BCR Publishing
We are the leading provider of news, market intelligence, events and training for the global receivables finance industry.
Working with industry leading organisations, experts, governments and universities, BCR Publications delivers expertise in factoring, receivables and supply chain finance to a global audience.
BCR has long been a beacon of innovation and excellence in the realm of receivables finance, playing an instrumental role in shaping the industry’s international landscape. Through its comprehensive conferences, insightful publications, and thought leadership, BCR has facilitated crucial dialogues and connections among industry professionals, driving forward the development of receivables finance globally.
SME and bank lending – a dying market?
Static Data – unsexy, but imperative to workflows
| 23-04-2018 | treasuryXL |
Definition
This is data that remains constant (mostly) during the lifetime of its use; once input and recorded it becomes static and is used as reference data. The most logical example would be the data on relationships – when a company starts trading with a new supplier, a new record needs to be added to the bookkeeping system.
Types of data include:
Once the Static Data has been input it should only be changed by authorized staff. Dynamic data – the lifeblood of Big Data – can later be input (trades, invoice numbers, delivery dates, amounts etc.), but it needs good Static Data to make the data consistent. The complete data set for a counterparty must always be unique – there can not be 2 entities with the same set of data.
The structure of the data is also important – it could quite easily be the case that a company has one large client with the same bank details, but relationships with 5 different divisions. It is therefore essential that the correct protocols are in place for consistent data – whilst the legal name will be the same the importance of the short name becomes evident.
When it goes wrong
Inter company communication does not always involve use of a bookkeeping system. If staff start referring to a counterparty by another name than is in the system or use a name that is in the system but not the name they mean, problems can occur. Incorrect bookings arise which can lead to incorrect exposure levels or limits being breached. It can also be that a legal entity in a different country is referenced as they have offices in more than 1 country and issues such as VAT (BTW) can suddenly appear.
The need for secure Static Data is very high – the consequences of errors should never be underestimated. Data entry should be undertaken by people who do not enter any other data into the systems – in other words it should not be undertaken by the same staff that work in debtor and creditor administration.
Furthermore, a clearly defined protocol needs to be implemented to determine when and how Static Data can be changed.
In a little more than 1 month from now, GDPR comes into effect. The urgency to understand Static Data and to appreciate its significant contribution to daily operations has never been greater.
If you have any questions, please feel free to contact us.
[button url=”https://www.treasuryxl.com/contact/” text=”Contact us” size=”small” type=”primary” icon=”” external=”1″]
[separator type=”” size=”” icon=””]
The Bank of England – a fintech company?
| 20-04-2018 | treasuryXL |
Transferwise is a peer-to-peer money transfer service with its main head office in London, whilst being based in Estonia. Turnover per month reached in excess of EUR 1 billion in May 2017. They have developed a money transfer systems that reduces the amount of cross border payments but trying to match supply and demand in different countries. By reducing the actual number of cross border payments and using mid-rates for FX calculations, they are able to offer a competitive alternative to traditional bank transfers.
They have now be granted direct access via the Faster Payments Scheme to the Real Time Gross Settlement system run by the Bank of England. Allowing direct settlement will lead to reductions in costs whilst, at the same time, speeding up the money transfers. This means that Transferwise can compete evenly with large commercial banks.
The Bank of England stated “by stimulating competition and innovation, we anticipate increased diversity and risk-reducing payment technologies will reinforce financial stability while enhancing customer service.” Fintech is having a clear impact on the revenue of traditional banks in London. A survey by Accenture shows that non banks now account for 14 per cent of the annual revenue in the payment sector.
This is forcing banks to design and adopt new solutions – mainly built around the blockchain. What is remarkable is that the Bank of England appear to be taking a very proactive approach to how the payments market will develop in the future, and recognising the role that Fintech has to offer in this area. They are looking at ways to increase efficiency and transparency in financial markets.
The Bank of England is leading the central bank market in providing new solutions. A policy of first adoption could lead to a huge advantage in the payment transfer market. As these solutions are cross border, other central banks would do well to investigate this trend and come up with their own solutions as soon as possible.
It also provides a counterpoint to MiFID II, and shows how the payments industry could be structured in the future.
If you have any questions, please feel free to contact us.
[button url=”https://www.treasuryxl.com/contact/” text=”Contact us” size=”small” type=”primary” icon=”” external=”1″]
[separator type=”” size=”” icon=””]