All above board

01-09-2022 | Cobase | treasuryXL | LinkedIn |

In this Cobase blog, it is discussed how standardizing practices improve transparency and visibility, why automating manual invoice handling and payment processing procedures improves the speed, quality, and transparency of payments, and how corporates can enhance sanctions checking without degrading user experience.

Before sending a payment to a bank, a check on beneficiary account changes compared to previous payments made to the same beneficiary/vendor can point to invoice fraud. Checking changes in amounts compared to a median amount of past payments – and payment frequency – can also be beneficial.

Internal fraud is usually either committed once with a high value, or regularly for smaller volumes. If treasurers know the usual process they can determine if something is out of the ordinary.

Malicious activity is difficult to detect in a cumbersome and scattered ERP and bank environment. Therefore, harmonised practices increase transparency and visibility, while uniform processes help to track cash outflows.

Eliminating manual handling of payment data removes many opportunities for fraud and also adds to the transparency, quality and speed of payments.

To prevent false invoicing, a limited number of users should have the ability to create new payees, settlement instructions, and cash transfers.

The treasurers who are at the highest risk from fraudulent activity are those with decentralised operating structures, higher transaction volumes, and fragmented/outdated technologies.

Over the last few years, corporates that have accelerated their move to the cloud have benefitted from the massive investment cloud providers have made to secure their platforms. Having systems and processes running on the cloud allows additional security measures to be taken that are very difficult to implement or are not available for deployment on site.

Corporates should establish a social media use policy to ensure fraudsters are not made aware when treasury staff are out of the office. Employees should not use their company email address to register on any social media website for personal use and any social media posting by an employee should be consistent with company policies and reviewed through a central function.

If you rely on a bank connectivity partner for all your bank connections you also need to be sure that they work in a secure and reliable way.

Sanctions have become a high profile topic following the Russian invasion of Ukraine and companies need to embrace the regulatory changes put in place to protect against international money laundering and sanction breaking.

One important tool which will assist with sanctions checking is the introduction of the ISO 20022 file format for payment messages. The richer data facilitated by the new file format will improve cross-checking, increase transparency, and reduce false positives.

Treasurers should put in place a system of fraud detection based on multiple lines of defence including automatic sanction screening as well as black-list verification. Solely relying on banks’ sanction screening is not necessarily sufficient.

Corporates also need to consider that while analysis of both the remitter and beneficiary provides a more detailed basis for screening this may slow the transaction process down, negatively impacting the user experience. It is therefore vital to use tools that flag misconduct or other issues while minimising operational impacts.

In the final blog in this series we will look at how digital transformation impacts skills requirements, the benefits to treasury in terms of becoming more strategically important, how APIs are enabling more accurate and timely decision-making, and key issues around future connectivity.

The 7 habits of highly effective treasurers

Why are some treasury teams more adept at managing the financial challenges faced by their enterprises than others? We decided to identify some of the factors that contribute to intelligent treasury management and operational excellence and created an e-book which we would like to share with you. If you follow the habits outlined in this e-book, you will be well on the way to better cash flow and working capital management.

 

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Making the right connections

18-08-2022 | Cobase | treasuryXL | LinkedIn |

Since the outbreak of the coronavirus pandemic, and more recently the geopolitical disruptions,  treasury teams have been operating in a uniquely demanding environment that has stretched resources and ingenuity to the limit. Never have treasurers had to cope with so many different factors at the same time.

The challenge is exacerbated by the fact that corporates are often composed of multiple subsidiaries working in a number of different currencies with a variety of banks with which they will typically hold numerous accounts.

Multiple cash management banking relationships make managing payments and cash visibility 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 is synchronised.

In some organisations, managing cash positions over multiple banks and accounts remains a manual process, increasing the possibility of human error. When looking to execute sophisticated liquidity forecasting and/or manage foreign currency exposure, this process may become significantly more difficult and risky.

At the heart of these challenges lies the current state of connectivity between banks and ERP/accounting systems. The available integrations can be cumbersome, resulting in ongoing IT projects.

As a result there is scope for significant improvement in this area, which can be achieved through use of specific solutions centred on connectivity.

Optimally managing payments and cash requires seamless, robust and near real-time connectivity between banks and financial systems and the execution of all payment and cash management tasks in the company’s administrative environment or another single user interface dedicated to this task.

Companies who do all their business with a single bank should be able to access an efficient interface and connectivity to their back office functions via a single bank wholesale solution (whether e.g. host-to-host, API or SWIFT).

However, for corporates that have significant business with multiple banks a single bank will not be able to provide a robust solution. In this scenario, corporates are faced with negotiating a vast amount of workarounds, dedicated applications, and interfaces to perform cash management.

It is not hard to envisage the high degree of inefficiency and risk introduced to the process by this way of working. These drawbacks have been highlighted in various research reports where corporate clients are asked about the biggest challenges they faced when integrating with a bank.

Challenges around bank connectivity demonstrate that this is an issue to be taken seriously. This is another area where automation, or working with a dedicated specialised partner, frees up time for the treasurer to focus on the other many strategic challenges at hand.

In the next blog in this series we will look at how harmonised practices increase transparency and visibility, why automating manual processes in invoice handling and payment processing adds to the transparency, quality and speed of payments, and offer guidance to corporates looking to improve sanctions checking without negatively impacting the user experience.

The 7 habits of highly effective treasurers

Why are some treasury teams more adept at managing the financial challenges faced by their enterprises than others? We decided to identify some of the factors that contribute to intelligent treasury management and operational excellence and created an e-book which we would like to share with you. If you follow the habits outlined in this e-book, you will be well on the way to better cash flow and working capital management.

 

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The value of making timely use of data

04-08-2022 | Cobase | treasuryXL | LinkedIn |

Since the start of the pandemic, the unprecedented financial stresses companies have underlined the potential consequences of underestimating risks and the value of building multiple business scenarios and corresponding options.

In the first in a series of blogs, we outline best practice for reviewing key financial data and look at the value of treasury dashboards and why cash forecasting is being undertaken more regularly, as well as exploring trends in payments.

The phrase ‘time is money’ is highly applicable in treasury environments where there are significant fluctuations in working capital availability. Companies that fall into this category benefit from at least daily reviews of key financial data. In companies where capital is constrained, reviewing existing credit facilities on a weekly basis is a sensible approach.

The pace of economic change at national and global level also demands more regular cash forecasting. With market conditions changing regularly, treasurers need to take a shorter-term view and implement monthly or even weekly forecasts.

This is backed up by research, showing that treasurers have increased their focus on cash forecasting in the last few years and intend to commit additional resources to this area, including investing in tools to generate better information about payments, receivables and forecasting, and technology to integrate cash flow forecasting into day-to-day banking flows.

Visual representation of key data is useful for helping senior management understand corporate cash positions. Treasury dashboards that present historic, current and projected financial information via charts and graphs allow for better decision-making.

They also enable the treasurer to produce user-definable reports on financial transaction data such as receivables and payables, cash on hand, currency exposures and days outstanding. These can be used to inform hedging strategies as well as enabling treasury teams to proactively report on their activities and play a more influential role in their organisation.

Reducing bank account complexity is another key treasury objective, which can be achieved through the use of virtual accounts that support automated receivables reconciliation processes and higher invoice matching rates while lowering banking costs.

One of the key cash flow and liquidity levers available to businesses is delayed payments. Every company wants to receive monies owed on time, but very few have never made a late payment to a supplier – particularly larger organisations with greater bargaining power.

Flexible payment terms are a key mechanism to manage and make the best use of cash flow, but this strategy may not be an option for small businesses. In this context, real-time or instant payments could be the answer, allowing businesses to hold on to cash for longer while paying suppliers and staff or reimbursing customers on time.

In the next blog in this series, we will look at how cash positions can be optimised through the use of specific solutions centred on connectivity and explain the pros and cons of connecting back office functions via SWIFT and how automation, frees up time for the treasurer to focus on higher value tasks.

 

The 7 habits of highly effective treasurers

Why are some treasury teams more adept at managing the financial challenges faced by their enterprises than others? We decided to identify some of the factors that contribute to intelligent treasury management and operational excellence and created an e-book which we would like to share with you. If you follow the habits outlined in this e-book, you will be well on the way to better cash flow and working capital management.

 

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The 7 habits of highly effective treasurers

28-07-2022 | Cobase | treasuryXL | LinkedIn |

Why are some treasury teams more adept at managing the financial challenges faced by their enterprises than others? Cobase decided to identify some of the factors that contribute to intelligent treasury management and operational excellence and summarized it all in an e-book.

To this end, Cobase analysed the market and interviewed and observed our clients and the work we do for them.

Having considered the results of this analysis we came to the conclusion that while there are many factors that impact the ability of treasurers to do their job effectively, there are seven key habits that are continuously practiced by successful treasurers.

Download this e-book now and you will be well on the way to better cash flow and working capital management.

Balancing short and long term needs

12-05-2022 | Cobase | treasuryXL | LinkedIn |

 

In the final blog in this series we look at how to identify the right bank connectivity partner for your company to maximise the benefits of open banking.

As discussed previously, current bank connectivity solutions make life easier for corporate treasury and new developments have the potential to deliver major improvements. However, existing solutions are still far from optimal and even new technology will not address every issue.

Therefore, corporates should focus on the business benefits rather than on merely technological aspects when selecting a bank connectivity partner.

A useful first step in this process is to develop a deep understanding of the business case and build management support. Factors to take into account here include the benefits of improved cash visibility; risk management benefits; the opportunity to enhance operational efficiency; and potential security improvements.

Once these factors have been established it may be useful to make an inventory of the project requirements such as:

  • Which banks and jurisdictions need to be accessed?
  • What is the relationship with other services – ERP connectivity, payment hubs, treasury services?
  • How much flexibility is required in light of expected changes in the banking landscape?
  • What do you need to do to benefit from open banking in the future?

Weighing up the value of meeting current needs against the ability to address future requirements is a challenging process. It is important to understand that switching to a new bank connectivity solution can be very disruptive, so there is obvious value in selecting a partner that will be a good fit beyond the short term.

This means identifying a provider that will facilitate migration to future developments without requiring significant change at the customer end.

When selecting a bank connectivity partner you should assess the following aspects of potential service providers:

  • Security: If you rely on a provider for all your bank connections you need to be certain that they behave with integrity and in a secure and reliable way. Can the provider evidence this?
  • Functionality: Does the provider cover the functionality and banks you need to realise your value determination? Depending on your needs this may go beyond payments and reporting and include services such as FX and forecasting.
  • Connectivity: Does the provider deliver the ERP and bank connectivity you need today?
  • Future-proofing: Will the provider be able to move to open banking APIs once the banks make them available for corporates as well as provide APIs to your ERP environment?

This final point is vital – you do not want to select a provider only to encounter implementation issues once new opportunities become available.

To assess your provider’s ability to facilitate future developments, check their current ability to handle external APIs and that they have the right licences and capabilities to connect via APIs to your systems once you are ready.

A reality check on Open Banking

To know more about the benefits of new developments in bank connectivity for treasury and cash management you can download our white paper. It offers insights into how corporate treasurers and cash managers can avoid pitfalls.

Cashing in on optimisation

03-05-2022 | Cobase | treasuryXL | LinkedIn |

 

Careful planning significantly boosts the chances of a cash management optimisation project being implemented successfully. Formulating a comprehensive strategy is the first – and perhaps most important – step a treasury team should take to ensure that a cash management optimisation project delivers the maximum benefit to the organisation.

In this context, there are a number of important considerations that should be part of any project that aims to optimise cash management by using new bank connectivity solutions.

1. Determine value of proposed activity

First and foremost, the treasury team needs to determine the actual value of the proposed activity to the company. This cash management value statement should be supported by management.

Whether the value lies in reduced capital costs, mitigated risks, more efficient payment processes, a less complicated IT landscape or any other area, companies that are unable to articulate the bottom-line value of a project should be very hesitant about embarking on it.

Once the real business value has been identified, the company needs to consider at which managerial or hierarchical level in the overall company structure this value improvement can best be managed. In other words, what is going to be the cash management operating model?

This question can only be answered by identifying

  • What needs to be taken care of centrally
  • What can be done at the operating company level
  • What information should be visible what operational activities need to be executed and where

These and other issues require careful consideration and a robust decision-making process.

From there, the ideal banking portfolio can be derived and the company can determine the banking features and functionality it requires, why these features and functions are necessary, and where they are needed.

This assessment should lead to a minimally required collection of banks and accounts.

Only after this stage has been completed should the company start thinking about actual connectivity solutions and consider questions such as:

  • In which system are we going to manage our cash and execute payments?
  • Do we also need more treasury-oriented functions like liquidity forecasting or managing our currency risks?
  • If no system is in place yet for the management of payments or the treasury functions should we consider sourcing one service that provides these together with the bank connectivity?
  • Which dashboards and user interfaces do we need?
  • Which APIs and/or other interfaces do we need to install?

2. Undertake the project internally or work with partner

The next question is whether the company should undertake the project internally.

This is feasible in scenarios where a corporate possesses the required internal skill sets and competencies and has a simple overall banking and company structure. However, if the business has a more complex banking landscape and/or company structure, it is advisable to work with a specialised partner.

3. How to optimise benefits of Open Banking in future

Finally, the company should ask how it will be able to optimise the benefits of Open Banking in the future. Corporate treasurers need to recognise that they may only execute such a project once or twice in a lifetime, whereas external partners for whom this is a core business will have extensive experience and insights. In that case, it is essential to choose a partner you are confident will be able to service your future Open banking needs without requiring a difficult migration for you.

In the final blog in this series, we will offer guidance on how to identify the right bank connectivity partner for your company.

A reality check on Open Banking

To know more about the benefits of new developments in bank connectivity for treasury and cash management you can download our white paper. It offers insights into how corporate treasurers and cash managers can avoid pitfalls.

Making the most of Open Banking for corporates

20-04-2022 | Cobase | treasuryXL | LinkedIn |

 

Open Banking has come a long way in just a few years. Many banks around the world now offer APIs for account reporting or payment initiation, and several banks also offer other products and services via APIs.

So far, most banks have invested in APIs for consumer banking because they believe they can achieve a competitive advantage, or because they must comply with regulations such as PSD2.

When we look at use cases for corporate banking, the maturity level of APIs offered by banks is still rather low and it is expected that most banks will take a few years to get to the minimum level required for corporate customers.

Corporates typically want to connect their accounting software, ERP system or other software with their banks and using APIs for this can bring a variety of benefits for corporates. But these customers have different needs to consumers and therefore have some specific requirements.

Benefits include:

  • Availability of balance and transaction information in real-time to enable more accurate and timely decision-making
  • Payment execution in real-time, enabling more optimized cash management
  • Fast connectivity to new banks, especially for corporates who work via partners that already have implemented connectivity with specific banks via their APIs

 

However, while banks may be keen to encourage corporates to use APIs they are not a panacea for all bank connectivity challenges.

For example, current APIs often require the use of a bank-specific hardware token or mobile app, which is prohibitive for those clients that wish to work with a number of banking partners. Additionally, APIs delivered by banks often assume that a human is initiating the session whereas corporates may be looking for an automated connection from their systems.

There is also limited standardisation, which means that integrating and maintaining these APIs may require a degree of specialisation that would not be available to most corporates.

When a corporate uses a bank connectivity provider, ERP or TMS provider or other provider that has already integrated the bank’s API it is relatively easy to connect with the bank, especially compared to traditional interfaces such as SFTP or SWIFT.

 

On the other hand, if the corporate has to integrate the API itself, it will become clear that the technical aspect of that process can be rather time consuming because each bank offers its own API and there is no industry standard yet.

So making the most of Open Banking will involve answering questions such as:

  • Which products or services do we need from our banks?
  • Which APIs and/or other interfaces do we need from our banks for those products/services?
  • Can my banks offer the required products or services via APIs?
  • Can these APIs be used for corporate banking processes, meaning can I connect my corporate systems directly and schedule automated interfacing with my banks?
  • Do we integrate the APIs ourselves or will we need a solution partner to do that?

When it comes to future connectivity, corporates also need to consider whether their provider will be able to move to Open Banking APIs once banks make them available and is able to provide APIs to the corporate’s ERP environment.

It would be unwise to select a provider only to encounter implementation issues as soon as these new opportunities become available. Determining whether providers can facilitate such a move involves checking on their ability to handle external APIs (from banks, for instance) and whether they have the right licences and capabilities to connect via APIs to the corporate’s systems once they are ready.

We will explore issues relating to cash management optimisation projects and identifying the right bank connectivity partner for your company in the remaining blogs in this series.

 

A reality check on Open Banking

To know more about the benefits of new developments in bank connectivity for treasury and cash management you can download our white paper. It offers insights into how corporate treasurers and cash managers can avoid pitfalls.

Cobase bank connector for NetSuite

31-03-2022 | Cobase | treasuryXL | LinkedIn |

 

The Cobase Bank Connector app adds to NetSuite an interface with banks. Therefore, employees are no longer forced to perform manual banking activities outside NetSuite and several electronic banking portals accordingly, which may lead to potential errors and security issues. No longer a tedious and time-consuming process for your colleagues. The Cobase Bank Connector automatically downloads bank statements from your banks and uploads them into NetSuite, ready to be picked up for reconciliation. Payments and direct debit (batches) are automatically sent in a secure way to the banks.

Stay tuned as Cobase expects to come up with a similar application for other Cloud ERPs soon!

Out-of-the-box bank connectivity for NetSuite, with over 15,000 banks integrated via the Cobase platform! The solution removes the manual processes to upload payment files and reporting statements. With the Bank Connector SuiteApp for NetSuite, the Cobase platform is fully integrated with your NetSuite ERP system. You can automatically transfer your payment and direct debit (batches) in a secure way to Cobase and with the flexible approval flow, they are transferred to all your banks. Bank statements are automatically downloaded from your banks and delivered in NetSuite, ready to be picked up for reconciliation. Simple!

Cobase Bank Connector – Easy and seamless banking integration for NetSuite

Cobase bank connector for NetSuite has been developed specifically to:

  • Reduce the operational inefficiency of managing multiple bank accounts and payment providers manually.
  • Remove the IT complexity from your organization.
  • Eliminate the security risks of critical information being accessed, amended, or intercepted externally, and invisibly, to your core business systems and processes.
  • Easy automated bi-directional integration between NetSuite, Cobase and all your banks for payment files and reporting statements

Cobase offers off-the-shelf direct connections in the most optimal way to most major global banks. But we also implement on-demand bank connections to all requested banks. We can support this for all required bank protocols, bank security, bank formats and all required payment products in more than 100 countries already

Besides delivering the aggregation platform with portal and the NetSuite bank connector app we also take care of the implementation effort towards the banks and Payment service providers.

Next to delivery of bank connectivity, there is more! Cobase can also offer additional services on their platform like:

  • Payment- and cash management– HUB functionality with centralized user management module
    • Manual initiation of single payments, batches and direct debits
    • Modify payment and batches
  • Easy connection with the payments and reporting flows of PSD2
  • FX dealing and hedging, with an easy hedge tool to manage your risks.
  • Liquidity forecast module, to analyse your balance and cash position.
  • Robo-assistant to monitor your balance positions.

All modular-based, meaning you only pay for what you use!

Simple!

 

Key Benefits

NetSuite integrated solution: Cobase bank connector for NetSuite is an easy to install built for NetSuite solution to connect to the Cobase platform. It can be used for both payment file upload and bank statement download to your banks.

Eliminates manual and inefficient processes: Cobase Bank Connector SuiteApp for NetSuite automatically transfers your payment files via Cobase platform to your banks and downloads the bank statements back in NetSuite ready to be picked up by your reconciliation tool.

Be compliant with your risk policies: Eliminating the touchpoints where a payment (batch) can be changed reduce your operational risks.

Integration to all possible banks and PSP’s: Connection via the Cobase multibank platform to all banks in a centralized way

Supported by a professional implementation team: Your bank connectivity setup is guided by a professional team that communicates with you and your banks to set up the connections in the best and fastest way.

Easily extendible with additional cash management and treasury modules: integrate with a real (mini) Treasury Management System

Summary

Cobase Bank Connector for NetSuite is a ‘Built for NetSuite’ solution which helps organizations eliminate inefficient and risky manual processes to:

  • upload payment files to your banks
  • download reports and statements from all your banks

Features of Cobase Bank Connector

Seamless Bank Integration

  • Cobase manages the integrations from the platform to most major national and international banks and payment service providers (PSP’s) as standard
  • All kinds of bank protocols and interfaces supported (EBICS, SWIFT & H2H (PSD2) API Integrations)

Simple, Secure & Controlled

  • Manage permissions and access at the user or role level
  • Full audit trail of all actions including time, date and user stamp
  • Multi-factor authentication to log in to the Cobase portal

Single Point of Access to all Accounts

  • No need to log in and out of individual electronic banking portals

Extendible with Additional Cash Management and Treasury Capabilities

  • Payment and cash management with centralized user management module
  • Easy connection with the payments and reporting flows of PSD2
  • FX dealing and hedging, with an easy hedge tool to manage your risks.
  • Liquidity forecast module, to analyze your balance and cash position
  • Robo-assistant to monitor your balance positions

 

How companies can improve their multibank cash management

07-02-2022 | Cobase | treasuryXL | LinkedIn |

 

The complexity of corporate structures and the disparate relationships that develop over the lifetime of an organisation mean managing bank interactions has become a complex task.

Multiple banking relationships

Businesses can grow through mergers and acquisitions. These enlarged organisations often comprise multiple subsidiaries working in several different currencies with a variety of banks with which they will typically hold numerous accounts. Making smart cash management decisions requires tactical and strategic decision-making, which can often be overshadowed by operational demands.  Corporates with multiple banking relationships will find 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 is synchronised.

In some organisations, managing cash positions over multiple banks and accounts remains a manual process, increasing the possibility of human error. When looking to execute sophisticated liquidity forecasting and/or manage foreign currency exposure, this process may become significantly more difficult and risky. At the heart of these challenges lies the current state of connectivity between ERP/accounting systems and banks. The available integrations can be cumbersome, resulting in lengthy IT projects.

Room for improvement

As a result there is scope for significant improvement in this area, which can be achieved through the use of specific solutions centered on connectivity.  Optimally managing payments and cash requires seamless, robust and real-time connectivity between banks and financial systems and the execution of all payment and cash management tasks in the company’s administrative environment or another single user interface dedicated to this task. Solutions that can help corporates gain visibility into their overall cash positions and run an efficient payments operation across the whole company do exist. Banks do provide solutions to let companies connect their ERP or accounting systems to their bank accounts. Companies who do all their business with a single bank should be able to access a portal and get connectivity to their back-office functions in a rather efficient way.

Efficient bank connectivity

However, for corporates that have significant business with multiple banks, the situation is more complex. A single bank will not be able to provide a robust solution to reach all other banks. Most certainly not with all sorts of different payment formats and products, bulk payments and local reporting standards have to be used. In this scenario, corporates are faced with a vast amount of workarounds, dedicated applications, and interfaces to perform cash management across their banks.  It is not hard to envisage the high degree of inefficiency and risk introduced to the process by this way of working. These drawbacks have been highlighted in various research reports where corporate clients are asked about the biggest challenges they faced when integrating with a bank.

Efficient bank connectivity is the first step towards optimized multibank cash management. Once this foundation is in place it can be combined with applications that can efficiently manage the bank accounts, and the overall solution can be further optimized to perfection.

 

A reality check on Open Banking

To know more about the benefits of new developments in bank connectivity for treasury and cash management you can download our white paper. It offers insights into how corporate treasurers and cash managers can avoid pitfalls.

A reality check on Open Banking and other new bank connectivity solutions

17-01-2022 | Cobase | treasuryXL | LinkedIn |

New developments in bank connectivity will enable major improvements for companies working with multiple banks. There are however conditions to successfully implement new bank connectivity solutions.

Reading the Cobase white paper: ‘New developments in bank connectivity – benefits for treasury and cash management’ will prepare you for the future.

The key messages of this white paper:

  • Working with multiple banks, treasury and cash management is far from an easy task
  • Current bank connectivity solutions make life easier but are still far from optimal
  • Real-life practical examples do prove the business value of improved bank connectivity
  • To avoid pitfalls, corporate treasurers and cash managers should carefully strategize before deploying new bank connectivity solutions
  • In selecting a bank connectivity partner, one must focus on the business benefits rather than on merely technological aspects

 

Make sure you’ll be able to make the right decision and download the free white paper.