Effective Finance & Treasury in Africa | Eurofinance

07-02-2023 | Eurofinance | treasuryXL | LinkedIn |

Join senior treasury peers on March 7th in London at EuroFinance’s 10th annual Effective Finance & Treasury in Africa. Understand changing developments and the unique opportunities and challenges of doing business in this dynamic region.

This year’s speaker line-up includes experienced treasurers – all active in African markets – including:

● Edward Collis, Treasurer, Save the Children
● Neiciriany Mata, Head of finance, Angola Cables
● Marta de Teresa, Group treasurer, Maxamcorp
● Chigbo Enenmo, Finance and treasury manager, Nigeria LNG
● Folake Fawibe, Integrated business service lead, Danone, Southern Africa
● Jan Beukes, Group treasurer, MultiChoice Group

They will discuss important topics including cash and FX, payments, liquidity and financing, digital transformation, share success stories and provide practical guidance on how to optimise your treasury operation for growth.

For the full agenda and to register, please visitt this link.

Quote discount code MKTG/TXL10 for an exclusive 10% discount for TreasuryXL readers.

If you have any questions, you can contact the EuroFinance team directly at [email protected].

 

Registration is open – find out more and register now.

 

 

Training PSD2 & Open banking: impact on the financial ecosystem and new challenges

31-01-2023 | François de Witte | treasuryXL | LinkedIn |

treasuryXL expert François de Witte will lead the upcoming advanced training on PSD2 & Open Banking, exploring its impact on finance and new challenges. Read below more

This training program prepares participants for 2 major challenges of the upcoming years in banking: PSD2 and Open Banking. This will have a major impact on the financial ecosystem and will create new challenges.

The goal of this training course is to:

  • become aware of the ways PSD2 & Open Banking affect banks and other players in Europe;
  • understand the impact of the technical requirements with a focus on strong customer authentication;
  • outline the risks and responsibilities of the involved parties within the new regulatory framework;
  • understand the impact of Open Banking APIs (Application Programming interfaces);
  • understand the impacts of the PSD2 & Open Banking the financial ecosystem;
  • evaluate the risk and opportunities created by PSD2 & Open Banking the banks and the new players;
  • determine an action plan for your company.

 

 


 

Francois de Witte

 

François de Witte

 

 

 

Traceability and consistency contribute to security

18-01-2023 | Cobase | treasuryXL | LinkedIn |

The importance of secure treasury functions cannot be underestimated. Fraud prevention – including sanctions checking – has long been one of the main drivers of change in corporate payments.

Source

Similarly, treasury teams that rely on a bank connectivity partner for all their bank connections need to be sure that they work in a secure and reliable way. This is especially important for bank administration, where access to various accounts might need to be changed quickly or revoked instantly.

In the final blog in this series we look at the benefits of maintaining a complete audit trail of payment activities and the advantages to be gained from having a consistent payment approval workflow across business units.

Benefits of maintaining a complete audit trail of payment activities

For the majority of companies the answer to the question ‘Do you have a complete audit trail on your payment activities’ would be no because they are (for example) relying on calculations presented in an Excel document where there are many opportunities for data to be amended or accessed without proper authorisation. Payment details are then manually re-keyed in ERP or bank systems. And to add, also counterparty details could be changed without sufficient oversight or control.

The purpose of an audit trail is to capture the end-to-end flow of a payment covering questions such as why it was originated, the person or persons who originated it, who it was approved by, and when it was executed.

In some cases this audit will be initiated by a regulator (in the case of financial institution clients), whereas for corporates the request may come from a variety of sources including:

  • The compliance or security team as a part of a wider review of IT systems.
  • As part of an investigation into a specific payment.
  • A treasurer who wants to see who in their organisation has payment approval rights.

Advantages of having a consistent payment approval workflow

Having access to an audit trail, a one-click overview of current user access rights, and approval mandates is a useful tool for any corporate looking to increase both the security and efficiency of its treasury operations and identify where steps could be removed from the process as well as to inform decisions around centralising or localising these functions.

Treasurers need to ask themselves if they have gaps in their payment approval workflows and/or local discrepancies and whether they have a central – in other words, at the push of a button – overview of payment approval rights across their organisation.

It is also important to ensure that the organisational design and policies are in place around approvals within the accounts payable and receivables teams. Approval processes that have deviated from the norm are potential signs of bank account fraud or false invoicing.

To prevent false invoicing, a limited number of users should have the ability to create new payees, settlement instructions, and cash transfers. Eliminating manual handling of payment data removes many opportunities for fraud.

Automating manual processes in invoice handling and payment processing also adds to the transparency, quality and speed of payments. Harmonised practices increase transparency and visibility, while uniform processes help to track cash outflows across the entire organisation and thus mitigate risk of both external and internal fraud.

The ultimate guide for achieving efficient and safe multibank cash visibility and payments

Treasury teams looking to optimise their cash management processes realise that making smart decisions requires tactical and strategic planning. However, there are a number of principles that can be applied by any business to increase the level of insight into how funds move into and out of their organisation.

That’s why we created ‘The ultimate guide for achieving efficient and safe multibank cash visibility and payments’. In this guide you’ll find questions that you can ask yourself to determine your current level of efficiency and spot the areas you might need to improve.

Who should “give a push”​ and work on APIs?

12-01-2023 | treasuryXL LinkedIn |

A new year, a new edition in which we discuss the latest treasuryXL poll results. It is encouraging that once again many treasurers participated in the vote. We examined the voting patterns of treasurers and gathered the perspectives of experts Jack Gielen and Konstantin Khorev on the topic of APIs in treasury.

Source


Who should “give a push”​ and work on APIs?

It is commonly understood that APIs are prevalent in today’s digital landscape. However, corporate treasurers can also reap benefits from API technology and its advantages. If you are unsure about the importance of APIs in Treasury or need more information, you should definitely watch the recording of the joint webinar together with Cobase on the future of APIs. It is encouraging that once again many treasurers participated in the vote. The current treasuryXL poll remains open and we encourage you to continue to have your voice heard! You can cast your vote on this link.

Question: Who should “give a push”​ and work on APIs?

First observation

That looks quite straightforward: partners should join forces. Do the treasuryXL experts agree, or what is their view on this?

View of treasuryXL experts

Jack Gielen (Cobase)

Jack voted for the option that partners should join forces.

Geen alternatieve tekst opgegeven voor deze afbeelding

 

“APIs and the benefits are clearly on the map but there is also an understanding that there is still work to be done before those benefits will really be realised”

It is good to see that regarding the results of this poll, the market agrees that the success of corporate APIs and OpenBanking requires cooperation and cannot be dictated by 1 party. This means Treasurers clearly understand the complexity of the playing field. At the moment, although there are many initiatives by individual parties, there is a need to create a good partnership where the whole eco-system works together

The main benefits that APIs could realise if banks and companies were to work together are:

  • Better integration of banking services into customers’ own internal systems,
  • Easier connection to new banks and expansion of banking services
  • Better and more real-time data that can be converted into actionable information

These benefits translate into being able to use the systems the treasurer has chosen more efficiently and better, more up-to-date insight into status, exposures and required actions.

Recently, Cobase set up the webinar “The Future of APIs” in collaboration with treasuryXL to discuss this topic. I was particularly impressed by the level of knowledge Treasurers have gained over the past year which was also reflected in the questions. APIs and the benefits are clearly on the map but there is also an understanding that there is still work to be done before those benefits will really be realised. Ultimately, the priority with the end customer, the treasurer, will determine how quickly other market players act.


Konstantin Khorev

Konstantin voted for the option that partners should join forces.

Geen alternatieve tekst opgegeven voor deze afbeelding

 

“By working together, we can achieve a more efficient and effective treasury management system.”

I agree with the majority view that the implementation of APIs in the treasury field should be a collaborative effort. Banks will play a key role in implementing these changes, but it is also crucial for corporates and TMS providers to set and specify the requirements. This ensures that the solutions being implemented align with the unique needs and goals of each individual corporate, and TMS providers can develop the tools and services necessary to support these needs. By working together, we can achieve a more efficient and effective treasury management system.

Recently, my latest article on this topic was published on treasuryXL. In it, I try to make it plain that APIs are a nice and easy solution, although they come with some limitations and challenges. At the same time, I believe that the future of bank connectivity lies in API technology. What do you think?

Building a platform for success

11-01-2023 | Cobase | treasuryXL | LinkedIn |

Banks provide solutions to connect and integrate corporate ERP systems, most of which are based upon batches of data being exchanged between the accounting platforms of the company and the bank. However, these are bank and country-specific and not a scalable solution fit for future growth or expansion.

Source

Also it is important to determine whether payment batches follow a consistent approval chain. Malicious activity is difficult to detect in a cumbersome and scattered ERP and bank environment so treasury teams need to have confidence that payment batches generated in the ERP system are automatically sent to the banks in the right format and in compliance with local security standards.

In the third blog in this series we explore the merits of connecting accounting systems and/or ERP systems to your bank(s) and why companies benefit from being able to execute payments from a single platform.

Merits of connecting accounting systems and/or ERP systems to your bank(s)

If the company connects its ERP system through a platform or a dedicated middleware layer, this creates a tight workflow to which consistent approvals can be applied, reducing the scope for unauthorised payments. Automatic information feeds also support the execution of sophisticated liquidity forecasting and management of foreign currency exposure.

An additional factor for corporates to consider is whether their provider will be able to move to open banking APIs once their bank(s) make them available and provide APIs to their ERP environment. Connectivity between corporate accounting software and bank portals generates a number of benefits for corporates, including the availability of balance and transaction information in real-time to enable more accurate and timely decision-making and further optimise cash and credit lines.

Multiple cash management banking relationships make managing payments and cash a cumbersome process that involves logging in and out of different bank portals and managing disparate authorisation schemes while trying to ensure that bank data and data in ERP or accounting systems are synchronised.

Most ERP systems allow for batch payments only and have no interface for individual payments, which means there is no screen where individual payments can be entered manually.

Why companies benefit from being able to execute payments from a single platform.

When treasurers are unable to send single payments out of their ERP system directly to their bank, they are required to log into individual portals to perform these payments. This can become a frustrating process when they have to look for security tokens or recall passwords that are rarely used because of the sporadic nature of the payment.

It might be tempting to assume that this is not a major issue given that these payments are not made regularly and are often of low value. However, there will be situations where high value one-off payments have to be made. Regardless of the value of the payment, it is much easier to execute it from a single platform because the user experience is the same across all banks.

In the final blog in this series we will look at the benefits of maintaining a complete audit trail of payment activities and the advantages to be gained from having a consistent payment approval workflow across business units.

The ultimate guide for achieving efficient and safe multibank cash visibility and payments

Treasury teams looking to optimise their cash management processes realise that making smart decisions requires tactical and strategic planning. However, there are a number of principles that can be applied by any business to increase the level of insight into how funds move into and out of their organisation.

That’s why we created ‘The ultimate guide for achieving efficient and safe multibank cash visibility and payments’. In this guide you’ll find questions that you can ask yourself to determine your current level of efficiency and spot the areas you might need to improve.

Making the most of automation

04-01-2023 | Cobase | treasuryXL | LinkedIn |

We have previously identified automating critical workflows as one of the key components of intelligent treasury management.

Source

There are many aspects of the treasury function where automation frees up time for the treasurer to focus on higher value tasks. Skills that are expected to be less important in the future – such as reporting and risk projection – are already being automated.

In the second blog in this series we explore the benefits of automatically processing bank statements and removing manual downloads of balance information from individual bank portals and manual uploads of payment files to every bank.

Benefits of automatically processing bank statements

The obvious reason for moving to automated processing of bank statements is that it is a much more accurate process that reduces the scope for error. Much higher volumes of data can be processed compared to manual processing and it provides for seamless integration into back office systems such as financial accounting or ERP systems (of which more in our next blog).

Automatic bank statement processing enables data to be structured in a way that facilitates improved cash flow analysis. Standardised information enables this data to be consumed easily by back office systems to achieve improved reconciliation.
The major benefit of this integration is increased efficiency – all the benefits of ‘automation by default’ are applicable here.

Any treasurer seeking to run cash flow analysis needs to make sure that all payments (both incoming and outgoing) are processed uniformly so they can be absorbed by a single system without manual intervention or modification.
In many organisations, managing cash positions over multiple banks and accounts remains a manual process, increasing the possibility of human error.

One of the main reasons for this continued use of manual processes is that harmonisation is not easy to achieve. Implementation is complex because every bank uses a slightly different means of connectivity and different payment formats, making it a challenging landscape for individual corporate treasurers to navigate.

Removing manual downloads of balance information from individual bank portals and manual uploads of payment files to every bank.

In addition, treasurers face more pressing concerns so addressing this complexity is rarely a priority. The perception is that if the existing manual process works there is no imperative to fix it, a view that has been reinforced over the last few years as corporates grapple with many other pressing issues.

Ironically, it is exactly events such as the global pandemic, the war in Ukraine, rising inflation, and the disruption of global supply chains that have highlighted the weaknesses of manual treasury processes.

Eliminating manual handling of payment data reduces opportunities for fraud and adds to the transparency, quality and speed of payments. Digitisation also provides companies with better visibility of their financial operations and improved governance.

In the third blog in this series we will look at the merits of connecting accounting systems and/or ERP systems to your bank(s) and why companies benefit from being able to execute payments from a single platform.

The ultimate guide for achieving efficient and safe multibank cash visibility and payments

Treasury teams looking to optimise their cash management processes realise that making smart decisions requires tactical and strategic planning. However, there are a number of principles that can be applied by any business to increase the level of insight into how funds move into and out of their organisation.

That’s why we created ‘The ultimate guide for achieving efficient and safe multibank cash visibility and payments’. In this guide you’ll find questions that you can ask yourself to determine your current level of efficiency and spot the areas you might need to improve.

Recording | The Future of APIs webinar 13 December 2022 | treasuryXL & Cobase

29-12-2022 | Cobase | treasuryXL | LinkedIn |

Are you unsure about the discussion surrounding APIs and Treasury, or do you want to learn more? If so, you should definitely watch the recording of the joint webinar together with Cobase on the future of APIs to get more information.

This webinar is not just for tech experts, but also for treasurers interested in treasury technology who are looking to improve their infrastructure. During the webinar, you will learn about APIs, who owns them, and how to be more successful with them.

Making cash management processes work for business

28-12-2022 | Cobase | treasuryXL | LinkedIn |

Cash management strategies have come under intense scrutiny of late as a result of various geopolitical and economic factors. Industry surveys point to corporates becoming more risk-averse and seeking to increase their cash balances as the specter of recession looms large.

Source

In the first in a series of blogs, we look at how increased efficiency can enable treasury teams to achieve full visibility on cash at accounts across business locations and banks and the need to manage complexity around different payment formats.

Treasury dashboards

There are various solutions that help corporates gain visibility into their overall cash positions and run an efficient payments operation. For example, treasury dashboards are a useful tool for demonstrating actual fluctuations in cash positions, which supports real-time account visibility.

A treasury dashboard is a management tool that allows assessment of the financial organisation and position of a company. It is made up of various indicators, charts and instruments that combine to create a holistic view of historic financial performance and future projections.

Treasurers can use these dashboards to produce user-definable reports on financial transaction data such as receivables and payables, cash on hand, and days outstanding, as well as increasing the efficiency of their hedging strategies and maximising their impact on corporate strategy.

Despite corporate awareness of the benefits of such technology, there are still companies with operations across multiple jurisdictions that rely on Excel spreadsheets, locally filled and send around, and therefore lack timely and centralised visibility of the cash sitting in their various subsidiary businesses.

Harmonised practices also increase visibility. Uniform processes help treasurers track cash outflows and balances across the entire organisation, although it is important for companies to determine exactly what information should be visible and to whom.

Managing complexity around different payment formats

While treasurers may choose to accommodate for the many different payment formats as required by the banks internally, that is certainly not a core activity of any treasury team.

The choices they have are:

  • Hire more specialised consultants;
  • Rely on internal IT teams (which is not ideal because local IT teams are not specialists in payment technology and formats accordingly); or
  • Find a partner/platform that takes care of – and specialises in – this activity.

By 2025 the high value payment systems of all major reserve currencies is expected to have moved to ISO 20022. ISO 20022 is a rich, structured and extensible messaging standard that is increasingly becoming the de facto standard for exchange of payments and reporting in high value, instant and other domestic payment schemes.

As a result, banks and the SWIFT community have decided that all financial institution to financial institution payments need to move to the standard. Adoption of ISO 20022 will begin on 20 March 2023.

However, although the richer data facilitated by ISO 20022 improves cross-checking, increases transparency, and reduces false positives, many corporates are holding onto older data formats rather than adopting newer, enriched versions that use XML. However, specialised support to enable the transformation to these new formats is readily available in the market.

In the second blog in this series we will look at the benefits of automatically processing bank statements and removing manual downloads of balance information from individual bank portals and manual uploads of payment files to every bank.

 

The ultimate guide for achieving efficient and safe multibank cash visibility and payments

Treasury teams looking to optimise their cash management processes realise that making smart decisions requires tactical and strategic planning. However, there are a number of principles that can be applied by any business to increase the level of insight into how funds move into and out of their organisation.

That’s why we created ‘The ultimate guide for achieving efficient and safe multibank cash visibility and payments’. In this guide you’ll find questions that you can ask yourself to determine your current level of efficiency and spot the areas you might need to improve.

Is the EU market ready for instant payments?

22-12-2022 | François de Witte | treasuryXL | LinkedIn | On December 1, 2022, I had the opportunity to attend in Brussels a panel discussion on “Is the EU market ready for instant payments?”. The event was organized by CEPS (1) and ECRI (2), and featured several prominent speakers.

The ultimate guide for achieving efficient and safe multibank cash visibility and payments

19-12-2022 | Cobase | treasuryXL | LinkedIn |

To optimise cash management processes you need to apply a number of key principles to increase the level of insight into how cash moves into and out of your organisation.

Source

The ultimate guide for achieving efficient and safe multibank cash visibility and payments

We have listed these key principles in ‘The ultimate guide for achieving efficient and safe multibank cash visibility and payments’. In this practical guide we have divided the principles into four categories and within each category you’ll find questions that you can ask yourself to determine your current level of efficiency and spot the areas you need to improve.

All the questions are related to the following topics:

  • Efficiency
  • Automation
  • ERP connectivity
  • Risk & security

Reading and pondering the questions will form a starting point for conversations that lead to meaningful change and improvement.

Download ‘The ultimate guide for achieving efficient and safe multibank cash visibility and payments’ and find out how your cash flow (management) processes can be optimized.