Cash & Working CapitalComplianceTax
October 22, 2020

Cash Pooling: What Treasury Teams at Multinationals Need to Know Now

An update of a story—one of NeuGroup’s most-read articles—about physical and notional cash pooling. By Susan A. Hillman, Partner, Treasury Alliance Group LLC Eight months into the global pandemic, liquidity and cash remain top-of-mind for many multinational corporations coping with uncertainty over the shape and timing of economic recovery. That makes this an opportune time to reexamine a critical liquidity management tool that has been around for decades but has always required careful evaluation before implementation: cash pooling. Further due…
BankingTechnology
October 22, 2020

Digital Signatures Deliver Relief and a Few Frustrations Amid Pandemic

Corporates report success using DocuSign with many banks, but Latin America presents challenges.“Has anyone successfully used DocuSign with banks?” one NeuGroup member asked at a recent virtual meeting. “Yes” was the resounding answer from peers—more evidence that the pandemic has accelerated automation and digitization in finance. And one goal for many treasury teams is to make “wet” signatures a thing of the past. The member who posed the question wants to use DocuSign’s electronic signature solution internally and externally—for intercompany…
Capital MarketsESGTechnology
October 22, 2020

A Homegrown ESG Dashboard in Search of Better Data

A tech company builds its own tool to get a holistic view of ESG ratings but bemoans social data quality. Many companies in the NeuGroup Network are devoting significant resources to better address environmental, social and governmental (ESG) issues that are increasingly critical to how investors and other stakeholders view corporates. But not many treasury teams have access to an ESG dashboard, something one member who works at a large technology company described to peers at a recent meeting of…
NeuGroup News
October 21, 2020

TREX In Action: An Extraordinary Group of NeuGroup Member Companies Rolls Out a New Name

The newly rebranded group of market leading and iconic companies met with sponsor Societe Generale to share and learn on elections, digitization and more. Members of NeuGroup’s newly rebranded Treasurers’ Roundtable for Extraordinary Companies, or TREX, gathered last week to share and learn in a virtual meeting sponsored by Societe Generale. Thanks to everyone who participated! TREX was re-branded to provide a forum for treasurers from companies which have the following qualitative and quantitative characteristics: Commanding position in its industry…
BankingCash & Working CapitalRisk Management
October 20, 2020

How Corporates Are Measuring Counterparty Risk as Cash Builds

Companies reviewing limits amid Covid have varied approaches to calculating risk thresholds.The abundance of cash corporates have collected on their balance sheets to deal with pandemic-related volatility has prompted some to review their counterparty risk limits.Participants at a recent NeuGroup meeting of large-cap companies described a variety of approaches to the issue, which should remain especially relevant for treasury teams reducing the size of bank groups, a trend discussed in recent meetings.  A member explained that higher deposit rates at…
BankingCash & Working CapitalTechnology
October 20, 2020

Helping Treasury See Beneath the Payment Iceberg

TIS makes the case for treasury as gatekeeper of payment processes.Nearly half the members at a recent meeting of NeuGroup’s Global Cash and Banking Group (GCBG) said treasury at their companies is responsible for treasury payments only—not for, say, accounts payable (AP) or payroll. Just 15% of those surveyed said treasury completely owns payment processes and tools. Treasury Intelligence Solutions (TIS), sponsor of the meeting, made a case for making treasury the overall “gatekeeper” of all payment processes—with the help…
BankingTalking Shop
October 20, 2020

Talking Shop: For a Bank KYC Refresh, Do You Complete a Beneficial Ownership Form With SSN?

Member question: “One of our banks does a biannual KYC refresh and asks us to complete the US Client Certification of Beneficiary Ownership (a FinCEN form). “Is this something that your company also provides, and do you include Social Security number info?” Peer answer 1: “You do not need to provide SSN for a non-US person and you need to provide only one such person.” Peer answer 2: “We always put the parent US company as the UBO , and we would use…
Capital MarketsCOVID-19
October 15, 2020

Pandemic Shows Corporates Which Credit Analysts See Beyond the Crisis

Volatility and uncertainty boost the importance of analysts with experience and perspective.The pandemic has been a first-of-its-kind challenge for corporates, their banks and investors, each trying to make sense of extreme circumstances and forecast what it all might mean. Credit rating agencies face their own challenges and are taking different approaches to the crisis that, according to participants in a recent NeuGroup meeting for large-cap companies, reflect relative strengths and weaknesses.   One member whose company had plenty of liquidity…
Cyber riskTechnology
October 15, 2020

Taking A Second Look: Corporates Reconsider Cryptocurrencies

Members share their curiosity about embracing cryptocurrency amid more regulation.Efforts by central banks and finance ministers to block the widespread use of digital currencies until strong regulation is in place—along with the emergence of new types of currencies—are leading some corporates to reconsider earlier decisions to avoid accepting cryptocurrencies as payment. That is among the takeaways from a discussion at a recent meeting of NeuGroup for Retail Treasury, sponsored by U.S. Bank, during which one member said her company, encouraged…
BankingCapital MarketsESG
October 15, 2020

A Virgin Bond Deal, Community Investment and Frustration With Banks

Takeaways from the Tech20 High-Growth Treasurers’ Peer Group 2020 H2 meeting, sponsored by Bank of the West / BNP Paribas. By Joseph NeuWanted: A better bank user experience. The user interface (UI) and user experience (UX) is a key success driver for high-growth technology companies. So when their banks fail to deliver a quality UI/UX, growth tech treasurers get frustrated. Work from home, of course, has made what used to be digital nice-to-haves into must-haves. Electronic bank account management (eBAM) promises…