#6 Not having a Grip on Compliance (Dutch Item)

02-09-2021 | XE |

Regulatory compliance must be an absolute priority for all organisations involved in foreign exchange transactions with foreign customers and suppliers. You must implement robust procedures to generate the information that your foreign exchange providers must legally have in order to carry out transactions on your behalf.

Als u dat niet doet, loopt u het risico dat betalingen niet op tijd worden verwerkt, waardoor uw relatie met leveranciers en klanten onder druk komt te staan of zelfs uw toeleveringsketen verstoord wordt. Ook uw cashflow kan in gevaar komen. Ondanks deze noodzaak is vertraging door regelgeving een veelvoorkomend probleem bij vreemde valuta. Financiële instellingen moeten zich aan strikte regels houden wanneer zij valutatransacties uitvoeren namens hun klanten. Volgens wetgeving om witwassen en andere verdachte praktijken tegen te gaan, moeten zij de identiteit controleren van alle partijen waarmee ze zaken doen, waaronder de buitenlandse partijen waarmee uw bedrijf contact heeft. Vertragingen in het verificatieproces kunnen de uitvoering van uw transactie vertragen.

“Bescherm uw cashflow, uw toeleveringsketen en uw relatie met leveranciers en klanten.”

U moet ook oppassen dat u niet verstrikt raakt in onbekende buitenlandse bankgegevens. Bankgegevens in eigen land zijn gestandaardiseerd, maar internationaal kan dat van land tot land
verschillen en kunt u te maken krijgen met internationale rekeningnummers (IBAN), bankidentificatiecodes (BIC) en andere gegevens.

Uw valutaprovider moet u kunnen helpen deze potentieel verwarrende variaties te verwerken en tegelijkertijd de geldende regels na te leven. Worden er bijvoorbeeld online systemen gebruikt om de invoer van gegevens te automatiseren, waardoor fouten of ontbrekende gegevens snel ontdekt kunnen worden die anders uw betaling zouden kunnen vertragen? Geeft uw provider eenvoudig advies zonder gebruik van jargon over de gegevens die u nodig hebt van buitenlandse partijen en waar u die kunt vinden? Kan uw provider betaalgegevens in zijn systemen bewaren zodat u ze niet bij elke volgende transactie opnieuw hoeft in te voeren?

Als u niet precies weet hoe u ervoor zorgt dat u de regelgeving naleeft, bespreek dat dan met een gespecialiseerde valutaprovider.

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What to Consider When You choose your Bank Connectivity Strategy? 7 Important Criteria

| 01-09-2021 | treasuryXL | Nomentia |

Most organizations would benefit from some form of Bank Connectivity as a service. But just deciding on outsourcing bank connectivity won’t magically make all those connections appear. In this blog, we’ll cover 7 important criteria you should think of when evaluating different options.

1. In which banks do the majority of your payments flow?

Make a list of all banks that your organization is connected with and include all banking relationships from all your subsidiaries. We have noticed in interactions with our customers that this first step can be eye-opening at times. Often, we have an idea of the different banking relationships but then there are still local bank relations that might not be that visual to your treasury function. It also provides you with a good understanding of how many bank connections you would need and whether you would benefit from simplifying your banking landscape before implementing a bank connectivity solution. If your organization is only working with 5 banks altogether the story is very different from an organization that has relationships with 20+ banks.

After mapping this out, you might want to apply the 80/20 rule: typically, you would first set up connections to the strategic banks that cover 80% of your payment flows. A cloud-based software from a Cash Management specialist will most likely be able to provide you these connections as part of their out-of-the-box functionality.

2. Evaluate your use of local banks

Even if you expand the use of strategic banks to more countries, you might still find a set of local banks that you cannot replace. Typically, a discussion about bank connectivity increases in complexity when the long tail of local banks comes into play. That’s where you need to ask yourself why you are working with local banks. Is it for collecting money, for making payments from a regulatory point of view or because of specific needs within your local business?

Having visibility on Cash is straightforward while covering payment flows is not easily justified from a direct cost savings point of view. At the same time payment fraud plays a role in the local banks. You might want to consider a solution to replace internet banks for manual payments with a centralized solution. Then, the business case cannot be backed up by direct cost savings, but cost-efficient risk mitigation.

3. How consolidated is your banking landscape?

After mapping out all your banks in a first step, you know your strategic banks. Now it’s time to take a look at which countries are covered by these strategic banks. Would it be a good time to reduce your banking relations by using a certain set of strategic banks in more of your countries in order to reduce the number of domestic banks?

4. How many file formats and payment types do you have in use?

It is a different thing to set up credit notes and treasury payments only, as opposed to also including domestic payments, salary payments, and tax payments. We recommend having a solution for all your payment types and file formats: this is the only way to get rid of the internet banks and the tokens.

5. Are you concerned about payment fraud and information security?

You should have a solution to cover all payment types in all countries with all banks. That is the only way to have a full audit trail and control in every country. A centralized payment process enables centralized validation and control. We have covered the topic of payment fraud extensively.

In our case, having bank connectivity as a cloud service lets you benefit from a platform, which invests annually roughly 1bn$ in information security. From an information security perspective, this lets us concentrate on application-level security, which is annually audited by 3rd parties.

6. Are you interested in having transparency in your bank fees?

Modern bank connectivity solutions enable transparency in banking fees: Having bank agreements and the related fees included and matched against the banks’ reports. Even more transparency can be gained with services like SWIFT GPI: SWIFT GPI enables banks to provide bank fee information for the e2e chain. Not all banks support these features yet.

7. Choose wisely

Once you go through the questions and mappings outlined above you are at a good place in making your decision for the right bank connectivity provider. It might seem tedious at times and one might think of bank connections as a mere technical thing, but they are so much more. We feel this is a perfect moment to evaluate all your processes and look at ways to harmonize them.

It’s also a great way to work closely together with your colleagues. We recommend approaching this topic in a project team between treasury, finance and IT: From an IT perspective you want to minimize the IT-footprint, finance will run the daily operations and treasury sets the policies and controls.

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$20 Billion in Bank Service Fees: Are You Overpaying?

31-08-2021 | treasuryXL | Gtreasury |

By Heena Ladhani, Ecosystem Manager, GTreasury

Twenty billion dollars. That’s how many corporate treasurers in the U.S. are now forking over to banks in service transaction fees every year. It’s a big number and it’s growing every year. But there’s also vast potential for reducing that amount by optimizing the outlay for-fee services and becoming better-informed for price negotiations.

A recent survey from Treasury Strategies determined that 70 percent of corporate treasurers are reviewing their bank service fees on a monthly basis. However, the same survey determined that a fraction – just 21 percent of treasurers – will actually benchmark those service fees as part of their bank analysis and management. Among those treasurers who do use benchmarks, many only do so on a line-item basis, rather than at the product category level. A majority also don’t have processes to recognize the impact of volume on benchmark prices. In short, there is room – a lot of room – for opportunities to trim costs.

Accurate bank fee analysis backed by correctly applied benchmarking enables treasurers to preserve strong relationships with bank creditors as well. Too often, simplistic benchmark techniques give treasurers only a surface-level analysis of whether fees are in line with market averages. As a result, treasurers may falsely challenge their banks over small sums, while missing out on more appropriate and fruitful interventions – a ‘can’t-see-the-forest-for-the-trees’ scenario. Incomplete analysis comes with its own costs, absorbing misapplied resources and eroding creditors’ goodwill over insignificant or erroneous concerns.

Let’s look at two examples of how benchmarking, done right, can ensure treasurers’ accurate analysis and lead to optimized bank transaction costs:

Example 1: Benchmark beyond what you know

Wire transfer fees are an area in which effective benchmarking is especially ripe for opportunity. For example, suppose a treasurer’s initial internal benchmarking finds that the four banks the company uses offer rates spanning from $14 to $20. This self-benchmarking reveals the potential to move all wire transfer fees to the $14 rate. However, expanding benchmark horizons to the market at large makes clear that all the banks are charging fees well above the median.

There is no shortage of potential reasons for this, which should be investigated. The company could potentially reduce fees by using a bank portal, streamlining Fedwire, SWIFT, or CHIPS costs, opting for digitized communications, and beyond. Importantly, though, a small cost on each wire can quickly add up to significant savings. By benchmarking these fees at a more expansive scope, those savings can be found, pursued, and realized.

Example 2: True treasury management services costs are multi-dimensional

Take a hypothetical corporate treasurer examining lockbox item processing fees at two different banks. Bank X charges $0.30 per item; Bank Y charges $0.50. The treasurer’s organization directs 500 items to Bank X each month, and 5000 to Bank Y. On the surface, the treasurer’s analysis is simple: Bank Y is overly expensive and should be challenged.

A deeper and more holistic analysis, however, clarifies a more accurate picture. Factoring in bundled remittance processing services – such as monthly lockbox maintenance, daily deposit ticket charges, image and hardcopy fees, and courier fees – rewrites the story. Now it’s clear that Bank X provides a per item rate of $4.00, but Bank Y is just $3.00. The more simplistic cost benchmark analysis missed this crucial information.

That said, the analysis must also consider that volume is crucial to accuracy. Bank fees often vary by volume. Checking Bank X’s $4.00 per item rate against the market, the median benchmark price for a volume of 500 items a month is actually $5.00. The bank’s price is quite favorable at that volume. Now looking at Bank Y, the median benchmark price at a volume of 5000 is just $2.00 per item. Suddenly Bank Y is exposed as the truly expensive one.

There is a range of subsequent steps available to leverage this complete analysis into savings. The pricing may simply be too high, or active services may use overly expensive configurations. The treasurer should check for any unneeded services. Common redundancies can include receiving both electronic and hardcopies of checks, using packages featuring both electronic transmission and express mail, performing multiple daily deposits instead of a single batch, or using Fedwire rather than ACH. Accurate benchmarking makes each of these wasteful potential expenses easier to identify. Once recognized, streamlining such service costs can be simple.

When it comes to bank pricing, treasurers also have a variety of options for optimization. For example, treasury could consolidate the lockbox items to Bank Y’s lower cost. It could then restructure processing at that bank to the market’s median price. Alternatively, it could request a bid from Bank Yon on the total volume and explore that offer.

Apply robust benchmark analysis across the board

The same process for optimizing bank offers and options based on complete and accurate benchmark analysis applies to all bank services used by corporate treasury teams. All transaction processing and information services should be put to careful scrutiny to see what savings may emerge. In this way, implementing the right treasury management strategy and processes to make robust benchmarking an integrated component of regular bank fee analysis is an investment that pays equally robust dividends.

Author: Heena Ladhani is the Ecosystem Manager at GTreasury, a treasury and risk management system. She is a FinTech professional with more than seven years of experience working with global clients to design solutions and improve processes utilizing treasury systems. She resides near Chicago.

8 questions for International Cash Management expert, Máximo Santos Miranda

30-08-2021 | Maximo Santos Miranda | treasuryXL

Máximo holds a PhD in Economics and is graduated in Law. After 18 years working in International Cash Management in several multinationals coordinating local treasury units with the headquarters or implementing new ones all around the world, he is working as a university professor of finance, treasury and business strategies in several Universities and Business Schools in Spain. He is also a regular contributor in international media such as Forbes México, Forbes Centro America or Revista Gestión of Ecuador for the last five years.

“My first job in treasury was the best you can wish for”

As a researcher he has published more than 30 articles in research journals about banking systems, treasury, finance in general, fintechs or international sanctions and at the same time he is a referee in postgraduate research journals. He also collaborates with Think Tanks and international institutions in different ways.

We are delighted to share the interview with Maximo. Let’s dive into his treasury journey and Máximo’s opinion about the future of treasury combined in 8 questions and answers.

1. How did your treasury journey start?

After finishing my studies in economics, my intention was to work for a bank. In fact, my first professional steps were in banking. However, one day I saw a job offer that looked very interesting and I applied for it. Normally, I always prepare the job interviews in detail but this didn’t happen at that time. So, I went to the interview with no visibility of the company I was applying for. After a couple of quick interviews, I was selected as a treasury analyst for Cemex European headquarters.

Everything was perfect. My first job in treasury was the best you can wish for. I was part of the team of international cash management and Cemex at that time was in the middle of fast growth movements. Cemex acquired different subsidiaries worldwide and I was in the center of all those financial flows. There was much stress but the work atmosphere was fantastic and the promotion possibilities were reachable.

2. What do you like about working in the world of Treasury?

Most of my career in treasury has been focused on the international side and that provides an unpayable extra value. Thanks to being an international treasurer I have learned a lot about how treasury and finance work worldwide. I have had the opportunity to see how the banks work in many countries and how different companies from different sectors and industries adapt their cash management to their operative peculiarities and the markets where they are inserted.

3. What is your Treasury Expertise?

International cash management is my greatest strength in the treasury world. Most of the time in my treasury career I have worked as a coordinator of local treasury units. That role has allowed me to see different approaches to similar issues in different countries.

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

In my first years in treasury, I had to coordinate the movement of funds (in three currencies) between different subsidiaries located in different countries and different banks on the same day. The number of funds moved was very high and the number of countries where the money passed through was also high (more than 20 countries in three continents). I was preparing the operation for a week and finally everything went fine. For me it was quite stressful as the operation was completed finally in 15 hours and it was necessary to compensate several delays in the intermediate transactions. When you prepare in detail a complex operation like that and everything is completed as forecasted you feel very proud of all the work done. After that operation, I have coordinated other operations quite similar but the level of stress has been much lower compared with the first one.

5. What has been the biggest challenge in your treasury career?

In the year 2005 Cemex sent me to Italy for three years to set up a new treasury unit in the country. For me it was a big challenge. First of all, because I didn’t speak Italian when I went there and soon I realized that to speak Italian is a key point if you want to do your job properly. Secondly because although I worked for a big multinational, the Italian subsidiary was quite small and the approach of the local banks was completely different to that I saw in the Cemex European headquarters in Madrid.

6. What is the most important lesson that you have learned as a treasurer?

Things work if you prepare them in detail. You can have a very complex operation in your hands but if this operation is prepared in detail (forecasting different scenarios and alternative solutions) the final success is almost guaranteed. Good preparation is the key to success.

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

The function has changed a lot. When I started in treasury in the year 2001 the administrative workload was the most relevant part of the treasury function, at least in time-consuming. Today instead and thanks to technology the time spent on administrative issues have been reduced significantly. That reduction has allowed the treasurer to dedicate more time to other issues that generate more value for the company. A good treasurer today must know much more than before about technology applicable to the treasury function and must also have strategic thinking.

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

The treasury teams will be smaller in the future. The technology will reduce all the administrative treasury tasks to the minimum. The treasurer of the future should be focused on technology, strategic thinking and create additional value for the company. To reach that goal, the corporate treasurer should be passionate about the function and must be always informed of the latest developments in the market. The corporate treasurer should know the latest developments in technology, in treasury products, in treasury strategies… always learning. The treasurers of the future should communicate better and invest time in treasury education and build treasury networks to exchange knowledge with other colleges or experienced treasurers. To sum up, the treasurers of the future should increase their impact in the companies thanks to the technology developments.

Máximo Santos Marinda

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How global enterprises can finally end the cycle of redundant IT-related payments projects

30-08-2021 | TIS |

This article begins by examining the current state of enterprise treasury and finance technology implementations, including the standard project timelines, core challenges, and ultimate outcomes. This is followed by an analysis that outlines an improved methodology for enterprises to follow as they seek to ensure the global optimization and standardization of their payment systems, workflows, and technologies.

Modern enterprises are stuck in an endless cycle of payment technology upgrades

For enterprise finance and treasury professionals, why does it feel like the road to payments automation and technology optimization is never complete?

If you’re an active practitioner, you’ve likely asked yourself this very question (or at least a variation of it) within the past few years. Perhaps it was during a very long and arduous TMS or ERP implementation, a major acquisition of a new entity, or a rationalization of your global bank relationships. In any case, your musings were probably due to the fact that these types of projects have become an all-too-regular occurrence (and a subsequent thorn in the side) for enterprises around the world.

As recently as 2018, data showed that the average corporate timeline for a SaaS-based TMS implementation was 10-18 months. Technology overhauls involving larger and more widely used systems, such as global ERPs, may have taken up to 3-5 years. And although these respective timelines continue to grow shorter as cloud services and other innovations rise to the forefront, projects of this magnitude still represent a massive undertaking.

During these periods, it’s common for practitioners to wind up collaborating with dozens of internal and external stakeholders, joining hundreds of calls, and spending countless hours training, testing, and configuring the new system – all while continuing to perform their core list of daily responsibilities.

The ultimate result being?

Although seasoned professionals will tell you that every implementation is different, let’s think about the bigger picture. Of course, the results of each specific project can vary drastically, sometimes for reasons far outside of anyone’s control. There may be budget constraints, bandwidth constraints, technical limitations, and even geopolitical or environmental obstructions. Employee turnover may cause undue delays as well. And yet other times, the entire project may flow smoothly and on budget from start to finish.

But looking beyond the individual success or failure of any single project, how long after each project’s completion will it be until a new technology implementation is required?

One year? Two years? Five years?

Or, in the case of global enterprises, perhaps you are simultaneously working on numerous financial technology implementations all at once, and the completion of one only results in your reprioritization of another.
Unfortunately, this endless cycle of new technology and payment upgrades is what most enterprise treasury and finance teams find themselves dealing with today, and it has become one of the primary sources of confusion and headache for global companies.

Let’s quickly evaluate the underlying complexities in more detail.

Why does global expansion often lead to excessive payments complexity?

Although domestic companies operating in a single country or region undoubtedly face their own degree of technology and payments complexity, the level of difficulty associated with managing a global network of systems, data, and information is exponentially greater.

What are the main reasons for this?

To begin, consider the sheer volume of payments being made across a global enterprise, including all the various locations, currencies, and payment types. For the largest companies, there may be millions of inbound customer payments occurring every day through a combination of cash, check, card, and account-to-account options like ACH and SEPA. At the same time, an equally large and diverse variety of outbound payments must be generated by the enterprise to compensate employees, vendors, and partners. And every time a new entity, industry, or market vertical is added to the mix, these volumes intensify.

Adding further complexity, consider how the payment channels and formats in use across each world region can vary broadly as well. Just to name a few, there is EBICS in Europe, NACHA in North America, SWIFT for international payments, and H2H (direct) connections that may be utilized globally. Local variations of these channels also exist in other regions, and going a step further, each of the specific banks used by an enterprise will have its own connectivity preferences for payments and information reporting. Individual clients, partners, and vendors may also request payment data to be created in specific formats such as SWIFT MT, ISO 20022, EDI, BAI, and BAI2.

Finally, the diverse compliance and security standards that exist across various countries require unique filtering and monitoring workflows to be established in different regions. Although U.S. companies may be familiar in dealing with OFAC sanction lists, FBAR statutes, and data privacy laws like GDPR, the regulatory landscape in Asia, Africa, and the Middle East looks quite different. In fact, each specific country within these regions might have its own distinct set of rules and restrictions, and these protocols must closely adhere to any time that payments data and technology solutions are managed locally.

But despite all these challenges, perhaps the largest source of headache and confusion for enterprise practitioners stems from attempting to manage a disparate and unintegrated web of back-office payment solutions.

What do we mean by this?

The back-office conundrum: too many solutions and not enough integrations

In 2016, research from Fortune highlighted that global enterprises were undergoing merger and acquisition (M&A) activity at incredible rates, with the five most active companies absorbing 122 new entities between them on the year. Data from more recent years showcases a similar story, and at the same time, organic growth is also driving these enterprises to open new offices, enter into new markets, and expand into new world regions.

The challenge?

As these new acquisitions and locations ultimately go on to form new company entities and subsidiaries, the underlying systems used at each locality must be connected to the enterprise’s main technology stack in order to facilitate data transmission, cash and payment visibility, and other core financial functions. But for enterprises with hundreds of already-existing entities and a steady stream of new acquisitions, consider how many systems must be connected to the enterprise’s core technology stack each year. Also consider the amount of maintenance, upkeep, and investment that managing this global network of technology requires. And finally, reflect on how each of these systems will gradually become a legacy over time and need to be replaced as new technologies and solutions rise to the forefront of the industry.

We know from experience that not all of these global systems are able to connect or integrate with one another. Perhaps some solutions are too old, the budget too insufficient, or IT bandwidth is stretched too thin to prioritize the development of proper connections. As a result, it may take days, weeks, or even months for the data and information contained within these local systems to be made available across the entire enterprise. And if these siloed systems are not isolated occurrences but actually comprise a significant portion of the enterprise’s back-office infrastructure, then almost every single financial and payments-related function will be impacted.

Without automated connectivity and integration, visibility to cash balances and payment statuses will take a hit. Creating a standardized compliance and security process will be almost impossible, and stewarding the company’s liquid assets will be hampered by a lack of transparency to global data.

Today, these siloed entity technology stacks and legacy systems are often the unintended result of sustained business growth. In fact, it’s almost natural for them to occur. However, with today’s speed of change in commerce and technology, it is no longer an option to leave each of these functions, systems, and geographies unconnected. Siloes trap data, reduce communication and visibility, and ultimately stifle growth. And in the world of payments and technology, a lack of visibility and automation will directly impact liquidity, profitability, and exposure to risk across the entire enterprise.

So then, for enterprises that find themselves in this situation, what is the best approach to optimization?

Introducing a new framework for managing enterprise payment maturity

In a perfect world, enterprises that need to connect all of their global technology and payments solutions, including bank platforms and 3rd party solutions, would simply integrate every system with every other system. This would effectively enable complete unification and connectivity across the enterprise’s entire network, and data could flow immediately and seamlessly across any department, entity, and location for real-time visibility and control.

Of course, active practitioners understand how unrealistic this approach would be. In reality, it would require an almost endless variety of custom integrations to be established across each internal system and potentially hundreds of banks and external solutions. Despite innovations surrounding APIs and other connectivity methods, this task would still be insurmountable, from both a budgetary and bandwidth perspective. And even if an enterprise did somehow manage to connect all these solutions together, the maintenance and upkeep required to sustain each integration would require a whole army of dedicated IT personnel and even more investment.

An alternative solution?

Given the fragmented systems landscape that exists across most global enterprises, the most effective way to achieve a holistic view of (and control over) every siloed process, system, and geography is by implementing a single Enterprise Payments Optimization (EPO) layer that sits above all other solutions in an enterprise’s technology stack. Rather than connect every platform with every other, each solution need only connect to the EPO platform instead. This drastically simplifies the process of integrating new solutions with an enterprise’s tech stack, and also automates the process of transmitting payments data between any system that is connected to the EPO platform, including those used by different entities, offices, and departments.

Although the adoption of an EPO platform requires some up-front legwork, using a vendor like TIS ensures that the complexity of connecting to banks and performing other technical functions is almost entirely outsourced. This means that formerly difficult and time-consuming tasks that were managed by internal IT teams (such as configuring and maintaining the links between external banks and internal ERPs, HR systems, and TMSs) are now managed by the EPO vendor. As formats evolve or new regulations require changes in integration, EPO vendors like TIS automatically handle the upgrades and also manage the addition of new countries, banks, and users to an enterprise’s network as growth and expansion dictate over time.

Once this type of implementation has been performed, the EPO platform can become the sole channel through which all company payment workflows and data streams are managed and controlled.

As payment instructions or files from ERPs and other back-office systems pass through an EPO platform, they can be quickly transferred to the appropriate bank or end party. In addition, data can be shared with 3rd party vendors and other companies and partners within the network. Subsequent bank statements and reports can also be transmitted from the bank through an EPO platform to the various internal departments and systems where payment instructions are originating from.

Ultimately, the information stored on an EPO platform serves as the single source of truth for payments data across all corporate departments, subsidiaries, and geographies, and it prevents enterprises and their IT departments from having to manage a tangled mess of disparate back-office connections.

EPO solutions provide the perfect option to support ongoing enterprise growth and expansion

While the EPO orchestration strategy outlined above is very effective at breaking down geographic and entity-specific siloes, it is also the ideal platform for fostering a strategic, long-term approach to enterprise payment maturity.

Today, the technology landscape continues to evolve rapidly, as do the payment solutions and methods used by global enterprises. In the current era, this means that approximately once every decade, a company’s existing technology infrastructure will need to be overhauled. However, because various internal solutions are installed at different times and for different purposes, the upgrades and maintenance schedules for these solutions are rarely conducted in an organized and timely fashion. Sometimes, these upgrades are not completed at all. And as a result, it’s very easy for an “optimized” payment workflow and the underlying technology stack to start falling behind the curve.

This is why adopting an EPO orchestration layer is so essential for maintaining a constant state of consistency and control.

By connecting all of the various internal systems that comprise your global payments technology stack to an EPO platform, you effectively ensure that regardless of where an entity is located or what local systems are being used, the data and information stored on their platforms is never left isolated or unaccounted for. And as older or outdated enterprise payment solutions are eventually replaced by newer and more upgraded systems, connecting them to the EPO platform in a similar fashion will ensure ongoing cohesion and connectivity across your global networks, even as various technology overhauls and system migrations occur at specific entities or locations within the enterprise.

So, if you’re a treasury or finance professional working for an enterprise with significant process, system, and global complexity — complexity that is ultimately hindering your ability to operate efficiently — ask yourself whether a new approach to payments technology could be the answer.

And if that answer is yes, we invite you to consider TIS and our newly introduced Enterprise Payment Optimization (EPO) platform.

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.

Identifying Types of Fraud/Scams

26-08-2021 | treasuryXL | XE |

Knowledge is power. When it comes to avoiding scams, forewarned is forearmed. Here are a few common types of scams that criminals will use to try to steal your money or – more importantly – your identity.

1. Give Money to Get Money

If you ever receive an “official” notification that you’ve won a lottery or that someone wants to generously give you a large sum of money but first you need to send money to cover taxes, fees, clearances, or some other cost before collecting your prize, proceed with extreme caution!

The common thread with this scam, apart from the too-good-to-be-true offer, is that you must “act now” or respond immediately to the official sending the notice. This scam relies on you feeling pressured to not miss out on the deal or prize.

One of the most well-known versions of this type of scam is the Nigerian Prince (also known as the 419 Scam).

2. Phishing

Phishing is almost what it sounds like. Someone is fishing – and using bait – to obtain sensitive information to steal everything from the cash in your bank account to your identity.

Phishing scams replicate official-looking emails (or other communication types) from well-known and reputable companies. These fake emails include links or phone numbers encouraging you to change passwords or send personal documents and information (to update your account). The email will make some claim that there is an issue with your account (i.e. you need to supply documents to receive funds being remitted to you) and you need to click on the link provided to fix the problem. These links may take you to a look-alike site created by the criminals or contain malware (malicious software) which can give the criminals access to your computer (so don’t click!). Phone numbers may work the same way by directing you to a fake answering service.

There are a number of sub-species of the Phishing scam:

a) Spear Phishing

Spear Phishing is a little more sophisticated as it specifically targets you and relies on the trust you’ve built around a person, company, or brand. Most likely the communication will be personalized. Criminals target you from information they have found on sites like social media.

b) Clone Phishing

Clone Phishing differs in that it will copy a legitimate email that included an attachment or link. The attachment or link is replaced with a fraudulent version and the email is sent from a disguised address that appears to come from the original sender. The email may claim to be just a resend of the original or even an updated version.

c) Whaling

Whaling goes after the “big fish”. It targets senior executives or high-profile people within in a company. This type of fraud usually appears as a legitimate concern such as a legal request or subpoena, client issue, or corporate matter.

d) SMiShing

Cute name, not so cute fraud tactic using text or SMS. Potential victims receive an unsolicited text or SMS message with a link to a site that can contain malware or viruses. The urge to click is usually based on a “confirmation” of account activity and the risk of incurring additional charges or fees if the intended victim doesn’t take care of the problem immediately (by clicking the link).

3. Fear-Based (Service Cut Off/Jail Time)

You receive notification, usually through email or phone, that your account is in areas and you need to pay the balance immediately or have the utility service cut off. This type of fraud includes claims of unpaid taxes requiring immediate payment to avoid jail time. Criminals in this case are dependent on your fear of losing a necessity, like heat or water, or your personal freedom.

Conclusion

The ultimate goal of the criminal is to rob you. Criminals will try every sneaky tactic to get what they want and will play upon your fears, your generosity, or your trustfulness to get it.

Scammers attack when you’re least expecting it and often prey on the most well-intentioned people. Educate yourself on how to protect yourself and your loved ones from unexpected fraud. Here are several resources that provide helpful information:

Remember, no matter who is contacting you, NEVER give them any of your passwords, account numbers, or personal information without double-checking their identity first.

Be smart, be aware, and be safe!

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Maurits Houthoff, senior business development manager at XE.com, is always in for a cup of coffee, mail or call to provide you the detailed information.

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Helping Hand: Using Cashforce to Manage Growth Through M&A

24-08-2021 | treasuryXL | Cashforce

How one treasurer used Cashforce technology to improve forecasting and support growth.

When one treasurer saw that his team was getting too bogged down managing the company’s dozens of bank accounts across 25 entities, he sought out an automated cash management system, but he had a concern: the company is continually growing through mergers and acquisitions, and in the past, new accounts made everything muddy.

The process of integrating a new entity and any accounts it brings along can be cumbersome—and who knows if their ERP would even be compatible with the automated solution he chooses?
He said that Cashforce, a cash forecasting and working capital analytics solution that can work with multiple ERPs, was the answer. “Cashforce’s ability to take feeds from multiple ERP systems was big.”

New accounts, new problems.

Before turning to Cashforce, the treasurer had significant capital committed to grow the business through acquisitions. He only had two or three people managing this aspect, and he said the company’s TMS offered little assistance.

“Cash is our lifeline,” he said. “To me, the most important thing is knowing how much cash we have and where it is.
- “We’re not over-leveraged, but we’re leveraged,” he said, so finding a cash management solution that provides quick access to every detail was crucial.
But the treasurer said his company doesn’t expect accounts that come with newly acquired companies to work with its preexisting ERP system. Cashforce, which can take data feeds from new ERP systems, was the key.
“We needed a cash management solution that integrated with our current ERPs and future ERPs to be able to feed data into the tool,” he said.

Feel the force.

Because Cashforce can take those inputs, the treasurer said it could work. But would it actually save enough time, and free up cash through efficient management of working capital? The solution, he said, had four clear advantages that made cash forecasting “a lot more accurate” in just six months:

Ease of use, with data visualization tools that teams can use without having to dig into reams of numbers.
The ability to drill down into the data into transaction-level detail.
The ability to take these now automatically generated data-driven insights to management instead of spreadsheets.
The ability to view daily bank positions.

Feel the force.

Ease of use, with data visualization tools that teams can use without having to dig into reams of numbers.
The ability to drill down into the data into transaction-level detail.
The ability to take these now automatically generated data-driven insights to management instead of spreadsheets.
The ability to view daily bank positions.

Bonus: data literacy.

An added “unofficial” benefit of Cashforce that the treasurer added was change management—the opportunity to get a once data-hesitant team to embrace the possibilities offered by analytics.

Though he wasn’t intending on using Cashforce to manage credit and collections, through encouraging his team to dig into the data, “one of the biggest advantages is I got my C&C manager to give me a much more accurate forecast.

A Culture of Fraud Prevention: It’s Everyone’s Responsibility

23-08-2021 | treasuryXL | Kyriba |

It seems like every day there is a new fraud headline. As a result, companies are learning that preventing fraud needs to be a responsibility of all employees in the organisation. To prevent fraud, an organisation needs to focus on education through training, standardized controls, and IT policies on top of a strong technology solution.

The threat of fraud has grown dramatically in recent years. In fact, according to the 2021 AFP Fraud and Control Study, overall, 74% of companies have experienced fraud or attempted fraud. Your organisation needs to be prepared and Treasury activities need to support identifying and preventing fraud. Recently, I had a conversation with a Treasurer who said, “if it’s (fraud) not on your mind in Treasury, you’ve already lost”. He went on to talk about how much more difficult it is to manage fraud when you have a decentralized Treasury team.

Best in class fraud prevention is about having a strong overall ecosystem, culture and technology – the fabric of an organisation. Fraud prevention must be top of mind for everyone in the company. Specific training should be included in introductory orientation as well as ongoing training and annual awareness campaigns. Individuals need to be able to identify potential phishing and Business Email Compromise (BEC) campaigns to ensure they don’t become victims. It only takes one person to make a poor judgment call to allow access into a company’s system. It’s also important to consider cultural differences for offices in other parts of the world. Fraudsters are taking advantage of cultural norms. In some Asian countries it’s natural to defer to individuals with seniority. For example, receiving a message from the CFO to make a payment wouldn’t normally be questioned. Make sure that all individuals have a way to share, escalate and/or stop a transaction when there could be potential problems.

Standardised procedures are essential. With BEC, fraudsters assume that using the name and email of senior members of the management team, such as the CEO or CFO, will cause employees lower in the organisational hierarchy to do as instructed without question. To combat this, it is imperative that the procedures set up require strict adherence, and that senior management provides an environment where fewer senior members of the team are comfortable asking whether a payment is legitimate. If multiple ERP systems exist, ensure that consistent approval processes are in place across all systems. For smaller regional offices, set up procedures and approvals to ensure that separation of duties is in place and that you have visibility to the activities in remote offices. Some fraudsters like to target attacks on regional offices in hopes of bypassing some of the more stringent processes that are in place at headquarters.

Having an IT focus on fraud prevention and policies that support these efforts is also essential. IT should ensure that employees are password protected and that their passwords aren’t easily guessed. They should maintain strong firewalls and keep current on technology to identify potential hacker activity. In addition, it is helpful to randomly test employees with phishing emails to assist employees in recognizing fraudulent emails.

Finally, technology solutions to identify fraud are a critical component of fraud prevention. Solutions should include rules-based fraud detection that identifies multiple scenarios, for example situations where a vendor bank account number has changed. These transactions should be flagged and sent for validation. An individual should call the company using a phone number that is listed in the system of record. Or, the transaction should be sent for account verification allowing for confirmation that the bank account is owned by the organisation that is to be paid, and not some fraudulent entity. Account verification is a new tool that is being added to rules engines. It allows you to increase your confidence that the account is owned by the entity with which you have a relationship without having the time-consuming process of having to reach out to the entity directly to verify. The verification is quick and doesn’t slow down legitimate payments. Your fraud technology solution should also identify other fraud situations that you and a community of your peers have experienced or considered.

Machine learning to identify payment anomalies based on transaction history is also critical. It allows for patterns to be identified in the immense amounts of transactional data that your organisation has accumulated and then to match that in real-time to your specific transactions to identify potential fraud. This added layer of protection looks for behaviours that may not be identified by the human eye – timing of invoice receipt or change in the frequency of payment requests. The system continually adapts based on the information that it is tracking and provides suggestions when it identifies potentially fraudulent behavior.

Fraudsters continue to attack since they only need to find that one weak link on one day with a single person in your organisation. It’s up to you to make sure that the individuals in your company are prepared for the attack. Ensure that you have a training program that helps your employees identify potential fraud attempts. Define, monitor and enforce policies that support segregation of duties and consistent processes throughout the organisation. Confirm that your IT department is staying on top of technology that identifies and prevents hackers and supports best practices when establishing policies across the organisation. Last, but certainly not least, make sure that you are utilizing best-in-class technology to identify potentially fraudulent payments to stop those payments from going out your door. Some treasury solution providers use the terminology fraud detection tools to refer to having sanction screening or workflow tools in place while others notify you of a fraudulent item after the transaction is sent to the bank. A best-in-class technology solution combines workflow tools and approvals in addition to a robust rules engine and machine learning to identify potentially fraudulent transactions in real-time. Giving you an opportunity to stop any transaction before it leaves your organisation.

Preventing fraud is something that everyone in your organisation needs to commit to in order to prevent fraudsters from being successful.

#5 Getting Overwhelmed by Complicated Administration (Dutch Item)

19-08-2021 | XE | treasuryXL |

Companies that regularly need Foreign Exchange often fail to see the bigger picture more because of all the details of the daily Payments and other transactions. Perhaps are you so busy processing foreign currency that you don’t get around to a lake strategic view of the total Risk of your company. Or maybe those transactions take time equipment that could be spent more productively on other things. It may even be so
that manual data entry procedures are prone to human error that lead to unnecessary delays.

Dit is vaak een probleem voor groeiende MKB-bedrijven, waarvan de eigenaar of oprichter buitenlandse betalingen zorgvuldig wil blijven volgen, maar geen tijd meer heeft voor de toenemende administratieve last. Zij moeten verantwoordelijk blijven voor het autoriseren van betalingen, vooral van grote bedragen, maar hebben geen tijd voor de verdere verwerking.

Uw huidige valutaprovider zou u moeten kunnen helpen om dat probleem op te lossen. Zo zou uw provider een systeem moeten kunnen
maken dat sommige gebruikers beheerdersrechten geeft voor de verwerking, maar het autoriseren van betalingen voorbehoudt aan specifieke personen. Uw provider zou eenvoudige, veilige en betrouwbare verwerking moeten kunnen bieden. En uw provider zou u moeten kunnen helpen vertraagde betalingen te traceren.

Als u niet de beschikking hebt over dit soort diensten, kan het beheren van vreemde valuta al snel een kostbare, tijdrovende taak voor uw bedrijf worden. Daardoor wordt het nog moeilijker om uw activiteiten strategisch te benaderen om de risico’s te beheren, proactieve besluitvorming mogelijk te maken en vooruit te plannen. Vooral grotere organisaties kunnen kwetsbaar zijn voor deze fout.

Maar bedrijven die voor vreemde valuta nooit verder hebben gekeken dan hun huidige provider en nooit op zoek zijn gegaan naar een alternatieve partner, weten misschien niet eens dat er andere mogelijkheden zijn. Als u verstrikt raakt in de details van valutatransacties, praat dan met alternatieve providers over hoe zij u kunnen helpen effectiever te functioneren.

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Round Table “Payment Challenges in a Post-Covid World” | Toekomst Betalingsverkeer

18-8-2021 | François de Witte | treasuryXL |

On September 9, 2021, the event “Toekomst Betalingsverkeer” will take place in Amsterdam. This annual event on the Future of Payments has been the meeting place for 20 years.

With upcoming edition following topics will amongst others be covered:

The Fintech evolution of banking.
Platform strategies & developments big tech.
Customer experience strategies.
Open banking.
Instant payments.

Close to 30 experts will share their views on the various developments and challenges in the payment world.

Round Table Sessions

I will be hosting two round table sessions on “Payment Challenges in a Post-Covid World”.

The Covid19 crisis had a huge impact on the payment landscape. We have seen interesting developments such as:

A large growth of e-commerce transactions.
An increased use of contactless payments.
A Surge in marketplaces and the increased importance of the platform strategy.
The payment experience is more critical than ever.
The increased use of cryptocurrencies, stablecoins and Central bank digital currencies (CBDC).
The increasing Demand for Mobile Point of Sale.
Online payments increasing in importance, replacing partially card-based payments;

TOPICS

During the round table, we will make a deep dive on the following 3 topics:

Instant Payments – the new “normal” ?
Request to Pay: the bridge between customer convenience and reconciliation?
Digital currencies for a digital future ?

I will not tell more about this, but hope to meet you there.