The inherent value in finding the right treasury management system

This article was written by Mark Lewis, Corporate Treasury Markets Specialist at Bloomberg. In increasingly complex markets, corporate treasurers need to manage their time more strategically by simplifying processes and using more efficient and automated solutions. Treasury management systems (TMS) are valuable tools for treasurers to achieve such results, providing significant cash visibility and financial controls in order to mitigate risk. Aggregated vendor solutions, patchwork integrations and cost inefficiencies are all major concerns when it comes to procuring a new system. It’s a big investment in time and resources, and the wrong choice may cause treasury workflows to be even

ISO 20022

The UK payments industry is moving to a global standard commonly referred to as ISO 20022. This standard will create a common language for payments data across the globe. It is hoped that standardised and more data rich payment information will deliver significant long-term benefits to companies, government and citizens. THE CONSULTATION PAPER The Bank of England, PAY.UK and the Payments Systems Regulator (authors) issued a consultation paper in June 2018. The purpose was to look at the impact of introducing a Common UK Credit Message (CCM) that would harmonise messaging across CHAPS, Faster Payments and Bacs based on ISO

Blockchain – Definition and context for a treasurer

Members unify with the need to address blockchain. Several of the presenters at our recent ACT Working Capital Conference referred to or were presenting software solutions which used blockchain. The ACT have written on blockchain in The Treasurer last year, and until recently our Wiki definition was drawn from a 2017 article. Member questions revealed a need to get back to basics on the subject: both to redefine blockchain (asked 11 times in one session) and to understand why treasurers may want to know how it works (10 times in the same session). Blockchain was presented as a means of enabling

Whistleblowing

Every organisation, large or small, faces the risk of something going badly wrong and harming others and the organisation itself. Getting whistleblowing right saves time, money and resources. Larger, multi-national organisations tend to recognise the benefits of well promoted whistleblowing arrangements, but their effectiveness has, until now, been harder to prove. What is whistleblowing? Someone blows the whistle when they tell their employer, a regulator, customers, the police or the media about wrongdoing, risk or malpractice that they are aware of through their work. It can inform those who need to know about health and safety risks, potential environmental problems,

LIBOR Transition – Summer Reading (and some actions)

The transition away from LIBOR is picking up pace with a number of important publications being published over the past week or so, just in time for us to take them to the beach – or the back garden, which is probably warmer in the UK right now… These publications will no doubt be shared widely in the coming weeks but, as many of you have expressed an interest, we (with thanks to our colleagues at the LMA) have attempted to provide a summary of the key publications below. Please do read them and respond where appropriate. LIBOR transition is

How Long for Low Interest Rates?

The BIS has released its Annual Economic Report (https://www.bis.org/publ/arpdf/ar2018e.htm) in which it notes that the burden of resolving the GFC has been borne by central banks. They have acted to reduce short term interest rates by money market operations, and to reduce long interest rates by on market purchases through Quantitative Easing.  The latter is now being unwound but, to date, unwinding of central bank QE in the USA and the EUR block has had little effect on long term rates and expectations of future rates (see Graph 1.3 in the Report) remain low. However, BIS identifies potential problems due

Delaying Payments to Suppliers Helps Companies Unlock Cash?

Jack Large has brought to our attention a Wall Street Journal article titled Delaying Payments to Suppliers Helps Companies Unlock Cash. Jack argues the case for the suppliers caught funding their customers working capital. We all know the games played in the UK where budget holders sit on invoices until they want to pay them, then put them into the AP system and claim all paid on time. Well, on time from when they put them into the AP system. The attractions of the game are clear. The budget holder can massage budget compliance while claiming he is managing the

The value of an environmental, social and corporate governance (ESG) strategy

Your correspondent attended a regularly held symposium at London Business School focused on all things PE. The event was held under the Chatham House rule. Unsurprisingly the world of business rarely changes irrespective of an ownership structure. Market volatility, investor fads, talent management are familiar of course, but what caught my eye was a weighty segment of the day devoted to ESG. The academic perspective featured some LBS research that was illuminating. Corporations not governments can be the agents of change (world’s 10 largest companies by revenue bigger than 180 smallest countries’ combined gdp) All the research suggests that using