Empowering Corporate Treasury Through Digitalization

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Empowering Corporate
Treasury Through
Digitalization
23 June 2020
Enter the digital revolution in treasury services

In 60 Minutes
MINA I. NASSIF- HOST
CEO at Beacon FinTech
I will be pleased to drive you during the
coming 60 minutes webinar and move the
panel between 3 iconic speakers.
NIKOLAS ROMANO
Managing Director at Kyriba EMEA
Emerging Markets
Understand the key risks and challenges
faced by Global CFOs and Treasurers during
this unprecedented crisis
AHMED MANSOUR
FinTech and Blockchain Expert
Learn how to leverage technology to
enable the transformation of your
company ’s treasury function
MOHAMED SEDDEAK
Head of Treasury and Corporate Finance
at Al Nahdi Medical Company
Hear how Al Nahdi has leveraged
technology empowering their Finance
Transformation and weather the storm

A unique TreasuryTech gathering
Beacon FinTech is an approved and advocator provider for Kyriba TMS and Tech solutions in
the region.
Being a good financial professional is not enough during the pandemic time and unusual
events, the current finance challenges need more tools beside financial Muscles.
Activate Liquidity and Transform how you use liquidity as a dynamic vehicle for growth and
value creation
During the coming 60 minutes we will answer of your questions as possible. Please post
them in the Q&A field in the GoToMeeting tool bar. What we don ’t get to today, we will
answer one -to-one in a follow up.
3

What CFOs and Treasurers Say …
NIKOLAS ROMANO
Managing Director at Kyriba EMEA Emerging Markets
Understand the key risks and challenges faced by Global CFOs and Treasurers
during this unprecedented crisis

Audience Poll

Customer Survey:
What is the highest priority
(aside from safety) for board members
and investors during this
COVID-19 crisis?
March 2020

Liquidity!

Supply Chain : Bottlenecks & Supplier Bankruptcy
• Suppliers may request early payment to buffer cash reserves/ stay solvent
FX & Interest Rates : Rate & currency volatility
• Countries ’ fiscal strength and pandemic recovery timeline can impact rates. Hedges may be skewed/incompliant
• Fluctuations in currency value may cause unforeseen losses
• Forecast inaccuracy may shift the hedging focus away from cash flows and toward to balance sheet protection
Fraud : Increased Risk
• Disruption to BAU processes presents ideal conditions for fraudsters – 667% MoM
• Approval processes may be skirted to continue operations
Liquidity Instability : Delayed cash collection, Uncertain revenue
• Customers may pay late or renegotiate payment terms to buffer cash reserves/stay solvent
• Customers may defer purchasing decisions until conditions stabilize
Internal Processes & Tools : Business Continuity issues
• Gaps in processes & systems may become increasingly evident
Human Resources : Competency reduction
• A portion of human resources may be ill/hospitalized or be involved in caretaking of loved ones
• Potential layoffs
• Employees may not be able to perform all their duties from home
Control
& Risks
Supply
Chain
Human
Resources
Internal
Processes
and Tools
Liquidity
Instability
FX &
Interest
Rates
Debt &
Counterparty
Risks
Revenue
Volatility
Competency
Reduction
Business
Continuity
Issues
Delayed
Revenue
Rate &
Currency
Volatility
Costs
Bottlenecks
&
Bankruptcy
The 8 Risks Boards and Investors are frequently asking CEOs, CFOs and Treasurers:
Costs: Fixed cost structure
FraudIncreased
Risk of Fraud
Increased
Risk
Debt & Counterparties : Increased utilization, Increased risk
• Debt m ight be increased or m anaged differently, potentially increasing unplanned costs
• Som e banks in som e regions m ight have increased risk of insolvency

How can we sustain
supply chain disruptions?
?
Questions CEOs & CFOs are being asked almost daily.
Are we at risk of breaching
our debt covenants?
Are we respecting
counterparty limits?
Are we suffering fraud losses?
Do we have enough cash for the
next 7 days?14 days?30 days?
Can I trust my liquidity forecast?
What is our FXexposure?
What are our potentiallosses?
Will we be able to sustain if the
shutdown lasts 3 mo? 6 mo?

Go Digital or Die …
AHMED MANSOUR
FinTech and Blockchain Expert
Learn how to leverage technology to enable the transformation of your company ’s treasury function

Ahmed A. Mansour
Fintech For
Banking

Ahmed A. Mansour

Innovation &
Fintech
Digital Future
Legacy Ecosystem
Transformation
Digital Transformation

Banks Focused on
regulatory & forgot about
technological innovations
that have transformed the
way we live.
During & After the financial crisis of 2008
FinTech Revolution

Why is FinTech revolution happening now
During the financial crisis of 2008
A gap was created between what your banks were offering
you and what you as a customer came to expect especially
from a user experience and convenience perspective and
that gap is what the FinTech industries tackling right now but
that gap was so big that even non traditional banking players
decided to jump in & capture this opportunity mainly
technology firms for example : Facebook , Amazon ,
Alibaba
AhAmhemdeAd.AM.
aMnasnosuorur
FinTech Revolution
Banks Focused on regulatory & forgot about technological innovations that have
transformed the way we live.

Worldwide 77%
customers dissatisfied
with their bank* Mobile becoming
the preferred way to
bank not branches**
Globally 75% of Banks’
IT spend for
maintenance and
Legacy Issues§
65% of
customers don’t
trust banks***
38% of SMEs
would use non-
banks *
Some Statistics

GAFA & Financial Services
Ahmed A. Mansour
Their Key Motivations

FinTech VS TechFin

Chasing the elusive Amazon banking experience
When consumers say things like “Why can ’t my bank just be like Apple? ” or “If I banked with Amazon, this would
be so much better, ” they are telling us that they have become so used to the simple, elegant experiences offered by
GAFAand other tech companies that they look with distain on anything that falls short of those experiences.
Research corroborates that some consumers, if given the opportunity to drop their financial institution relationship
in favor of banking with #GAFA, would do so in a heartbeat (Source Accenture Banking 2020 Report).

Fintech Disruption for Retail Banking

Fintech For Banking Ahmed A. Mansour
How the Banking Industry Could Look
3 Years After COVID -19
Strategy

4 Pandemic Scenarios and Their Impact on Banking
The boxes below condense the detailed descriptions Deloitte
created for how each of scenario could accelerate or redirect the
consumer banking industry over the next one to three years.
The firm recommends that bank and credit union executives“resist
the temptation to focus on the scenario closest to your current
expectations”or assign probabilities to them.“The question should
be,‘What do we need to be ready for, even if we think it’s
improbable?'”

Digital Transformation
Ahmed A. Mansour

Recommendations & Plan

Approach Digitization Strategy

Collaboration is the Answer

Al Nahdi took the lead via an expert treasurer and transformer
MOHAMED SEDDEAK
Head of Treasury and Corporate Finance at Al Nahdi Medical Company
Hear how Al Nahdi has leveraged technology empowering their Finance Transformation
and weather the storm

Why Automation?
Cash Flow Forecasting by
Excel
“ Poor visibility with a limited options ”
Bank Reconciliations
“ Manual efforts & delayed process”
Bank Account Management
“ No monitoring tool, causes delayed actions ”
CHALLENGES
Long process to
monitor Cash Balances
“ Manual & time -consuming efforts ”
Payments and Bank
transfers
“ IT dependency & no monitoring tool ”
Cash Accounting
“ Delayed process & having human error ”
Nahdi ’s Treasury

How does NMC Automate treasury functions ?
Spent 4 months to did the cost benefit
analysis while choosing the best option
Finding the Right Partner
Gradually achieving the milestones while
facing the un -expected challenges: SWIFT
Migration, Integrating Banks, Authority
Matrix …
Implementation Phases
Start getting the system benefits from
Feb’20 and till date 90% live with the
functions and expecting to Sign -off by
mid of July’ 20
Going Live
Project Kick -Off
Starting from Oct ’19, set the road map
by having Blue Print for the next 6
months to Go Live …Mar ’20
Nahdi ’s Treasury

Nahdi ’s Journey
Phase 2
Cash
Visibility
Bank
Integration thru
SWIFT (Balances
& MT 940
statements).
There ’s tools to
bring remaining
30% into the
system
Simplify Payments
& Bank Transfers
Integrated FUSION
with Kyriba for
SWIFT payments.
Executing internal
transfers form
Kyriba with ease
by applying
approval rules and
monitoring real
time status for all
kind of payments
Simplify Bank
Reconciliation
Simplify and
automate bank
reconciliations
by uploading GL
statements
from FUSION
and by defining
the required
matching rules
95% 80%70%
Phase 1
Real Time Cash
Flow
Able to
generate&
customize
advance level
forecasting by
comparing with
the actual bank
transactions,
which gives
more visibility
and clarity
Bank Account
Management
Ease to maintain
bank accounts,
managing limits,
signatories,
renewal alerts
Automate Cash
Accounting
Able to create
GL entries from
Kyriba for GL
posting for the
selected type of
transactions i.e.
Bank Charges
and for Internal
bank transfers
(including
double entries)
100% 100% 100%
TMS - Kyriba

Need to know more? Or need to consult with us?
Let’s Talk!
It seems that the coming is more different than ever, Global CFSs and Treasurers must be armed with tech solutions, must speak
digital and IT language additional to usual finance language, and must open their mind toward new finance needs
We are eager to help, please use form that will be send to you for further communication or if you need to consult how to move to
digital finance era, acquiring the right Treasury Management System and comparing SaaS to In -house solutions.
It was a pleasure to manage the panel here and moving between iconic speakers.
THANK YOU!
MINA I. NASSIF - HOST
CEO at Beacon FinTech

Questions received and answered during the webinar
1- Could you please mention which software you went with?
(addressed to Al Nahdi client)
2- The impact of COVID19 on banks to spend on TMS in your
opinion?
3- To what extent do you think FIs can negotiate better deal and
cheaper invoices to have TMS onboard?
4- From other side what is the plan if we have Covid 19 on
communications?
5- How much time does it take to implement a treasury system?

Thank you!

Empowering Corporate Treasury Through Digitalization

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