Next Generation of Treasury Technology Cash Adventure- Brad Teaver.pptx

© 2018 Kyriba Corp. All rights reserved. | Proprietary & Confidential. 1
The Next Generation
of Treasury
Technology
Brad Teaver
Sr. Solution Engineer
Kyriba

Today’s Discussion
History of
Treasury
Technology
How has technology
changed over the years?
Innovative
Technology
Happening Now
•Data Visualization for Reporting
•Real Time Payments
•API Connectivity
Emerging
•Cryptocurrencies
•Blockchain
•Artificial Intelligence- Robotics
and Machine Learning
Building the
Business Case for
RFP
What to think about
when building your
Business Case?
How to leverage the
business case to drive
your RFP?

History of Treasury
Technology

Cloud (SaaS)
Evolution of Treasury Technology
Vendor
Company 1 Company 2 Company 3
Hosted-Private Cloud
Separate install for each client
Company 1 Company 2 Company 3
Vendor Hardware
On-premise
Company

What does the cloud mean for treasury?
Treasury
Workstation
1990s – 2000s 2005 2017
Innovation
Treasury
Management
System
Treasury & Risk
Management
Functionality
Cash and treasury
Value proposition
Automation
Delivery
On Premise
Functionality
Cash and treasury
(and a little risk mgmt)
Value proposition
Automation
Delivery
Internet
Treasury as a Strategic
Partner to the business
Functionality
Specialized & Advanced
Value proposition
CFO enablement
Delivery
Cloud
2019

Benefits delivered by the Cloud
Reduced
Predictable Cost
Disaster
Recovery
Innovation
• Pay for what you need
• No internal hardware or IT costs
• No upgrade costs (external or internal)
• Full redundancy: no single point of failure
• Higher availability: across all time zones
• Improved RTO, RPO for minimized disruption
• Always on current release
• Newest software tools; no obsolescence
• Economies of scale -> vendor viability
Implementation
and Support
• Quicker implementation; no need for IT
• Ease of support; every client on same version
• No individual configuration/support issues

Innovative Technology

The Report

Today’s Reporting
Reporting
 Rows and columns
of data
 Manual analysis:
your eyes have to
scan for exceptions
 No drill down
 No change on-the-
fly

Data Visualization vs. Reporting
What’s Different
 Visualize
information to find
new conclusions
 Multiple drill downs
 Immediate update
 Build yourself

What happens to “the report”?
• Dashboards – rather than rows
and columns
• Voice commands (e.g. Alexa,
what is my cash exposed to?)
• Designed for performance
reporting, KPIs, and quick
identification of exceptions
• The report becomes the
answer
The future is visual, analytical, and voice driven

Board level reporting automatically
generated

Real-Time Payments

Real-Time Payments
Real time payments
1. Immediate credit: The funds become available in the payee’s
account immediately (within a few seconds) of the payment being
initiated by the payer.
2. Irrevocability: Once the payer has initiated the payment, they
cannot cancel it.
3. Certainty of fate: When the payer initiates the payment, they are
informed immediately (within a few seconds) whether the payment
has successfully reached the payee’s account or not.
Over 25 nations have real-time payments live
 Some examples:
 Faster Payments- UK
 FAST- Singapore
 NPP- Australia

Real-Time Payments Use Cases
Use Cases for Real-Time Payments
 Cash payments ie. paying entertainers or staff at sporting events
 Instant refund to a consumer with a service issue or a rebate to a
customer
 Student tuition refunds, high-risk vendor payments, internal payments
between divisions across banks, patient trials, and same-day
exception payments.
 Ability to “request for payment”. Receive payments that are “ready
to post” to their accounts receivable systems
Research revealed more than 12,000 payroll exceptions annually, more
than 3,000 of them made with expensive wire transfers.

Real-Time Payments – what to expect
1) CFOs will focus on the supply chain
• Any technology that improves supplier & customer relationships
will prove to be valuable
2) Real-Time payments will become the standard
• It may take a few years
• Question: via banks or via non-banks?
3) Need more banking APIs
• Banking community is starting to expose bank portals via API
• Required to have real-time payment and settlement

Real-Time Payments – what it means
1) RTP brings predictability
• Knowing exactly when payment arrives = knowing when to send it
• Low-volume payment pain points, such as payments that were cash-based
or payments with unique timing requirements
• Will also drive ‘request for payment’ in certain industries
2) Lower cost
• Competition among banks & non banks
• Less touchpoints for difficult payments (e.g. emerging markets)
3) Fraud concerns
• Quicker payments = quicker settlement = inability to recoup losses
• Increases the need for real-time payment fraud detection

API Connectivity

API Visual

APIs – what is happening?
APIs are being introduced in finance and banking
• Regulations in Europe/UK pushed banks to consider
APIs in Europe – and globally
Some global banks want APIs to replace FTP
connectivity
Many see opportunity to create ‘open banking’ here
in North America
• Banks are testing with TMS/ERP, often limited to pilots
with a single customer

APIs – why do we care?
Bank Connectivity
1) Move to API will eventually = real-time bank reporting
2) Choice: Banks that only offered SWIFT connectivity
may offer APIs
3) Pre-built integration rather than unique file interface
for each project
 Reduces implementation time and cost
 Standardizes onboarding and security
4) New Bank services eBAM via API

Cryptocurrencies & Blockchain

Cryptocurrencies
•Bitcoin is the most famous; but the
least practical
Limited supply (prices like a commodity)
Effectively illiquid
Maximum of 8 transactions per second
So…is there a future for cryptocurrencies?
Answer = yes, there are others besides bitcoin

Cryptocurrencies
•What can we expect from cryptocurrencies?
Cheaper and faster cross-border payments.
Driven by Blockchain technology for speed instead of
the old technology for wires.
Payment providers use their own cryptocurrencies to
facilitate currency conversion. You buy JPM Coin not
Euros.
Easier transfer of value in un/under-banked populations
(see in Kenya)

Facebook and JPM Coin
 Interesting developments happing in this space.
 JPM Coin
 Digital token that will be used to instantly settle transactions between clients of its wholesale
payments business on their Quorum Blockchain platform on Microsoft Azure.
 JPM Coin is redeemable for a single U.S. dollar, so its value shouldn’t fluctuate, similar in concept to
so-called stablecoins. Clients will be issued the coins after depositing dollars at the bank; after using
the tokens for a payment or security purchase on the blockchain, the bank destroys the coins and
gives clients back a commensurate number of dollars.
 Facebook Coin
 Facebook's cryptocurrency will reportedly be a "stablecoin." Stablecoins are cryptocurrencies that
are pegged to a stable asset like the U.S. dollar or a commodity (like gold) to minimize volatility.
 Allows users use digital coins to make purchases on Facebook and third-party sites
 What's going to happen?

Blockchain & Cryptocurrencies
What we need for success:
1) Better understanding by CFOs of Blockchains and
Cryptocurrencies
2) A Blockchain “network” to support mainstream
payment volumes
3) Solution for vendor risk (i.e. do I want to send
money through this vendor)
Regulation; Consolidation; backing by banks

Artificial Intelligence & Robotic
Process Automation

Robotic Process Automation (RPA)
• Robotics, powered by AI, will be the next generation of
automation for all software applications
• Robotic software (“bots”) will take over much of
finance and accounting
• Reconciliations
• Accounting entries
• Cash management
• Investment/borrowing decisions
• Payment screening
• Trade confirmation
(More) Digital
Transformation

AI/Machine Learning in Treasury
• Limitation of today’s ‘bots’ is what can be programmed
by a person. (Excel Macro)
• Machine learning means:
1) Software applications can self-develop new capabilities based
on data analysis and exceptions. Learning from the Cash or
Accounting manager daily.
2) Replaces the “experience” of a person. Smart enough to make
common sense decision. Like what category to put a unmatched
transaction in or GL Account to book a transaction too.

Applications for AI in Treasury
Fraud Prevention
• Detection of unauthorized payments
How?
• Digitization of payment policy
• Payment channel optimization (ACH, RTP or Wire)
• Screening of policies vs. approved payments
• Development of new fraud detection rules via
machine learning

Vision for financial technology
The future of software is robotic process
automation and machine learning
FinTech platforms will be self-learning robots within 10 years
Cryptocurrencies will become a standard
Demand will start in emerging markets
The report will evaporate
Business analysis will be visual, voice and on-demand

Building a business case

36
© 2017 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 36
Business approval for treasury technology
Building a business case is a reality
 Executive approval always needed
 Justification may involve a mix of quantitative
and qualitative benefits
• Investments that generate value will be
always be prioritized
• Productivity isn’t enough

Collaboration is key
Recommendations for successful collaboration
1) Know your internal landscape
2) Understand expectations
3) Keep in mind your project objectives

Internal Landscape
 Know your internal landscape
 Who’s listening? Build your army of project champions
 Treasury and Accounting will realize the biggest benefit
 Who are the impacted stakeholders? Include them
 Treasury, Accounting, AP
 IT for vendor risk analysis, project support and system
replacement
 Purchasing / Procurement (if they own contracts and new
projects)
 Understand timelines and who will approve the project
 When is budget season?
 What are IT & Procurement’s requirements and timelines?

Understand expectations
 What type of analysis is
needed
 Detailed
 Macro view
 Do you need to
incorporate a project
plan?
 What needs to be
incorporated into the
ROI
 Soft Costs
 Hard Costs
 Who is the business case
being delivered to?
 CFO? Heads of Purchasing? IT?
 It helps to know your audience
2) Typical Expectations

Stay focused on objectives identified
Increase Productivity
 Reduce time spent to focus on
strategic value
Improve Visibility
 Reduce idle cash and improve
forecasting, hedging, and
payments
Optimize Treasury Processes
 What kind of new programs does
treasury want to implement?
Enhance Internal Controls
 Reduce risk of fraud and
improve operational audit &
control
3) Keep in mind your project objectives

Alignment with RFP
A good business case drives your RFP
1) Selection process
2) What capabilities you actually buy
3) Implementation priorities (during
planning)
4) Reminder of what’s important
(during the selection process)

 Define your goals and be realistic on timing
 Get buy-in from all parties that will be affected
 Flexible budget that leaves room for additions, changes, customizations, etc
 Name executive level “champion” (e.g. CFO) to support the project
 Keep banks informed during the project (to avoid surprises = slow downs)
 Don’t stop at demonstrations; look at the total company you are looking to
partner with
 Find your own references in addition to what vendor will volunteer
 Ask your banks, ask your peers at Cash Adventure
 Attend vendor user conferences, advisory boards, user groups, educational
webinars
Tips and Tricks Summary

Thank You

Next Generation of Treasury Technology Cash Adventure- Brad Teaver.pptx

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