Enterprise Payment Optimization (EPO) is the key to improving information availability, cash visibility and liquidity management

11-06-2021 | TIS |

Data Silos restrict the flow of information

One of the challenges for global enterprises, is that many areas or departments have become data silos, full of key information that is truncated and not being shared. These data “pockets” reduce information visibility and prevent optimization of processes for the company as a whole. Senior management has a vision and a strategy; however, an information feedback loop cannot function effectively or efficiently if there is a lack of organizational transparency.

The right technology platform supports end-to-end data visibility and accessibility

To achieve “perfect,” end-to-end organizational visibility for payments and payments information would mean a standardization, concentration and centralization of systems, processes, (banking) partners and even locations. That is neither possible nor practical.

“Given the often-fragmented ERP and systems landscape, a holistic view of payments information via a hub is the only realistic way to gain a consolidated view, a single source of truth across all corporate departments, subsidiaries, and geographies,” remarks Jörg Wiemer, CSO and TIS Co-Founder.

Companies can achieve many of the desired benefits of end-to-end visibility by using an Enterprise Payments Optimization Platform (EPOP).

The TIS Enterprise Payments Optimization Platform functions as a global, multi-functional ecosystem

The TIS Enterprise Payments Optimization Platform is a global, multi-channel, multi-bank connectivity ecosystem. The platform supports a solid foundation for connectivity to ERPs, TMSs, HR and other payment input systems as well as financial institutions. Data is uploaded from ERPs etc. through plug-ins or agents and passed on through the TIS platform to banks. The platform provides connectivity by creating and maintaining formats (host-to-host, EBICs, and other local “flavors”) and partnerships (e.g., SWIFT). The EPOP streamlines and automates the processing of a company’s payments, removing complexity while adding an array of additional benefits.

Enterprise Payment Optimization is key to having the right kind of data available

“The ability to actively use payments’ data is key for better decision making throughout the organization. The finance function has a very valuable commodity at their fingertips in the form of information stored on the EPO platform,“ says Erik Masing, CEO.

This data is the basis for managing cash, monitoring liquidity, engaging in cash forecasting, as well as supporting the information needs of treasury, finance, risk, compliance, and the CFO. This information can also benefit procurement, for example, during negotiations of contract terms and conditions. With full information, the importance of suppliers can be measured through the relative spend across the entire company. Managers can make better and more informed decisions by using business intelligence and data analytics, impacting both the top and the bottom line.

Bank Account Management (BAM) puts treasury in charge of its banking relationships globally

For the finance function, a clean master data repository is essential to manage hundreds (if not thousands) of bank accounts across various subsidiaries and geographies. Corporate treasury can store the organization’s global bank account data in the EPOP’s bank account management (BAM) module. During regular operations, the activity of every listed user is tracked and traced through an immutable audit log that helps to avoid unauthorized actors abusing the system’s controls. There is also a processing function that scans all user permissions within the platform. If any irregular configurations are identified (e.g., a user having the ability to review and approve his own payments), the system will generate an alert and flag the user. BAM can become a successful collaboration between headquarters and departments as well as subsidiaries, orchestrated by a governance process. If the company has stored its data in a TMS, downloading the master data can be done in a matter of seconds.

Clients deserve tailored solutions that meet their requirements

The TIS vision is that their clients can operate in an open, innovative, and multi-tenant ecosystem, accessing a rich array of platform-based products and services. This new, game-changing world is not accessible if you are inflexible and locked-in by a TMS. Clients need a place where all stakeholders can collaborate and exchange information. TMS suites have historically grown into what they are today i.e., an aggregation of solutions attached to a central structure. A TMS covers many different disciplines, however, it usually offers too much, or too little i.e., not a tailored solution or the “right” fit. If a customer wants to optimize their payment process and use this information to support cash forecasting only, why should it implement a full TMS “monolith”.

Flexibility, innovation and collaboration become the new normal

By helping to break down the silos created by company-centric and e.g., bank-proprietary applications, an open, innovative, and cloud-based architecture lays the foundation for “best-of-breed” solutions.

“Access to company-wide, real-time data via a scalable and versatile platform gives decision makers additional possibilities to analyze data and to collaborate,” states Erol Bozak, CPO and TIS Co-Founder.

It also provides the basis for entities to take advantage of a wide range of best-of-breed products. Value-added-services such as cash forecasting or FX / Hedging etc. are available. Innovative platforms such as the TIS Enterprise Payments Optimization Platform acts as ecosystems, making the products and services from specialized vendors available using a single sign-on. It also allows platform participants and partners to work to together sharing information in order to reduce the risk of fraud using products such as Payee Community Screening (PCS).

In summary

Ten years ago, cloud was in its infancy and Treasury Intelligence Solutions became an early adopter and a leader in SaaS. TIS believes that cloud-based, open ecosystems that support best-of-breed applications enabled by APIs, will become the new normal. Enterprise payment optimization remains key to improving information availability, cash visibility and liquidity management. The Enterprise Payments Optimization Platform is the bridge that closes the gaps between internal as well as external functions, partners, and peers.

Visit tis.biz and find out more about the TIS Enterprise Payment Optimization 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.

Press release | New Cashforce office in Warsaw, Poland fuels its cash forecasting product excellence

08-06-2021 | treasuryXL | Cashforce |

Cashforce, an innovative Cash Forecasting and Working Capital Analytics solution provider, has announced it will open a new office in Warsaw, Poland to expand the company’s activities. This new office will further accelerate Cashforce’s growth and market presence on a global scale with the addition of a new technical team. For this expansion, various product-focused positions are becoming available, ranging from Chief Architect and team leaders to analysts and front-end/back-end engineers.

“We are delighted to share the news of the opening of our product-focused branch. Together with our new platform which launches soon, we continue to push the frontier of Cash Forecasting & Working Capital product excellence,” said Nicolas Christiaen, CEO of Cashforce.

Cash forecasting remains a top priority of any corporate and Cashforce offers a unique solution to assist finance and treasury departments in this challenge. Building upon years of experience, we’re reinforcing the vision to save time and cash by offering automated Cash Forecasting technology. Our new platform is equipped with real-time data processing capabilities, an intuitive user-experience that lowers the barrier to entry and enhanced (AI-powered) scenario building capabilities.

Jan Bakker, COO of Cashforce, adds: “It’s great to see our global presence ramping up. By reinforcing the product team with various technical positions, we’re ready to further integrate the latest and greatest technologies into our product.”

As a Fintech scale-up disrupting the treasury space, we are experiencing substantial international growth. To make our ambitious vision a reality, we are looking for motivated candidates to join us in creating a world-class product. Of course, it all starts with the amazing people. You can become a part of a dynamic and global team that encourages ownership, diversity and personal growth. Learn more about our company culture here.

WANT TO BE A PART OF OUR FINTECH EXPERIENCE? FIND OUT MORE ON OUR OPEN POSITIONS HERE.

___

Cashforce is a ‘next-generation’ Cash Forecasting & Working Capital Analytics solution, focused on automation and integration. Our cloud-based software enables corporates to unlock their data and create smarter decisions, saving time and money. By integrating internal & external company data (ERPs, TMS, data lakes etc) and processing them through machine learning techniques, our SaaS solution provides insight into Cash Flows & Working Capital, automates manual and cumbersome Treasury tasks and enables AI-powered-scenarios. Cashforce is used by midsize and large corporates and has users in over 120 countries.

When Cash is key, Cash Forecasting and Working Capital leads your company towards a crystal-clear future. When Cash is key … Cashforce.

Press contact
Benjamin Bergers
benjamin.bergers@cashforce.com
+32 (0) 479 66 27 21

Texpo Webinar | Dark Data- Search, Collate, Conquer – Making Sense of Unstructured Cash Forecasting Data

| 08-06-2021 | treasuryXL | Cashforce

Our Partner Cashforce is holding a webinar hosted by Texpo, in which the topic ‘Dark Data: Search, Collate, Conquer – Making Sense of Unstructured Cash Forecasting Data’ is presented together with David Jacoboski, CTP (Drew Marine). Dark data is defined as unused or hidden data from relevant departmants in your business, which might have intrinsic value. Watch the full webinar below ??

Payment Fraud | A 750 000 euro Financial Scam that could happen even to you

| 02-06-2021 | treasuryXL | Nomentia |

Have you read the recent news on how Bol.com deposited almost 750 000 euros into a fraudulent bank account over a year ago? Simply, they thought they were making a payment to Brabantia, a household goods manufacturer. If you are not familiar with the story, here is it in a nutshell:

At the same time, Brabantia did not receive the payment, so obviously, they took a lawsuit to the court. And that was the point when the court discovered that Bol fell for a financial scam.

It all started with a legit-looking email like usually

In November 2019, Bol received an email in poorly written Dutch. Nevertheless, the email looked legit like it has been sent from Brabantia including the company’s logo. They were asking Bol.com to transfer the outstanding payment to an account in Spain.

The Bol employees fell for the trick. No surprises there, as these emails can be very well-crafted and if you have never seen one before, you could become a victim too.

The court thought the scam email was obvious and easy to recognize

Bol tried to get out of paying Brabantia claiming that the company’s employee fell for a business email compromise, and they were accused that they did not use two-factor authentication in the Microsoft 0365 environment. The story doesn’t tell if the email was really sent from Barbantia using a stolen username and password but hopefully, it still makes you want to protect your accounts with multi-factor authentication (MFA).

Despite this, the court ruled in the favor of Brabantia and ordered Bol to pay the outstanding payment. The reasons for it were the following:

The court believed the email was clearly a phishing email due to grammar errors. Previously, all communication between the two companies happened in Dutch, while the scam email was written in mixed Dutch and English.
The court thought that Bol should have been suspicious about the odd request to transfer money to a Spanish bank.

How to avoid something like this happening to you?

There are a few tips that you should always remember.

Always be suspicious: Always be suspicious, especially, when you are handling large payments. If you have the slightest doubt about the legitimacy of the request, something is probably wrong.
Never accept a payment alone: In this case, always ask for help! Never send out payment before at least you had a second pair of eyes looking at it. In most companies, that’s an everyday process.
If you are in doubt, ask for help: Still, if there is even one person that is a tiny bit unsure, don’t process the payment. Ask for more help within your treasury or financial department, procurement, or even from your cybersecurity department. Your cybersecurity team will be able to tell with high likelihood whether the email is real or not.
Use a payment hub: Payment hubs come with features that enhance the security of processing payments. Consider using the following: Workflows to manage authorization of different payment flows | Approval limits for different payment types | Templates to limit and control releasing of manual payments
Strict processes to update supplier master data: Supplier master data should be correct in the ERP system. It should only be managed by procurement who has strict processes in place to validate the possible changes before updating master data. Always execute payments according to registered beneficiary bank account details.
Don’t skip the CyberSecurity and phishing training: While you may think it’s easy to spot phishing emails, it’s not. Especially when we are talking about financial scams. Spear phishing is a growing business and it’s expected to grow to 1,4 billion US dollars by 2022. Scammers can work even two weeks on crafting an exceptional financial scam to lure in financial professionals to make a large payment. Good phishing training should be targeted for your expertise and prepare you through challenging exercises to spot potential scams. It’s always better to report an email to your security team and ask for their opinion than make a payment and regret it later.
Care about security: Security is a bigger part of treasury operations than you would think. Make sure that you care about security. Things like using a strong password, updating the password frequently, using multi-factor authentication, or not sharing user rights matter and can do a lot.

When you care about security, you also show a good example to the rest of the team.

Trust your instinct and the learnings of this story and the security training

Always rather take longer to process the payment than pay a scammer! Creating good and strict payment processes and workflows can help with this. Also, trust your own and co-workers’ instinct if you feel like something is off.

Stay curious about financial scam news to know what the latest trends are and how hackers will try to trick you. Work closely with your security department! It’s in everyone’s best interest to avoid falling victim to a scam.

It’s not a question of whether you will receive financial scams and phishing emails, but when you will get them. Be prepared that you will be targeted and face the situation with confidence to avoid making a payment.

About Nomentia

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

Barbara Babati

Barbara is working in the marketing department at Nomentia. Previously, she worked in cybersecurity and data integration industries.

Refinitiv Corporate Treasury Data Insights | May 2021

31-5-2021 | treasuryXL | Refinitiv |

Andrew Hollins, Director of Corporate Treasury Proposition at Refinitiv, brings you the May 2021 round-up of the latest Corporate Treasury Data Insights.

The latest Refinitiv Deal Makers Survey analysed market sentiment to gauge which M&A sectors will thrive during 2021, while global banking investment fees hit new heights.
A look at the markets statistics from President Joe Biden’s first 100 days in office, and why USD cash fallbacks form a crucial element of the LIBOR transition.
Plus, news on U.S. identity theft, crude oil prices and FX market innovation, as well as a round-up in Refinitiv Corporate Treasury Newsbeat.

Corporate Treasury Chart of the Month

Our latest Deal Makers Sentiment Survey reveals two clear M&A winners emerging from the turmoil of 2020: Technology and Healthcare. Beyond these sectors, M&A optimism tails off quickly, with notable falls including Consumer Retail. On average, deal makers predict a 6 percent increase in M&A activity this year, which bodes well for corporates with access to capital.

Corporate Treasury Data Insights: Subscribe to our newsletter

Global investment banking fees set all-time record

Refinitiv’s leading fee model revealed investment banking fees reached US$39.4 billion during the first quarter of 2021, posting a 45 percent increase compared with the first quarter of 2020 and the strongest opening period since records began in 2000.

Imputed fees in the EMEA region increased 27 percent to US$8.1 billion during first quarter of 2021.

You can access these exclusive modelled fees in Eikon to benchmark against peers, or to support mandate allocation purposes. Navigate to Company Overview -> Event -> Company Deals -> [Asset Type] Equity to compare the latest deals and access detailed tear sheets.

Join our upcoming Refinitiv Academy session for deeper insight on building peer comparison models in Eikon.

Screenshot of Refinitiv Eikon – Capital Market Transactions. Corporate Treasury Data Insights May 2021 — **Click the image to request a free trial of Refinitiv Eikon**

Biden’s first 100 days in 10 charts

U.S. President Joe Biden’s first 100 days in office saw records in both M&A and capital markets, with the S&P 500 recording a stronger performance than any other president in recent history. Here are 10 charts that tell the story.

USD cash fallbacks: a key component of the LIBOR transition

With the most widely used tenors of USD LIBOR subject to cessation immediately following publication on 30 June 2023, how can fallback rates support a smooth transition in the cash markets? We’ve also put together a guide to help you navigate the LIBOR transition.

New Report – U.S. Identity Theft: the Stark Reality

With an estimated 42 percent increase in identity-related losses from 2019 to 2020, coinciding with a shift towards digital payment methods during the pandemic, identity crime remains a steadfast challenge.

A new report commissioned by GIACT, a Refinitiv company, uncovers the striking pervasiveness of identity fraud perpetrated against U.S. consumers. GIACT is also hosting a free webinar this Thursday (20 May) on how you can Safeguard Faster Payments: KYC, Account Validation Compliance and Best Practices. Secure your spot!

Have crude oil prices peaked?

The market has recovered following the Coronavirus-induced collapse in prices. With the price now stable at around $60/bbl, Market Voice analyses if this is a pause for breath or a natural ceiling.

Accelerating innovation in FX markets

Refinitiv’s FX platforms reported an average daily volume of $490bn in January 2021, the second highest monthly average since reporting began. Find out how FXall gives traders greater flexibility and control over the staging and execution of their FX orders.

REPLAY: Sustainability and ESG webinar

In April, we hosted a webinar with the ACT, discussing the role treasurers should play in sustainable strategy and operations, green financing and benchmarking. You can also check-out a recent interview between Refinitiv’s Leon Saunders Calvert and Treasury Today, discussing treasury’s role in integrating financially material ESG data.

Refinitiv Corporate Treasury Newsbeat

Central Bank of Hungary adopts Refinitiv solutions to enhance liquidity management and market transparency.
We explored with TreasuryXL how our corporate treasury customers were able to manipulate data to navigate extreme volatility throughout 2020 and into 2021.

International Treasury Management Virtual Week | Celebrating 30 years as the world’s leading treasury event

| 19-05-2021 | Eurofinance | treasuryXL |

International Treasury Management is the annual meeting place for 1000s of the World’s most senior treasurers to learn and share experiences in valuable peer to peer discussions. With a reputation for ground-breaking sessions and world-class speakers, our 30th anniversary event will explore the boundaries of the profession, take a glimpse into the future of business, treasury and working life as well as offer the practical case studies on the treasurer’s top agenda items.

Only one treasury event can deliver the comprehensive mix of big picture global insight and granular treasury knowledge you need to make the right choices for the future.

Back to the future, again

Over the past 30 years since EuroFinance’s inaugural conference on International Cash and Treasury Management, much has changed. Treasurers have firmly become business partners, technology experts, risk managers and opportunity spotters. They often lead fundamental change within the company as markets, business models and technology shifts.

What next? This event will delve into how treasury operations can gear up for the future, having learned the lessons from the past. Where, who, what and how will the corporate be in the coming years and what is treasury’s role?

Keynote sessions will offer big-picture insight alongside themed streams including:

Payments revisited
Risks and Rewards
Digital strategies
Practical solutions to day-to-day Treasury challenges
The power of partnership

What makes International Treasury Management the must-attend event of the year?

networking on a global scale – a significant rise in attendees in 2020 boosted the value networking with banks, providers and potential clients… all in one place
strategic insights and best practices – get solutions to the challenges you face from treasury and economic experts during keynotes, practical case studies, fireside chats, analytical panels and more
future trends – delve into the latest innovations and new technology driving change in treasury, and their practical applications
live Q&A with world-class treasurers – enjoy borderless networking and live Q&As with high-profile speakers directly after each session
cost and time-efficiency – tune in form anywhere in the world, at the click of a button with no long distance travel or accommodation costs
continued learning – catch up on any missed sessions and re-watch your highlights, on demand for up 2 months after the event
unite your international teams – as a free event, it offers an opportunity for your whole treasury team to attend. Perfect for encouraging learning and development at all levels

September 27th – October 1st | Virtual

Register Now for Free!

Successful Businesses Excel At Cash Management

18-05-2021 | treasuryXL | Nomentia |

Nomentia commissioned Forrester Consulting to evaluate the current state of Cash and Treasury management in large global multinationals, the challenges, and the opportunities to move forward.

Embrace future-fit Cash management

We commissioned Forrester Consulting to create a study to understand how global decision-makers will embed cash management excellence into daily operations, processes, and decision-making in 2021 and beyond.

Cash flow management tools | To improve visibility and forecasting, companies are adapting cash management, payment efficiency, and cash flow liquidity tools.
Improve cash flow visibility | Cash flow transparency, flexible reporting, and data collection can eliminate the high costs associated with the lack of cash flow visibility.
Automate core processes | Automating core day-to-day tasks while guaranteeing payment security brings efficiency into the high complexity of treasury operations.

83% of decision-makers at large multinational enterprises say that low Cash visibility has hidden costs

Understand the cash flow, payment visibility, and efficiency -> Decision-makers agree that improving data analytics, increasing cash management and payment efficiency, maximizing cash flow liquidity, and improving cash flow and finance reporting are their top priorities in 2021 and beyond.

67% say it’s challenging or very challenging to collect data on cash flow

Technology can help to enable better cash management. Treasury management solutions with analytics, security, and automation can turn treasury from a cost center to a strategic revenue-creating opportunity.

52% of business leaders are prioritizing adopting SaaS Treasury management solutions

Download Study

Learn how companies are enhancing their cash excellence to strengthen and transform cash management operations.

Overcoming Resistance | Integrating Data in Cash Flow Forecasting

| 17-05-2021 | treasuryXL | Cashforce |

Treasurers at mid-cap Corporates looking to use large-scale data analysis to enhance cash flow forecasting are finding colleagues hesitant.

The advantages of using sophisticated data analysis in cash flow forecasting are clear to a growing number of treasurers intent on improving accuracy and eliminating human error. But implementing and executing a data-driven approach often requires collaboration with teams outside treasury, such as AR and credit collections—and some NeuGroup members are meeting resistance.

Solid support from leadership and showing the benefits of data analysis may make the transition smoother and help get members of other teams on board.
That key insight emerged from a recent discussion at a meeting of NeuGroup for Mid-Cap Treasurers, sparked by a presentation about data-enhanced cash flow forecasting from Cashforce. Read an earlier article from Neugroup here.
“A data mindset requires an analytical filter,” one member said, and if another team does not thrive on data, it takes some effort to get colleagues to buy in.

Overcoming intimidation. “I like to be very data-driven,” one member said. “Sometimes that doesn’t go over well in our company. It can be intimidating to people.”

“When you start questioning trends, it doesn’t always make people feel very good,” she continued. “I think there can be a lot of defensiveness.”
Another treasurer said that, in his experience, “having access to data and showing it to [staff] kind of scares them. People say they want to change—people don’t want to change.”
Though there can be a learning and implementation period, he said he was able to find success by stressing how much time data analysis could save in the long run.

Navigating collaboration. Some members said teams that consistently set low expectations for cash flow are often obstacles to using data that produces different, more accurate forecasts. “There can be sandbagging in the forecast, people can be resistant to being more optimistic,” one member said.

Another said that, though she would like to see the company implement a more data-focused model for cash flow, it would be too great a challenge to work with functions that don’t fit under the treasurer and do not share the data mindset.
One treasurer said his company is having these issues with its AR team, which does not report to him. “When you compare quarters, [we are] 10-15% over our forecast,” he said. “There’s a disconnect.”

Teamwork, dream work. That member said he was able to work with his company’s AR team to incorporate data and effectively eliminate the issue, though there was initial reluctance.

He recommends a single individual in a management role spearhead this kind of change. “If it is more driven by one leader, it is easier to shield criticism and make a right decision.”
The member said another source of friction can be FP&A and other finance or business leaders outside of treasury who want to maintain oversight of forecasts.
Though there is value in working together to incorporate data for forecasting, he said, “the entire organization needs to be ready to become more objective rather than try to manage divisions.”

Global Treasury Americas | Planning the post-pandemic Treasury

| 12-05-2021 | Eurofinance | treasuryXL |

The leading virtual event defining today’s corporate treasury agenda

For the past year, treasurers have sweated the core stuff: securing short-term liquidity and longer-term credit; enhancing risk monitoring and hedging processes; and dealing with the implications of remote working. But in the complex and uncertain transition to a new ‘normal’, finance functions will have to resume the search for growth. Can treasury help identify where growth is most likely to come from and which parts of the business are most threatened by digital disruption? And can they do better – can they help build the business strategies needed to prosper as we emerge into the next phase of the pandemic.

This event will explore the practical steps treasurers can take to make enterprise and treasury digitalization a reality and look at varied case studies of transformation in the treasury. The event will look in-depth at new technologies in action as well as more strategic concepts including the sustainability agenda. We look at how treasury can make a difference. Finally, we look at what it takes to transform treasury wherever you are in your journey in order to increase efficiencies, protect the business and make a difference to the bottom-line.

Global Treasury Americas: Planning the post-pandemic treasury

2 days of actionable insights, plus real world case studies tackling the key issues facing treasurers in the region. Topics include:

The Great Bounce-back
Practical steps on the path to automated Treasury
Why sustainability matters for Treasury
Name that threat: What’s next
Building a true cash culture
Payments evolution – the Treasurer’s view

What makes Global Treasury Americas your must-attend event of the year?

Understand the practical steps towards making enterprise and treasury digitalization a reality
Gain actionable solutions and best practices from varied real-world case studies
Network with an unrivalled audience of 800+ senior treasury professionals across the Americas
Benchmark your operations against the regions most forward-thinking treasury teams
Explore how to support business growth whilst balancing the traditional role of treasury

June 9-10 | Virtual

Register Now

Partner Interview | Manipulating market-leading data to navigate volatility

11-05-2021 | treasuryXL | Refinitiv |

As a leading financial markets data provider, Refinitiv is an essential partner for corporate treasurers. Refinitiv’s global, multi-asset and multi-jurisdiction view of risk, credit and economic data enable treasury teams to drive stability by managing the global and interconnected nature of risk today.

In this interview, we take a look at how Refinitiv’s corporate treasury customers used Refinitiv data and apps to remain agile and proactive in one of the most volatile years ever. We also consider what data is likely to be needed as we recover from the pandemic and companies seek growth.

An introduction to:

Andrew Hollins

Director of Corporate Treasury Proposition, Refinitiv, an LSEG business

Rasyid Kwee

Proposition Sales Specialist for Enterprise Solutions, Refinitiv, an LSEG business.

INTERVIEW

1. From your data, what can be identified about the behaviors and activities of corporate treasurers during the onset of the pandemic?

Using the data we have available, we’ve been able to discern three broad phases of corporate treasury response and action throughout the pandemic. The period March through to May 2020 represents Phase 1, which for many Corporates could be termed the ‘Survival Phase’. During this first phase, we witnessed pronounced patterns of activity amongst our Corporate Treasury clients.

Firstly there was a strong focus on analysing and reviewing the Credit Risk of suppliers, clients and also corporate’s own credit risk. Treasurers wanted to know if their customers would be able to pay for the goods and/or services they are supplying, and if their suppliers were still going to deliver supplies, raw materials, component parts, goods, etc.

We also saw a spike in usage of Company Fundamental Data (app for company financial analysis, for financial statements and valuation metrics for over 90,000 companies listed on 169 exchanges in 150 countries), especially so for balance sheets, income statements, key ratios and Cashflow data. Furthermore, there was an increased appetite for Private Company data, which almost certainly reflected a desire to review the health of the extended supply chain, a trend which has continued.

Finally, there was an increase in usage of Sector-specific Economic Indicator data, up 30% globally from Feb – Mar 2020 (this app allows users to search for any Economic Indicator, chart the history, export to Excel and view associated press releases). An increase was also seen in the use of Peer Analysis data (allows for the comparison of a company against its peers across a multitude of measures and variables), reflecting a demand for wider sectoral intelligence, as well as insight into how related companies were performing in such a stressed environment. Conversely, we also saw a decline in demand for ESG related apps and data, as well as data and apps relating to Libor transition. Libor transition in particular had been a high priority area for most corporate treasurers, but the economic shock brought on by Covid-19 pushed these onto the back burner during the ‘Survival Phase’.

2. What are the Data and App usage highlights from Phase 1?

Globally, Credit Default Swap (CDS) data usage grew 115% in EMEA and Americas between February and March 2020. Asia showed a 155% rise in usage of this data during the same period. (The CDS Dashboard app provides comprehensive Streaming price coverage on major global Index and single name CDS from major market maker).
In the Netherlands (February to March 2020), there was an 83% rise in usage by Corporate Treasurer’s use of credit and credit risk data, specifically;
- 68% rise in use of Debt Structure data (both for oneself and for one’s peers)
- 67% rise in Starmine Credit Risk data (Starmine Credit Risk models utilize industry-specific accounting ratios, equity market valuations and text mining models to produce a 1-100 score of an company’s credit risk).
During the same period we also saw significant increases in usage of company fundamental and private company data. At the same time there was a clear drop in consumption of ESG data.
- - 81% rise in Company Fundamental data
  - 33% rise in Private Company data
  - 45% drop in use of ESG data

Looking at year on year data for the Netherlands for March 2020 and March 2021, we saw a 50% rise in CDS data; 50% rise in Debt Structure Data; 66% rise in Industry sector data; 113% rise in use of peer analysis apps.
Furthermore;
- Private Company Data and Analytics grew by 31% between February to March 2020, receding during the summer months but then grew >100% from October 2020 into Q1 2021.

3. As the pandemic progressed, how did the behaviors and activities of corporate treasurer’s change?

Moving on from ‘Phase 1’ (above) and heading into ‘Phase 2’, which we can place from mid Q2 through to Q3 and call the ‘Cash Phase’, many companies focused on cash preservation and extending their cashflow runway as far as possible. Companies focused on maximising all sources of liquidity, in some cases working with suppliers to extend payment schedules and expedite receivables as far as possible. Companies also drew down reserves and utilised credit facilities. We also saw Bond Issuance accelerate significantly especially in Q3.

4. What are the Data and App usage highlights from Phase 2?

In the Netherlands, from June to October 2020, we saw a notable pick-up in usage of Issuance and Credit-related data and analytics:

A 40% rise in usage of the New Issues Monitor – (app providing a comprehensive library of new issues covered by Thomson Reuters and supporting IFR).
A more than 250% jump in usage of Starmine Credit Risk analytics and data
A 25% rise in usage of the Fixed Income All Quotes app

At the same time, there were also further significant changes in usage of apps and data related to the financial health of the supply chain and the corporate ecosystem in general:

Income Statement: Up 116%
Balance Sheet: Up 72%%
Key Ratios: Up 160%
Cashflow: Up 175%

5. How do you see the behaviors and activities of corporate treasurers changing as we move into a recovery mode from the pandemic?

If we identify Phase 3 as the ‘Recovery Phase’, which focuses on positioning and planning for a return to normality, or at least a new normal, our usage data suggests that many companies continue to focus on bond issuance and refinancing in order to take advantage of current lower yields. It’s notable that issuance of US$ denominated debt by non-US companies has been particularly strong in the first quarter of 2021.

There are distinct trends apparent in the usage data for our issuance-related Data and Analytics apps, in particular:

DCM Pricer – usage is up 21% from November 2020 to March 2021 (a custom bond calculator designed to build new bond issues and price them for the primary market)
Debt Structure app – usage is up 20% between November 2020 and March 2021
New Issues Monitor – usage is up 52% from November 2020 to March 2021 (New Issues Monitor provides a comprehensive library of new issues covered by Thomson Reuters and supporting IFR).

As countries navigate out of the pandemic, we can also see that ESG is firmly back on the agenda, with usage of our ESG apps and data rising strongly as we move deeper into 2021. For much of the pandemic period many companies focused on survival, but a rapidly developing global sustainability landscape is contributing to a significant shift towards adopting and ESG standards and behaviours across the corporate sphere.

Globally, ESG Data and Analytics Usage has grown 93% between Dec 2020 and March 2021, higher than the pre-Covid-19 peak.

Across EMEA, this was up 78% in the same period.
In the Netherlands, although below the global and EMEA percentages, ESG Data and Analytics usage was still up 35% in the same period.

Looking beyond Covid-19, conversations with our corporate treasurer clients have revealed an appetite for greater visibility and predictability when it comes to cash and liquidity management. Aligned to this, is a desire for increasingly accurate forecasts and risk analysis regarding projected future cashflows. Hedge accounting and hedge effectiveness tools also feature strongly in these conversations.

Furthermore, automation to support more robust and frequent analysis and reporting, as well as a comprehensive enterprise-wide view of cashflow, risk and liquidity, are also areas of growing interest which are going to feature more in the post-pandemic landscape.

Finally, ESG data consumption has recovered and is now above pre-Covid-19 peaks. This trend is likely to continue on its upward trajectory, becoming systemically more prevalent than it was pre-pandemic, given the rapidly evolving regulatory and demand led factors which are driving an ever-greater focus on sustainability. We recently hosted an event with the Association of Corporate Treasurers on treasury ESG roles and responsibilities which you can watch on-demand here.

6. How can corporate treasurers gain access to Refinitiv’s market-leading data and navigate current and future volatility?

Serving more than 40,000 institutions in approximately 190 countries, Refinitiv provides advanced data and technology to help corporate treasury teams make critical decisions with confidence. Our corporate treasury solutions help deliver accurate and relevant data, tools and analytics that can be accessed easily and intuitively – advancing your end-to-end workflows and ensuring seamless integration with your entire treasury management eco-system.