Capital MarketsESGUncategorized
February 25, 2020

Treasury Teams Taking to Heart the Force of the ESG Wave Barreling Across Atlantic

Discussing insurance, investing and BlackRock’s Larry Fink, NeuGroup members weigh in on ESG. The potentially dramatic and varied impact on multinationals from the environmental, social and governance (ESG) wave barreling across the Atlantic from Europe is hitting home for a growing number of US finance teams. That was among the key takeaways from comments by treasurers gathered in Dallas for NeuGroup’s first meeting of 2020. Thanks for the warning. One the most interesting revelations involved the effect of ESG on insurance. One…
Senior ExecutiveTreasury Management
February 20, 2020

Mike Likes It, but Would Your Team Vote for an Open-Office Plan?

Open-office plans like the one Mike Bloomberg adopted at City Hall have fans and skeptics. Where do you stand (sit)? Presidential hopeful Mike Bloomberg in December tweeted the picture above of the “bullpen” office he had as New York City mayor and wrote, “I’ll turn the East Room into an open-office plan, where I’ll sit with our team.” No one can say if that will ever happen, of course. But the subject of open-office plans definitely sparked interest at a…
Capital MarketsCompliance
February 20, 2020

Margin Bells Will Soon Toll for More Pension Funds

Pension funds need to prepare for margin rules covering the OTC derivatives they use. Corporate pension fund managers may soon have initial-margin responsibilities for the over-the-counter (OTC) derivatives they use to manage those funds, even if their parent companies are exempt. Background. Following the financial crisis, global regulators established variation and initial margin rules for OTC derivatives to provide greater transparency into counterparty risk. Those requirements first became effective in 2016 for financial firms with more than $3 trillion in…
Cash & Working CapitalTechnology
February 20, 2020

Mining Merchant Services for Today’s Gold: Data

Founder’s Edition by Joseph Neu The drive to access and leverage data from credit card and other transactions is transforming merchant services. Merchant services are fast becoming a key value driver for transaction banks, fintechs and other financial services institutions. The key reason is the importance of capturing data at the point of sale, along with facilitating frictionless transactions. What takes place under the heading of merchant services is worth your attention because: It’s the beginning of the data-rich order-to-cash…
BankingCash & Working CapitalTechnology
February 13, 2020

Making Bank on Receivables

Founder’s Edition by Joseph Neu Investor demand for receivables-backed securities presents opportunities for banks that harness data, technology. Last week, I noted how supply chain finance (reverse factoring et al) was raising concerns with accountants, rating agencies and regulators because it allows unscrupulous firms to potentially extend payables to fund their working capital without considering it to be debt. This week I focus on the positive sides of trade finance and, especially, supply chain finance: Thinking about receivables plus data…
Cash & Working CapitalTechnology
February 11, 2020

Treasurers Educate HighRadius on Cash Forecasting Needs

NeuGroup members give to get by providing feedback on AI-based cash forecasting solutions. Treasurers at a NeuGroup meeting in Texas sponsored by HighRadius provided feedback to the Houston-based technology company on what they’d like to see from cash forecasting solutions that use artificial intelligence (AI) and machine learning (ML) to improve accuracy, reduce treasury’s need to input data and allow a wider variety of pertinent data. HighRadius has long provided forecasting services for accounts receivable (AR), the biggest component of…
Cash & Working CapitalTechnology
February 11, 2020

Steps on a Technology Journey to Data-Driven Decisions, Actions

A detailed look at the progression of one tech company’s digital transformation. Building and using a data lake that is a centralized source of data is a key part of the modernization and technology journey for treasury at one leading tech company; a progression from being data aware to data proficient to data savvy to achieving data-driven decisions and actions. A treasury cash operations manager presenting details of this journey at a NeuGroup meeting said a top priority was “wading…
Senior ExecutiveTreasury Management
February 4, 2020

Appealing to Millennials and Gen Zers: The Academic Perspective

Insights from the Foster School of Business on what today’s MBAs want—and what treasurers have to say. Corporates who want to hire MBA finance graduates face a highly competitive market and are well served by knowing what the current crop of millennials and Gen Zers value most when weighing job offers. That was among the key takeaways from a presentation by faculty and administrators at the University of Washington’s Foster School of Business to the members of a group of…
Cash & Working CapitalComplianceTechnology
February 4, 2020

Supply Chain Finance Faces Rising Regulatory Scrutiny

Founder’s Edition, by Joseph Neu Making sense of calls to increase debt classification and disclosure requirements for reverse factoring. I received an email recently from a consultant giving me a heads-up about a potential financial reporting change that could adversely impact the multibillion-dollar market for supply chain finance. Extended payables vs. debt. At issue is the ability of companies to use a financial intermediary to pay suppliers at a discount while extending their payments terms to the suppliers (sometimes in…
Cash & Working CapitalTechnology
January 30, 2020

Smoother Sailing: The Benefits of Dynamic Discounting

How C2FO’s solution helps one company’s treasury team smooth its cash flows. Successfully adopting dynamic discounting (DD) to execute early payments requires internal alignment across multiple functions in a corporate’s organization—as well as finding the right vendor and solution. However, the technology’s many benefits, including smoothing out cash flow for both the company and its suppliers, provide a persuasive argument. A treasury executive from a major technology company explained her firm’s challenges and the benefits of implementing C2FO’s DD platform…