Market movements could impact your business—stay on top with Rate Alerts

06-05-2020 | treasuryXL | XE |

Rate Alerts are a quick, simple way to monitor the changing values of your choice currencies, without having to constantly check the markets.

If your business purchases goods or services from overseas, makes income from overseas, or deals at all with foreign currencies, exchange rate movements can and will impact your business and its bottom line. The degree to which they’ll affect your business will depend on the types of transactions you’re making, the frequency of your transactions, and the currencies that you most commonly work with. But if you aren’t aware of the latest changes in the currency markets, your next payment could be quite a bit more costly than anticipated.

While it is crucial to monitor the values of the currencies you work with and stay on the pulse of movements in the currency markets, we understand it’s not always feasible to keep an eye on them. The currency markets are constantly in motion, and currency values can change multiple times per day, or even multiple times per hour. Who has time to constantly check the latest rates?

Fortunately, you don’t need to devote your time to monitoring the markets. With Xe’s Rate Alert tool, we can handle it for you, so you can devote your time to your business.

What are Rate Alerts? 

Rate Alerts are a quick, simple way to monitor the changing values of your choice currencies—without having to constantly check the markets.

At Xe, we know the currency markets, and we’re happy to keep an eye on them for you. All you need to do is identify which currency pairs you’d like to monitor and your target exchange rates, and we’ll take care of the rest. We’ll watch the markets for you and notify you the moment your ideal rate is reached.

Want to give it a try now? 

Log in

Why set up a Rate Alert? 

By setting a Rate Alert, you’re ensuring that you’ll know when it’s a good time to make your transfer. The currency markets can be volatile, and one change in currency values could have a dramatic impact on how much your business needs to pay for one transaction. If you have some flexibility in the timing of your payment, Rate Alerts will help you to determine when the rates are most favourable, so you can make the most of your money.

In addition to helping you save money, Rate Alerts will also free up valuable time. Rather than frequently checking the markets and poring over historic currency data, you can take just a couple of minutes now to set up your Rate Alerts. You’ll know as soon the rates are in your favour, without ever having to take time away from your business.

How to set up a Rate Alert 

If you have your Xe account, signing up for a Rate Alert is quick and simple.

  1. Sign in or sign up. If you haven’t registered, don’t worry. It’ll take just a few minutes.

  2. Head to the Rate Alerts section. If you’re using the Xe app, you’ll enter through the ‘Charts’ tab.

  3. Select your currency pair and set your target rate. You can either manually enter the rate you’d like or select a point on the chart.

  4. Sit back and wait. We’ll be in touch as soon as your rate is reached.

Get Started



Get in touch with XE.com

About XE.com

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

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

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

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

 

 

Visit XE.com

Visit XE partner page

 

 

 

Bank connectivity 2.0. New solutions offer new opportunities! (Dutch Item)

05-05-2021 | treasuryXL | Enigma Consulting |

Veel organisaties hebben voor het betalingsverkeer een zogenaamde ‘Payment Hub’ geïmplementeerd voor de connectiviteit met de banken. Zo’n hub zorgt voor een veilige, automatische connectie om betaal- en incasso opdrachten naar de bank(en) te sturen en dagafschriften te ontvangen. Veel van deze hubs zijn in 2012 bij de overgang naar SEPA geïntroduceerd. Sindsdien is de technologie echter drastisch veranderd en bieden nieuwe oplossingen, via Software-as-a-Service (SaaS), rijkere functionaliteit aan tegen een veel efficiënter bedrijfsmodel. “Het wordt dus hoog tijd om uw bankconnectiviteit opnieuw onder de loep te nemen!”, aldus Roderick Kroon, partner bij Enigma Consulting.

“Het gebruik van een Corporate Payment hub voor bankconnectiviteit tussen de corporate ERP / TMS-systemen en de bankrelaties neemt in aantal toe. Trends als digitalisering, standaardisatie en de toegenomen aandacht voor fraude- en risicomanagement maken het automatiseren van de connectiviteit met banken een onderwerp op de managementagenda.”

Er zijn volgens Kroon momenteel drie interessante ontwikkelingen die resulteren in een verhoogde focus op bankconnectiviteit in de Nederlandse markt:



1. De toegenomen focus op het ‘in control’ willen zijn

“In het verleden waren Treasury en Finance vooral gefocust op de hoge waarde / laag volume Treasury betalingen en niet te veel op de commerciële betaalstromen. Uit de discussies van Enigma met veel corporate treasurers zien we een grotere focus op het ‘in control’ zijn door bijvoorbeeld handmatige activiteiten te verminderen, het aantal tokens voor elektronische banksystemen te verminderen en realtime inzicht in liquiditeit te hebben. De verbeterde proposities van TMS-systemen en netwerk partijen zoals SWIFT, leiden tot de logische stap om de bankconnectiviteit te automatiseren. Dit omvat niet alleen de automatisering van de betaalstromen, maar ook de ontvangst en distributie van bankafschriften intern.”

2. Er zijn nieuwe (payment hub) oplossingen met een revolutionair bedrijfsmodel

“Ook aan de oplossingszijde zien we interessante ontwikkelingen. Nieuwe (Fintech) leveranciers zoals Cobase, Nomentia, Kyriba of TIS nemen (multi-tenant) SaaS als uitgangspunt om de IT-footprint te verkleinen en zorgen ervoor dat klanten direct profiteren van verbeteringen die voor andere gebruikers wordt ontwikkeld. Vooral op het gebied van bankconnectiviteit zien we een verschuiving van ‘maatwerk voor de klant’ naar ‘best-practise oplossingen van de leverancier zelf’. Gebruikers profiteren direct van investeringen die reeds gemaakt zijn voor andere klanten en bankkoppelingen die al deel uitmaken van de standaardoplossing. Sommige leveranciers gaan zelfs nog verder en bieden de gehele bank onboarding aan als ‘service’.”

“Kennis van de details van betaalformaten, (bank)kanaalopties en noodzakelijk contracten is dan niet meer noodzakelijk zelf te hebben. Andere (eveneens SaaS) leveranciers zoals COUPA Treasury of Serrala richten zich op het creëren van complete ecosystemen en samenwerkingen met derde partijen om de waarde propositie en relevantie verder te versterken.”

3. Vervanging van (verouderde) Payment Hub-oplossingen

“Een derde interessante ontwikkeling is dat ‘early stage’ payment hubs aan het einde van hun economische levenscyclus zijn gekomen en aan vervanging toe zijn. Sterker nog, één grote speler (CPH van FIS) heeft haar klanten geïnformeerd einde 2021 te stoppen met het product waardoor tientallen bedrijven op zoek moeten naar een andere oplossing.”

Met de introductie van SEPA in 2012 maakte een groot aantal bedrijven de keuze om een payment hub te implementeren, vertelt Kroon. “De belangrijkste focus in die tijd was het verminderen van de complexiteit van veranderingen in het bestaande IT-landschap. In die tijd speelden Payment Hub-oplossingen vooral een rol bij:

  • Bestandsconversie of -verrijking van (in NL Clieop) formaten naar SEPA formaten
  • SEPA-machtigingsbeheer voor automatische incasso om de (te complexe) ‘FIRST versus ‘RECURRENT’ richtlijnen te volgen en het nieuw vereiste ‘machtigingskenmerk’ te administreren
  • Het bieden van een alternatief voor kanalen die banken besloten uit te faseren om hun SEPA-programma’s te vereenvoudigen (bijvoorbeeld het ING Finstream-kanaal)”

“De stand van de techniek was echter totaal anders dan tegenwoordig. API’s, SaaS of Cloud bestonden niet. De implementatie was veelal ‘on-premise’ met een aanzienlijke IT-voetafdruk en initiële CAPEX-investering. In de afgelopen maanden heeft Enigma Consulting meerdere discussies gevoerd over de noodzaak om deze ‘vroege’ payments hubs te vervangen en zijn wij betrokken bij meerdere selectie en vervangingstrajecten. De leverancierselectie projecten die we hebben gedaan ter vervanging van bestaande oplossingen hebben interessant genoeg een zeer positieve businesscase als resultaat:

  • Er zijn grote extra investeringen (soms upgrades) nodig in de legacy-oplossingen om de IT-beveiliging te verbeteren of om nieuwe bedrijfsfuncties beschikbaar te maken. Nieuwe oplossingen zullen deze kosten onmiddellijk elimineren;
  • De huidige kosten zijn in vergelijking met de kosten van nieuwe oplossingen een stuk duurder;
  • Sommige leveranciers zijn van eigenaar veranderd en de focus op payments én bankconnectiviteit is verdwenen, terwijl nieuwe oplossingen de huidige marktfactoren en ontwikkelingen in het betaaldomein zeer groep begrijpen;
  • Nieuwe SaaS / Cloud-oplossingen verkleinen de IT-footprint aanzienlijk en vereisen veel minder (vaak schaarse) capaciteit van IT voor onderhoud / upgrades;
  • De huidige payment hubs bieden een breder scala aan diensten en kunnen veel eenvoudiger (via API’s) worden geïntegreerd met andere systemen (bijv. cashmanagement, fraude, treasury, ERP, transactie monitoring);
  • Veel payment hubs bieden mu volledige ondersteuning voor ‘on-behalf’ (POBO / COBO) verwerking in combinatie met in-house bankieren en / of virtuele accountoplossingen.”

Is bankconnectiviteit een apart onderwerp?

Kroon: “Niet per se. Hoewel het onderwerp zelf perfect als individueel vraagstuk kan worden aangepakt, zien we dat onze klanten de benodigde verandering op dit domein koppelen aan een bredere discussie over hun financiële waardeketen. Vaak gaat een noodzakelijke verandering in het connectiviteitsdomein van banken hand in hand met bredere discussies over de visie ten aanzien van ‘betalen’ en het gerelateerde Target Operating Model, waarin alle marktontwikkelingen (outside in), interne ambities (inside out) en discussie over de bankrelatie (s) worden meegenomen. De selectie van de best passende leverancier voor de payment hub moet dan worden gezien in het bredere perspectief van een routekaart (roadmap) voor Payments op de middellange termijn.”

Dus wat nu te doen?

“We raden aan om de oplossing die is gekozen voor de bankconnectiviteit opnieuw te (laten) beoordelen. Indien deze nog niet geautomatiseerd is kan er een sterke businesscase zijn om dit te veranderen, de efficiëntie te verbeteren en risico’s te verminderen. Indien er al wel een oplossing is kunnen er argumenten zijn om te profiteren van vervanging door een van de nieuwe oplossingen die ‘meer bieden voor minder’.”

“Wij adviseren om verder te kijken dan alleen bankconnectiviteit en het volledige betaaldomein in beschouwing te nemen om te valideren of men voldoende voorbereid is op de toekomst, rekening houdend met alle nieuwe ontwikkelingen in het betalingsverkeer. Enigma Consulting kan de business case versterken door een efficiënt traject met behulp van de unieke ‘RFP-as-a- service’ en ‘Payments Road map’.”

ECB and a Digital euro: positive consultation results

03-05-2021 | Carlo de Meijer | treasuryXL

Last year I wrote a blog on the ECB plans to investigate if one should introduce a Digital euro. They announced to launch a public consultation on the desirability of such a central bank digital currency for the euro zone.

Now we are a half year later and in a comprehensive analysis of the results of this consultation the ECB published the findings of this inquiry that mirrored a rather positive attitude. The report thereby provides important input into the ECB’s analytical and experimental work and into the upcoming decision of the Governing Council on whether (or not) to launch a formal investigation phase in view of the possible issuance of a digital euro as a payment instrument. So nothing has been decided so far!


Why a digital euro?

In that same blog I mentioned the various reasons why central banks all over the world, including the ECB, are investigating the need and viability of central bank digital currencies (CBDCs). Such as the further digitalisation in the payments world and the continued trend towards a more cashless society. And China’s advancements with their own digital Yuan and the fear that it would become a dominant currency eroding other international used currencies like the dollar and the euro. But also Facebook’s  plan to launch its stable coin named Diem that could be used globally and the big interest of private people and companies to invest in cryptocurrencies such as Bitcoin and Ether with the danger of crowding out fiat currencies.

According to the ECB these developments may undermine central bank’s control over monetary policy and endanger financial and monetary stability in the EU. So in fact the launch of a Digital euro is increasingly becoming a strategic issue for Europe. EU members like France but also the Netherlands have recently begun experimenting with a Digital euro. But any decision would require intensive cooperation between member states.

ECB Digital euro consultation

The ECB recently released its report on the consultation on a digital euro. The consultation that was launched in October last year, received over 8200 responses. The large majority of respondents were private citizens (94%), of which mostly men between 35 and 54 years old, while the other participants were professionals, including banks, payment service providers, merchants and tech companies. Most responses came from Germany (47%), Italy (15%) and France (11%).

Main findings

The consultation report shows that Europe’s citizens are in favour of a digital euro, but under a number of conditions.

The results show that citizens as well as professionals (esp. merchants and other companies) are in favour of such a development, provided that the Digital euro respects privacy (43%) and confidentiality of transactions and that it is sufficiently secure (18%) to prevent fraud. They also support requirements to avoid illicit activities with fewer than one in ten responses from members of the public showing support for full anonymity.

 

“The record level of participation in our public consultation and the willingness of citizens and professionals to support a digital euro are encouraging. Their responses show the high expectations that prospective users have for a digital euro and provide valuable input for our work.” Fabio Panetta, ECB Board member 

 

According to the document, two in five respondents thought that “Digital euro transactions should be visible to either intermediaries or the central bank, which would effectively allow the application of anti-money laundering and combating the financing of terrorism (AML/CFT) requirements.” Additionally, one out of ten respondents believes that transfers under a certain threshold should remain private.

 

“A digital euro would therefore allow people to make payments without sharing their data with third parties, other than what is required by regulation. This differs from private payments, where services are generally offered in exchange for personal data that are then used for commercial purposes.” Christine Lagarde, president ECB

 

The respondents also want a Digital euro that is easy to use, without additional costs (9%), and that allows for fast and reliable payments via payment cards and iPhones (8%).

More than two-thirds acknowledge the importance of intermediaries providing innovative services that allow access to a digital euro and indicate that it should be integrated into existing banking and payment systems. They would like additional services provided on top of basic digital euro payments.

Around a quarter of the respondents take the view that a Digital euro should make cross-border payment faster and cheaper. They also want to be able to use the digital euro outside the Eurozone, though with limits.

 

“A digital euro can only be successful if it meets the needs of .Europeans.” “We will do our best to ensure that a digital euro meets the expectations of citizens highlighted in the public consultation”. Fabio Panetta, ECB Board member

Next steps

The feedback is now to be communicated to the European Parliament as well as the Commission and the Council. And it is up to the Euro system – which includes the ECB and central banks of countries that have adopted the euro – to decide whether the project should be launched.

Following the findings of the consultation, the ECB is set to take a decision on starting formal investigation on a Digital euro on whether to commence central bank digital currency trials by the middle of 2021, before a further six months to one year practical trial of the technology.

And if this decision will be a positive and the green light is given, the Digital euro, a complement (not a replacement) to banknotes and coins, could see the light of day in four years from now, according to ECB president Lagarde. She indicated it may be 2025 before any digital currency would be ready.

 

“Because it’s a technical endeavour as well as a fundamental change because we need to make sure that we do it right. We owe it to Europeans, they need to feel safe and secure. The need to know that they are holding a central bank-backed equivalent of a digital banknote. We need to make sure that we’re not going to break any system, but enhance the system”. Christine Lagarde, president ECB

 

The ultimate design of the digital euro lies with the ECB that will take the public consultation into consideration and look into various possibilities, including use of distributed ledger, definition of spending limits, use of a device for transfers and payments, online/offline capabilities, or availability of cross-border transactions outside Europe.

The Dutch positive stands towards the Digital euro

In narrow cooperation with the ECB and the other national banks in the Eurozone, the DNB is also exploring the possibility of issuing a Digital euro in addition to euro banknotes and coins.

In a recently published report, the Dutch Central Bank said it was ‘ready to play a leading role’ with research and development into its own digital currency as well as a Europe-wide digital currency. The Netherlands would be a suitable testing ground, according to the report, being well placed to develop and trial a Digital euro. The Netherlands is the country where the move out of cash is the largest in Europe. Nearly two thirds of all payments in the country are digital.

The main findings of the report

In this report the DNB researched the satisfaction with the current payment system and the willingness to hold a Digital euro account among a representative group of Dutch citizens. The findings are broadly in line with those of the ECBs public consultation.

While citizens are very satisfied with the current payment options, half of the Dutch population would be interested in opening a current account for Digital euros, an electronic form of central bank money that is available for all citizens and businesses – similar to banknotes and coins, but exclusively in digital form. Relating top the amount they would be willing to deposit into a digital euro account, most of the, opted for €101-500.

Main condition is that privacy is well protected, security features should be adequately safeguarded if people want to open such an account and the risk of theft and fraud of their assets is minimized.

Familiarity with the concept of a Digital euro increases people’s willingness to use it as a means of payment. Almost half of Dutch citizens are familiar with the concept, although most people indicated they did not knew exactly what it entails. 53% said they had never heard of it, 33%had heard about it but do not know what it means while 13% knows exactly what it means.

The most frequently cited reason why the Dutch public believe a Digital euro would be useful and could be a reliable complement to cash and existing electronic payment instruments, is that central banks, unlike commercial banks, do not operate on a for-profit base.

Balancing act

While earlier discussions on CBDC were mostly academic, the focus has increasingly turned to the technical aspects and financial and monetary issues. The ECB received many technical suggestions from the respondents. According to a quarter of individual respondents, end-user solutions comprising (smart) cards or a secure element in smartphones would be preferred to facilitate cash-like features. Building a Digital euro for retail payments may require an infrastructure that is interoperable with existing point of sale terminals or with digital platforms

What may it bring?

A Digital euro could bring many benefits to the population as it would grant greater usability, speed and safer payments transactions while it could leverage technology. It could also enhance digital inclusion, facilitate monetary policy implementation, and help protect against frauds and thefts. Being issued by the ECB and supposed to be not more expensive than the use of cash, it would be a cost-efficient payment solution for individuals and businesses with limited interchange fees, if any.

What about the future of commercial banks?

A digital euro however could pose a number of problems in a number of areas. These should be attention points in the further discussion that should be addressed before the release of the Digital euro to ensure the stability of the financial and monetary system.

First of all for banks, what will be there future?  What about the already identifying competition by fin techs and big techs using crypto currencies?

Lagarde raised that certain intermediaries – that is, banks – are apprehensive about what the issuance of this Digital euro may mean for them, noting that they should not be concerned.

 

“We need to also make sure that we are not going to break the system but to enhance the system.” “Those intermediaries will continue to co-exist, to develop their business and conduct their activities with cash which will continue to be available as will digital currency.” Christine Lagarde, president ECB

 

But in an increasingly digitised world banks may increasingly have to ask themselves how they may serve their customers’ future needs and how they can distinct themselves from their competitors.

And what about financial and monetary stability?

And how to avoid in times of financial crisis that a digital euro will “blow a hole” in commercial bank’s balance sheet. Especially in the event that savers would massively transform their deposits in banks into central bank money, in case of economic or financial crisis. This bank run could increase the cost of financing for banks, and in turn the interest rates on bank loans.

Almost half of the respondents of the ECB Consultation mention a need for holding limits, tired remuneration, penalty rates to excess balances or a combination of the two, to manage/control  the amount of digital euro in circulation and prevent a massive flight to digital euros in times of a financial crisis. A similar share of professional respondents agree.

Competition or cooperation?

Another issue is: will CBDCs trigger competition between central banks or cooperation? With the exception of China, most central banks are looking for (some sort of) cooperation. Under the auspices of the Bank for International Settlements (BIS), the ECB is part of a core group of central banks including the Bank of Canada, Riksbank, the Bank of Japan, the Swiss National Bank, Bank of England (BoE) and the Fed, who are jointly exploring CBDC.

The way forward

The topic of a Digital euro has gained much more public attention in the Netherlands and that is not strange as a much higher proportion of their payments is digital compared to other countries in the Eurozone. But for a Digital euro to get more footing in Europe, what is required is a more in-depth policy debate to be held more broadly across the euro area. This given that it is the Euro system that will decide on the potential introduction of a Digital euro.

If the decision should be taken within the Euro system to experiment with some more concrete type of digital euro the Netherlands said it is ready to play a leading role!

 

Carlo de Meijer

Economist and researcher

 

 

 

 

Source

Choosing the right international business payments provider: what should you check for?

29-04-2020 | treasuryXL | XE |

Once you’ve ascertained what you need from a provider, the next step is shopping around to select the best provider for your business.

Working with a foreign exchange (FX) specialist can greatly help your business to navigate the currency markets and protect your bottom line from potential market volatility. However, not all providers are the same because not all businesses are the same. Each business has its own currency needs and risk exposures dependent on its size, operations, and planned payments.

We recently offered a guide on understanding what you need from an international payments provider. We encouraged you to consider:

  • Overhead visibility of your FX requirements

  • How you prefer to conduct business

  • The simplicity (or complexity) or your FX requirements

  • The payments your business makes or will make.

All of these factors can greatly impact what you’ll need from an FX provider to suit your business.

Once you’ve ascertained what you need from a provider, the next step is shopping around to select the best provider for you. In addition to considering whether they can meet your needs, be discerning about each provider and whether they should be trusted with your business’s international payments.

Do your due dilligence 

As with any financial services company, do your research and use your best judgment. If something feels off, it very well could be. If the rate looks too good to be true, it probably is. There are some other questions that you should ask yourself as you research each provider:

  • Are they registered? Companies that provide money transfer services in the UK, for example, have to be registered with the Financial Conduct Authority (FCA). You can check which ones are authorised on their site. If you deal with a firm that is authorised or regulated by the FCA, you will be covered by the Financial Ombudsman Service if something goes wrong. Confirm that the provider is registered with your country’s authority.

  • Are they authorised? Larger companies are called an “authorised payment institution” while smaller ones are listed as “small payment institutions”. All authorised payment institutions must meet obligations that include providing certain information to customers before they commit to using the service. This includes whether they safeguard client money, what exchange rate they will provide and whether there will be any additional charges, how the transaction will be carried out, how long the money will take to arrive, how long they will take to correct a transaction in the event of a mistake and your rights to cancel a transaction.

  • How does their site look? You can also take a look at the company website to see if there are any additional security measures in place. Looking at their site will also give you a quick snapshot of the business. If their site is outdated or poorly-run, it could reflect poorly on their business practices.

  • Can you call? Sometimes, the quickest way to get a feel for a provider is to speak with them directly. Giving the company a quick call is another way to check you are comfortable trusting them with your money and to get answers to any questions you might still have about their service. This call will also give you an idea of whether you would be able to speak to someone if you do encounter any issues with your transfer.

What should you check before deciding which provider to use?

  • How strong is the company’s balance sheet? If they don’t have full accounts on their website, you can check at Companies House. Xe, for example, is owned by NASDAQ-listed global payments processing company Euronet Worldwide Inc.

  • How big are they and how long have they been in business? A large, established company with experience in the markets will likely be better-equipped. At Xe, we’ve been in the business for almost 30 years now with offices around the world to serve our customers.

  • How good is their payment processing? Are they audited by reputable auditors? Can they send payments quickly and securely?

  • How many other businesses trust them with their international payments needs? Judge them by the company they keep. Do they work with any other reputable businesses? Do they have experience working with businesses like yours? Xe for example, serves over 13,000 businesses of all sizes across 100 industry sectors.

  • What online security measures do they have in place to keep your funds safe? Look out for well-known online security ‘trust marks’ such as Norton online security. For example, if the site URL begins with “https”, that makes it a secure site. A URL beginning with “http” is a warning sign of an insecure site, which you should not give your sensitive information to.

What should your business know about Xe? 

At Xe, we know the currency markets. With nearly 30 years in the business, we are the world’s trusted authority with the knowledge and experience to help businesses navigate the currency business and their international payments. Today, over 13,000 businesses across 100 industry sectors look to Xe for:

  • Fast, secure and simple international payments

  • Tools and solutions to manage their currency needs

  • Expert FX risk management guidance



Get in touch with XE.com

About XE.com

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

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

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

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

 

 

Visit XE.com

Visit XE partner page

 

 

 

Webinar Reminder | April 28 | “Bitcoin. Is this the New Reality in Corporate Treasury or is it a Hoax?”

| 27-04-2021 | VU Amsterdam |

Have you signed up for the webinar for tomorrow? Here is your reminder call, enjoy!

This Webinar is offered to you by the postgraduate programme Treasury Management & Corporate Finance at the School of Business and Economics.

Webinar Treasury Management in short

Date:     Wednesday 28 April 2021
Time:     19.00 – 20.30 hrs.
Costs:    Free-of-charge

Bitcoins are in the news. Opinions vary a lot in between “the new global currency standard” and “difficult to understand in practice and governance”.  Corporate Treasurers need at least to have a start of an opinion. We see Tesla and other big corporates currently buying crypto currencies. What are opinions among corporate treasury professionals? Is investing surplus cash in crypto currencies the new reality in corporate treasury or is it a hoax?

Tristan Verhagen, a student in our TM&CF programme, will introduce the topic at this webinar. Tristan will share his provoking ideas about investing surplus cash in Bitcoin. Is this the New Reality in Treasury or a Hoax? Tristan wrote an academic paper on this subject and this has added value in terms of a new insight for the treasury professional and is very useful for experts as well as laymen to be updated on the issue.

Description Academic Paper

As the world grapples with the COVID-19 pandemic, it’s important for (institutional) investors and (corporate) treasurers to understand the effects of central bank and government intervention. Especially in the context of Bitcoin and the unique attributes it possesses. The role of central banks and governments in stabilizing the economy and the realization of economic growth in the aftermath of crises is becoming ever more important. Currently central banks and governments are “all in” to cushion the effect(s) of the current crisis. The response is considered to be bigger and broader than it was for the great financial crisis. Interest rates are historically low and central bank balance sheets have expanded considerably. This led to a significant increase in the money supply, which sparked a debate among economists about the implications for inflation.

When central banks and governments worldwide enact in ‘quantitative easing’ and increase the money supply, the associated fiat currencies depreciate in value. In contrast, Bitcoin experiences a ‘quantitative tightening’ (or reduction) of new supply as halving events programmatically decrease the number of new Bitcoin entering circulation regardless the demand for the asset. This feature is native to the digital protocol and possibly makes it the ultimate ‘store of value’ asset. During times of economic uncertainty and in a world where ‘software is eating the world’ more and more (institutional) investors and (corporate) treasurers are becoming convinced of the potential of Bitcoin. The paper/discussion aims to investigate to what extent this is justified.

Speakers

Tristan Verhagen MSc MSRE graduated in Strategic Management from Tilburg University. Real estate is the cornerstone of his career. He has worked for various real estate investors and is now Director Finance & Control at Eigen Haard. A few years ago, he fell through the Bitcoin rabbit hole and since then his views on money and monetary policy have changed significantly. He is open to the idea that Bitcoin’s unique properties will in the future lead to it becoming an important (macro) asset and therefore suitable for a large group of investors (e.g. insurance companies and pension funds).

Strong ideas are worth to have strong opposition, so we have two panel members to challenge the vision of the keynote speaker.

Wilko Bolt is a Senior Economist in the Economics and Research department at De Nederlandsche Bank in Amsterdam and Professor of Payment Systems at the Vrije Universiteit Amsterdam. His current research focuses on the payment economics, digital currencies, two-sided markets theory and antitrust implications. He has published in journals such as American Economic Review, European Economic Review, Economic Theory, International Journal of Industrial Organization, International Journal of Central Banking and Journal of Money, Credit and Banking. Bolt was awarded the Hennipman Prize by the Dutch Royal Economic Association in 2007 for his research.

Joan Schutte joined ASML back in 2014 as VP & Corporate Treasurer and is responsible for Treasury, Corporate Finance and Insurances globally. From 2010 to 2014 Joan was Director Treasury for VimpelCom (Veon) in Amsterdam. Before that, he worked 12 years for US based Sara Lee Corporation in various Treasury roles in Curaçao, Singapore and Chicago and as Finance Director for the global procurement function in Utrecht. Joan started his career in Treasury in Belgium for CSM NV and Campbell Soup Company. Joan holds a MSc in Economics from the University of Amsterdam. He serves on the Board of the Dutch Association of Corporate Treasurers (DACT) and has served on the Board of the Association of Corporate Treasurers Singapore (ACTS).

The webinar is moderated by Pieter de Kiewit, he is treasury aficionado, recruitment consultant and owner of Treasurer Search. Together with his team, Pieter finds candidates for interim assignments and permanent positions in corporate treasury. Pieter holds an MSc. in Organizational Science (Technische Bedrijfskunde, Universiteit Twente) and has over 25 years experience in international recruitment. In many ways he contributes to the treasury community by connecting people and companies. He supports educators, for example as a member of the management board of the RT programme of the Vrije Universiteit Amsterdam. On a regular basis he blogs, presents and moderates with the purpose to make treasury known by a bigger audience and facilitate experts to deepen their knowledge.

For whom?

We specifically invite our alumni of the PGO Treasury Management & Corporate Finance and those interested to join the programme and DACT members.  Of course, those professionally involved in the subject, TreasuryXL – followers, are also very welcome to join. A truly inclusive (corporate) treasury community!

 

 

How to make a quick business payment with a spot transfer

22-04-2020 | treasuryXL | XE |

Need to quickly send money overseas? A spot transfer may be the right payment solution for you.

In an earlier article, we went into depth on forward contracts, what they are, when you might want to use one for your business, and how to set one up. But they aren’t the only way to make an international business payment. You might be in a rush and want to send your transfer right now, as soon as possible, rather than scheduling a future transfer.

In that case, you would want to set up a spot transfer.

What is a spot transfer?

A spot transfer is the quickest, most simple way to make a business payment. You get your quote and confirm your money transfer, and then the currency will be purchased and sent as soon as possible.

Learn More

Why might you use a spot transfer? 

As the name indicates, you’d want to use a spot transfer when you need to make a quick payment “on the spot”. There’s no preliminary work involved, nor would you need to do anything after confirming the transfer. All you need to do is enter your currencies, let us know how much you’d like to send and provide your payment method, and we’ll handle the rest.

Additionally, not all currencies or currency pairs experience the same amount of market volatility. If you’re consistently sending payments in a certain currency and haven’t seen much fluctuation in the rates or your costs, you might not need to set up a forward contract or market order to avoid future market volatility. A quick, simple spot transfer could be all you need.

How do you send a spot transfer?

Befitting their quick nature, spot transfers are quick and easy to initiate.

  1. Sign in to your Xe business account. If you don’t have one, sign up. You can view a detailed guide to everything you’ll need to get started here.

  2. Get your quote. Enter your currencies and the amount you’d like to send to see the send rate for your transfer.

  3. Double-check everything. Before confirming your payment, confirm that all information is correct. This will include your currencies, the amount you’d like to send, the exchange rate, your recipient’s information, and your payment information.

  4. Confirm your spot transfer. If you’re satisfied with your transfer, you can go ahead and confirm it.

Once you’ve confirmed your transfer, we’ll take care of the currency exchange and send it to your recipient.

Get Quote

What other kinds of transfers are there? 

Spot transfers are the ideal payment method for quick, simple money transfers. However, if you’re interested in scheduling a payment for a future date, seeking the best exchange rate, or avoiding potential market volatility, spot transfers may not be the best option to meet all of your currency needs.

Are you interested in scheduling a payment for a future date? You may be interested in forward contracts.

Or would you like to wait for the best possible rate? You might be interested in a market order. Watch this space for an upcoming guide to those.

Get Started



Get in touch with XE.com

About XE.com

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

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

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

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

 

 

Visit XE.com

Visit XE partner page

 

 

 

Refinitiv Corporate Treasury Data Insights | April 2021

21-04-2021 | treasuryXL | Refinitiv |

Andrew Hollins, Director of Corporate Treasury Proposition at Refinitiv, brings you the April 2021 round-up of the latest Corporate Treasury Data Insights. We will learn about what an increase in inflation will mean for treasurers’ FX hedging plans – and how best to protect your company’s position. Moreover, an update is provided on the Suez Canal traffic jam, and the impact on trade flows, freight movement and prices in the coming months. Plus, some insights on metal prices, ESG, LIBOR and mobile FX trading are shared.

Are inflation fears justified?

While expectations of inflationary pressures have risen significantly over the past six months, reflected in the chart above, the market points to moderating price pressures in the medium-term as revealed by the breakeven yield curve for inflation linked bonds.

Expectations of an inflation spike in the U.S. and elsewhere, perhaps peaking in 18 months to two years, are likely to impact treasurers’ FX hedging plans.

Take the best performing G10 currency so far this year – GBP. While the outlook into H2 2021 and beyond remains uncertain with possible Brexit-linked fallout and a potential separatist supermajority in the Scottish elections on 6 May, continued success on the vaccine front should deliver the dividend of an accelerated economic recovery in the UK.

FX hedging strategy

Corporates with FX exposures may consider a Forward Extra as part of their hedging strategy – an FX option which protects from downside risk but also allows for some upside gains.

Treasurers can use Refinitiv Eikon to manage currency exposure:

  • Price a Forward Extra using the FX Options Calculator (FXOC), employing key events like the Scottish elections in May as reference points.
  • Analyse volatility relative value using Currency Performance (FXPT).
  • Analyse volatility skew and an implied probability distribution chart in FX Volatility Explorer (FXVE).
  • Keep a close eye on inflation forecasts with Reuters Polling (POLLS), which forecasts a rise in U.S. inflation to 2.4 percent for the year until March 2021, and Rates Views Inflation Screen (RVIN) to monitor breakeven rates.

Emerging market currencies and stocks struggle

While vaccine progress is supporting the position of both GBP and USD, emerging market currencies are telling a different story.

Steering the post-pandemic recovery

Reuters newsmaker with Christine Lagarde, President of the European Central Bank. After taking radical steps to combat the recession, global policymakers now face the task of ensuring recovery takes hold. Lagarde joins Reuters for an exclusive Newsmaker to discuss the best policies to prevent COVID-19 from scarring economies, how and when policy support might be withdrawn, whether rate setters might be facing a major shift in the inflation regime and the challenges that are unique to the euro zone.

Join the conversation.

Suez traffic jam clears, but what’s the impact?

Satellite data from Eikon’s Interactive Map, pictured below on 29 March, shows the Suez Canal blockage beginning to ease. However, treasurers should expect more volatility in the coming months.

The freight derivative markets for dry bulk carriers are seeing heavy traded volume in 2021 due to high volatility, potentially exacerbated by the Suez incident.
Data from the Baltic Exchange for the week ending 19 March 2021 show a record of 78,059 lots of Dry FFA (Freight Forward Agreement) traded, a record not set since 2008.

Will gold remain bullish in 2021?

Gold is seen as a hedge against uncertainty and hence we witnessed a drastic increase in pricing during the pandemic. However, will vaccine rollouts and stimulus measures cause this precious metal to bottom out?

Watch – Refinitiv Metals Outlook 2021: Gold

How Mercuria proactively manages commodities exposure

Mercuria is a global energy and commodity group, with business lines covering a diverse range of commodities trading, as well as large scale infrastructure assets. Discover how they manage exposures in FX, FI and commodities markets, as well as credit terms with trading counterparties.

Sustainability and ESG: what role should you play?

Today, no two treasury teams are alike when it comes to sustainable finance roles and responsibilities. However, will upcoming regulatory and political change result in clearer and globalised standards and benchmarks? And what should treasurers be watching out for?

Join us, the ACT and two leading treasurers from Page Group and Optivo next week to discuss these significant developments – and how treasurers can support future growth ambitions, sustainably.

LIBOR: What you need to know about fallback and transition data

To prepare for the oncoming LIBOR transition and IBOR reform, hear from Trang Chu Minh and Fausto Marseglia as they discuss fallback and transition data in relation to your bonds portfolio, and the main aspects of ISDA fallback rates.

Watch – Refinitiv Perspectives LIVE: The LIBOR Transition: Fallback & Transition Data

Refinitiv Corporate Treasury Newsbeat

Refinitiv’s Taking FX Trading Mobile: responding to the shift to remote working – with mobile trading apps predicted to be the most influential technology shaping the future of trading – Refinitiv is working with partners to develop a seamless end-to-end FX workflow, accessible by mobile app.

LSEG Automates $7bn Debt Capital Transaction: last month, London Stock Exchange Group (LSEG) successfully priced a landmark syndicated multi-tranche and multi-currency offering, raising  $7bn equivalent across nine tranches.

Key transaction steps were conducted on Flow, a digital platform driving end-to-end automation in primary debt markets, developed in partnership with Nivaura.

This is the most complex transaction to use a primary debt capital markets digitisation platform, and a milestone for LSEG, as its largest bond and first USD Reg S/ Rule 144A issuance. Find out more about the landmark transaction.

 

 

How to Prepare for a New Era of Real-time Banking and Payment Services

20-04-2021 | treasuryXL | Kyriba |

An active liquidity network allows companies to avoid multiple costs and delays by globally managing liquidity across their subsidiaries. With 500 banks involved and over 40,000 payment formats to use, this is already a reality for over 2,000 Kyriba clients.

I am often asked, what is an “Active Liquidity Network”? Actually it’s the very foundation of the Kyriba platform, but let me use a simple example to illustrate what it is and the difference it makes.

Technology is providing us with so many great options for everyday life activities. Take the humble takeaway. Not so long ago you’d call up, your order would be placed in a manual ordering system, food would be prepared and then it would be delivered. Today the takeaway experience can be very different. You will order on a mobile device or with a delivery service or by voice or Messenger. The delivery service tells the kitchen what food to prepare, conducts all the billing and organises the food to be couriered to you. While the cooking of the food is still manual, everything else is managed by cloud-based technologies, and you have lots of options, each with their own take on how to make your takeaway experience better, faster, cheaper.

The same thing is happening within businesses. SaaS technology enables your corporate teams to work more autonomously with a resource-planning package that is more bespoke to their task. The original ERP is being unbundled and focused on aggregating accounting entries from various other systems. These bring great benefits to your company’s ability to compete in the marketplace, making you better, faster and cheaper. But given that many of these tools are able to instruct or make payments, this introduces a hazardous landscape for currently accepted liquidity management and control practices.

The problem is further exaggerated by the global expansion that has taken place in the last 20 – 30 years. Technology isn’t just providing more options for how a corporate plans its resources. It’s also providing better, cheaper, faster options for how payments are made and received. Each approach has its own pros and cons. The upshot is that there are many more providers today conducting more payments in more innovative ways, but this innovation, while opening up new choices, also makes the payments landscape more complex.

All this hasn’t stopped an explosion in electronic payment volumes. This is an unstoppable trend that demands a more robust way of controlling and managing payments in and out of business of any size, just as a restaurant receiving 1,000 takeaway orders a night will need to move away from servicing orders on pen and paper. The risks, the costs, and the lack of speed and optimisation are all too great.

The challenge you face

Now, let’s look at a corporate example to illustrate the challenge. Let’s assume a multinational group has a subsidiary in Birmingham, in the UK, which needs to make payments for goods and services to suppliers in Romania and Turkey. The subsidiary has its operating bank account with TSB and is using the bank’s SMB portal to manage cash and make payments. Its ERP system is connected with the bank’s portal for automatic payment file upload. At the same time, the company has subsidiaries in Romania and Turkey that also have a similar setup with their local banks. It all looks good and well-automated everywhere.

But to actually make a payment to a Turkish or Romanian supplier, the Birmingham-based subsidiary’s treasurer has to go through the following steps: approve a foreign currency payment; agree to the exchange rate offered by the bank, which is given without reference to a spread of interbank rates; wait for one or two days for the other FX rate to settle; wait one or two days more for the payment to be cleared by TSB via Swift and the corresponding bank network; wait some more until the supplier confirms they have received the funds and made a shipment; and finally reconcile it all manually with the ERP system.

As a result, the subsidiary incurs the FX spread, swap rates on every payment up to 100 basis points, and interbank transfer fees for every payment of £20. There are also three further delays before the funds reach the beneficiary accounts and manual reconciliation of the ERP. And that happens with every payment for every subsidiary every day!

It’s a pity that the Birmingham-based company doesn’t know that group company subsidiaries in Romania and Turkey have plenty of lei and lire in their local bank accounts. Or that they are connected to their domestic clearing systems providing same day or in real-time clearing and automating confirmation, or no fee at all. Or that there was a better, faster, cheaper payment option the corporate could easily connect to.

How an Active Liquidity Network works?

Let’s look at a different way of doing this. Imagine that the group chooses Kyriba and gets on board the Kyriba global SaaS platform. All of its subsidiaries – including those in the UK, Romania and Turkey as well as headquarters – and all of those subsidiaries’ ERP systems – are then connected to Kyriba for payment, invoicing, and cash flow upload as well as for GL entry reconciliation. Over 2,000 customers and 65,000 legal entities are live today. Kyriba offers automated bank connectivity via secure SFTP and now bank API with more than 500 banks worldwide and growing. And our bank format libraries have more than 40,000 formats and variances supporting payment originations from more than 100 countries in payment delivery to more than 130 countries. Using Kyriba, the payments submitted by the UK subsidiary will be automatically converted to the relevant domestic clearing formats and submitted to those banks the same day.

What difference does that make? With the Kyriba platform the group can internalise and optimise its payment flows. It can see cash balances and cash forecasts across all currencies and bank accounts in real time. A treasury team using Kyriba Cash Forecasting and Kyriba In-house Banking Module can net the outflows by currency and use the market to square off or net the currency positions. As soon as the payments are acknowledged by the banks in real-time or (worst case) next morning, the confirmations and automated dual entries can be imported into the UK subsidiary’s ERP for automated reconciliation.

Better still, the company can use offers like Kyriba Pay, powered by partners like NatWest, that offer competitive and transparent FX spreads with no hidden fees attached. They can choose to use the liquidity they have in lei, lire or other currencies to make the payments without FX conversions at all. That means no interbank fees, globally optimising the effects of exposures and costs, and making same-day payments to 130 countries with automatic dual reconciliation.

That’s what we mean by an Active Liquidity Network. Ours is already the largest in the world, and growing by about 30% annually. It is the foundation of the Kyriba platform that enables our Treasury payment factory risk management and supply chain finance applications, as well as many other value-added services. We are already processing 17 million transactions on behalf of our customers on an average day. We will continue to innovate our existing propositions.

The world’s connectivity is moving to open API. We are pursuing that in three ways.

First, Bank API Connectivity: we have completed pilots with two global banks already, and will be delivering many more in 2021. Secondly, ERP API Connectivity, leading to ERP connect on marketplace, and thirdly Kyriba Open API, to turn the Kyriba active liquidity network into an open API platform for customers, partners and fintechs. This is what we call the Kyriba Active Liquidity Network.

It is here right now and you have a choice to make. Deal on your own with the growing size and complexity of managing liquidity at global scale on time, with speed, accuracy and efficiency . . . or join the 2,000 corporations who are doing it by leveraging the Kyriba platform, and really drive the value of your business.

 

How to understand what you need from a business international payments provider

15-04-2020 | treasuryXL | XE |

To get the best from any international payments specialist and most effectively manage your organisation’s currency risks, take some time to think about what you need from the company you choose to work with.

Not all business international payments providers are the same—and neither are all businesses. Your business’s size, the industry you work in, the types of payments you want to make, your knowledge of the currency markets, and your general preferences for how you conduct business are just a few factors to consider when looking for the right provider.

To make sure you get the best from any international payments specialist and can most effectively manage your organisation’s currency risks, take some time to think about what you need from the company you choose to work with.

Ask yourself:

  • How much forward visibility do you have of your foreign exchange requirements?
  • How do you prefer to conduct your business—online, over the phone, or in person?
  • How simple (or complex) are your requirements?
  • What kind of payments does your business make?

How much forward visibility do you have of your FX requirements?

Are you actively looking to the future to strategize for future payments, or do you handle each payment as it comes? For example, if your business buys and sells currency as and when you make transactions (such as buying or selling goods and services), you may want to look for a clean, easy-to-use online platform that offers competitive rates for quick transactions.

On the other hand, if your business is considering its long-term FX risk management strategy and you anticipate new requirements in the future, you may benefit from a more hands-on approach that includes not just online service but also a team of foreign exchange experts to act as your eyes and ears in the market and a range of payment services (such as forward contracts and market orders).

How would you prefer to conduct business?

Would you prefer to quickly take care of your transactions online? Or would you prefer to speak with another person who can answer your questions and build a relationship with your business? Would you like both? What about 24/7 service?

These are all features you can find in FX providers. Consider which ones make the most sense for your business and would make you feel the most comfortable as you make payments.

What are your FX requirements?

If you do a little research, you’ll see that there are countless products and features available to businesses. While they play a key role in some business’ FX strategies, not every business uses them, or even needs them.

Too often, businesses end up confused by overly complex features and functionality they never use, when all they really wanted was the ability to make simple international payments and get great rates. Or other businesses work with providers that aren’t sophisticated enough to cater to their needs, and don’t fully address their risks. Consider some of the following:

  • Are you a voracious consumer of market information? You’ll want a provider that provides plenty of information (whether online or over the phone) to keep you up to date with the latest exchange rate movements. If the currency markets overwhelm and don’t interest you, you may be better suited to a more streamlined service.
  • Is your business opportunist in its approach to buying and or selling currency or does it actively manage its foreign exchange exposure in order to hedge its currency risk? Do you require post trade flexibility to split orders or roll trades?
  • Does your business require flexible user access rights to match internal safeguards and processes or do you simply require a single login?

And that brings us to the most important question of all…

What kind of payments are you making?

Your international payments provider needs to help you make the payments the way you’d like to. Ask yourself:

  • How frequently are you making payments?
  • What countries are you making payments to? Which currencies?
  • Are you interested in locking in rates for future transfers, or scheduling transfers to send once a certain rate is live? Or would you rather make quick payments on the spot?
  • Are you comfortable making these transactions yourself, or would you like help from your provider?

How can Xe help your business?

At Xe, we have a simple, easy-to-use platform where you can initiate quick transactions 24 hours a day, 7 days a week. If you’re looking for more specialized solutions, we also offer multiple money transfer products and services. We work with each business to ensure that they receive the strategy that they need, whether they’re a sole proprietor or a large corporation.

Get Started


Get in touch with XE.com

About XE.com

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

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

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

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

 

 

Visit XE.com

Visit XE partner page

 

 

 

How SpendLab recovered more than €200 million EUR for its clients

14-04-2021 | treasuryXL | SpendLab |

Our Partner SpendLab Recovery is the Dutch market leader in spend justification. The company is a former spin-off from the Dutch government with a 98 year old heritage in procurement. It currently specializes in generating liquidity for clients by analyzing -and identifying anomalies in accounts payable data.  SpendLab generates liquidity for clients by using their Accounts Payable Recovery Analyzer (APRA) and thereby is able to recover millions. Last year, SpendLab recovered almost 400 million invoices and recovered over €200 million in Cash & Profit. With a Customer rating of 8.1, SpendLab is able to deliver quality services to its clients.

Find out how SpendLab recovered millions of value for its clients and how SpendLab can help your organization via this interview conducted in collaboration with treasuryXL!

We asked SpendLab 10 questions, let’s go!

INTERVIEW

1. Can you tell something about SpendLab Recovery?

SpendLab is the Dutch market leader in spend justification and has grown significantly during the past years. The organization is a former spin-off of the Dutch government with a 98 year old heritage in procurement. SpendLab is specialized in generating liquidity for clients by analyzing- and identifying anomalies in raw Accounts Payable data. Besides the generation of liquidity as part of Treasury, we provide compliance reports that are used by our clients to achieve compliance objectives.

2. What was the main reason to start SpendLab Recovery?

During our analyses back in the day we identified that a significant number of invoices and payments were processed incorrectly in Accounts Payable departments of organizations. As a result of these incorrect processes, liquidity could be recovered over multiple historical years.

During the years we significantly invested in our technology in order to provide our clients with a value proposition that is comprehensible, covering all aspects of an Accounts Payable recovery audit. Despite the approval of financial years by Auditors and Accountants, we are able to recover liquidity from the Accounts Payable for our clients. Nowadays we provide liquidity, a 100% analysis of the administrative Accounts Payable processes, and compliance -and risk reports that can be used for compliance purposes.

3. What is, in your perception, the core issue that SpendLab Recovery solves?

Administrative departments within organizations consistently encompass irregularities that lead to the loss of liquidity, despite the level of automation that is adopted. There will always be a continuous flow of business operations inside an organization, and if there are any checks in place, then these checks are mostly reactive and are used as an add-on for a team or employee. SpendLab specifically focuses on the Accounts Payable and is able to identify any irregularity within the raw AP data. Thereupon, we recover rightful liquidity for clients that they can use for value-adding activities.

4. What are the biggest advantages of using SpendLab Recovery?

From our own perspective the generation of liquidity from the Accounts Payable of financial years that were audited and ‘’closed’’ is a great advantage for our clients. Specifically, we are remunerated for the amount of liquidity that we recover.

In terms of Procurement, the Procurement department is usually in the lead during the contracting phase. However, after this phase a lack of insights and active control exist in how suppliers perform in processing invoices. Through our approach and the methods that we use, you could say that we are educating the suppliers of our clients in processing invoices correctly. Besides, it creates awareness that our clients are performing Accounts Payable Recovery Audits on a structural basis.

5. How does the customer project phase looks like from start till actual results?

Our recovery analysis consists of six project phases and requires approximately four months to conduct. The first results will be visible after only eight weeks. Below the project planning can be found.

6. How fast can customers experience the impact of SpendLab Recovery after implementation?

The average lead time of a recovery project is four months. The first payments from suppliers, however, will be collected after just two months. SpendLab is only charged based on the payments that are received, on the basis of no cure no pay.

7. What is the biggest challenge you ever experienced with SpendLab Recovery?

In the very beginning of Account Payable recovery audits, research was done based on spreadsheets. In the past five years we have invested significantly in our IT-platform APRA®. Nowadays, we have a team of more than twenty employees in the Technology department that are continuously developing software for Recovery. The transformation from manual research to automated research in combination with Machine Learning and Artificial intelligence has been the biggest challenge within SpendLab, and could not have been possible without the team and the investments that had to be made.

It has been a challenging choice to completely focus on IT development. However, this choice has enormously helped our organization in optimizing our service, identifying anomalies in Accounts Payable data, and remaining thought leader in the field of Accounts Payable recovery.

8. What have been the latest successes around product development?

Remote and safe access to ERP systems. Whereas our Data Collections team used to literally fly all around the world to align data requirements and to safely collect the raw data of the Accounts Payable that we need for our recovery audit, we can now align and safely collect (ISO:27001; ISO:9001 certified) the data remotely with and from our clients. SpendLab is now able to conduct a complete Accounts Payable recovery audit on a remote and digital basis. Since March 2020, COVID-19 has only accelerated this level of digitization and the service that we provide for our clients.

Moreover, as an organization we have completely changed our way of working. We now work from our platform on a digital and remote basis. Just like every success, this could not have been achieved without challenges.

9. Can you give us an outlook on the product developments and tell us a bit more about your vision?

We have gone from subsequent recovery analyses over five financial years to periodical visualizations. Together with our clients we have developed a complete recovery service, which we can utilize several times a year over the current financial year. Instead of conducting subsequent recovery audits, we are now aiming to provide our clients with a subscription agreement in which some of our clients even take care of the recovery themselves.

Despite that organizations keep optimizing their internal -and external processes, there will always be errors in processes. Based on the collaboration with and input from our clients, we have invested in optimizing our compliance -and risk reports. We can now offer the visualization of these reports in Power BI, which allows our clients to have live and real-time insights in the Accounts Payable.

10. The world is always changing, how does SpendLab Recovery stays one step ahead of its competitors?

SpendLab has always chosen to conduct Accounts Payable recovery audits only, and we are now an absolute leader in spend justification. This leadership role allows us to partner up with top leading international organizations and to discuss the current and future capabilities that they require from our recovery service. By commencing structural dialogues with leading organizations and system suppliers we challenge tomorrow’s needs in Accounts Payable solutions.

 

Interested in a free SpendLab Recovery demo and see how your company can benefit?

Contact us!