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Technology

Capital MarketsFXTechnology
April 2, 2020

Using Bloomberg for “Nuisance” Trades

Avoiding the time-intensive process of requesting trades in a centralized structure, local cash managers speed the process with online access to Bloomberg. During a recent NeuGroup virtual meeting of FX managers, one member said he has started to use Bloomberg for local affiliates’ “nuisance trades.” These are foreign currency-denominated accounts payable under a certain USD-equivalent threshold. Local freedom. The member noted his company’s corporate treasury manages FX worldwide, so they were happy to find that local cash managers are able…
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BankingTechnologyTreasury Management
April 2, 2020

Supply Chain Finance Not Immune from Pandemic Pain Felt by Banks

Higher funding costs for banks amid COVID-19 mean wider spreads in SCF market.  An assistant treasurer at a major consumer goods company learned from supply-chain-finance (SCF) vendors that banks financing SCF assets have asked for wider spreads to compensate for their own higher funding costs, at least temporarily. The banks had agreed to a fixed spread that was still attractive in early March but, in the midst of the coronavirus economic meltdown, is much less so today. “It isn’t as…
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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…
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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…
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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…
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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…
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Risk ManagementTechnology
February 6, 2020

Tales from the Cyber Crypt

Assistant treasurers exchange recent scary cyber tales of success and failure. In a breakout session at NeuGroup’s Assistant Treasurers’ Leadership Group focusing on securing companies from cyberattacks, members recounted recent experiences and the conundrums they face combating them. Digital protection, à la carte. NeuGroup’s own Scott Flieger, director of peer groups, said a fellow member of a college board who runs a cybersecurity advisory firm recommends companies make a menu of their digital assets, from bank accounts onward, and seek…
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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…
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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…
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TechnologyTreasury Management
January 23, 2020

Do You Need Outside Help for TMS Implementation? Maybe

Consultants can help TMS implementations, but practitioners retain some skepticism. Implementing treasury management systems (TMS) is an arduous and complicated task that can benefit significantly from outside expertise but maintaining a skeptical eye can optimize the outcome. ATLG members who had implemented TMSs expressed horror at the notion of returning to Excel spreadsheets. Nevertheless, TMS vendor consolidation and other factors have worsened already sketchy vendor support services, increasing the need for outside help and expertise. The peer group of assistant…
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