Zanders EBAM Seminar, November 13th, 2012


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Trends in Corporate Treasury & Technology - Laurens Tijdhof, Partner Zanders - Eliane Eysackers, Executive Consultant Zanders

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Zanders EBAM Seminar, November 13th, 2012

  1. 1. Trends in Corporate Treasury & TechnologyLaurens Tijdhof – PartnerEliane Eysackers – Executive Consultant 1
  2. 2. Today’s Agenda• EBAM: Your remote control in bank account management• Presentations from different perspectives: – Corporate case studies : Cytec and Liberty Global – Standards & Central Utility : SWIFT – Bank readiness & solutions : RBS and BNP Paribas – Treasury system solutions : IT2 and SunGard – Treasury Consulting : Zanders• Key discussion topics: – Introduction to EBAM – What are the ‘Corporate’ pre-requisites for implementing EBAM? – How far is the ‘Treasury Ecosystem’ in offering EBAM solutions? 2
  3. 3. Table of Content• Introduction• Simplification of the Treasury Model• Treasury Technology & EBAM 3
  4. 4. About Zanders• Zanders is an independent consulting firm specialized in the area of Treasury and Finance: – Cash & Liquidity Management – Risk Management – Corporate Finance – Treasury Strategy & Organization – Treasury Processes & Systems• Founded in 1994 by Chris J. Zanders, currently with presence in the Netherlands, Belgium, Switzerland and the United Kingdom• With more than 150 professionals the leading company in Europe for advisory, interim, outsourcing and transaction services 4
  5. 5. Table of Content• Introduction• Simplification of the Treasury Model• Treasury Technology & EBAM 5
  6. 6. Expected Trend in Next Decade: Back to Productivity 1980.. 1990.. 2000.. 2010.. Working Working Working Working Better Cheaper Elsewhere SimplerReengineering Outsourcing Globalization Simplification 6
  7. 7. Strategic Opportunities for SimplificationTreasury Area Trend Recent Past Near Future - Virtualization - Decentralized - Virtual global organizationTreasury - Centralization - Local services - Centralized (IHB/PF)Organization - Local empowerment - Enhancement of SSC concept - Maintain company culture - Independence - Multiple banks - Balanced banking walletBanking - Rationalization - Multiple bank accounts - Simplified account structureLandscape - Balancing bank fees - Multiple EB tools - Independent bank connectivity vs. credit commitment - Multiple single cash pools - Multi-currency overlay cash pool - Automation - Stand-alone system - One global portalSystem - System integration landscape - Integrated best-of breed TMSInfrastructure - STP - Non-automated interfaces vs. full ERP solution - Seamless interfacesTreasury - Simplification - Many different processes - Uniform processesWorkflows &Processes - Standardization - Enhance compliance - Not very standardized - Labor intensive EBAM - More with less - Dematerialization of paper 7
  8. 8. Building Blocks for Treasury Transformation ProjectsKey Drivers Trends Results - Virtual Global Treasury Organization - SSC / Payment Factory Centralization - In-House Bank Reduce Cost - Single ERP/TMS & Create Value - Seamless IT interfaces Automation - Dematerialization of paper (EBAM) - Straight-Through-Processing (STP) - Wallet distribution - Disintermediated funding strategy Independence - Bank connectivity (SWIFTNET) Reduce Risk & - Process ImprovementImprove Control Standardization - Products and formats (SEPA) - ISO XML 20022 8
  9. 9. Table of Content• Introduction• Simplification of the Treasury Model• Treasury Technology & EBAM 9
  10. 10. Treasury Technology - Catalyst for Corporate Change Level ofCentralization Virtual Treasury (centralized and paperless, combined with local empowerment) Simplifying and automating Treasury Processes (EBAM, FSCM) Shared Service Center, Payment & Collection Factory Regional / global liquidity Local liquidity centralization (Netting & In-House Bank) Decentralized centralization cash management by subsidiaries Time Today 10
  11. 11. EBAM – What is it about?EBAM helps corporate treasuries to increase control, visibility and efficiency bydematerializing the tedious process of bank account management. Drivers Electronic Bank Account Mgmt Enablers Standardization Control Integrated global application (XML) for bank account Bank Opening Visibility Connectivity (SWIFT) Maintenance Efficiency / Closing Virtualization Automation (e-doc’s) 11
  12. 12. EBAM – How to get there?Good in-house digital data management is key (e.g. accounts, signatures).From a conceptual perspective, there are three possible ways to set up EBAM.EBAM Connectivity Options Key Features • Add-on to the electronic banking system • Bank proprietary solution • Client-hosted solution, e.g. as a module of the treasury management system • Bank independent • EBAM application is outsourced to a 3rd-party vendor (e.g. a service bureau) • Bank independent 12
  13. 13. Zanders’ EBAM-related servicesEBAM provides an opportunity for corporates to review the current BAMpolicies and processes before taking it to the virtual level.Policy • As-Is: Review and assessment of current BAM policies and related processesProcesses • To-Be: Solution design of future (audit-proof) processes,Organization EBAM-related policies (e.g. digital signatures, 3SKey)Compliance • Roadmap: Blueprint of ideal EBAM set up (incl. EBAM solution from TMS, banks and/or 3rd-party vendors)Applications • Implementation: Phased approach for implementing future EBAM solution (different roles per phase, depending on the scope of the project and the chosen IT set up) EBAM 13
  14. 14. Are You Ready for the Next Step?• EBAM will change the way you communicate with your banks• It will reshape bank account management (BAM) in the same way as email changed the concept of mail (the ‘new’ normal)• Main benefits of EBAM include a faster and more controlled corporate-to- bank communication for opening, closing and maintaining accounts• Best market practice is to approach EBAM in two steps: – Optimize internal treasury organization, processes and systems (BAM) – Dematerialize external paper-based bank account management with EBAM technology available from system vendors, banks and/or SWIFT• The ultimate goal is a ‘virtual and paperless treasury organization’ 14
  15. 15. Questions SimpleTreasury? ≠ K.I.S.S.! Easy 15
  16. 16. Contact InformationZanders NetherlandsBrinklaan 1341404 GV BussumThe NetherlandsT: +31 35 692 8989Zanders BelgiumPlace de l’Albertine 21000 BrusselsBelgiumT: +32 2 213 84 00Zanders UK26 Dover StreetW1S 4LY LondonUnited KingdomT: +44 207 763 72 96Zanders SwitzerlandBächtoldstrasse 58044 ZurichSwitzerlandT: +41 79 372 08 01 16
  17. 17. DisclaimerThese materials are for the recipient’s use only and may not be copied ordistributed in whole or in part to any other person. All information contained hereinis confidential and proprietary to Zanders and any of its subsidiaries. This materialis not to be disseminated, reproduced in whole or in part without the written priorconsent of Zanders.By furnishing this presentation to the recipient, Zanders is not committing to anytransaction. Although any indicative information is reflective of the terms underwhich a transaction might be arranged, no assurance is given that such atransaction will be executed on the specific terms indicated, due to changes incircumstances or new understanding through further analyses. 17