod van de bank te verbeteren.”
– Paul Jans, Enigma Consulting

Het streven naar meer samenwerking (met Fintechs) wordt mogelijk gedreven door een aantal ontwikkelingen, legt Jans uit.

Om te beginnen reageren FinTechs snel door gebruik te maken van technologische ontwikkelingen, snelle besluitvorming en de toegang tot investeringskapitaal. Jans: “Ze zijn wendbaar en kunnen snel nieuwe diensten aanbieden die aansluiten bij het veranderende gedrag van de klanten.”

Ook versnelt nieuwe wet- en regelgeving de ontwikkeling dat innovatieve partijen de klantinteractie overnemen en de banken naar de achtergrond drukken. De toegang tot rekening gegevens van derde partijen op basis van de PSD 2 wetgeving lijkt een eerste stap in een ontwikkeling waar banken de directe klantinteractie steeds meer kunnen verliezen aan derde partijen. “Succesvolle banken concurreren niet met deze derde partijen maar via hun ecosysteem strategie maken ze deze FinTechs onderdeel van hun businessmodel”, aldus Jans.

Verder ondersteunen technologische ontwikkelingen de nieuwe businessmodellen. “Het koppelen van innovatieve Fintech oplossingen via een integratie laag (API’s) maakt het mogelijk dat banken beter blijven voldoen aan de huidige hoge klantverwachtingen”, legt Jans uit.

“Samenwerking, outsourcing en partnering met een open ecosysteem lijkt de toekomst voor de bancaire core banking infrastructuur”

Tot slot wijst de Enigma Consulting managing director erop dat het bedrijfsmodel van banken onder druk staat. “We zien verdergaande schaalgrootte, digitalisering en consolidatie of samenwerking. Het afgelopen jaar zien we dit in internationaal en ook in de Nederlandse markt hebben we een aantal voorbeelden gezien (Van Lanschot Kempen met Hof Hoorneman Bankiers, Insingergilissen met Quintet).”

“In gesprekken met onze bancaire klanten naar aanleiding van onze outsourcing survey komt duidelijk naar voren dat de banken te weinig focus kunnen onderhouden op al deze ontwikkelingen. Wet- en regelgeving, verplichtende veranderingen zoals de SEPA rulebooks, Swift changes of zoals bijvoorbeeld de vervanging van benchmarks voor rentetarieven (IBOR) eisen alle aandacht op”, geeft Jans aan.

Om de nieuwe uitdagingen toch het hoofd te bieden, zo legt hij uit, zoeken de banken naar een oplossing met de volgende kenmerken:

  • Nieuwe bancaire architectuur die flexibel is
  • Geen zorgen over backoffice onderhoud en noodzakelijke aanpassingen
  • Ontzorging en implementatie van wet- en regelgeving
  • Architectuur die het mogelijk maakt makkelijk te koppelen aan nieuwe oplossingen en de mogelijkheid te switchen
  • Een integratie laag (de API-infrastructuur) die zowel integratie met het ecosysteem, de integratie met interne systemen als de klant interactie ondersteunt en faciliteert. Dit maakt een optimale en flexibele customer journey mogelijk

Jans vat samen: “Modernisering van de core banking omgeving om gegevensuitwisseling te vergemakkelijken en flexibiliteit te bieden is de oplossing om nu en in de toekomst alle bovenstaande uitdagingen het hoofd te bieden. Samenwerking, outsourcing en partnering met een open ecosysteem lijkt de toekomst voor de bancaire core banking infrastructuur. De huidige stand van de techniek maakt dit mogelijk.”

Paul Jans

Managing Director at Enigma Consulting







Source

 

 

Crisis Management: Why Treasury & Finance are pivotal to recovery

| 26-01-2021 | treasuryXL | Nomentia |

Initiating a crisis management strategy is now top priority for people, businesses and Governments alike. Utilizing and developing survival capabilities is proving challenging for many organisations, including cash flow forecasting and managing risk around major supply chain disruptions.

Diligent Cash Management and scenario analysis are both integral to managing uncertainty during the current crisis but also positioning finance and treasury leaders as pivotal to driving successful recovery planning.


Top things businesses should be concentrating on during the current crisis

Most organisations have a real need to understand what their current liquidity is: today, tomorrow and into the future. Finance and treasury must continue to run the business as best as they can but, to do this effectively, they need to know how much cash they have to work with on a daily basis. Therefore, group-wide, real-time cash visibility and future cash forecasting are crucial – if you don’t have enough liquidity in the business then trouble could be looming on the horizon.

The first step is to figure out what the real cash picture looks like, identify gaps and put the necessary measures and contingencies in place to avoid nasty surprises. Bill payment periods may have to be extended, funding requirements and arrangements revisited, hedging policies re-worked etc but the big picture i.e. cash visibility, is critical.

Cash forecasting comes next in order of priority, gathering a full and concise picture of short-term cash availability is imperative. Maximising business agility with some ‘what if’ scenario modelling may be required, for example: what happens if we don’t get paid a percentage of what we are expecting, what fall back positions do we have on government grants, loan agreements etc. Again, the key driver is knowing your current cash picture now and today, allowing you the best possible position for making strategic, next-step decisions. And the situation is real, a Guardian report, on the 2nd April, states 6 out 10 (60%) UK firms have no more than 3 months of cash left!

Many companies are struggling with cash forecasting, they simply don’t have adequate tools in place. What can they do, right now, given the logistics of remote working?

Thankfully there’s a lot they can do, and quickly. Ensuring whatever systems they have in place for managing liquidity are as automated as possible to enable real time, up to date information access on cash visibility. If automation is a problem or the company is still using traditional manual processes, then change as soon as possible. This is not as difficult as it sounds as many cash management solutions are now available on monthly on-demand payment plans, cloud based and can be installed quickly and efficiently without the need for IT involvement, onsite implementation teams or large upfront fees.

Given the availability of cloud-based cash forecasting solutions, systems can also be accessed remotely so staff working from home can work as efficiently and effectively as if they were operating from their respective office environments.

Actionable advice for post-crisis future planning

Preparedness. Post-crisis analysis will be critical for all organisations. Some will have managed better than others, particularly those who had previously invested in technology upgrades and system automation. Questions around: how well we were prepared, what worked or didn’t work so well, will be food for thought for all business leaders.

But the fact remains technology is absolutely key to maintaining business agility and formulating crisis preparation. Automating as many tasks as possible, in order to provide real-time access to all the data and information needed to make quick and informed decisions, can mean the difference between success and failure. Many organisations will use the time now and post-crisis to reassess technology needs and processes and plan investment in tech upgrades and automation to improve agility, accuracy and efficiency for the future.

Here’s a round-up of some actionable advice for finance and treasury leaders:

  • Know your cash availability today and going forward, focus on: group wide, real-time cash visibility and future cash forecasting
  • Consider bill payment extensions & re-visit funding requirements
  • Cash forecast regularly & consider fall back positions across a range of scenarios
  • Automate as much as possible so you’re benefiting from real-time, up to date information on cash visibility – make those upgrades as soon as possible
  • Cloud-based cash forecasting tools are more affordable and easier to implement than you might think – empower your staff with the ability to work as effectively as required, remotely
  • Reflect on how well you were prepared for this current crisis. What worked and what didn’t work so well
  • Automate as much as possible so that you benefit from real-time, accurate data to enable you to make key decisions as quickly as possible

Information is power, now more than ever.

About Nomentia

Nomentia is a Nordic powerhouse for global cash management. We believe in a world in which businesses can make the right decisions no matter how unpredictable the times are. Our SaaS-based platform offers solutions for cash forecasting and visibility, global payments with bank connectivity, reconciliation, in-house banking, guarantees, and FX dealing. We serve 2,300+ clients in over 100 countries processing more than 200 billion euros annually. Cash is king!

 

 

 

What’s Money Transfer really about?

21-01-2021 | treasuryXL | XE |

Don’t let the technical details overwhelm you. Online money transfer is a quick, simple, and secure process for any of your currency exchange needs.

Have you ever sent money via any means that doesn’t require walking into a physical bank to complete the transaction? That’s money transfer. It’s a simple process of receiving or sending money to a local or an international recipient without any physical cash.

Money transfers are usually available in two forms: payment and transfer.

  • When you use a debit card at a store or your boss gives you your paycheck through direct deposit, you’re experiencing small-scale money transfer.

  • When you’re sending money to another account or person, whether it’s across town or across the world, you’re also making a transfer.

There are four key types of money transfer services to choose from. These are:

  1. Wire transfer

  2. Online money transfer

  3. Bank draft

  4. Money orders

You can use any of these methods for local and international money transfers—but not all options are created equal.

What’s the difference between the four types of money transfer?

Wire transfers are one of the common money transfer services that you can use to transfer funds from one bank account to another bank account or to a cash office.

Online money transfer usually involves sending and receiving funds via an online remittance company (such as Xe) anywhere in the world. Users can easily transfer funds from their phone or their desktop computer, and watch them be deposited in their recipient’s bank account within days (or hours, or even minutes). Better still, funds can be transferred in almost all known currencies across the world.

Bank drafts are mostly used for making payments to companies or organizations abroad. A money transfer company or a bank can issue a bank draft and it is cashable at a financial institution. Bank drafts seem to be the most expensive type of money transfer. However, larger companies and institutions prefer using bank drafts because of their audit trail features and security.

To use a money order for sending funds, the sender is required to go to a cash office to create the money order for a precise cash office and recipient to pick up. All the sender has to do is notify the recipient about the money order. It’s the responsibility of the recipient to pick up the money order at the cash office.

What type of money transfer should you choose?

The easiest, fastest, and most reliable method of money transfer is online money transfer. It involves sending or receiving money anywhere across the world instantly via an online remittance service provider such as XE.

For a small fee, you can easily send money abroad to anyone including your spouse, friends, loved ones, colleagues, employers or even your own account in another country. The online remittance service provider you choose (hint, hint, we recommend choosing Xe) will complete the transaction via their secured web-based platform so your recipient can get the money in no time at all.

What makes online money transfer such a great method? Well…

Why should you choose online money transfer over the other methods?

These are the key benefits of sending money via online money transfer:

  • It’s fast, secure, and safe

How soon do you want your recipient to get the money you want to send over to them? If you choose an online money transfer service, your recipient will get the money quickly, making it the best choice when you’re on a deadline. Online money transfer isn’t just fast, it’s also secure and convenient. The process is simple and will take you just a couple of minutes on the phone or online, and your money and information will be secure during its trip around the world. Even more, if your money isn’t transferred or delivered for whatever reason, the money transfer company will inform you and help you to resolve the situation. If you ever need a fast, secure, and safe method of sending money or payments abroad, money transfer is the best option.

  • You won’t pay as much in service charges

Money transfer is the cheapest method of sending money to anyone or making payments either locally or abroad. If you choose the bank-to-bank method of transferring money or use a third-party agent, you’ll end up paying a lot of fees. This is mostly because banks and third-party agents have a larger overhead cost which they transfer to their customers in form of charges. And those upfront transfer fees aren’t the only extra cost—you’ll also get a worse exchange rate, and could be charged additional hidden fees during the transaction. Those costs add up!

In contrast, online money transfer service providers only charge a small sum, and you’ll always know what you’re paying before you confirm the money transfer. So, if you’re interested in paying a lot less for a faster and safer money transfer method, use an online money transfer service like Xe.

  • There’s no paperwork!

Did you just breathe a sigh of relief? Online money transfer doesn’t involve any paperwork. You wouldn’t have to bother about filling paper forms or stacking paper receipts as proof of transactions. You can easily complete all your transactions online without any paper and you can view your transactions history anytime you want. And as an added bonus, if you’re planning to send multiple money transfers to the same recipient, we’ll securely save their information (and yours) for quick transfers in the future.

  • You can get dedicated service

Have you ever had any reason to transfer money during an emergency in the middle of the night or while you’re busy at work? Going to the bank at such hours or even a third-party agent isn’t an option. But with online money transfer, you can easily initiate a money transfer at any hour of the day or night, without even getting out of bed. Online money transfer services have no opening or closing hours. Rather, they are available 24/7 to help you initiate whatever transaction you want. More so, customer support is often available 24/7 as well, making the online money transfer a more convenient option.

  • It’s efficient

If you decide to send money via a bank, here’s what you’ll have to do:

  1. Go to the bank. (Hope you remembered to get your recipient’s information beforehand!)

  2. Wait in line. (Who knows how long that’ll take?)

  3. Once you reach a teller, fill out the transfer paperwork. (Already sent a transfer to this person, at this location? Doesn’t matter.)

Online money transfers have no wait time, and no queues. You’re not required to leave the spot you are in or visit any location to make a money transfer. The entire process is easy, dependable, and efficient.

  • It’s user-friendly

Using an online money transfer platform doesn’t require any skill or knowledge. Rather, online money transfer platforms are user-friendly, easier to navigate and use for any type of money transfer without the assistance of anyone or a third-party. This makes the entire user experience a very positive one giving you the opportunity to complete as many transactions as you want.

Interested in sending money with Xe? Take just 3 minutes to see what you’ll need to do.

Why choose Xe Money Transfer?

  • Sending money via Xe is fast, convenient, user-friendly, and secure.

  • Money transfers are completed within 1-4 business days, but often complete within 24 hours (or less).

  • You’ll get competitive exchange rates for your money.

  • You can transfer money to over 130 countries.

  • You can download the Xe mobile app on AppStore or Google Play and transfer money on the go.

  • Enjoy expert customer support for all transactions and inquiries

  • No hidden fees.

When you make a money transfer through Xe, you can trust that your money will reach its destination quickly, securely, and with no hidden fees.

Are you curious to know more about XE?
Maurits Houthoff, senior business development manager at XE.com, is always in for a cup of coffee, mail or call to provide you detailed information.

 

 

Visit XE.com

Visit XE partner page

 

 

 

Three Basic Principles your Company needs to follow to prevent Payments Fraud

| 20-01-2021 | TIS |

Even the best tech solutions may not help you prevent and detect fraud, if your basic security procedures are insufficient. Based on our experience helping world leading brands set up proper controls against payments fraud, we believe that payment security is a much broader topic than just fraud. Therefore, payment fraud prevention or detection can only be a meaningful exercise when it is an integral part of a company’s overall payment security strategy.

 

Fraudsters come up with new ideas to scam companies all the time. As digitalization transforms the way payments are being made, the risk for cybercrime also increases. Recently, companies have become prey to business email compromise attacks (BEC): Someone will impersonate a high-level manager and tell an employee that due to extraordinary circumstances they need to make a payment right then and there. As the name suggests, this is usually done via email, but fraudsters have become more creative. In some instances, a voice imitation software was used to convincingly fake a manager’s voice on the phone. Because of nefarious scams like this, it is important to raise awareness for security and fraud prevention among your employees.

 

However, fraud is not always an external threat. Often, fraud happens within a company. For big companies it can be a struggle to keep track of all payments that are made across their worldwide subsidiaries – especially, if they are made manually. Unfortunately, fraudulent payments made by employees are usually detected afterwards – if they are detected at all.

It is therefore important to build a payments security strategy that works on all levels. But what does that mean? Where should a company begin?

A good start is to make sure that you have a system where each step of a payment process is visible and well-documented. Remember: Transparency and visibility are the enemies of fraud. You should always have control of all your payments. Standardization of payment processes and workflows is one step closer to better visibility and control. This way, fraud can be stopped before it has even happened. The following three basic principles can lay the groundwork:

1. Segregation of duties

This is a no-brainer. When responsibilities are shared, people can keep an eye on each other. Ideally, every critical payments’ process should involve multiple people or even multiple departments. Suspicious transactions are spotted at once.

2. A single payments’ gateway

Even if your payments are not fully centralized, it is very helpful to have a single payments’ gate. Combined with value-added services such as validation, multi-step authorization and routing, payments can be managed end-to-end. Additionally, centralized data visibility supports internal controls and audit compliance and the monitoring of transactions becomes much easier.

3. Appropriate designation of signature authority

Multi-level approval processes need clearly defined designation of signature authorities. Make sure that your workflows are sufficient and flexible enough to accommodate your company’s needs.

The TIS corporate payments platform has designed many enablers and features for its cloud-based platform to support payment security.  You can standardize and automate your payments processes, enforce segregation of duties, and manage signature authorities from wherever you are.

 

About TIS

TIS (Treasury Intelligence Solutions GmbH), founded in Walldorf, Germany in 2010, is a global leader in managing corporate payments. The Financial Times named TIS as one of “Europe’s Fastest Growing Companies” for 2019 and 2020. Offered as Software-as-a-Service (SaaS), the TIS solution is a comprehensive, highly-scalable, cloud platform for company-wide payments and cash management. The TIS solution has been successfully used for many years in both large and medium-sized companies, including Adecco Group, Hugo Boss, Fresenius, Fugro, Lanxess, OSRAM and QIAGEN. More than 25% of DAX companies are already TIS customers.

 

 

Making a Successful Transformation to SAP S/4HANA

19-01-2021 | treasuryXL | Kyriba |

SAP S/4HANA is SAP’s next-generation enterprise resource planning (ERP) system for large businesses. Many organizations that are currently using the SAP business suite are looking to upgrade to the new solution, often as part of a wider digital transformation.

As a digital core, S/4HANA is the link between the key business functions within an organization, including finance, marketing, manufacturing, procurement and sales. As well as connecting to the SAP ecosystem, it can connect to other cloud-based systems. It harnesses intelligent technologies such as artificial intelligence, machine learning and the internet of things to automate operations, and it connects data, devices and people in real-time.

S/4HANA enables digital transformation in several ways. It reduces an organization’s overall costs, drives business innovation, supports transformation projects and frees up the IT budget for investment in emerging technologies. Yet, while there is a strong business case in favor of S/4HANA, companies often struggle to identify which functionality they need from the platform, and when and how they should migrate.

Why Migrate Now?

Digital transformation is accelerating all the time and S/4HANA is “mission-critical” for digital transformation, explained Promantus’ director and head of Europe, Vikash Roy Chowdhury, during a recent webinar hosted by SAPinsider and sponsored by Kyriba. He added that as S/4HANA optimizes an organization’s digital transformation strategy, “it provides identity, visibility and innovation”.

There are many reasons why organizations should begin their migration to S/4HANA now:

  1. To take advantage of the digital economy and be quicker at getting new products and solutions to market.
     As digital transformation continues to gather pace, business processes will be further automated and new data flows will emerge, enabling organizations to gain better insights, improve their decision-making and foster business innovation.
  2. To avoid falling behind in the digital transformation journey.
    SAP will continue to provide standard support for its on-premise ERP system, ERP Central Component (ECC), until 2027. On the face of it, this commitment may seem a reason for organizations not to migrate to S/4HANA, but there are risks associated with continuing with a platform that has been earmarked for retirement. One risk is that organizations will get a poor return on investment in terms of their technological spend. Another is that they are overtaken by rivals that use S/4HANA’s state-of-the-art functionality to run their businesses more efficiently.
  3. To save money.
    The cost of implementing S/4HANA, and migrating to the platform, is likely to increase substantially over the next few years, as more and more businesses compete to secure resources that can support them with transformation.

The Challenges of an ERP Transformation

Migration to S/4HANA can present some significant challenges to businesses. Typically, the biggest challenge is resolving data issues. Other challenges include a lack of qualified resources, integration of legacy systems, accommodation of custom coding, and understanding the impact of S/4HANA on processes, especially where functionality has changed.

And treasuries have specific requirements in relation to an S/4HANA migration. They want bank connectivity and the integration of their global banks inside the S/4HANA infrastructure. They also want to see accelerated time-to-value (the rate at which the business benefits from the migration) so that they can free up resources from routine work to focus on more strategic activities, such as helping their organization to navigate the Covid-19 pandemic.

Unfortunately, bank connectivity can be one of the most difficult aspects of migration to S/4HANA, or any other ERP for that matter. It can take months – or even years – to achieve. “A lot of times… what keeps these ERP projects from going live is still waiting for the banks,” says Steven Otwell, director of payments at Kyriba.

For this reason, Kyriba is strategically collaborating with Promantus to support migration to S/4HANA from a treasury perspective.

Support for Treasuries

Fortunately, automation can ease the migration process. Promantus has developed a comprehensive S/4HANA transformation tool called ProAcc, which quickly and seamlessly automates all the migration phases, including assessment, pre-conversion, post-conversion and validation.

ProAcc provides a detailed assessment report that includes tailored recommendations for optimization and alternative scenarios, based on the current state. It also offers a single-view dashboard that gives full visibility around the migration process, from discovery to go-live. Furthermore, it acts as a single repository for the sequence of automated activities that take place, including prediction, monitoring, data snapshots, data integrity, configuration checks, and reconciliation.

The speed of migration will depend on an organization’s business and technological requirements, current SAP environment, and data quality and quantity, among other considerations.

Organizations that use ProAcc to support their S/4HANA migration benefit from:

  • Swift, secure and cost-effective implementation
  • Minimal interruptions to critical business processes
  • A tailor-made approach
  • Sequentially automated processes
  • Comprehensive support

“At Promantus and Kyriba, our entire focus is to bring the highest value to corporations in the shortest possible time, and at the lowest cost,” said Johnny Daugaard, vice president of client engagement at Promantus.

Kyriba’s service-based solution includes:

  • Connectivity as a Service.
    Bolt-on bank connectivity for SAP enables organizations to connect with thousands of banks and achieve time savings in excess of 80%. Kyriba has more than 550 active, configured and tested bank solutions for plug and play ERP connectivity. It also monitors bank connection 24/7 on behalf of its clients, with connection managed in different ways including FTP, host-to-host, regional protocols and SWIFT. Kyriba is the largest SWIFT for Corporates service bureau globally, managing more than 20% of SWIFT’s corporate business. As Kyriba’s service is fully outsourced, organizations do not need to employ internal resources to support bank connectivity, which reduces their overheads.
  • Customized Payment Fraud Management.
    This solution uses detection rules, coupled with machine learning, to detect anomalies in an organization’s flow of data from its SAP system to its banks. These anomalies could be possible payment frauds.
  • Payment Format Library.
    Kyriba’s library contains over 45,000 pre-developed and bank-tested payment format scenarios, which are shared across all Kyriba clients. This saves organizations from having to develop their own payment formats for their S/4HANA platform, which can be complicated, expensive and time-consuming – especially when an organization works with a large number of banks. Kyriba simply takes a single payment file from the organization’s ERP and interprets it. It then transforms the file, based on the approved format requirements of the individual banks.
  • Global bank monitoring.
    All incoming and outcoming bank files are monitored, relieving the IT team of the burden of having to work out whether files have been processed. Effectively, an organization’s banking support is fully outsourced to Kyriba.

Conclusion 

Today, organizations are having to react with agility to the challenges posed by Covid-19. Digital transformation is key both to their present survival and their future success – and for many large organizations, this transformation will be underpinned by migration to S/4HANA. Treasury and IT should be closely involved with this migration and carefully consider solutions that enable them to meet their objectives without consuming valuable resources.

 

Cash Management review – Fitting like a glove

| 18-01-2021 | Bas Meijer |

Can you remember when your current Cash Management structure has been set up? Probably at a point in time when there was a refinance, additional funding need or when a new treasurer came on board. The world is changing, your clients and their behavior are changing, therefore probably your Cash Management environment needs changing.

Unfortunately these changes are not automatically translated and implemented into your Cash Management setup. And as not every bank is the same, some banks cannot provide the Cash Management setup your corporate needs.

Reflecting the Cash Management needs every 3-5 years is a good habit. Solutions are evolving, banks are changing their focus & pricing can be renegotiated. But the most important goal is that the Cash Management setup should fit your corporate like a glove, not too big, an certainly not too small.

TreasuryXL has multiple experienced Treasures with up-to-date knowledge and experience, who can help your organisation to achieve these  goals. Maybe your corporate is ready to take the next step, or your Cash Management infra structure is outdated. Is there need for automation, independent banking portal, TMS or market data provider?

From experience this review brings a contribution to the bottom line. But not only in money, also in speed and accuracy. With new tooling your current choices can be reviewed in time, which helps you to make the next steps down the road. The Treasury Department is never static, and should always adapt to the changing environment. Make sure that your Treasury function, how big or small, fits like a glove to the needs of the corporate!

 

Bas Meijer

Treasury Specialist

 

 

 

 

 

Zelfstandig Treasury Adviseur Non-Profit gezocht (Dutch)

15-01-2021 | Treasurer Search | treasuryXL

Zonder uitputtend te willen zijn omvat het takenpakket van de treasury adviseur de volgende aspecten:

  • Opbouwen en onderhouden van relaties met bestaande en nieuwe klanten;
  • Verzamelen en analyseren van (niet-)financiële informatie, specifiek aangaande balans, financiering en bijbehorend renterisico profiel;
  • Opstellen en presenteren van adviezen aangaande financieringen en het afdekken van renterisico’s;
  • Voortdurend volgen van de voor de klantgroep relevante financiële markten en wet- & regelgeving. Proactief en op aanvraag deze expertise delen met opdrachtgevers en in diverse gremia;
  • Actief bijdragen aan de groei en professionalisering van de onderneming, inhoudelijk, commercieel en organisatorisch.

Profiel ideale Treasury Adviseur Non-Profit

De ideale treasury adviseur heeft een afgeronde academische opleiding en een relevante expertise in financieringen en renterisico’s. Zij heeft een up-to-date netwerk en haar consultancy vaardigheden zijn bewezen. Zij kan haar expertise hebben opgedaan in een non-profit organisatie (overheid, zorg, woningcorporatie, onderwijs, etc.), bij een consultancy organisatie of een bank. Essentieel is dat zij, aantoonbaar, succesvol kan zijn in een kleinere organisatie. Haar prioriteiten moeten aansluiten bij die van onze opdrachtgever, hetgeen zichtbaar is in integriteit, oprechte interesse en natuurlijke nieuwsgierigheid.

Onze opdrachtgever

Onze opdrachtgever weet zich al decennialang te onderscheiden van andere treasury adviseurs door zich volledig te richten op de non-profit sector, door inhoudelijke expertise en een bij de klantengroep & vakgebied passende bedrijfscultuur. In dialoog wordt de relatie gelegd tussen de doelen en ambities van opdrachtgevers en hun financiële structuur. Steekwoorden die horen bij hun cultuur zijn integriteit, lange termijn relaties, oprechte interesse, brede en diepe expertise. De organisatie maakt een gestage groei door en investeert gericht in organisatieverbetering. Consultants zijn inhoudelijk gedreven professionals die op collegiale wijze samenwerken, er is geen voelbare hiërarchie.

Arbeidsvoorwaarden & Proces

Onze opdrachtgever biedt een passend arbeidsvoorwaardenpakket. Onze opdrachtgever groeit graag verder maar doet geen concessies aan kwaliteit: de lat ligt hoog. Expertise, persoonlijkheid en netwerk van de kandidaat moeten goed zijn.

Contact person

Pieter de Kiewit
T: (0850) 866 798
M: (06) 1111 9783
E: [email protected]

 

APPLY HERE

 

COVID-19 vaccine rollout: how might it impact global currencies?

14-01-2021 | treasuryXL | XE |

As 2020 drew to a close, news broke of multiple vaccinations for the COVID-19 virus, and each nation began discussing its plan for distributing the vaccine.

At this time, we are still in the early stages of the vaccine rollout, and many nations around the world are still in the process of vaccinating their highest-priority individuals and preparing for the eventual larger-scale distribution.

As some start to dream about a return to life outside of lockdowns and social distancing, others are wondering what the news of the vaccinations—and their eventual distribution—could mean for major global currencies and economies.

Has anything recently impacted the US dollar?

Several recent happenings have led to an impact on the USD.

First, the dollar may see a very short term sentiment impacted by Donald Trump’s removal from office. President elect Joe Biden has stated that he will announce an economic plan on Thursday, 14 January, to navigate through the COVID-19 pandemic and an eventual reopening. While the specifics of this plan are not known at this time, we do know that this plan will be worth “trillions” of dollars and will entail massive infrastructure spend.

Recent minutes from the Fed have shown us that the US Central Bank quantitative easing (QE), and that interest rates will continue to be low for the foreseeable future.

Finally, U.S. treasury Yields recently rose to 10 month highs.

What does this mean for the dollar?

The above events resulted in an end to the recent weaker dollar. Instead, the dollar has been strengthening against its major trading counter parties.

How are other currencies being impacted by the vaccine roll out?

The sooner a nation can widely distribute immunizations, achieve herd immunity and therefore see its economy back and open for business, the better it will be for their economy and currency.

It is currently estimated that once 70-90% of the population has been vaccinated, the sooner lock down restrictions and the “handbrake” on the economy can be released. Because of this, markets are tracking the current vaccine numbers and the planned numbers in the weeks and months ahead as an indicator of which economies will bounce back and which currencies will strengthen first.

Currently, the US dollar and the British pound are poised to see positive change. As of January 8, 2021, the United States ranks 4th in the list of vaccination doses per country, with 2.02 doses administered per 100 people in the population. The United Kingdom ranks 6th, with 1.94 doses per 100 members of the population as of January 3, 2021.

On the other hand, as a result of Europe’s comparatively slow start to the vaccine roll-out, the Euro currently appears to be in a vulnerable position.

What can you do?

If the past year has demonstrated anything, it’s that one can never predict what may happen. The most important thing that you can do is ensure that you’re prepared for market volatility and market motion in all directions.

 

Get in touch with XE.com

About XE.com

XE can help safeguard your profit margins and improve cashflow through quantifying the FX risk you face and implementing unique strategies to mitigate it. XE Business Solutions provides a comprehensive range of currency services and products to help businesses access competitive rates with greater control.

Deciding when to make an international payment and at what rate can be critical. XE Business Solutions work with businesses to protect bottom-line from exchange rate fluctuations, while the currency experts and risk management specialists act as eyes and ears in the market to protect your profits from the world’s volatile currency markets.

Your company money is safe with XE, their NASDAQ listed parent company, Euronet Worldwide Inc., has a multi billion-dollar market capitalization, and an investment grade credit rating. With offices in the UK, Canada, Europe, APAC and North America they have a truly global coverage.

Are you curious to know more about XE?
Maurits Houthoff, senior business development manager at XE.com, is always in for a cup of coffee, mail or call to provide you detailed information.

 

 

Visit XE.com

Visit XE partner page

 

 

 

Brexit: UK Payment Service Providers barred from EU

13-01-2021 | treasuryXL | Enigma Consulting | Geert Blom

UK Payment Service Providers without an EU-license are barred from doing business in the EU. As of December 31, 2020, the UK and EU have concluded arrangements that effectuate the partnership between both parties on many different levels. However, the arrangement agreed upon does not include specifications regarding provisions, exemptions or special treatment for UK Payment Service Providers.


On January 31, 2020 the UK left the EU on the basis of the agreed withdrawal agreement. This prevented a no-deal Brexit on that date and led to the transition period until the end of 2020. In 2020, lawmakers have argued over the possibility to arrange for so-called EU-equivalence decisions with regard to the UK. These arrangements have not materialized and neither did EU member state parliaments deem it necessary to extend temporary exemptions for the provision of services by payment service providers or electronic money institutions established in the UK.

This means that from 2021 onwards, all British financial service providers without an EU-license are no longer allowed to provide many of their services to EU-clients. Also, the access rights of British financial institutions to provide cross-border financial services in the European Union will in many cases no longer apply. The financial supervising authorities expect that British institutions have taken timely preparatory measures so that the relevant state laws and regulations are complied with. Compliance could and can still be attained by applying for – and receiving – a payment institution license in one of the EU member states.

In recent years, The Netherlands have served as a favorite hub nation for many UK PSP’s. At Enigma Consulting, we are experienced and market leader in applying for payment institution licenses specifically in the Netherlands, for both PSP’s and EGI’s. We specialize in creating all required documentation and provide expert guidance on all applicable policies, procedures and related topics. If you too aspire to do business in the Netherlands as a PSP or EGI and if you are currently in need of expert advice or assistance with acquiring a license, please do not hesitate to contact us at [email protected].

 

Geert Blom

Senior Legal Consultant

+31 (0)6 13 91 88 22