BankingCash InvestmentsTechnology
June 19, 2024

How ServiceNow Boosted Efficiency, Raised Returns, Lowered Fees

An international treasury center/in-house bank improves cash investing, intercompany lending and FX hedging. A presentation by NeuGroup member company ServiceNow on the benefits of setting up an international treasury center (ITC) in Ireland that functions an in-house bank (IHB) took top honors in a pseudo-Shark Tank competition at a recent NeuGroup for Cash Investments meeting sponsored by ICD and MetLife Investment Management. The ITC has improved working capital management, provides better cash visibility and gives treasury enhanced control over cash. It also lowers idle…
Senior ExecutiveTechnology
June 19, 2024

Crafting a Compelling Business Case for Investing in Payments

How one NeuGroup member created the “ultimate road map” to get buy-in for building out a payments factory. Large-scale initiatives, such as the build-out of a payments factory, are major undertakings that require significant investments of both financial and human capital. At the first-half meeting of NeuGroup for Payments Strategy sponsored by HSBC, members explored the keys to building a successful, comprehensive business case to justify the allocation of resources and get buy-in from management. One member, who helped lead the session, walked…
Treasury Management
June 12, 2024

Developing Future Finance Leaders: What Top Performers Want

High potentials want more leader input and guidance on intertwining goals and individual development plans.What do high-performers on treasury teams need from senior managers today to develop into tomorrow’s finance leaders? Discussions between members of NeuGroup for High Potentials reveal that many up-and-comers want more formal, documented development plans tied to specific goals, among other wish-list items. And the talent development shortcomings that some cite include inadequate connection of individual goals to a company’s broader strategy and infrequent communication with leadership on…
BankingTechnology
June 12, 2024

Why Treasury Needs To Lead the Way in the ISO 20022 Transition

Banks face a deadline to use the new payment messaging standard, presenting challenges and benefits for corporates. The adoption of international financial standards and language for payment messaging under the framework known as ISO 20022 will require corporate treasury teams to step up and proactively lead a transition made difficult in part by differences in how—and how fast—banks are approaching changes involving data-rich payment communications. Banks must transition to ISO 20022 by November 2025. The new format should ultimately produce benefits but…
TechnologyTreasury Management
June 5, 2024

Transforming Treasury via Tech Stack Slimming at GE HealthCare

In one year, GE HealthCare achieved a treasury transformation, reducing the tech stack and onboarding a new team. When GE HealthCare was tasked with spinning off from GE, the treasury team saw an opportunity to create a new organization constructed with a “fit-for-purpose” approach that included rebuilding the technology stack with off-the-shelf solutions that accomplish specific tasks—rather than the far-reaching, customized tech tools used pre-spin-off. In 12 months, GE HealthCare implemented nine new technology systems—down from 36 legacy solutions—and won an Adam…
Risk ManagementTalking Shop
June 5, 2024

Talking Shop: Spreading Share of Wallet for Interest Rate Swaps

Editor’s note: NeuGroup’s online communities provide members a forum to pose questions and give answers. Talking Shop shares valuable insights from these exchanges, anonymously. Send us your responses: [email protected]. Context: Interest rate swaps allow corporates to manage risks stemming from exposure to the fixed and floating rates they pay on debt obligations, including bonds. The price they pay for swaps is a major consideration for companies selecting the banks who become their counterparties in the transaction. In picking counterparties, most treasury teams…
Capital MarketsD&I
May 29, 2024

Bonding With Diverse-Owned Firms: Debt Deals and Stock Buybacks

A NeuGroup survey report highlights capital markets transactions where diverse-owned firms are most active. A surge in investment-grade corporate bond deals this year is good news for Wall Street underwriters—including firms whose owners are Black, Hispanic, women and veterans. A new NeuGroup Peer Research report shows that bond underwriting ranks first among the types of capital markets transactions where corporations engage with these diverse-owned firms, with 62% of respondents saying they currently use them in debt deals and another 17% considering it.…
FP&ATreasury Management
May 29, 2024

Hard Choices: FP&A’s Role in Cost-Cutting Initiatives

An FP&A team can help drive value through a process aimed at achieving goals for operating margins. Corporate FP&A can play a key role in companies identifying areas to cut costs, in part by tracking reductions in the enterprise’s total cost base. The overarching goal in some cases is to help the corporate meet operating margin targets as it reallocates capital. The topic is particularly relevant now, with many companies seeking to reduce expenses amid higher inflation and interest costs as well…
BankingTalking Shop
May 29, 2024

Talking Shop: Validating Changes in Supplier Banking Details

Editor’s note: NeuGroup’s online communities provide members a forum to pose questions and give answers. Talking Shop shares valuable insights from these exchanges, anonymously. Send us your responses: [email protected]. Context: The devil is in the details and bank account information for suppliers is a detail that can bedevil finance teams responsible for thwarting payment fraudsters. The big picture reveals a big problem: 80% of organizations were victims of payments fraud attacks and attempts in 2023, a 15-percentage point increase over the previous year, according…
Investment Management
May 22, 2024

Do-It-Yourself: An In-House Investment Management Success Story

Reducing SMA assets and DIY cash investing helps one corporate save money while boosting returns and efficiency. Establishing an in-house investment management operation that reduces fees paid to external asset managers and gives treasury more responsibility and flexibility in investing cash may not be common outside of mega-cap, cash-rich tech companies. But the numerous benefits it brings are definitely within reach of at least some smaller companies. That was among the key takeaways from a presentation by a member of NeuGroup…