Rent a Treasurer, Plans & Success

| 03-03-2020 | treasuryXL | Pieter de Kiewit

You might remember our previous blogs about the Rent a Treasurer. In this joint effort with Treasurer Search, we make high calibre treasury expertise available for organisations with treasury exposure without a specialist on board. Treasurer Search is in constant communication with the treasury labour market and knows who has what expertise and is available. treasuryXL has a wider network that includes CFOs of mid-sized companies and a very strong communication machine. Combining both enables the Rent a Treasurer service.

What we notice in our market research is that treasury is not well known by these CFOs, so they do not put it on their priority list. But CFOs do understand quickly the upside when speaking with and learning from a treasurer. Often not wanting extra headcount is mentioned as a reason not to act upon treasury opportunities. And many specialized treasury consultants are a better match with multi-billion corporates and costly. So mid-sized companies often rely on bankers and auditors. But many bankers focus too much on revenue and the knowledge of auditors is often not deep enough.

Currently we work with a core team of eight bringing the Rent a Treasurer concept to the next level. Six team members cover various subsets of treasury tasks and complement each other. Kendra represents treasuryXL and I work on behalf of Treasurer Search. We are the support. Our goal is to organise more meetings with CFOs and help them successfully save costs, mitigate risk and create opportunities through appropriate treasury solutions. We tell interesting stories, on a regular basis, to decision makers who might be interested and we will increasingly do so.

It gives me great pleasure to inform you that one of the team members,  Niki van Zanten, currently works as a Rent a Treasurer on two different assignments where FX risk has the most prominent focus. With the first client, he has been able to save substantially on cost already in his first week. Niki is the perfect example of an expert who learnt in the Champions League, with Cisco & Philips, and applies his knowledge helping mid-sized companies.

If you want to know more about Rent a Treasurer or introduce us to your business network, please let me know. I am convinced many more can benefit from good treasury. We will keep you updated.

 

 

Pieter de Kiewit

Owner at Treasurer Search

 

 

 

Corporates: Caveat IBOR and Build-Up Your IBOR Knowledge!

01-03-2021 | treasuryXL | Enigma Consulting |

Last year November we published the article ‘Corporates: Caveat IBOR!’ regarding the IBOR phase out and the impact on corporates. Let’s have a look why today’s corporate treasurer should be even more aware of IBOR interest rate benchmarks.

It is highly likely that your organisation will be affected by the IBOR transition. Most corporate organisations underestimate the impact, thinking that the ‘only’ thing that will change is a base rate and its calculation method. Before you join their ranks, take some time to reflect on the following:

The IBOR will cease to exist, starting on the 31st December 2021 and be replaced by Risk-Free Rates (RFRs) with a different basis for calculation:

  • These changes will impact financial (e.g. bond, (intercompany) loan, (multi-currency) credit facility) contracts as well as commercial contracts with an IBOR related ‘late payment clause’
  • This in turn will impact processes in the Treasury functions, with knock-on effects to supporting departments, Legal, IT systems, accounting, and tax reporting to name just a few
  • IBOR transition is progressing at a different pace across jurisdictions and financial products (e.g. loans, bonds, and derivatives), adding to the complexity of managing the transition
  • The Working Group on Sterling Risk-Free Reference Rates (RFRWG) published the following milestones regarding GBP LIBOR:
    • By end-Q1 2021, all legacy GBP LIBOR contracts expiring after end 2021 that can be actively converted need to be identified, and progress active conversion where viable through to completion by end-Q3 2021
    • Active steps to enable a shift of volumes from GBP LIBOR to SONIA in non-linear derivative markets: by end-Q2 2021, initiation of new GBP LIBOR linked non-linear derivatives that expire after the end of 2021 will be ceased; and, by end-Q3 2021, complete active conversion

The good news is that there is still time to assess the impact of the pending IBOR changes on your organisation and to act upon it if needs be. The sooner you have a plan for the potential consequences for your organisation, the sooner you will be able to mitigate these. This understanding will also give you more leverage in the coming discussions with your bank(s).

Moreover, the IBOR phase out may bring a golden opportunity for corporates to re-evaluate the current contract agreements and look for better deals. Consider this: during the IBOR migration contracts are in fact ‘renegotiated’ and banks will need to come up with a new offer. Will you take that offer as a corporate client? That all depends on your level of understanding and preparation.

What should you do to prepare?

As the deadline approaches, you will need to know your level of exposure and impact in order to prevent surprises. What will the impact of the IBOR transition be on your TMS and ERP systems, your credit facilities, bank loans, cash pooling, bonds, ISDA agreements and intercompany agreements? What impacts will these have on your processes and supporting systems? Which complexities will need to be managed?

 

 

Having this information at hand will enable you to be a proper sparring partner for your banks when they renegotiate contract terms.

Depending on the complexity of your contracts, the IBOR phase out could substantially affect your corporate organisation. Prevent unnecessary loss by preparing yourself, following this five-step approach:

 

  • IBOR phase out knowledge build-up

Corporates should start to build-up their knowledge regarding the IBOR phase-out and get up-to-speed with developments related to different kind of products and RFRs in order to be able to assess the IBOR phase-out impact. Each corporate organisation has a different situation and a variety of financial contracts. Complexity depends on the type of business. A larger organisation active across multiple regions in the world with more complex non-Euro instruments will be impacted higher than a smaller organisation that only is active locally within the Eurozone. Thorough knowledge about IBOR is a key starting point to assess the impact on your organisation and to be able to assess, plan and implement the migration to alternative reference rates.

  • Assess impact

The second step you should take is to analyse the IBOR related contracts in use throughout your organisation. Determine which contracts have an IBOR related component and the size of the exposure. Once you have assessed the complexity of your IBOR related contracts, analyse the impact on related areas (ranging from Tax and Legal to IT systems, and procedures, reporting, accounting (e.g. hedge-accounting), and the like).

  • Become a prepared discussion partner for your bank(s)

The third step is to be prepared for a call with your bank to discuss an RFR offering! The magnitude of change is well-recognised by banks and financial institutions, and they are demonstrating an increasing sense of urgency to address contracts maturing after 2021. More and more newly issued IBOR related products by your bank(s) will refer to a new alternative reference rate during 2021.

  • Plan actions

Knowing the alternative RFRs is an important input on creating a detailed action plan. Define a project team governance to manage this action plan and the status of the transition across different areas, business lines, and geographical locations. In particular, take care to ensure external resource availability regarding e.g. Legal counselling and system provider experts, as demand for these specialists will rapidly increase as the IBOR transition deadline approaches.

  • Act and implement

Step five is the implementation of your action plan throughout the affected areas of your organisation. In this ‘Act’ phase it is important to maintain the conversation with external parties, such as banks and system providers. It is also of vital importance to support the implementation across all relevant business lines and functions, maintaining support for go-live readiness in line with the defined action plan and deadlines.

A golden opportunity starts with IBOR knowledge build-up

Enigma Consulting supports you in knowledge build-up by providing ‘tailor-made’ workshops in order to discuss the impact on your corporate organisation related to different RFRs for different products based on your specific situation and to help you to prepare and become a discussion partner with your bank.

IBOR may well be a golden opportunity, but it is up to you as a corporate treasurer to seize it by acting rather sooner than later! Corporates: Caveat IBOR and build up your knowledge!

If you are interested in how we can help you to build-up your knowledge and to assess your IBOR related contract complexity or if you want to understand how we can support your corporate organisation in the IBOR phase out transition, you can contact us on:

dpluta@enigmaconsulting.nl or look at www.enigmaconsulting.nl

Daniel Pluta

 

 

 

Webinar – Letters of Credit

| 16-02-2021 | Evofenedex

In this Webinar held by Evofenedex, we will learn more about Letter of Credits. The Webinar is in Dutch. Be sure to subscribe!

Een Letter of Credit (L/C) is een veelgebruikte betalingsvorm bij internationale handel. Een L/C wordt bijvoorbeeld regelmatig ingezet bij het zakendoen met het Midden- en Verre Oosten. Als je voor het eerst met een L/C wordt geconfronteerd, is het verstandig een zekere basiskennis te hebben. Na het volgen van dit webinar heb je kennis gemaakt met de L/C en weet je wat daarbij komt kijken.

  • Locatie: Online
  • Datum: 16 Februari 2021
  • Tijdstip: 10:00 – 10:45

WEBINAR – BASISKENNIS LETTERS OF CREDIT BIJ IMPORT EN EXPORT

  • Voor wie? Iedereen die niet of beperkt met L/C’s heeft gewerkt en hier meer over wil weten, zowel vanuit een import- als exportrol.
  • Doel: Deelnemers de basiskennis geven om succesvol met een L/C te kunnen werken. Na het volgen van dit webinar weet je wat een L/C is, welke partijen erbij betrokken zijn en ben je op de hoogte van de tips en tricks bij het gebruik ervan.

Programma

Onderwerp: basiskennis Letters of Credit
Tijd: 10.00-10.45 uur
Spreker: Hans Noordzij, trade finance specialist en docent bij evofenedex
Moderator: Wiemela Mangroo, projectleider bij evofenedex

In dit webinar komen de volgende onderwerpen aan de orde:

  • wat is een L/C en welke partijen zijn betrokken
  • voor- en nadelen van het werken met een L/C
  • documenten bij een L/C
  • aandachtspunten, tips en tricks bij het gebruik van een L/C

MELD AAN

 

Banks are increasingly looking for an Ecosystem strategy

27-01-2021 | treasuryXL | Enigma Consulting | Paul Jans

Banks are increasingly developing an ecosystem strategy to realize competitive advantages. They use partners, software suppliers and BPO providers and link plug-and-play solutions.

“These ecosystems are the foundation of their changing business model (‘open banking’) and facilitate innovation. The basis for this development is a stable core banking and payment infrastructure that does not require all means in terms of budgets and resources, ”says Paul Jans, Managing Director at Enigma Consulting. The article continues in Dutch…

Hij vervolgt: “In onze gesprekken met klanten is dat de belangrijkste motivatie om tot outsourcing van deze non concurrentiele diensten over te gaan.” Jans verwijst in dat kader naar onderzoek van PwC, waaruit blijkt dat “de belangrijkste strategische reden voor banken om samen te werken met derde partijen is om het productaanbod van de bank te verbeteren (juli 2020).”

“De belangrijkste strategische reden voor banken om samen te werken met derde partijen is om het productaanbod van de bank te verbeteren.”
– Paul Jans, Enigma Consulting

Het streven naar meer samenwerking (met Fintechs) wordt mogelijk gedreven door een aantal ontwikkelingen, legt Jans uit.

Om te beginnen reageren FinTechs snel door gebruik te maken van technologische ontwikkelingen, snelle besluitvorming en de toegang tot investeringskapitaal. Jans: “Ze zijn wendbaar en kunnen snel nieuwe diensten aanbieden die aansluiten bij het veranderende gedrag van de klanten.”

Ook versnelt nieuwe wet- en regelgeving de ontwikkeling dat innovatieve partijen de klantinteractie overnemen en de banken naar de achtergrond drukken. De toegang tot rekening gegevens van derde partijen op basis van de PSD 2 wetgeving lijkt een eerste stap in een ontwikkeling waar banken de directe klantinteractie steeds meer kunnen verliezen aan derde partijen. “Succesvolle banken concurreren niet met deze derde partijen maar via hun ecosysteem strategie maken ze deze FinTechs onderdeel van hun businessmodel”, aldus Jans.

Verder ondersteunen technologische ontwikkelingen de nieuwe businessmodellen. “Het koppelen van innovatieve Fintech oplossingen via een integratie laag (API’s) maakt het mogelijk dat banken beter blijven voldoen aan de huidige hoge klantverwachtingen”, legt Jans uit.

“Samenwerking, outsourcing en partnering met een open ecosysteem lijkt de toekomst voor de bancaire core banking infrastructuur”

Tot slot wijst de Enigma Consulting managing director erop dat het bedrijfsmodel van banken onder druk staat. “We zien verdergaande schaalgrootte, digitalisering en consolidatie of samenwerking. Het afgelopen jaar zien we dit in internationaal en ook in de Nederlandse markt hebben we een aantal voorbeelden gezien (Van Lanschot Kempen met Hof Hoorneman Bankiers, Insingergilissen met Quintet).”

“In gesprekken met onze bancaire klanten naar aanleiding van onze outsourcing survey komt duidelijk naar voren dat de banken te weinig focus kunnen onderhouden op al deze ontwikkelingen. Wet- en regelgeving, verplichtende veranderingen zoals de SEPA rulebooks, Swift changes of zoals bijvoorbeeld de vervanging van benchmarks voor rentetarieven (IBOR) eisen alle aandacht op”, geeft Jans aan.

Om de nieuwe uitdagingen toch het hoofd te bieden, zo legt hij uit, zoeken de banken naar een oplossing met de volgende kenmerken:

  • Nieuwe bancaire architectuur die flexibel is
  • Geen zorgen over backoffice onderhoud en noodzakelijke aanpassingen
  • Ontzorging en implementatie van wet- en regelgeving
  • Architectuur die het mogelijk maakt makkelijk te koppelen aan nieuwe oplossingen en de mogelijkheid te switchen
  • Een integratie laag (de API-infrastructuur) die zowel integratie met het ecosysteem, de integratie met interne systemen als de klant interactie ondersteunt en faciliteert. Dit maakt een optimale en flexibele customer journey mogelijk

Jans vat samen: “Modernisering van de core banking omgeving om gegevensuitwisseling te vergemakkelijken en flexibiliteit te bieden is de oplossing om nu en in de toekomst alle bovenstaande uitdagingen het hoofd te bieden. Samenwerking, outsourcing en partnering met een open ecosysteem lijkt de toekomst voor de bancaire core banking infrastructuur. De huidige stand van de techniek maakt dit mogelijk.”

Paul Jans

Managing Director at Enigma Consulting







Source

 

 

Cash Management review – Fitting like a glove

| 18-01-2021 | Bas Meijer |

Can you remember when your current Cash Management structure has been set up? Probably at a point in time when there was a refinance, additional funding need or when a new treasurer came on board. The world is changing, your clients and their behavior are changing, therefore probably your Cash Management environment needs changing.

Unfortunately these changes are not automatically translated and implemented into your Cash Management setup. And as not every bank is the same, some banks cannot provide the Cash Management setup your corporate needs.

Reflecting the Cash Management needs every 3-5 years is a good habit. Solutions are evolving, banks are changing their focus & pricing can be renegotiated. But the most important goal is that the Cash Management setup should fit your corporate like a glove, not too big, an certainly not too small.

TreasuryXL has multiple experienced Treasures with up-to-date knowledge and experience, who can help your organisation to achieve these  goals. Maybe your corporate is ready to take the next step, or your Cash Management infra structure is outdated. Is there need for automation, independent banking portal, TMS or market data provider?

From experience this review brings a contribution to the bottom line. But not only in money, also in speed and accuracy. With new tooling your current choices can be reviewed in time, which helps you to make the next steps down the road. The Treasury Department is never static, and should always adapt to the changing environment. Make sure that your Treasury function, how big or small, fits like a glove to the needs of the corporate!

 

Bas Meijer

Treasury Specialist

 

 

 

 

 

Brexit: UK Payment Service Providers barred from EU

13-01-2021 | treasuryXL | Enigma Consulting | Geert Blom

UK Payment Service Providers without an EU-license are barred from doing business in the EU. As of December 31, 2020, the UK and EU have concluded arrangements that effectuate the partnership between both parties on many different levels. However, the arrangement agreed upon does not include specifications regarding provisions, exemptions or special treatment for UK Payment Service Providers.


On January 31, 2020 the UK left the EU on the basis of the agreed withdrawal agreement. This prevented a no-deal Brexit on that date and led to the transition period until the end of 2020. In 2020, lawmakers have argued over the possibility to arrange for so-called EU-equivalence decisions with regard to the UK. These arrangements have not materialized and neither did EU member state parliaments deem it necessary to extend temporary exemptions for the provision of services by payment service providers or electronic money institutions established in the UK.

This means that from 2021 onwards, all British financial service providers without an EU-license are no longer allowed to provide many of their services to EU-clients. Also, the access rights of British financial institutions to provide cross-border financial services in the European Union will in many cases no longer apply. The financial supervising authorities expect that British institutions have taken timely preparatory measures so that the relevant state laws and regulations are complied with. Compliance could and can still be attained by applying for – and receiving – a payment institution license in one of the EU member states.

In recent years, The Netherlands have served as a favorite hub nation for many UK PSP’s. At Enigma Consulting, we are experienced and market leader in applying for payment institution licenses specifically in the Netherlands, for both PSP’s and EGI’s. We specialize in creating all required documentation and provide expert guidance on all applicable policies, procedures and related topics. If you too aspire to do business in the Netherlands as a PSP or EGI and if you are currently in need of expert advice or assistance with acquiring a license, please do not hesitate to contact us at info@enigmaconsulting.nl.

 

Geert Blom

Senior Legal Consultant

+31 (0)6 13 91 88 22

 

 

 

 

 

Recruiting a Treasurer and The First Impression – Trap

| 28-12-2020 | treasuryXL | Pieter de Kiewit

They still exist, the hiring managers who totally rely on their first impressions. “At handshake I already know if it is a good candidate”. I am no Don Quichote but will continue my battle against this statement. Not only because we are not allowed anymore to shake hands due to covid-19. This statement radiates being impolite, dumb, not showing an interest in who you work with and wasting time.

I found new inspiration in this article of recruitment guru Lou Adler.

I will let you read the whole article by yourself but elements I took is that preparing for an interview with a potential successful hire should include assessment of abilities (soft, hard and other skills), the fit (with the culture, colleagues and manager) and of course motivation (in doing the job, not landing it). He further describes that content driven interviewers (techies) tend to focus too much on abilities and the first-impression-interviewers do not control their “stupid switch”. I will not do a comprehensive analysis but want to put your attention on the following two aspects:

  • First, in my perception many in the current corporate treasury population can be described as highly skilled. They did well at university, got high grades and enjoy the analytical. The ones that have an above average impact, the ones that go up the ladder in treasury but also other functions, did well because they were a good fit. They understood colleagues and were able to get their point across. They bridged the gap between treasury and the rest of their organisation. As many hiring managers are treasury-techies, I would like to invite them to increase their attention to the fit. It could make your team so much better.
  • Second, I see bad recruitment decisions based upon the stupid switch in organisations where hiring managers do not understand the importance of treasury. Hiring managers who do not spend (a lot of) time with the person they recruit. Hiring managers who are included in the process because “somebody has to interview the candidate and has to make the decision”. I do understand that decision makers have to be included but perhaps they are better informed with CVs or assessment reports. Also there is a task for us, the treasury community, in showing how important the job should be. Spread the word!

Let me finish up with emphasizing that the interview is only one of many components of a good recruitment process. CV screening, references, assessments and a cover letter all bring information that can be the foundation of a good recruitment decision. We like to use the Treasurer Test in our recruitment. In the article Lou Adler describes not only the theory but also helps you, with practical steps, professionalising your recruitment.

Do you know people who cannot switch of the “stupid switch”?

What do you see?

I look forward to your input,

 

 

Pieter de Kiewit

Owner at Treasurer Search

 

 

 

New MiCA regulation further tightens regulations for crypto companies (Dutch Item)

23-12-2020 | treasuryXL | Enigma Consulting |

Op 21 november 2020 verliep de deadline waarop cryptodienstverleners, die in of vanuit Nederland opereren bij toezichthouder DNB, geregistreerd dienden te zijn om hun crypto-activiteiten te mogen voorzetten. Bijna vijftig partijen hebben een aanvraag ingediend bij DNB, maar tot op heden heeft DNB ‘slechts’ dertien partijen in het openbaar register bijgeschreven. Het volgende reguleringskader staat echter al in de steigers: de zogeheten Europese verordening ‘Markets in Crypto-Assets’ (MiCA). Deze verordening moet vanaf 2024 voor alle lidstaten van de EU gaan gelden. Erik van der Leer van Enigma Consulting beschrijft welke impact MiCA kan hebben op de bedrijfsvoering van (crypto)bedrijven.

MiCA zal de van toepassing zijnde regelgeving voor cryptoplatformen verder uitbreiden en aanscherpen. Onder MiCA zullen ook verschillende cryptodiensten die voorheen buiten het reguleringskader vielen moeten voldoen aan Europese regelgeving. Zo definieert MiCA drie verschillende soorten uitgevers van crypto-assets en zeven verschillende cryptodienstverleners. Naast  de cryptodienstverleners die zich vandaag de dag reeds dienen te registreren in Nederland worden daarmee ook andere cryptodiensten binnen bereik van de wetgeving van de Europese lidstaten gebracht.

MiCA typeert aanbieders van een of meer van de volgende diensten als cryptodienstverlening:

  1. Diensten waarbij advies wordt gegeven over crypto-assets;
  2. Diensten waarbij orders in crypto-assets worden ontvangen en uitgevoerd;
  3. Diensten waarbij crypto-assets in de markt geplaatst worden;
  4. Diensten waarbij orders in crypto-assets worden afgewikkeld door derde partijen;
  5. Diensten waarbij crypto-assets in bewaring worden beheerd;
  6. Diensten waarbij een handelsplatform voor crypto-assets wordt geëxploiteerd;
  7. Diensten waarbij crypto-assets worden verhandeld tegen fiatgeld of andere crypto-assets.

Hoe staan de eisen uit MiCA in verhouding tot het in Nederland geldende registratie-regime?

Onder MiCA moeten cryptodienstverleners, net zoals dat geldt binnen het DNB registratieregime, een bedrijfsplan opstellen, procedures inrichten voor de integere bedrijfsuitoefening, de betrouwbaarheid en geschiktheid van bestuurders en beleidsbepalers laten testen door de toezichthouder en over een transparante zeggenschapsstructuur beschikken.

Deze verplichtingen worden uitgebreid met o.a. de volgende zaken:

  • Het aanbrengen van een strikte scheiding tussen het vermogen van de dienstverlener en het geld in beheer van de klant;
  • Het opstellen van een uitbestedingsbeleid, waaronder het formuleren van een herstel- en exitplan;
  • Het opstellen en naleven van een, aan de wettelijke eisen voldoende, klachtenprocedure;
  • Het beschrijven van de geïmplementeerde IT-systemen en beveiligingsprotocollen;
  • Het voldoen aan strike eisen omtrent marktmisbruik en insider-trading.

Ook zullen cryptodienstverleners een cliëntenacceptatiebeleid moeten opstellen voor diensten waarbij crypto-assets worden geplaatst, alsook moeten voldoen aan verschillende transparantievereisten voor diensten waarbij crypto-assets worden verhandeld tegen fiat geld of andere assets. Naast deze zaken zal ook een eigen vermogenseis gaan gelden van minimaal € 50.000.

Wat zal de impact zijn van MiCA op de Nederlandse cryptosector?

Zoals blijkt uit de bovenstaande zorgt MiCA voor een flinke toename in regeldruk binnen de Europese en Nederlandse cryptosector. De cryptodienstverleners dienen niet alleen hun bedrijfsvoering verder aan te passen, maar dienen ook over een aanzienlijk minimum eigen vermogen te bezitten. Met name voor de kleinere Europese spelers in de markt kan dit potentieel een grote impact hebben.

Desalniettemin brengt MiCA ook voordelen met zich mee voor de Nederlandse cryptosector. Het huidige Nederlandse registratieregime staat binnen Europa immers te boek als relatief streng, waardoor de Nederlandse cryptosector zijn concurrentiepositie ten aanzien van Europese concurrentie heeft zien verslechteren. Doordat MiCA het Europese speelveld nu gelijk maakt verbetert de internationale positie van cryptodienstverleners in Nederland. Ook beoogt MiCA dat een verkregen autorisatie gepassport kan worden naar andere lidstaten, iets dat momenteel niet mogelijk is. Omdat Nederland al relatief strenge eisen stelt zullen Nederlandse registratiehouders naar alle waarschijnlijkheid beter voorbereid zijn op de additionele MiCA-vereisten.

Ten slotte zorgt MiCA ervoor dat de uitgifte van crypto-assets en het verrichten van crypto dienstverlening een duidelijk en universeel reguleringskader krijgt binnen Europa. Alhoewel de hieraan verbonden eisen streng zijn en wellicht een negatief effect zullen uitoefenen op de bedrijfsuitvoering van sommige spelers in de sector, brengt MiCA ook zekerheid voor de markt én de consument. Het ontvangen van een MiCA-autorisatie zal daarmee ongetwijfeld deuren openen die tot op heden gesloten waren en nieuwe commerciële kansen met zich meebrengen voor de Europese en Nederlandse cryptosector.

Interim Treasurer: Cost or revenue?

| 15-12-2020 | Bas Meijer |

Temporary staff in general is looked at as ‘too expensive’ . When turnover is showing headwind, or management is under pressure by internal- or external stakeholders, cost saving is the first instrument management uses.

Agreements with expensive temporary staff is ended and fixed employees are asked to go the extra mile. This is not the case for all financial expertise.

The interim Treasurer is a good example. In the past 20 years I have experienced that interim Treasurers are able to create value to the company, and add contribution to your bottom line. In some assignments this was 1-2% of the turnover.

In general the interim treasurer should be able to have a rate of return of 3-6 months, based on a 1 year assignment. The revenue will not be limited to this 1 year assignment, but last much longer. I have experienced a much shorter period, up to 4-6 weeks.

Are you interested in cost saving, and attribution to your bottom line? Do not just let your expertise walk out of the door, but hire an interim treasurer for an analyses on the potential cost saving for your organisation. You’ll be surprised what an added value an interim treasurer can bring to your organisation.

 

Bas Meijer

Treasury Specialist

 

 

 

 

 

Update Digital Finance Summit 2020

| 02-12-2020 | François de Witte | treasuryXL |

After having worked for more than 30 years in banking, François launched his own consultancy activity, FDW Consult, specialized in finance and treasury consulting. From 2014 to 2016, he was also Solution Partner Treasury & Finance at USG Professionals. Since then he took up several assignments, including one in the automotive sector with Ginion Group and with Ibanity, part of Isabel Group in the area of PSD2 and open banking. He currently is Senior Project Manager Treasury at Gaming1 (part of Ardent-Group). 

Introduction

For the 5th year, Fintech Belgium organized its annual seminar, the Digital Finance Summit, this year with as main theme “The World After”.
Due to the current sanitary situation, this year’s edition went entirely ONLINE! It was attended by over 400 persons. There were also over 230 virtual stands of exhibitors; The organization was seamless. I perceived a participant experience which was not that far away from a physical gathering.

 Some messages

 Main Stage Sessions

During the general sessions, the main message was Digital becoming the new normal. Xavier Corman, Board Member of Fintech Belgium stated: “The Covid Crisis has also brought good thing. Years worth of Digital transformation.”.

Despite the virtual exchanges, which following on the COVID19 crisis, increased dramatically, in a digital worlds, People and trust become more important. We got also interesting testimonies of banks moving to disruptive models, such as Aion (e-bank providing full set of services for a fixed subscription fee and KBC (using AI models to improve its services in the insurance).

There is a large need for digital identity, like e.g. ITSME in Belgium, but more importantly of the interoperability of the digital identity solutions. Prof Bruno Colmant • highlighted that the creation of Digital currencies represent a new paradigm and a tectonic revolution in the monetary landscape.

Evolution in the cards Landscape

Within the cards busine, the tokenization of cards is increasing, reducing the friction, whilst keeping the security.
Tokenization is the process of protecting sensitive data by replacing it with an algorithmically generated number called a token. Often times tokenization is used to prevent credit card fraud. In credit card tokenization, the customer’s primary account number (PAN) is replaced with a series of randomly generated numbers, which ares called the “token.” These tokens can then be passed through the internet needed to process the payment without actual bank details being exposed. The actual bank account or credit card number is held safe in a secure token vault.

 

Evolution in the payments world

Following a three-month public consultation, the EPC (European Payment Council) has published on 30/11/2020 the first version of the SEPA  Request-To-Pay (RTP) scheme rulebook.  The Request to Pay (RtP) is an umbrella term for several scenarios in which a payee takes the initiative to request a specific payment from the payer.

The scheme covers the set of operating rules and technical elements (including messages) that allow a Payee to request the initiation of a payment from a Payer in a wide range of physical or online use cases. The scheme can be considered as a complement to the payment flow because it supports the end-to-end process and lies between an underlying commercial transaction and the payment itself. An RTP as such can be seen as an enabler for digital payments.

The first release of the SEPA RTP scheme is scheduled to go live on 15/6/2021. The SEPA RTP scheme, combined with the SEPA Instant Credit Transfer could be a challenger for card payments, being much cheaper for the merchants. It might take some time to take off.

Conclusion

This conference was a good forum to get an insight in the Belgian FinTech market. I saw a lot of interesting initiatives and consider that Fintech will bring a lot of added value in the payments and corporate treasury landscape.

If you want to learn more on this topic, I invite you to attend the one day training session, which I animate on the topic on 16/12/2020 “PSD2 & Open banking: impact on the financial ecosystem and new challenges

 

François de Witte
Founder & Senior Consultant at FDW Consult
Managing Director and CFO at SafeTrade Holding S.A.
treasuryXL ambassador