Tag Archive for: ERP

Press release | Kantox joins the treasuryXL community as Premium Partner

28-07-2021 | treasuryXL | Kantox

treasuryXL announces partnership with Kantox to strengthen dissemination of the latest trends about currency management automation technology

VENLO, The Netherlands, July 28, 2021 – treasuryXL, the community platform for everyone who is active in the world of treasury, and Kantox, the global leader in currency management automation software, today announced the signature of a premium partnership.

This partnership will create a new content resource for the treasuryXL community. Treasurers will now have access to a regular stream of insightful and practical content on currency management automation. This partnership includes:

● Collaboration on messaging, content production, and visibility
● Mutual distribution on select items of interest
● Collaboration on larger themes: event promotion, speaking and experts contribution, publications

Through this partnership, treasuryXL and Kantox are striving to ensure that treasurers are always up to date with the latest news and events in their field.

About treasuryXL

treasuryXL started in 2016 as a community platform for everyone who is active in the world of treasury. Their extensive and highly qualified network consists of experienced and aspiring treasurers. treasuryXL keeps their network updated with daily news, events and the latest treasury vacancies.

treasuryXL brings the treasury function to a higher level, both for the inner circle: corporate treasurers, bankers & consultants, as well as others that might benefit: CFO’s, business owners, other people from the CFO Team and educators.

treasuryXL offers:

● professionals the chance to publish their expertise, opinions, success stories, distribute these and stimulate dialogue.
● a labour market platform by creating an overview of vacancies, events and treasury education.
● a variety of consultancy services in collaboration with qualified treasurers.
● a broad network of highly valued partners and experts.

About Kantox

Kantox is a leader in Currency Management Automation software that enables corporates to effectively manage their FX workflow and leverage currencies for growth. Since 2011, Kantox’s expertise and solutions have allowed businesses to collect FX exposure data and automate their hedging, pricing, payment and collection processes.

The company is headquartered in London and authorised by the Financial Conduct Authority (reference number 580343) and Kantox European Union, S.L. is based in Barcelona and authorised by the Bank of Spain (reference number 6890) For more information, visit www.kantox.com, @Kantox LinkedIn.

 

GO TO PARTNER PROFILE

E-Book: ERP Migration | How to Simplify and Accelerate Bank Integration

14-07-2021 | treasuryXL | Kyriba |

ERP cloud migration is a costly and time-consuming undertaking, particularly where IT is concerned – and for many corporations, the bank integration exercise can be among the most daunting aspects of the project.

The good news is that companies can simplify and accelerate the bank integration component of ERP migration, and reduce payment connectivity and format costs by up to 80%.

In this latest ebook, you will learn about the IT challenges involved in the bank integration element of ERP cloud migration, including:

  • Following banks’ schedules
  • Navigating geographical variations
  • SWIFT certification
  • Resourcing challenges

You’ll also find out how you can reduce the need for IT resources while minimizing costs, reducing complexity and accelerating the bank integration project.

Fill out this form to get your copy of the comprehensive eBook.

 

 

Digitalization enhances the strategic position of the treasurer

| 27-12-2019 | TIS | treasuryXL

Discover how you can skillfully use digitalization to play a greater strategic role in your company.

Digitalization is changing the business model of every company. In this factsheet, you will gain valuable expert insights on how you can use digitalization to enhance your strategic position. You will also learn why the opportunities of digitalization do not by any means poses a threat. Read more about:

  1. Digitalization as a horizontal phenomenon
  2. Data is the treasurer’s new gold
  3. Being a sparring partner for the CEO

New technologies are coming to the fore, which redefine the payment area. Especially treasurers will benefit from the expert insights. Do not miss this beneficial factsheet!

Request your download here.

Challengerbanken dwingen traditionele banken tot verbeterslag

| 05-08-2019 | ENIGMA Consulting |

Het openen van een rekening via mobiele telefoon wordt steeds eenvoudiger.

Een vooruitstrevende mobielbankierenapp is van groot belang om consumenten aan de bank te binden. Particulieren doen steeds meer bankzaken via de mobiele telefoon, maar ook het klant worden van een bank verloopt steeds vaker via de app. Een eenvoudig, snel en veilig onboardingsproces moet zorgen voor een eerste prettige klantervaring.

Enigma Consulting heeft onderzoek gedaan naar het onboardingsproces bij elf banken die actief zijn in Nederland . Op voorhand waren we met name benieuwd of gebruiksvriendelijkheid ten koste gaat van fraudepreventie en veiligheid.

In het onderzoek is het proces beoordeeld op drie onderdelen:

1. Gebruiksvriendelijkheid
2. Fraudepreventie/veiligheid
3. Innovatie

Op basis van de scores van de 58 criteria leidt dit tot het volgende inzicht, dat we graag in dit artikel nader toelichten.

De volgende banken zijn meegenomen: ABN Amro, ASN, Bunq, ING, Knab, Moneyou, N26, Rabobank, Revolut, SNS en Triodos. Regiobank en Van Lanschot bieden geen digitale onboarding en zijn daarom niet meegenomen in dit onderzoek.

Gebruiksvriendelijkheid: binnen een uur een actieve rekening
De challengerbanken scoren zonder uitzondering hoog op het onderdeel gebruiksvriendelijkheid. Bunq, Moneyou, N26 en Revolut springen eruit doordat de klant alle handelingen tijdens de onboarding via de app kan afhandelen. Er is geen afhankelijkheid van een ander device (zoals een identifier). Daarnaast zijn de processen nagenoeg papierloos, het identiteitsbewijs wordt bijvoorbeeld via de app gescand.

De challengerbanken scoren zonder uitzondering hoog op het onderdeel gebruiksvriendelijkheid. Bunq, Moneyou, N26 en Revolut springen eruit doordat de klant alle handelingen tijdens de onboarding via de app kan afhandelen. Er is geen afhankelijkheid van een ander device (zoals een identifier). Daarnaast zijn de processen nagenoeg papierloos, het identiteitsbewijs wordt bijvoorbeeld via de app gescand.

ING scoort goed op Android    
Van de traditionele banken scoort ING goed. Het proces via een smartphone met een Android-besturingssysteem verloopt soepel. Daarbij dient aangetekend te worden dat onboarding via besturingssysteem iOS (Apple) nog niet goed mogelijk is.

Snelheid en gemak zijn de sleutel    
Bunq, ING en Moneyou zijn de banken waarbij de onboarding in ons onderzoek het snelst verloopt. Binnen een uur heeft de klant een IBAN, toegang tot de bankomgeving en kan de klant geld overmaken naar een andere rekening. Het is bij deze banken niet nodig om een identifier/scanner of de bankpas te gebruiken voor het activeren van de rekening.

Triodos laat een matige indruk achter op het gebied van gebruiksvriendelijkheid. De bank vraagt als enige om een kopie van het identiteitsbewijs ondertekend per post retour te sturen. Triodos stuurt veel brieven (niet duurzaam), onder andere voor de identifier, voor de activatiecode en voor de pincode, waardoor het proces een lange doorlooptijd kent. In ons onderzoek duurde het dertien dagen voordat wij konden betalen vanaf de betaalrekening.

Ontvangen van pincode    
Een opvallend verschil is de wijze van ontvangen van de pincode. De traditionele banken sturen de pincode per brief naar het adres van de klant. Moneyou is de enige bank waarbij de klant de pincode krijgt toegewezen en kan aflezen in de app. Bunq, Knab, N26 en Revolut bieden de klant de mogelijkheid om de pincode zelf te kiezen. Dat laatste beoordelen wij als het meest gebruiksvriendelijk.

Fraudepreventie en veiligheid: stabiliteit bij alle banken
Alle banken laten een stabiele basis zien op het gebied van fraudepreventie en veiligheid. De banken scoren allemaal een voldoende wat betreft klantidentificatie en -authenticatie. De banken gebruiken verschillende methodes om een nieuwe klant te identificeren. Voor het delen van de identiteitsgegevens kan een klant bij de meeste banken in de app een foto of een scan maken van het paspoort, identiteitsbewijs of rijbewijs. ING leest daarnaast de chip op het identiteitsbewijs uit.

Heeft ASN geleerd van Rambam?    
Bij ASN kan de klant een kopie van het identiteitsbewijs uploaden in het webportaal. Daarnaast biedt ASN ook de optie om langs een balie van PostNL te gaan voor de klantverificatie. In een uitzending van Rambam werd op deze wijze met een gefotoshopte kopie van een paspoort identiteitsfraude gepleegd en een rekening geopend. Dat ASN deze mogelijkheid nog steeds aanbiedt, heeft een negatieve invloed gehad op de score.

iDIN speelt nog geen rol    
Opvallend genoeg gebruikt nog geen van de banken iDIN als identificatiemethode. iDIN is een dienst van de banken waarmee consumenten zich bij andere organisaties met de veilige en vertrouwde inlogmiddelen van hun eigen bank kunnen identificeren.

Identificatiestorting als extra stap maakt onboarding veiliger    
Als aanvullende identificatiestap vraagt een aantal banken tevens om een identificatiestorting, waarbij de klant een bedrag overboekt naar het nieuwe rekeningnummer. Vanuit veiligheidsoogpunt zien we dit als meerwaarde. Bij ASN, Bunq, Knab, Moneyou en Rabobank voltooit de klant deze stap via iDEAL waardoor deze eenvoudig uit te voeren is. Bij Triodos en SNS zet de klant deze stap door zelf een overboeking te doen en bij Revolut via een creditcardbetaling, wat voor Nederland minder gebruikelijk is.

Om er zeker van te zijn dat de aanvrager ook de dezelfde is als de persoon op het ID vragen enkele banken tevens om een selfie (ABN Amro, ING, Moneyou en Revolut), of meer specifiek een selfie waarbij de klant het paspoort in de hand houdt (N26) of een selfiefilm met ‘liveliness’ check. Daarmee wordt identiteitsfraude lastig gemaakt. N26 vraagt als enige bank om het delen van  locatiegegevens op de telefoon aan te zetten. Zodoende voegen zij een extra laag van veiligheid toe, doordat het mogelijk is de locatie te vergelijken met het opgegeven adres.

Procesbegeleiding in goede handen bij ABN Amro    
In de context van veiligheid hebben we ook gekeken naar controlemomenten voor de gebruiker gedurende het proces. ABN Amro scoort hierbij het beste. De bank begeleidt de klant via meerdere kanalen tijdens de onboarding. Daarnaast toont de app samenvattende schermen, waarin de consument continu de invoer kan controleren/valideren.

Gebruik van identifier   
Een kenmerkend verschil tussen banken is het wel of niet toesturen van een identifier of scanner naar het fysieke adres van de klant. ABN Amro, ASN, Knab, Rabobank, SNS en Triodos hebben de keuze gemaakt om een identifier te sturen naar de consument. De consument gebruikt de identifier tijdens de onboarding voor de registratie in de app en het activeren van de betaalpas. Impliciet wordt hierdoor het fysieke adres van de klant bevestigd en dat hebben we beoordeeld als extra veilig.

Innovatie:  via innovatie de mogelijkheid onderscheidend te zijn
Innovatieve oplossingen ondersteunen een leukere, veiligere en snellere onboarding. Dit komt terug in nieuwe toepassingen en onderscheidende features. We komen verschillende innovaties tegen.

• Bunq gebruikt als extra identificatiemethode een stemopname. Hiermee kan de klant niet inloggen. Mogelijk sorteert Bunq voor op voice payments? Interessant om te blijven volgen!
• Revolut biedt zowel een fysieke als een virtuele pas  aan, waarbij de fysieke pas wordt geleverd in een zeer leuk ontworpen mapje.
• N26 biedt passen aan met verschillende designs, mogelijkheden en prijsstellingen (N26 ‘Metal’)
• Bij Moneyou is de pincode van de bankpas op te zoeken in de app die deze getal voor getal presenteert.

Ook bij ABN Amro en ING zijn mooie innovaties terug te zien. ABN Amro biedt de koppeling van Bunq-rekeningen aan tijdens de onboarding en sorteert hiermee voor op PSD2. ING haalt de identiteitsgegevens automatisch op door het scannen van de NFC-chip in het paspoort met de mobiele telefoon. De duurzame banken ASN en Triodos laten nog weinig innovatieve oplossingen zien.

Conclusie: Gebruiksvriendelijkheid en snelheid gaan niet ten koste van veiligheid
1. Challengerbanken Bunq, Moneyou, N26 en Revolut weten met een volledig digitaal en papierloos proces, een korte doorlooptijd, strakke lay-out, innovatieve vindingen en degelijke veiligheid de traditionele banken achter zich te houden.
2. Een aantal traditionele banken kijkt tegen een flinke achterstand aan. Een verbeterslag is nodig om het gat te dichten en ervoor te zorgen dat de onboarding geen reden is voor consumenten om af te haken.
3. ASN en Triodos moeten oppassen dat het verschil met de overige banken niet te groot wordt. Door veel extra stappen en een langere doorlooptijd bestaat het risico dat zij de klant kwijt raken tijdens het onboardingsproces.
4. ING laat zien dat het mogelijk is om in korte tijd stappen te maken om dichter in de buurt te komen van de challengerbanken.

Het onderzoek heeft uitgewezen dat het mogelijk is om via innovatie een gebruiksvriendelijk en snel onboardingsproces in te richten zonder dat het ten koste gaat van fraudepreventie en veiligheid.

Auteurs: 
Roderick Kroon, Enigma Consulting, Partner
Martijn Kieft, Enigma Consulting, Consultant

 

 

ENIGMA Consulting

 

 

The principles of multilateral netting: what, why and how

| 27-06-2019 | ENIGMA Consulting |

This article is meant as an introduction to the process of multilateral netting for international companies. It describes the fundamental concept of netting, the steps within the netting process and the ultimate benefits of netting. In addition, we elaborate upon the role of technology in netting and prepared a checklist for anyone that considers using netting in their company.

1. What is (multilateral) netting?

Netting is the process of consolidating payables against receivables between parties. Rather than settling each individual invoice leading to a large volumes of transactions, parties can consolidate invoices and agree upon one net payment stream. In the majority of the cases, netting is set up between internal group entities as parties for settling their intercompany invoices, but external (third) parties could participate in a netting process as well.

Most of the netting methodologies are either payables- or receivables-driven. In a payables-driven system, payables are netted against the payables of the other participants and in a receivables-driven system, receivables are used. Note that in the end it is (or should be) a zero sum game: intercompany receivables = intercompany payables.

If there are only two parties involved in the netting process it is called bilateral netting. If there are more than two parties involved that use a central entity to interact for all their intercompany transactions then the process is called multilateral netting. The figures below illustrate the differences between the payment flows before and after implementing a multilateral netting solution using a central entity (netting center).

Intercompany process without multilateral nettingIntercompany process with multilateral netting

Intercompany process without multilateral netting          Intercompany process with multilateral netting

2. How does the multilateral netting process works?

In general, the netting process (netting cycle) involves the steps outlined below:

Step 1: Collect invoice details from local entities
The first step is to have the local subsidiaries send their invoices to the netting center. Usually there is a central database where all the received invoices are collected. See also chapter 4 on technology.

Step 2: Verify / dispute invoices in the netting cycle
When invoices between two parties do not (automatically) match they should be investigated and disputes should be managed.

Step 3: Communicate netting balances to local entities
Once all invoices are reconciled, the netting center will calculate and send a netting statement to each of the local entities containing the balance that they will receive or need to pay.

Step 4: Settlement via cash or intercompany booking
The netting center distributes payments to the local entities that have positive balances. Local entities with negative balances will have to make a payment to the netting center. After the netting cycle is closed, a new round of collecting invoices will start (step 1).

3. Why use multilateral netting?

There are numerous advantages to those corporates that deploy multilateral netting:

  1. Reducing bank and transaction costs as a result of less funding transactions, less FX accounts and trades and savings on FX spreads, volumes and commissions. The pricing of FX deals can improve as the total number of FX transactions is consolidated into larger trades.
  2. Centralizing FX management as the netting center has the complete overview of currency requirements and is better able to hedge FX exposure.
  3. Standardizing the intercompany settlement process, creating both a single transparent approach throughout the company and discipline with regard to intercompany procedures and dispute management. This, in turn, can also minimize operational risks while maximize the operational efficiency.
  4. Improving the posting of intercompany invoices and reconciliation. By automizing this process (see chapter 4 on technology) not only treasury but also the accounting department benefits from netting.

For those international companies treating multilateral netting as part of their treasury roadmap it is possible to further enhance the benefits of netting by linking it with cash management. Integrating the use of a netting center with an in-house bank (IHB) can eliminate the use of physical cash payments by settling the net balances via the IHB.

So, for which companies it is worthwhile to consider multilateral netting? Corporates that have various (decentralized) local entities and various currencies and that have continuous multiple intercompany transactions between the local entities.

4. How can technology help

Technology and systems are key for an efficient and automated netting process. Examples of this are the following:

  1. Data collection
    The netting center relies on external input from its participants in order to reconcile invoices and calculate final settlements. The A/P and A/R invoices should therefore be collected from the ERP system and be sent to the netting center each netting period. Automation of the data collection will help the consistency and reliability of the data input for the netting process
  2. Netting calculation
    For the netting calculation, systems are crucial as the calculation for multiple invoices from multiple parties, in multiple FX can be quite complex.
  3. Dispute management
    Where invoices are sent, disputes can occur. These disputes can originate from administrative issues or be business-oriented. In a complex environment with multiple transactions occurring daily, disputes can often be overlooked. Systems are a helpful tool in providing an internal dispute management system.
  4. Liquidity management and settlement
    Upon the completion of a netting run and all invoices being reconciled, each company will receive a final netting statement, containing their new balance to be paid to or received from the netting centre. When a subsidiary is due to owe money to the netting centre, they will have various settlement possibilities available for use, and systems play an inevitable role to support these settlements. Subsidiaries can settle via bank account wires, take internal loans from the group treasury or book via intercompany accounts. Systems can be used to streamline the settlement process.
  5. Audit trail
    Some systems can provide a fully audit trail on all key variables in the netting process.
  6. Transparency and less manual tasks
    When all stakeholders of the netting process are using one central system where everybody has access to, there is only ‘one source of truth’ that increases transparency and supports consistent involvement of all parties. Systems will also diminish the manual tasks in the process and decrease the vulnerability to errors.

Which system is used for the netting process depends very much on the system landscape of the company. Roughly there are three options:

  1. ERP system
    As the source of the A/R and A/P is the ERP, it makes a lot of sense to use the ERP for the netting process as well. In the following situations the ERP system is not ideal option:
    – when the company has multiple ERP systems
    – when the ERP system lacks netting functionality
    – when treasury has limited access to the ERP for the (internal or physical) settlement of the transactions
  2. Treasury Management System (TMS)
    Many TMS providers can deliver netting functionality that support the full netting cycle. Preferably the netting process is then set up with automatic upload/download interfaces for the input and output data from/to the ERP system(s). It requires that the treasury department takes the lead in the set up and management of the netting process.
  3. Dedicated netting software
    There is variety of other dedicated netting systems available where the netting process can take place. Interfacing with the TMS and the ERP is then even more important. Some companies also use Excel spread sheets for their netting process and that can still be practical solution if there are only limited parties involved, few internal invoices and a small number of currencies.
5. Checklist

To prepare the business case for setting up a netting process that meets the specific requirements of the organization, the checklist of questions below can be used.

Checklist
1. How many currencies are used for internal invoices?
2. What is the number of local entities?
3. What is the total amount of internal invoices per month, what is the monthly value and who are the counterparties of these invoices?
4. What is the background of the internal invoices: trade, interest, royalties, dividend, hedge contracts internal, fees, loan repayments, investments etc.?
5. In what countries are internal invoices send/received?
6. Which exchange control regulations are existing for cross border transfers and what are the fiscal and legal consequences of netting intercompany transactions?
7. How does the system landscape looks like, where is data stored and in which system(s) will the netting process takes place?
8. Where does FX management take place within the organization and how will that be impacted by the set-up of a netting process?
9. To assess the options for settlement of internal invoices:
– How does the current bank (accounts) landscape looks like?
– Is there already an in-house bank (IHB) structure set up?
10. What are the organizational consequences with respect to the treasury department, accounting processes and corporate policies?
11. Are there adequate resources available in the organization at the relevant departments (such as accounting, IT and treasury) to set up the netting process?

Dominic Hoogendijk and Bas Kolenburg are experienced senior treasury consultants working for Enigma Consulting. Enigma Consulting is a trusted advisor in Payments, Risk & Compliance and Treasury with over 20 years of experience. Enigma Consulting serves all Dutch financial institutions, many (international) corporates and charity organizations.

 

 

 

 

 

 

Blockchain Smart Treasury: game-changer for treasurers?

| 19-3-2019 | Carlo de Meijer | treasuryXL

Though blockchain is not yet well understood by many treasury people, and tangible real-world applications for the corporate treasurer’s day-to-day activities are still scarce, this technology is getting increased interest in the treasury world.

In August 2016 I wrote a blog in Finextra named “The Corporate Treasurer and Blockchain”. My conclusions at that time were that blockchain had the potential to fundamentally change the treasury function at corporates. For some it would even going to be a game-changer for treasury. The change might not be here yet, but it is coming, and treasurers need to take a long view on it.

But that is changing rapidly. The focus of blockchain developers is now turning from proof of concept projects to the creation of more practical, treasury-focused blockchain solutions. Recently we have seen a number of blockchain-based treasury trials that are worthwhile looking at. Last December R3 announced the completion of testing on a new blockchain-based KYC proof-of-concept, which was facilitated in collaboration with the French Association of Corporate Treasurers and a number of French banks.

One of the solutions that triggered me most is Smart Treasury by Boston-based fintech Adjoint, that is aimed to enable real-time gross settlement and continuous reconciliation and improve the liquidity management of the corporate treasurer. Main question is, could Adjoint’s solution be a break-through for blockchain in the corporate treasury world?

It is always interesting – and I am a very curious person – to see new initiatives in the blockchain scene and what they could bring for corporates esp. the treasury department.

So let’s have a deeper dive.

Complex treasury environment

Internationally operating corporates have undergone many transformations in their finance and treasury organisations triggered by technology innovations, regulatory initiatives and changed client behaviours. As a result today’s business environment for these corporates is highly complex from a treasury point of view.

In the digital era, real-time insight into a company’s global cash positions and managing credit facilities across all bank accounts of the group and the ability to move money intraday to where and when it is needed is increasingly needed to support this changing business environment.

Key challenge is to obtain consolidated information of group-wide multi-currency positions across a fragmented banking network in a timely manner. Today’s model of international correspondent banking however does not easily facilitate the ability to manage cash in a real-time environment.

Corporate treasurers are urgently looking for new ways to provide cash management with up to date – and if possible real time – information on cash positions and cash forecasts faster and with deeper insight, allowing corporate treasurers to better react to the company’s current cash and working capital needs.

In this context, they are significantly increasing their spending on treasury technology and innovations, to speed up and streamline their company’s cash, liquidity, risk and working capital management, in order to gain greatest visibility over their business critical function and reach greater strategic control.

Adjoint’s Smart Treasury: what does it bring for corporate treasurers?

Adjoint’s Smart Treasury solution, that was launched last year, contains a number of unique specifics that makes it very interesting for corporate treasures.

Smart Treasury should be seen as a multi-bank, multi-currency virtual account platform for real-time gross settlement and continuous reconciliation. This should allow corporate treasurers to untap liquidity in their various subsidiaries’ bank account.

Adjoint has combined blockchain technology with related smart contracts and APIs (or application programming interfaces) to create a solution that aims to dramatically speed up settling intercompany transactions in a secured way while significantly reducing the costs.

Most important features of this Smart Treasury solution are the following:

Distributed ledger: Auto reconciliation

Smart Treasury uses distributed ledger technology to auto-reconcile transactions information, thereby eliminate netting processes and improve FX management to provide treasurers with streamlined efficiency and improved, real-time visibility on cash positions.

Virtual accounts

Another interesting feature is that it enables a limitless number of virtual or “sub-accounts” for reconciling customer and suppliers payments. Companies can thereby consolidate costly, physical bank accounts into a selected number of blockchain virtual accounts. Smart Treasury thereby enables “purposed drive allocation”, thereby using smart contracts to designate how much and where digitised cash can be spent from these virtual accounts.

“Money can then be debited or credited among those accounts as needed, using smart contracts and APIs to make the necessaire FX translations, apply interest on intercompany loans and similar calculations.” Somil Goyal chief operating officer at Adjoint

In-house self-service bank

Smart Treasury consists of an “always-on” in-house self-service bank with “pre-established” rules for automated intra-company transactions. Here you could think of limits on how much can be automatically borrowed by entities based on pre-established interest rates. Nowadays, intercompany transactions, often conducted via an in-house bank, have become essential for multinational corporations. They seek to leverage internal resources more effectively. However, the overnight batch systems most companies use to settle transactions, can limit the transparency into subsidiaries’ account balances.

Smart Treasury Dashboard: access

The solution allows corporate treasury departments to operate their own private distributed ledger. This may enable them to choose which internal corporate entities and third parties including customers and suppliers may have access to the network via their Smart Treasury Dashboard and settle transactions directly with them in real time, rather than overnight or even longer.

But also regulators could be added on the platform which may help notional pooling in jurisdictions with currency controls, while improving the regulatory reporting process by automatically updating records and centralising all information in the ledger.

Smart contracts

Another key feature of Smart Treasury is the use of smart contracts. The tool’s Smart Contracts System uses blockchain to help teams define and set pre-configured rules that securely enable automated, real time transactions. These may include key corporate treasury functions such as regulatory and corporate compliance requirements including KYC; account opening or transactions such as intercompany loans, FX and netting, manage liquidity in multiple currencies, transfers among any approved entities etc. so lowering the costs of booking transactions between subsidiaries.

API integration with corporate ERP and TMS systems

Smart Treasury offers a nearly real-time API-based integration with organisation’s existing systems. Instead of replacing systems such as enterprise resource planning (ERP) and Treasury management system (TMS), Smart Treasury works with current systems as an easy-to-be-integrated overlay, preventing duplicate entries. In fact Smart Treasury complement these, improving the way they interact by speeding up intercompany transaction settlement. Through using smart contracts, all transaction information is auto-reconciled and automatically posted into treasury management systems in real-time.

“With Adjoint’s solution this takes place much faster, at a much lower cost, and it will actuality accept feed from the banks using APIs, which then feed the ERP – again using API – and it carries all of the information necessaire through smart contracts”.Daniel Blumen, Partner of Treasury Alliance

API integration with banks

Smart Treasury also offers a real-time API-based integration with banks for transactions outside the organisation. The solution allows the use of APIs for real-time intra-day bank transactions processing as opposed to end of day batch processing. They enable the transfer of critical information and data between corporate entities and their banks and data providers, as well as between corporate entities within the corporate.

Read the full article of our expert Carlo de Meijer on LinkedIn

 

 

Carlo de Meijer

Economist and researcher

 

Treasury Intelligence Solutions: Centralizing Corporate Payments System

| 29-1-2019 | TIS Treasury Intelligence Solutions | treasuryXL

Interview with CEO and Co-Founder of TIS Jörg Wiemer by CIOReview

In today’s era where the face of IT is changing drastically, enterprises are facing a multitude of challenges germane to regulation, risk management, and most importantly performing business to business payments. Having served as senior vice president and global treasury veteran at SAP, Jörg Wiemer, the CEO and Co-founder of Treasury Intelligence Solutions (TIS) highlights that corporate transactions often involve multiple parties from both internal and external departments, and the legacy systems often cause recurrent delays in payments. The failure to bring this mission-critical process under control may affect the supplier relationship to the extent that the supplier may discontinue the business relationship. In the thick of grave challenges, modern CIOs are keen to bring in a robust technology that assists them to streamline payment processes. At TIS, the leadership brings to bear its vast experience to aid enterprises to efficiently and effortlessly manage corporate payments and cash flows through a SaaS platform.

The platform works as a central hub that is dedicated for enterprises to manage, organize, and analyze their corporate payments flowing across and within the organization. Through the power of SaaS, TIS’ cloud-based platform helps clients quickly connect their ERP systems with different banks to manage bank accounts. Moreover, the platform allows enterprises to perform analysis of liquidity and cash flow in real time. It also conveniently addresses complexities triggered by different communication protocols and channels, enabling clients to communicate and process transactions in their customers’ preferred language. “The clients can simply leverage the library of bank formats and the bank connector, which we have built over the last year, to allow transactions between ERPs and banks seamlessly,” informs Wiemer.

By challenging the status quo of legacy solutions, the TIS platform empowers multiple leadership executives with the ability to make smarter decisions and assists them to process, view, and analyze transactions in real time using a cash flow analytics feature. Cementing the digitalization objective of enterprises, the TIS cloud platform helps keep processes fully under control through increased efficiency, visibility, and transparency in corporate payments and audit trails.

“The clients can simply leverage the library of bank formats and the bank connector, which we have built over the last year, to allow seamless transactions between ERPs and banks”

Citing an instance, Wiemer brings to fore the case of a luxury goods company, Oettinger Davidoff AG, which faced the challenge in standardizing their payment processes while restructuring their ERP systems to migrate to SAP S/4HANA. Aside from centralizing their international payment transactions, the retail company sought to achieve a better overview of a large part of the liquidity in the company. Partnering with TIS, the client had seamless SAP integration and quick bank format hosting, which helped them successively onboard all the bank accounts to SAP without any hassle. Fast-forward to today, the client has about ten bank accounts of foreign subsidiaries in Switzerland that are connected to the TIS platform to perform all of the international payments of local subsidiaries.

Having researched the potential market for corporate payments solutions, Wiemer states that the total market for “ERP systems” is roughly about $80 billion (ERP) per year and for “payments” $1,000 billion per year, respectively. Tapping this huge market, TIS initially plans to expand its wings to Europe and the U.S. within the next month. The success of TIS reflects in its rich portfolio of clients from diverse industries including finance and insurance, retail and automobile, among others. Emphasizing the fact that TIS continues to help customers switch into a new way to collaborate and execute payments, Wiemer concludes saying, “The fintech industry will fuel the payments industry to become more efficient over time, and it will have customers save cost immensely.”

Original published on CIOReview

Netting, simplifying your intercompany cash management

| 16-09-2016 | Jan Meulendijks |

nettingcashNetting is mainly used by global operating companies with a large number of subsidiaries; the reach of netting can however also include smaller company structures and save a lot of handling and costs.

A company with a number of (foreign) subsidiaries will inevitably face a lot of internal deliveries, invoices, payables, receivables between all these subs (in multiple currencies).

Of course each individual transaction can be handled on it’s own, but this results in a very large number of ledger entries, payments, transaction costs, currency handing.

A netting system in which all intercompany movements are registered (manually or, preferably, automated by your ERP system) sees to it that on the desired netting date (e.g. daily, weekly, monthly….) each sub is informed about the nett amount to pay or receive to/from the central netting account.

netting

Source: Netting – An overview

Today’s generation of ERP/ledger/treasury software will often provide a netting module. I notice however, that in daily practice only the larger multinationals use this solution. The availability of netting solutions has reached the level that also smaller company structures may profit from the netting technique and that it is worth investigating the efforts and consequences it brings to your company.

Jan MeulendijksJan Meulendijks – Cash management, transaction banking and trade professional

[button url=”http://www.treasuryxl.com/community/experts/jan-meulendijks/” text=”View expert profile” size=”” type=”primary” icon=”” external=”1″]

Do you still rely on spreadsheets in your daily treasury operations?

| 24-08-2016 | Jan Meulendijks |

spreadsheet2Spreadsheets, every treasurer knows how to work them. Spreadsheets are deeply embedded in treasury operations and they seem hard to eliminate. We have read multiple articles on this subject lately and we decided to ask our community: Why do treasurers still rely on spreadsheets? (source: gtnews.com)

[separator type=”” size=”” icon=””]

Jan MeulendijksJan Meulendijks
In many cases the treasurers of companies have started their area of expertise with smaller (SME) companies, where the available ERP-system did not offer treasury features and/or no separate treasury system was in use. So… you build it yourself in a spreadsheet. The big advantage of this is that such a spreadsheet only features what you really need, and can be kept quite simple but effective.

When the treasurer moves up to a larger company, the basic spreadsheet can be expanded with any new features required. Again, simple but effective. The big disadvantage of course, is lack of system documentation and dependance on the original designer to transfer knowledge to others.
I would like to classify this phenomenon under the “80/20”-rule: with a few basic spreadsheet functionalities you can achieve 80% of your treasury requirements, to achieve the remaining 20% you have to undertake large operations and investments. Is that all worth it???

[separator type=”” size=”” icon=””]

Do you still rely on spreadsheets in your daily treasury operations?

How to cope with the interconnectivity trap part II

| 16-08-2016 | Hans de Vries |

Erphansdevries (1)

 

Electronic Banking has been here for more than thirty years now. And it certainly had a big impact on the way the corporates and banks communicate. Nevertheless, ever since the introduction Treasurers have been struggling to incorporate this feature into their IT ERP environment. They get stuck in the middle. You can read more about that in part I of this article. Today I will show you my “way out”.

A bank and ERP (and TMS) system agnostic solution to upgrade the Treasury function

The SaaS solution described in this article is particularly interesting for Treasurers because of the very limited implementation efforts that are needed to set-up the system at the corporate side. All the platform needs, is a connector that takes care of the automatic upload of files from the ERP environment to the platform. The platform takes care of the conversion of transaction files to the file format needed by the specific banks for processing and performs a validation on the contents of the files to ensure Straight Through Processing at the bank.

So there is no need for changing the output at the current ERP system. This is extremely handy in situations where the corporate landscape consists of various ERP systems, or various versions of an ERP system. The same goes for the download of statement files. After collection of the bank statements, the platform takes care of the conversion into the needed file formats and delivers them into the ERP (and TMS) environment for automatic reconciliation purposes. By using the (SaaS) bank agnostic platform the Treasurer is immediately freed from all usual IT concerns with regard to the bank connections. Most systems also provide the Treasurer with a Dashboard Function to monitor the actual total balances at all banks and the cashflows (End of day and Intraday) that enables them to perform bank (automated) independent cash balancing transactions if needed.

Streamlining the authorization processes to get full control

In most multibank situations the treasurer is faced with one bank only authorization schemes that in most cases use unique bank authorization codes tokens and procedures. This wide variety of tokens, passwords etc. makes life for a Treasurer far from easy especially from a compliancy perspective.

Routing all outgoing transaction files via the SaaS platform, provides the Treasurer with the unique opportunity to streamline the authorization process. He now gets the opportunity to fully control and maintain the granted functionalities / authorization levels per user that are applicable on all bank accounts. Especially in the upcoming times of real-time 24/7 processing by the banks, using this sole gateway to the banks will provide the Treasurer with maximum control of all outgoing transactions and therefore avoiding fraude to the max. Since these systems also provide all necessary audit trails, the Treasurer can take full accountability for the banking processes.

Saving substantial money

Depending on the platform and the number of banks that need to get connected, the costs of the implementation and annual subscription fee will vary per provider. However, the benefits of such an investment are not only measured by the upgrading of the internal cash management processes.

Implementing the platform will also directly lower the operational costs:

  • Experts estimate costs of € 15,000 per year per e-banking solution (maintenance, license fees, software updates, system administration, system tests, database configuration etc.)
  • Elimination of expenses for manual liquidity tracking, manual administration of bank accounts and bank master data as well as the bank-specific administration of signatory authorizations.
  • Reduced banking fees as a result of higher transparency, easier comparability as well as the maximized flexibility towards banks: daily choice of transaction bank(s) per currency/ transaction type.
  • Saving operational costs due to the elimination of manual intervention for the collection and upload of bank statements to the ERP system. In the perfect set-up the reconciliation process can be fully automated and finalized in the early hours of the day providing a head start to the credit management department.

In most cases, these savings pay back the investment in the bank agnostic platform within a year. The introduction of this relatively new cash management service will free the treasurer from the interconnectivity trap, upgrade the internal organization, provide a uniform authorization scheme on all banks while at the same time reducing the operational costs. This solution is also future proof due to its capacity to adopt quickly to new standards, formats etc. All in all, a perfect perspective on upgrading the cash management function within the treasury. For more information, check: PowertoPay.com.