January 19, 2022

Eye-Opening: A Tech Treasurer Embraces APIs To See Cash in Real Time

A growing tech company connects with FinLync as it juggles cash, debt and a need to improve visibility.Real-time cash management made possible by wider adoption of APIs by banks has provided one tech treasurer the daily visibility into the company’s bank account balances that he craved for years. “This has become more important to us not just since Covid, but since tax reform in 2017 when we were sitting on a couple billion dollars offshore, like most tech companies,” he told peers…
Treasury Management
January 19, 2022

Building Blocks To Mitigate Key Person Risk and Boost Resiliency

How finance teams can prepare for the departures of members with valuable knowledge in a tight labor market.The question of how to mitigate so-called key person risk as treasury teams grapple with high turnover and difficulty filling open positions surfaced among members at a fall meeting of NeuGroup for Mid-Cap Treasurers sponsored by Chatham Financial. The broader context of the conversation was a session where Chatham advisors reviewed the key components of risk management—strategy, operating model and technology—and discussed case studies…
Talking ShopTechnology
January 19, 2022

Talking Shop: The Status of Bloomberg Disaster Recovery Services

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] Member question: “We received a notice from Bloomberg that our Disaster Recovery (DR) service was ending on 12/31, but it seems they have kept it on for now. (I have not asked Bloomberg if they have extended due to Omicron.) “We are looking at adding additional licensees with the hybrid work environment.…
BankingCapital Allocation
January 19, 2022

Spreading Capital Like Peanut Butter: One Bank’s Allocation Method

An understandable and flexible approach supported by top executives brought business leaders on board.Extensive analysis showed a large regional bank’s share price is highly correlated to consistent return on equity (ROE) performance, prompting its treasury team to set about developing a process to ensure the appropriate ‘E’ was assigned to business units. The treasurer described the bank’s “hybrid” capital allocation approach to peers in a recent meeting. Three “guiding principles” to developing the approach were making sure the aggregated allocated…
Capital MarketsCash & Working CapitalCompliance
January 12, 2022

Talk About SEC’s Proposed 30-Day Buyback Cooling-Off Period Heats Up

Members say the proposal for 10b5-1 plans would limit a corporate’s flexibility to execute buybacks efficiently.The SEC’s proposal that corporates wait 30 days after the adoption of a Rule 10b5-1 share repurchase plan before buying back stock would significantly restrict the flexibility of companies to execute the plans effectively. That key takeaway emerged at a session NeuGroup convened this week at the request of treasurers examining the potential implications of several SEC proposals issued Dec. 15 regarding 10b5-1 plans, including…
January 12, 2022

Automating Together: The Human Side of RPA

One member’s success with automating processes prioritized getting treasury team members on board.Most members attending a recent meeting of NeuGroup for European Treasury reported that they are at the early stages of implementing smart automation tools like AI and robotics to improve treasury operations. One member at an IT company who recently completed an intelligent process automation project emphasized that while the benefits may be significant, it will take employees time to get in the groove. The member worked with…
FXTalking Shop
January 12, 2022

Talking Shop: Hedging Cyclical Currencies

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] Member question: “When deciding on whether to hedge a currency, do you take into account whether the currency is cyclical or not? “I think that there is a stronger case to hedge a monetary asset in a cyclical currency, such as the Brazilian real (BRL), that tends to appreciate when the economy…
NeuGroup News
January 12, 2022

NeuGroup Acts Fast to Connect Members Seeking Insights on SEC Buyback Proposals

At a recent special joint session for NeuGroup for Mega-Cap Treasurers and NeuGroup for Large-Cap Treasurers, members and guests had the opportunity to share their reactions to recent proposals from the SEC regarding updated requirements around share repurchases. The two proposals announced by the SEC last month, one that would require a 30-day cooldown period after adopting a 10b5-1 share repurchase plan, and another that would require additional disclosure for share repurchases, would impact a number of members’ strategies—so they…
January 6, 2022

A Treasurer’s Transformation: A Decade at Oracle to Fintech Venture Capital Investor

Former NeuGroup Tech20 member Eric Ball describes his transition from treasurer to VC investor and more in our debut podcast. Welcome to the inaugrual edition of the NeuGroup Insights Podcast! We kick things off with former Oracle treasurer and Tech20 member Eric Ball, a longtime NeuGroup friend who is now general partner and co-founder of Impact Venture Capital—just one of numerous hats he wears. He's also co-founder and chairman of capital markets startup CapConnect+, chairman of the special purpose acquisition…
Cash & Working CapitalESGTechnology
January 4, 2022

NeuGroup’s Top Five 2021 Insights

Reassessing finance organizations under new leadership tops the list of 2021 insights.By Joseph NeuBefore we plunge full throttle into the new year, I wanted to distill what struck me as the key takeaways from 2021, our second year of accelerated change and pandemic-fueled challenges. 1. Questioning the way things have been done. The pandemic encouraged transformational thinking as many legacy business processes and delivery models did not perform well during lockdowns nor in a work-from-home environment. Covid-19 also sparked a new…