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When Is the Right Time to Move to APIs?
23-03-2022 | treasuryXL | Kyriba | LinkedIn |
By Andrew Deichler, Content Manager, Strategic Marketing
Application programming interfaces (APIs) have the potential to revolutionize the treasury and finance function. But when is the time to move to APIs, and when is file transfer protocol (FTP) still sufficient?
Let’s explore the use cases for APIs and when it is appropriate to begin using them. We’ll also look at areas where FTP is still sufficient.
Source
API Use Cases
Largely viewed as conduits for faster bank connections, APIs allow systems to exchange data faster. Unlike FTP, APIs do not require any kind of file download to transmit information; users have instant access to the data they need.
Major ERP providers are working with API developers to embed APIs into their workflows so users don’t need to take any action outside the ERP. For example, Kyriba is working with SAP, Oracle, Microsoft Dynamics and others on API connectors. And Kyriba users can also integrate APIs into their ERPs on their own with our plug-and-play solutions.
APIs have nearly limitless potential. They can facilitate an open ecosystem that enables third-party developers to build applications on top of the API provider’s platform. Through such a platform, corporate treasury and finance departments can expedite the flow of data. Kyriba’s Open API hub, launched in 2021, is an online marketplace of real-time connections to apps, data, and new products and services that inject data-driven decision-making into every financial operation.
APIs offer treasury and finance many capabilities that they haven’t had before, such as the power to “un-batch” payments. Rather than relying on batch processes that transmit at several pre-determined times each day, APIs allow payments to be initiated from treasury management systems and ERP systems as needed—even in real time. In fact, real-time payments require the use of an API because payments can’t be transmitted instantly if a file needs to be downloaded.
Furthermore, APIs can also un-batch reporting, allowing organizations to manage cash continuously and in real-time. Just like batch payments, batch reporting is constrained to set times each day. APIs allow treasury and finance teams to receive intraday liquidity updates as needed, improving the ability to position, reconcile and invest cash. And immediate visibility into cash also allows companies to vastly improve forecasting.
FTP Isn’t Going Anywhere Just Yet
All that said, FTP isn’t dying out just yet. Banks and technology solutions providers that are managing open platforms are not replacing legacy formats with APIs; rather, they are offering them as a complement to these formats.
Furthermore, the rollout has been slow; most banks are not using APIs in live production yet. And the ones that do mostly offer them for certain real-time services—meaning that multiple connectivity options are needed to fully support a treasury and finance team.
But even if you have full API capabilities, they may not be appropriate for every type of data transfer yet. Generally speaking, FTP is better for large bulk transfers of data, while APIs are preferable for smaller, more specific transfer needs. And even though APIs can virtually eliminate the need for batching, some organizations may not see a need to end the practice—and they’ll need FTP to do that.
Lastly, FTP has been around for many years, making it compatible with legacy systems. Unlike API connections, which require that systems on both ends support the technology, FTP only requires that the appropriate file format be used. So, FTP won’t require any major conversions for your software. In other words, if the status quo is working for your organization, you may not see the need to make any changes right now.
API and SFTP Capabilities
In many ways, APIs bring key advantages over a file-based approach, such as an immediate response from banks and the ability to receive new data and notifications in real-time. But for the time being, flat-file technology is still very much in use.
Fortunately, Kyriba users don’t have to choose one or the other. Kyriba connects to 600 global banks on behalf of our nearly 2,500 clients using a variety of connection protocols, including APIs and FTP. So regardless of whether your bank and ERP are set up for APIs or not, Kyriba can ensure that you’ll have the right connectivity for your organization.
For more information on APIs, view our API Whitepaper, Fact Sheet and Infographic.
Live Webinar: An Interactive Cash Forecasting Discovery Session
Live Webinar: An Interactive Cash Forecasting Discovery Session 22-03-2022 | treasuryXL | CashAnalytics | LinkedIn | Do you spend more time compiling and reconciling your team’s cash forecasts than you spend analyzing the output? If so, you’re *definitely not alone.*
Meet our Expert | 8 questions for Peter Löbl-Brand, Corporate Treasurer and Lecturer
21-03-2022 | Peter Löbl-Brand | treasuryXL | LinkedIn |
We are happy to interview our newest treasuryXL expert, Peter Löbl-Brand.
Peter has been a corporate treasurer for over 10 years and is also a lecturer for multinational finance and risk management at the University of Applied Science in Wiener Neustadt, Austria.
Peter gathered insights while advising multi-national listed companies as well as local small and medium-sized companies.
He currently lives south of Vienna and is focusing on re-/structuring corporate treasury departments of SMEs.
Visit Peter’s LinkedIn profile to see an overview of his career and activities. But first…
We asked him 8 questions, let’s go!
INTERVIEW
1. How did your treasury journey start?
My treasury journey started about 10 years ago as a credit risk manager at RHI AG, now RHI Magnesita. After about 3 years of working in this position, I got the chance to take over the Treasury team as team leader.
2. What do you like about working in Treasury?
It’s a people’s business. Ensuring liquidity and therefore laying the foundation for the operative business of the corporate while having always a close relationship with your capital partner end strengthening their trust in the corporate feels like being one of the most important and highly valued links in the business.
3. What is your Treasury Expertise and what expertise gives you a boost of energy?
I started my career in the group treasury of a listed company. Stage by stage I developed myself into a full-scale treasury and commercial officer working for a bigger SME company right now. My focus is on small to medium sizes companies with a high need for commercial structuring and the need to set up treasury management from scratch. To build, entertain and lead by example is energizing myself to perform.
4. What has been the best experience in your treasury career until today?
Enabling business with partly sanctioned customers and countries.
5. What has been your biggest challenge in treasury?
Maintaining the tension and excitement after more than 10 years in corporate treasury.
6. What’s the most important lesson that you’ve learned as a treasurer?
Do not trust a soft commitment.
7. How have you seen the role of Corporate Treasury evolve over the years?
From my understanding, the corporate treasury is a business enabler. Especially when driving business internationally the corporate treasury is able to pilot business relationships to success. Based on that understanding Corporate Treasury is always seeking to find better instruments and the appropriate solution to close a deal.
8. What developments do you expect in corporate treasury in the near and further future?
I expect more and more solutions and instruments acting on the blockchain. Right now the industry is too much focusing on the blockchain as an enabler for cryptocurrency. Using the blockchain in international business will also solve the impossible trilemma as it makes business cheaper, adding quality and reducing costs for all parties.
Get in touch with Peter
Click here for his Expert Profile
Thanks for reading!
Kendra Keydeniers
Director Community & Partners, treasuryXL