Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Emerging Trends in Treasury

59 views

Published on

The future of treasury is NOW. Corporate treasuries are to act as strategic advisors, participating in C-level decision making and leveraging digital technologies. Digital technologies will not only cut costs in treasury but significantly increase the productivity of the workforce. This session will introduce the emerging trends for innovative treasury as well as case studies in analytics, RPA, AI and more.

Published in: Software
  • Be the first to comment

  • Be the first to like this

Emerging Trends in Treasury

  1. 1. EMERGING TRENDS IN TREASURY Emerging Trends & Topics for an Innovative Treasury March 2019 Daniel Perkins, Principal Director Accenture Lead Treasury Consulting North America 847-525-1084 daniel.perkins@accenture.com
  2. 2. 2 THE FUTURE OF TREASURY IS NOW: ANALYTICS, ROBOTIC PROCESS AUTOMATION, ARTIFICIAL INTELLIGENCE, BLOCKCHAIN AND CYBER SECURITY Insight-driven strategic & digital Corporate Treasury Intelligently Automated Treasury CFOs have the ability to automate an additional 50% to 60% percent of the finance function by transitioning to an organization that uses big data and analytics as a consistent routine thereby focusing on delivering high added value Already today, CFOs from high performing businesses state that their role in the decision making process has increased. The transition of finance, and Treasury, to a more strategic role and the rise of digital will have a significant impact on the Treasury workforce, such as deploying Robotic Process Automation (RPA) Blockchain’s impact on Treasury Database technology that allows multiple stakeholders to confidently and securely share access to the same data & information on real time payments, debt & investment management, settlements & trade finance will consolidate & evolve in the coming years and Treasury should begin assessing its impact in order to achieve real time transactions and savings Cyber secure and fraud less Treasury As money continues to become digital, world devices go mobile and data explodes, cybersecurity continues to gain relevance in the corporate world. Advanced analytics will begin being utilized to model and detect irregular behavior to fence treasury systems towards achieving zero fraud and impenetrable Cyber security Digital Treasury Hub Accenture research on the impact of artificial intelligence in its various forms reveals that AI will enable economic growth rates to double by 2035 Treasury workforce of the future Copyright © 2019 Accenture All rights reserved
  3. 3. 3 LEADING CORPORATE TREASURIES TO ACT AS STRATEGIC ADVISORS, PARTICIPATE IN C-LEVEL DECISION MAKING AND LEVERAGE DIGITAL TECHNOLOGIES In the new digital economy the role of state of the art Treasury organizations is to act as a strategic partner to the CFO, Finance and other functions; and to lead in the rotation to digital by:  focusing on high added value activities  building capabilities which support the decision making process throughout the entire organization  implementing new digital technologies such as predictive analytics and robotic process automation Furthermore, Corporate Treasury plays a leading role in protecting margins by mitigating financial risks in order to meet performance metrics. The role of Treasury O Organization P Processes T TechnologyG Governance New Treasury capability Organizational dimensions impacted by the deployed capabilities Strategic Treasury Value added Treasury Efficient Treasury Transactional Treasury  Rationalize bank relationships and manage bank fees at a global/regional level to enhance negotiating power  Industrialize transactional processes by implementing payment and collection factories  Automate and standardize processes throughout the organization to achieve operational excellence and reduce transactional costs  Centralize and integrate treasury management systems  Liaise with Procurement, Supply Chain and Sales to have greater visibility on exposures at an earlier stage  Protect earnings-at-risk by effectively managing financial risks  Implement outsource lower value added processes  Build on-behalf-of structures to drive control & savings  Roll out robotic process automation capabilities to reduce time spent on low added value activities  Operate a fully automated, integrated and digital Treasury  Be a key C-level advisor on M&A deals and debt structuring  Manage bank P&L pragmatically by wallet sizing  Leverage big data and predictive analytics in Treasury  Consider FinTech technologies, especially in the areas of payments and foreign exchange risk management P G Execute treasury and operational transactions  Hedge open positions at a local level  Obtain funds in a decentralized manner from local banks P G T G P P T P T O P T G T The journey of Treasury O O Copyright © 2019 Accenture All rights reserved
  4. 4. DIGITAL TECHNOLOGIES WILL NOT ONLY CUT COSTS IN TREASURY, BUT SIGNIFICANTLY INCREASE THE PRODUCTIVITY OF THE WORKFORCE 4 Productive Treasury Workforce: powered by intelligent automation Treasury Strategists Digital Treasury Experts CFOs will have the ability to further automate 50% to 60% percent of the finance function by transitioning from an organization which uses analytics, big data and machine learning occasionally to one that makes it a consistent routine (1) . This will deeply disrupt Treasury roles and it will increase the need for more digital experts within the Treasury team. 78% of Executives today consider that besides traditional finance & treasury skills, problem solving skills will become even more important than technological skills (2). Going forward, recruiting and retaining this talent will be key in order to rotate to the new digital and strategic Treasury organization Artificial intelligence is not only a cost savings enabler and when assessed pragmatically it has the potential to increase the productivity of the Finance workforce by as much as two to three times (5). Allowing the Treasury workforce to focus more than ever before in strategic activities in the most productive fashion Advanced analytics & artificial intelligence are enabling Treasury to transition to a more strategic role and this will impact the way digital is used to complement the Treasury workforce to make them ever more productive Copyright © 2019 Accenture All rights reserved
  5. 5. DIGITAL TREASURY OVERVIEW • ANALYTICS • ROBOTIC PROCESS AUTOMATION • ARTIFICIAL INTELLIGENCE • BLOCKCHAIN • CYBER SECURITY 5Copyright © 2019 Accenture All rights reserved
  6. 6. USING ADVANCED ANALYTICS ACROSS TREASURY AS A CONSISTENT ROUTINE TO BETTER PREDICT AND UNDERSTAND DATA AND BECOME A HIGH PERFORMER 6 Typical business challenges How analytics solves these challenges Cash Forecasting Analytics  Large volumes of data scattered across multiple systems  Disorganized data sets with heterogeneous structure  Large degree of accuracy variability  Leveraging advanced analytics to reduce accuracy variability to decrease cash buffers, minimize lost investment opportunities and maximize return on outstanding cash holdings Bank Performance Analytics  Lack of visibility over incurred bank fees  Diminished negotiation power with bank relationships  Over reliance on manual reporting  Forecasting and simulating bank P&L and its main drivers in order to proactively allocate business across bank relationships  Modeling bank performance management to determine the factors which most impact performance Financial Risk Management Analytics  Delayed feed of exposure information  Non-integrated treasury systems landscape  Assessment-focus risk reporting  Modeling and simulating financial exposures with alternative hedging portfolios in order to determine the most effective risk management strategy  Building synthetic instruments to hedge exposures with hedging instruments which truly replicate underlying exposures Treasury Performance Analytics  Unclear reporting governing structure  Disparate data & reporting standards across business units and functions  Analyzing big data to report not only on the performance per se but the drivers of Treasury performance and its probability of materializing Supply Chain Finance Analytics  Silos of information across Treasury and Procurement  Difficulty in presenting partners with a solid business case in favor of Supply Chain Finance  Using advance analytics to analyze the different spend patterns and build distinct supplier clusters  Leveraging predictive analytics to estimate the proportion of spend that could be subject to dynamic discounting Fraud & Cyber Security Analytics  Modeling of irregular behavior based on large pools of data in order to build predictive fraud analytics  Leveraging advances in machine learning to build cyber defense fences around existing treasury management systems  Over dependence on corrective controls rather than preventive and detective controls  Fragility of treasury management systems as cyber attacks against corporates consolidate as a new normal Copyright © 2019 Accenture All rights reserved
  7. 7. 7 AS THE PUSH TO GO INCREASINGLY DIGITAL INTENSIFIES, RPA WILL CONTINUE POSITIONING ITSELF AT THE FOREFRONT OF HUMAN-COMPUTER TECHNOLOGY Forces of inefficiency and complexity in Treasury Intelligent Automation Spectrum Organizational: • M&A and its accompanying integration issues • Lack of control of treasury operations • Manual and non-standardized processes Technological: • Multiple ERP and Treasury Management Systems • Numerous bank communication platforms • Abundant interfaces across organizations and systems • Lack of data and communication standards Environmental: • High degree of financial volatility and economic and political complexity across regions and countries Regulatory: • Multiple legal, regulatory and tax jurisdictions lead to significant manual compilation and computation efforts Integrated Desktop: consolidation of data from multiple sources into a single interface in order to complete a process Robotic Process Automation: application of technology to manipulate existing software applications in order to execute processes Virtual Assistance: computer-generated character which simulates a conversation to answer questions or queries and provides guidance Cognitive Computing: systems that gain knowledge from data as if it were an “experience” and apply what is learned in upcoming situations Selected benefits of RPA Cost savings associated to the scalability of bots handling tasks and processes Higher quality results due to reduced human errors Time saving gains, as bots run on a 24/7 basis without pausing and working at machine speed Run on top of existing IT infrastructure and require no IT transformation project Full compliance adherence to processes Focus Treasury’s workforce on adding value activities Ability to micro-manage operations when strategy requires it Copyright © 2019 Accenture All rights reserved
  8. 8. 8 In-House Banking Treasury Payment & Intercompany settlement Group Cash Management Consolidation Integrated Financial Risk Management Internal & external Financing / Investment • Multi currency cash pooling & concentration • Group Cash Forecasting • Intercompany netting • Treasury payments • FX & IR Hedging • Interco funding & Deposits • External Financing & Investment Operational Payment & Collection Factory Operational Cash Management & BAM Supply Chain Finance GlobalFinancial Clearing • POBO/COBO/PINO/CINO • Virtual accounts • Operational CM & Cash Forecasting generation • BAM & eBAM • Invest excess cash & funding model • Operate SCF Bank Performance • Bank rationalization • Bank Fee Management • Bank Fee Auditing Treasury InnovationHub Reporting Artificial Intelligence (RPA, AI) Analytics A I is a key component in the Treasury Innovation CoE • Advancing scope of activities • Driving Treasury strategy • Support business by providing data insights Artificial Intelligence is allowing Treasury to advance the scope of activities Treasury is moving forward due to new Innovative solutions and disruptive technology capabilities Copyright © 2019 Accenture All rights reserved
  9. 9. BLOCKCHAIN’S DATABASE TECHNOLOGY HAS THE POTENTIAL TO DISRUPT ENTIRE PROCESSES OF TREASURY & W.C. 9 Drivers of inefficiency Impact on Treasury Fast Syndicated Loans  Settlement requires a large amount of days due to multiple counterparties  Calculation of settlements have a high degree of variance amongst parties  Settlement of syndicated loans has the potential to go from 20 days to 1 day (4)  Integrated technology which allows for pertinent due diligence and information sharing Paperless Distributed Trade Finance  Transactional costs of Letters of Credit are partly driven by “documentation fees”  Duplicative Bank Guarantees exist due to the inability of banks to verify its authenticity  Transparent relationship amongst all counterparties involved  Smart contracts which execute payments and settlements based on imbedded specifications Digital Currencies  Transactional costs of cash and other types of physical money are more expensive than electronic ones  Paper-money is prone to manual errors and theft  Digitization of money will reduce handling and transactional costs; and eradicate theft related to its movement from retail-to-bank Distributed Consensus Supply Chain Finance  Bureaucratic and paper-intensive onboarding and operating process makes supply chain finance complex  Availability of invoices and confirmation of goods received are sometime lengthy processes and is information most banks require  Real time visibility by all parties on invoices  Digitization of invoices, factored invoices and all relevant documentation related to the Supply Chain Finance program Blockchain use cases Copyright © 2019 Accenture All rights reserved
  10. 10. AS MONEY CONTINUES TO BECOME DIGITAL, THE WORLD GOES MOBILE AND DATA EXPLODES, CYBERSECURITY & FRAUD WILL GAIN MORE RELEVANCE IN CORPORATES 10 Cyber Secure & Fraud-less Treasury Systems TMS and Bank Communication Platforms selection will not only be based solely on functionality but on imbedded cyber-defense & fraud detection capabilities. Additionally, going forward, Treasury will also expect to receive White Books on Cyber Security on a regular basis Cyber Secure Financial Partners Cyber thefts to the SWIFT network during 2016 have put in manifest that Treasury should actively ensure messaging protocols (e.g. e- BAM, payments, deals, etc.), market infrastructure, and data stored by banks relationships is cyber secure Cyber Defense & Fraud Advanced Analytics The field of advanced analytics and big data will be extended from purely functional applications to machine learning based cyber defense capabilities to fence treasury systems and algorithms to model irregular patterns to prevent and detect fraudulent behavior Cyber Insurance (*) US and Middle East Treasury Hubs – which typically manage insurance – will add cyber defense to its insurance mandate and begin acquiring cyber defense insurance policies to hedge against cyber risk Money is digitizing and although most transactions (volume) are still physical, digital money will continue to gain importance Mobile is everywhere across the world…and accessing a network has never been easier Data is exploiting…and people, corporates, governments and things will generate large amounts of sensible data Cyber security and fraud come at a very large cost for Treasury and Finance as it: deteriorates market trust, increases auditing fees, results in regulatory and financial penalties and poses customer base at risk… (*) Allianz predicts the cyber insurance market to grow at double digit figures until 2025 and to break the 20 billion dollar barrier within that time. …This increases the need of harnessing the following Cyber Defense & Fraud Security capabilities: Copyright © 2019 Accenture All rights reserved
  11. 11. DIGITAL TREASURY PROCESS FRAMEWORK • TREASURY PROCESS FRAMEWORK • CASH FORECASTING AUTOMATION ENABLED BY ANALYTICS • TREASURY PROCESSES ENABLED BY RPA • FX RISK MANAGEMENT AUTOMATION ENABLED BY RPA • TREASURY PROCESSES ENABLED BY AI • TREASURY PROCESSES ENABLED BY BLOCKCHAIN • TREASURY PROCESSES ENABLED BY CYBER SECURITY 11Copyright © 2019 Accenture All rights reserved
  12. 12. TREASURY PROCESS FRAMEWORK 12 CORP. FINANCE PERFORMAN CE MEASUREME NT FINANCIAL RISK MANAGEMENT COUNTERPARTY RISK MGMT. LIQUIDITY RISK MANAGEMENT FX RISK MANAGEMEN T IR RISK MANAGEMEN T COMMODITY RISK MTMG. TREASURY ACCOUNTING Valuation Treasury transactions Posting generation & interfacing Period-end closing Monitoring & reporting ORGANIZATI ON & GOVERNANC E Treasury strategy & setup Treasury policies & guidelines Processes and internal controls Ratios, KPIs and performance managemen t Pricing & analysis Transaction capture Exposure management Transaction execution Confirmation & validation Transaction settlement Risk simulations & stress testing Financial risk management reporting Authorization & limit management CASH & LIQUIDITY MANAGEMENT EXT DEBT MANAGEMENT ST DEBT LT DEBT BANK RELATIONSHIP MANAGEMENTT BANK PERFORMANCE MANAGEMENT Bank fee monitoring Service performance monitoring Strategy Claims & issue managemen t Relationship managemen t Debt terms & pricing Control, monitoring & reporting Funding needs EXT INVESTMENT MANAGEMENTST INVESTMENT LT INVESTMENT Debt issuance Transaction management Principle & interest settlements Investment analysis & quotation Control. Monitoring & reporting Investment opportunity Investment execution Transaction management Investment settlements Covenants Mgmt. BANK ACCOUNT MANAGEMENT KYC managemen t Account opening Account maintenanc e Account closing AML managemen t Fair value accounting Accounting reconciliatio n Guarantees Mgmt. CASH POSITION Bank statement processin g Treasury reconcilia tion Daily cash flow forecastin g Daily position Cash pooling/ concentra tion PAYMENTS Payment factory Supply chain finance COLLECTION S Collection s factory Factoring / Transacti on finance Transaction execution Transaction optimization Control monitoring & reporting Hedge accounting Transaction event management PLANNING & FORECASTIN G LT cash flow forecastin g ST & MT cash flow forecastin g IN HOUSE BANKING Internal account & statement creation Service fee managemen t Intercompan y balance monitoring Intercompan y interest managemen t Intercompan y netting FX netting Intercompan y loans Treasury reporting & analytics Capital structure managemen t Credit rating managemen t TECHNICAL SUPPORT & ADMINISTRATION Static data managemen t System security & access management System Infrastructure dev. & Maint. Project implementatio n Technical Issue managemen t Collateral Mgmt. Copyright © 2019 Accenture All rights reserved
  13. 13. CASH FORECASTING AUTOMATION ENABLED BY ANALYTICS 13 ToBeProcess Manually gather current data from multiple sources: • Baseline Plan captured from Planning system • Current Financial Data gathered from the General Ledger or Financial Data Warehouse • Drivers such as Headcount, Facility Utilization, Technology Utilization also collected Data Gathering Workbook Creation Loading into Planning System FP&A team gathers data and robots help to centralize / garner the baseline summary of information Robots manage the creation of all data worksheets to be used by the Business Robots upload information into the central tool – and signals to the FP&A team when data loading is complete • Robots create and transmit the files for bus dept heads Load data into the Planning System: • Perform uploads to the Planning System file by file • Ensure load is successful and results in the Planning System match the submitted file • Maintain list of errors / missing data • Monitor progress and confirm once upload procedures have been finalized Receive File / Reminders Validate Confirm Readiness Data loaded into workbooks for distribution to business dept head: • Load and format data into template • Perform checks and balances to confirm data accuracy • Email file to each business leader for next step processing FP&A Team: • Receives manual data from sources • Begin process and trigger robots Robot team: • Pulls automated extracts where possible Robots team: • Uploads files to planning tool 1:1 • Confirms load accuracy / validate uploaded data matches • Track issues / report errors • Maintain progress report and signal readiness Digital Workflow The FP&A team’s time can be spent on early insights, incremental analysis and additional business interaction while the data files are processed automatically Missing Inputs Receive files from each business dept head: • Capture files from email and download to central repository (e.g., sharepoint) • Monitor and follow up with leaders for ‘missing files’ • Open and validate spreadsheets Validation Robots capture files and validate readiness for the next step Format Data Confirm Readiness FP&A Team • Address missing data Transmit Files Pre-automationPost-Automation Copyright © 2019 Accenture All rights reserved
  14. 14. TREASURY PROCESSES ENABLED BY RPA 14 CORP. FINANCE PERFORMAN CE MEASUREME NT FINANCIAL RISK MANAGEMENT COUNTERPARTY RISK MGMT. LIQUIDITY RISK MANAGEMENT FX RISK MANAGEMEN T IR RISK MANAGEMEN T COMMODITY RISK MTMG. TREASURY ACCOUNTING ORGANIZATI ON & GOVERNANC E Treasury strategy & setup Treasury policies & guidelines Processes and internal controls Ratios, KPIs and performance managemen t CASH & LIQUIDITY MANAGEMENT EXT DEBT MANAGEMENT ST DEBT LT DEBT BANK RELATIONSHIP MANAGEMENTT BANK PERFORMANCE MANAGEMENT EXT INVESTMENT MANAGEMENTST INVESTMENT LT INVESTMENT BANK ACCOUNT MANAGEMENT CASH POSITION Bank statement processin g Treasury reconcilia tion Daily cash flow forecastin g Daily position Cash pooling/ concentra tion PAYMENTS Payment factory Supply chain finance COLLECTION S Collection s factory Factoring / Transacti on finance Transaction execution Transaction optimization Control monitoring & reporting PLANNING & FORECASTIN G LT cash flow forecastin g ST & MT cash flow forecastin g IN HOUSE BANKING Internal account & statement creation Service fee managemen t Intercompan y balance monitoring Intercompan y interest managemen t Intercompan y netting FX netting Intercompan y loans Treasury reporting & analytics Capital structure managemen t Credit rating managemen t TECHNICAL SUPPORT & ADMINISTRATION Pricing & analysis Transaction capture Exposure management Transaction execution Confirmation & validation Transaction settlement Risk simulations & stress testing Financial risk management reporting Authorization & limit management Transaction event management Collateral Mgmt. Debt terms & pricing Control, monitoring & reporting Funding needs Debt issuance Transaction management Principle & interest settlements Investment analysis & quotation Control. Monitoring & reporting Investment opportunity Investment execution Transaction management Investment settlements Covenants Mgmt. Guarantees Mgmt. Bank fee monitoring Service performance monitoring Strategy Claims & issue managemen t Relationship managemen t KYC managemen t Account opening Account maintenanc e Account closing AML managemen t Static data managemen t System security & access management System Infrastructure dev. & Maint. Project implementatio n Technical Issue managemen t Valuation Treasury transactions Posting generation & interfacing Period-end closing Monitoring & reporting Fair value accounting Accounting reconciliatio n Hedge accounting High potential Medium potential No or low potential Copyright © 2019 Accenture All rights reserved
  15. 15. FX RISK MANAGEMENT AUTOMATION ENABLED BY RPA 15 Pre-automation Users execute manually a documented process across applications Users control the automated execution, by robots, of a recorded process Local Exposure identification Input internal hedges between entity and IHB Limits? No Yes Determine the net global exposure Generate and distribute reports Post-Automation Allow to change hedging strategy RPA Technology has the capability to rapidly automate the Standard Operating Procedures of existing business processes. It does not require to change processes and applications in place Execute the external trades with the banks Validate the confirmation matching Input external trades in TMS Local Exposure identification Internal hedge creation Limits ? No Yes Determine the net global exposure Generate and distribute reports Execute the external trades with the banks Validate the confirmation matching Creation of external tradesCheck Exception handling Valuedelivered Improve hedge effectiveness Move from macro to micro hedging Copyright © 2019 Accenture All rights reserved
  16. 16. TREASURY PROCESSES ENABLED BY AI 16 CORP. FINANCE PERFORMAN CE MEASUREME NT FINANCIAL RISK MANAGEMENT COUNTERPARTY RISK MGMT. LIQUIDITY RISK MANAGEMENT FX RISK MANAGEMEN T IR RISK MANAGEMEN T COMMODITY RISK MTMG. TREASURY ACCOUNTING Valuation Treasury transactions Posting generation & interfacing Period-end closing Monitoring & reporting ORGANIZATI ON & GOVERNANC E Treasury strategy & setup Treasury policies & guidelines Processes and internal controls Ratios, KPIs and performance managemen t Pricing & analysis Transaction capture Exposure management Transaction execution Confirmation & validation Transaction settlement Risk simulations & stress testing Financial risk management reporting Authorization & limit management CASH & LIQUIDITY MANAGEMENT EXT DEBT MANAGEMENT ST DEBT LT DEBT BANK RELATIONSHIP MANAGEMENTT BANK PERFORMANCE MANAGEMENT Bank fee monitoring Service performance monitoring Strategy Claims & issue managemen t Relationship managemen t Debt terms & pricing Control, monitoring & reporting Funding needs EXT INVESTMENT MANAGEMENTST INVESTMENT LT INVESTMENT Debt issuance Transaction management Principle & interest settlements Investment analysis & quotation Control. Monitoring & reporting Investment opportunity Investment execution Transaction management Investment settlements Covenants Mgmt. BANK ACCOUNT MANAGEMENT KYC managemen t Account opening Account maintenanc e Account closing AML managemen t Fair value accounting Accounting reconciliatio n Guarantees Mgmt. CASH POSITION Bank statement processin g Treasury reconcilia tion Daily cash flow forecastin g Daily position Cash pooling/ concentra tion PAYMENTS Payment factory Supply chain finance COLLECTION S Collection s factory Factoring / Transacti on finance Transaction execution Transaction optimization Control monitoring & reporting Hedge accounting Transaction event management PLANNING & FORECASTIN G LT cash flow forecastin g ST & MT cash flow forecastin g IN HOUSE BANKING Internal account & statement creation Service fee managemen t Intercompan y balance monitoring Intercompan y interest managemen t Intercompan y netting FX netting Intercompan y loans Treasury reporting & analytics Capital structure managemen t Credit rating managemen t TECHNICAL SUPPORT & ADMINISTRATION Static data managemen t System security & access management System Infrastructure dev. & Maint. Project implementatio n Technical Issue managemen t Collateral Mgmt. High potential Medium potential No or low potential Copyright © 2019 Accenture All rights reserved
  17. 17. TREASURY PROCESSES ENABLED BY BLOCKCHAIN 17 CORP. FINANCE PERFORMAN CE MEASUREME NT FINANCIAL RISK MANAGEMENT COUNTERPARTY RISK MGMT. LIQUIDITY RISK MANAGEMENT FX RISK MANAGEMEN T IR RISK MANAGEMEN T COMMODITY RISK MTMG. TREASURY ACCOUNTING Valuation Treasury transactions Posting generation & interfacing Period-end closing Monitoring & reporting ORGANIZATI ON & GOVERNANC E Treasury strategy & setup Treasury policies & guidelines Processes and internal controls Ratios, KPIs and performance managemen t Pricing & analysis Transaction capture Exposure management Transaction execution Confirmation & validation Transaction settlement Risk simulations & stress testing Financial risk management reporting Authorization & limit management CASH & LIQUIDITY MANAGEMENT EXT DEBT MANAGEMENT ST DEBT LT DEBT BANK RELATIONSHIP MANAGEMENTT BANK PERFORMANCE MANAGEMENT Bank fee monitoring Service performance monitoring Strategy Claims & issue managemen t Relationship managemen t Debt terms & pricing Control, monitoring & reporting Funding needs EXT INVESTMENT MANAGEMENTST INVESTMENT LT INVESTMENT Debt issuance Transaction management Principle & interest settlements Investment analysis & quotation Control. Monitoring & reporting Investment opportunity Investment execution Transaction management Investment settlements Covenants Mgmt. BANK ACCOUNT MANAGEMENT KYC managemen t Account opening Account maintenanc e Account closing AML managemen t Fair value accounting Accounting reconciliatio n Guarantees Mgmt. CASH POSITION Bank statement processin g Treasury reconcilia tion Daily cash flow forecastin g Daily position Cash pooling/ concentra tion PAYMENTS Payment factory Supply chain finance COLLECTION S Collection s factory Factoring / Transacti on finance Transaction execution Transaction optimization Control monitoring & reporting Hedge accounting Transaction event management PLANNING & FORECASTIN G LT cash flow forecastin g ST & MT cash flow forecastin g IN HOUSE BANKING Internal account & statement creation Service fee managemen t Intercompan y balance monitoring Intercompan y interest managemen t Intercompan y netting FX netting Intercompan y loans Treasury reporting & analytics Capital structure managemen t Credit rating managemen t TECHNICAL SUPPORT & ADMINISTRATION Static data managemen t System security & access management System Infrastructure dev. & Maint. Project implementatio n Technical Issue managemen t Collateral Mgmt. High potential Medium potential No or low potential Copyright © 2019 Accenture All rights reserved
  18. 18. TREASURY PROCESSES ENABLED BY CYBER SECURITY 18 CORP. FINANCE PERFORMAN CE MEASUREME NT FINANCIAL RISK MANAGEMENT COUNTERPARTY RISK MGMT. LIQUIDITY RISK MANAGEMENT FX RISK MANAGEMEN T IR RISK MANAGEMEN T COMMODITY RISK MTMG. TREASURY ACCOUNTING Valuation Treasury transactions Posting generation & interfacing Period-end closing Monitoring & reporting ORGANIZATI ON & GOVERNANC E Treasury strategy & setup Treasury policies & guidelines Processes and internal controls Ratios, KPIs and performance managemen t Pricing & analysis Transaction capture Exposure management Transaction execution Confirmation & validation Transaction settlement Risk simulations & stress testing Financial risk management reporting Authorization & limit management CASH & LIQUIDITY MANAGEMENT EXT DEBT MANAGEMENT ST DEBT LT DEBT BANK RELATIONSHIP MANAGEMENTT BANK PERFORMANCE MANAGEMENT Bank fee monitoring Service performance monitoring Strategy Claims & issue managemen t Relationship managemen t Debt terms & pricing Control, monitoring & reporting Funding needs EXT INVESTMENT MANAGEMENTST INVESTMENT LT INVESTMENT Debt issuance Transaction management Principle & interest settlements Investment analysis & quotation Control. Monitoring & reporting Investment opportunity Investment execution Transaction management Investment settlements Covenants Mgmt. BANK ACCOUNT MANAGEMENT KYC managemen t Account opening Account maintenanc e Account closing AML managemen t Fair value accounting Accounting reconciliatio n Guarantees Mgmt. CASH POSITION Bank statement processin g Treasury reconcilia tion Daily cash flow forecastin g Daily position Cash pooling/ concentra tion PAYMENTS Payment factory Supply chain finance COLLECTION S Collection s factory Factoring / Transacti on finance Transaction execution Transaction optimization Control monitoring & reporting Hedge accounting Transaction event management PLANNING & FORECASTIN G LT cash flow forecastin g ST & MT cash flow forecastin g IN HOUSE BANKING Internal account & statement creation Service fee managemen t Intercompan y balance monitoring Intercompan y interest managemen t Intercompan y netting FX netting Intercompan y loans Treasury reporting & analytics Capital structure managemen t Credit rating managemen t TECHNICAL SUPPORT & ADMINISTRATION Static data managemen t System security & access management System Infrastructure dev. & Maint. Project implementatio n Technical Issue managemen t Collateral Mgmt. High potential Medium potential No or low potential Copyright © 2019 Accenture All rights reserved
  19. 19. ROAD TO SUCCESS FOR USING DIGITAL TECHNOLOGY IN TREASURY • ACCENTURE TREASURY TRANSFORMATION JOURNEY 19Copyright © 2019 Accenture All rights reserved
  20. 20. TREASURY OVERVIEW – OUR TRANSFORMATION JOURNEY 2001 - 2005 2009-2013 2016 - 2018 2018 + CENTRALIZATION INTEGRATION DIGITALIZATION INNOVATION Global Liquidity Management • Centralized and rationalized banking partners • Established Regional Treasury Centers • Standardized account structures • Eliminated external debt • Utilized single global platform Treasury Transformation Project • Enabled Bank -neutral platform (SWIFT) to standardize integration • Implemented cashless Intercompany strategy resulting in accelerated settlement • Integrated cash management processes with ERP • Reduced headcount through automation and process efficiency • Adam Smith Award Rotating to the New • More accurate Liquidity planning • Centralized bank account management • Enabled new user experience platform • Deployed Treasury analytics platform providing real-time insights • Optimized database model to centralize cash & liquidity reporting The Future is Now • Revolutionize cash forecasting through predictive analytics • Modernize bank account structures through / on-behalf-of Virtual Accounts and leading- edge strategies • Automate fraud risk detection through Artificial Intelligence and machine learning Rationalized banking partners globally Launched Regional Treasury in Sydney for APAC Risk Mgmt trading platforms SWIFT integration Implement Core Cash Mgmt on ERP (SAP ECC 6.0) Intercompany bill automation (SAP In-House Cash) Enterprise Insights – Descriptive Analytics Dashboard Implemented In-house bank Upgrade to Cloud based Treasury modules Digitized bank account data and workflow Automate cash forecasting Roll-out bank account strategies Manage cash as inventory 20

×