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!

 

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

| 12-04-2021 | VU Amsterdam |

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!

 

 

Partner Interview Series: Padraig Brosnan, CEO and Founder of Treasury Delta, a corporate treasury RFP platform

| 08-04-2021 | treasuryXL | Treasury Delta | treasuryXL are delighted to share the interview with CEO and Founder of Treasury Delta, Padraig Brosnan.

How can Xe help your manufacturing business with its international payments and FX requirements?

08-04-2020 | treasuryXL | XE |

Xe can help businesses in the manufacturing sector to make quick international payments and prepare for currency market volatility.

How can exchange rate movements affect your business? If your business operates in multiple countries, imports or exports goods or services abroad, or deals with foreign currencies in any capacity, exchange rate movements can have a significant impact on your business’s operations and bottom line.

Let’s consider how exchange rate movements could impact manufacturers who regularly purchase products and parts. Even if the costs of these parts and products remain steady, currency values will not. The currency markets are constantly in flux, and volatility in the markets could increase the costs of your imports, or even reduce your profitability.

In addition to preparing for potential market volatility, an experienced foreign exchange and international payments provider can also provide your business with a quick, reliable and cost-effective way to make your business payments, and help you to come up with a strategy to minimize your risk exposures and effectively plan for future FX outcomes.

What can a manufacturing business do to improve its FX outcomes?

The first step is finding the right international payments and foreign exchange provider. Just as each business is different, each provider is different, and the right provider for your business will have the right tools and services to help your business craft the strategy that suits your business’s needs.

At Xe, we understand that each business has its own FX requirements. Today, we work with over 13,000 businesses of all sizes across all industry sectors and offer each one the products, services, and guidance that it needs for its operations.

We can help your manufacturing business:

  • Maintain steady importing costs;

  • Save time on your international payments with our quick and easy transactions;

  • Save money on your international payments with better rates and fees than what your bank would offer.

Learn More

What Xe can do for your manufacturing business

In addition to offering our experience and expertise to help your business craft its own foreign exchange strategy, we also offer up an array of products and services that include:

  • Spot transfers, so you can purchase currency and send your international payments quickly, easily, and “on the spot”.

  • Market orders, so you can set a target exchange rate for an automatic transfer once it’s been reached, so you can secure the rates you want for your payments that aren’t time-sensitive.

  • Forward contracts, so you can lock in today’s exchange rate and schedule a future transfer on that date and ensure that your payment will send on time and you can avoid potential market volatility.

  • Risk management, so our team of currency experts can create a customized risk management strategy for your business’s foreign exchange needs, and you can devote your time to your business.

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

 

 

 

SpendLab Analyzer | Centralization of Accounts Payable Data Platforms

| 7-4-2020 | treasuryXL | SpendLab Recovery |

Our Partner SpendLab Recovery is introducing the SpendLab Analyzer, a way to centralize accounts payable data platforms worldwide. The platform has the ability to detect failures on Vendor level and provide real time insight. Furthermore, the SpendLab Analyzer can discover undue, incorrect double payments and VAT anomalies

More and more CFOs and Financial Controllers are choosing to work with the latest technology available within the SpendLab Analyzer because of the direct results in extra money, savings and data quality. The result of the analyzer is a recovery of more than 240 million euros in overpaid amounts to the tax authorities and suppliers over the past 5 years.

In addition, the quality in data improvement helps to save money in processes and the statistics ensure that the Compliance & Risk reporting is improved. The SpendLab Analyzer can be used independently of the ERP system (SAP, JD-Edwards, Oracle) used by the organization.

More info and contact information here.