BankingTechnology
August 11, 2020

Virtual Accounts Help Treasury and Accounting Bridge Multiple ERPs 

The advantages of using virtual accounts for accounting and reconciliation across ERPs.A member at a recent NeuGroup meeting described his company’s pilot initiatives with its primary transaction banks in Europe to roll out virtual accounts (VAs). Treasury is doing the projects in partnership with accounting and are aimed at reducing the all-in cost of account reconciliation, cash application and account maintenance—which EY has estimated at about $4,000 per account—while also improving liquidity access and management. Tangible benefits. The VA advantages…
Accounting & DisclosureBanking
July 30, 2020

On Track: Banks Adopting CECL Not Derailed by COVID-19

Regulators have allowed banks to delay implementing CECL, but most are well on the way to adopting the standard. Banks have been given extra time to implement the FASB’s CECL standard, but most are continuing their push to adopt the measure. The CARES act passed by the US Senate back in March offered banks the option to pause implementation until either the end of the year or the end of the COVID-19 national emergency, whichever came first. According to meeting material…
BankingCash & Working CapitalTechnology
July 23, 2020

Scoring With Single Sign-On and Bank Portal Rationalization

One member’s winning use of single sign-on to access bank portals through Wallstreet Suite impresses peers. A NeuGroup member’s success at implementing single sign-on (SSO) to provide access to bank portals through the company’s treasury management system (TMS) made a splash at the spring virtual meeting of the Global Cash and Banking Group. Of equal interest was the member’s goal of taking away “as much bank portal access as possible” from employees, some of whom only need to see bank statements and…
BankingInvestment Management
July 21, 2020

Managing Bank Balance Sheets in a Low Yield Environment

NeuGroup BankTPG members hear ways to manage their balance sheets amid low interest rates (that may remain low a long time).The Federal Reserve announced in early June that it would keep its benchmark interest rate near zero through 2022. While this might be good for borrowers, what does it mean for lenders? And are negative rates possible?The first question has many answers, as members of NeuGroup’s Bank Treasurers’ Peer Group (BankTPG) heard at the 16th annual meeting. There were several…
BankingCash & Working CapitalTechnology
July 16, 2020

COVID Boosts Contactless Payments, Revealing Retailer Frustrations

Low adoption rates in the US and issues such as routing rights and interchange fees may present challenges for some retailers as contactless payment grows.It’s no big surprise that the pandemic has pushed more US shoppers to use contactless credit and debit cards as well as mobile wallets. Tapping or waving a card or phone is a cleaner, safer way to pay than swiping or inserting a card. But what stood out at a recent NeuGroup for Retail Treasury meeting was the…
BankingCash & Working CapitalTechnology
July 14, 2020

Under the Hood of the Global Payments System: Complexity

How TIS helped The Adecco Group harmonize payment, reporting and bank account management processes.So, you need to make payments? Sounds simple, but once you look under the hood of the global payments apparatus—which has developed differently in different places for different currencies—you will discover separate layers of complexity. That’s according to Joerg Wiemer, co-founder and CEO of Treasury Intelligence Solutions, or TIS. Put simply, there are three different sources of complexity. The connection and integration of the ERP and the bank…
BankingCOVID-19
June 16, 2020

So far, So Good: US Banking Sector Shows Strength During Pandemic

Banks are as healthy as ever, and  robust investment-grade debt issuance has bolstered the industry’s profitability.The global pandemic has cratered economies and affected businesses the world over. But the US banking system remains healthy because banks are well capitalized, having adhered to rules put in place after the 2008 financial crisis. Equally important: Investment-grade debt issuance by corporates is generating bank profits. That’s some of what members of NeuGroup’s Tech20 Treasurers’ Peer Group heard at a recent meeting from a…
BankingCapital Markets
June 11, 2020

The Loan Road Ahead: Steep Prices May Linger Longer Than Short Tenors

Post-pandemic advice from U.S. Bank for treasury teams: keep close to your banks. Unlike the booming bond market, corporates still face restrictions on loans, and it may be awhile before pricing returns to pre-pandemic levels. At a recent NeuGroup meeting for assistant treasurers, U.S. Bank provided participants with insights into revolver drawdowns and what to anticipate when refinancing or seeking new debt. Revolver pricing leaps. The volume of revolving-credit drawdowns—once taboo—has hovered at over $250 billion since leaping to that…
Working Capital Cycle
BankingCash & Working CapitalInsurance
June 1, 2020

C2FO Showcases Scope Expansion to AT Leaders

By Joseph Neu C2FO sponsored our recent Assistant Treasurers’ Leadership Group Meeting on Zoom. Their scope expansion, which is indicative of ways working capital platforms can support business ecosystems in this crisis, is my first of three takeaways from that meeting. Working capital platforms expand their scope. Platforms such as C2FO’s focusing on intermediating between buyers with access to capital and a wide range of suppliers with working capital needs have a vital role to play in this pandemic. C2FO…
Digital Forecasting
BankingCash & Working Capital
May 27, 2020

Founder’s KTAs from the Global Cash and Banking Group 2020 H1 Meeting

By Joseph Neu NeuGroup facilitated our Global Cash and Banking Group’s 2020 H1 meeting last week, sponsored by ION Treasury. Here are a few takeaways I wanted to share. Focused on cash visibility and forecasting, still. Members in this group noted that their projects and priorities had not shifted as a result of Covid-19 and its impacts, given that cash visibility and forecasting were already a priority. Using treasury technology and process improvement to get better at both also has…