Treasury needs to be it’s own DOGE
Written by Patrick Kunz 1. Treasury as the “DOGE” of the Organization Just like the Department of Governmental Efficiency (DOGE) would aim to streamline spending, eliminate waste, and optimize financial processes in government, corporate treasurers play the same role within a company: Corporate treasurers are, in a sense, the “DOGE” of the company—watchdogs of financial efficiency. 2. Tracking Spending in Real-Time: Treasury’s Version of Blockchain Auditing A key function of DOGE (the department, not the coin) would be real-time tracking of government expenditures to improve transparency and accountability. Treasury teams are moving in a similar direction with: If governments implement real-time spending oversight, treasurers may be expected to push for greater financial visibility and accountability within corporations as well. 3. Liquidity Optimization: Learning from Government Cash Management Governments often have massive cash balances tied up in inefficient accounts, just as companies may hold idle cash that isn’t working for them. DOGE could push treasury teams to double down on liquidity strategy to ensure companies aren’t “sitting on cash” while paying unnecessary borrowing costs. 4. Eliminating Redundant Bureaucracy vs. Simplifying Treasury Operations Government inefficiencies often come from too many layers of approval, redundant processes, and slow decision-making. The same can be true in corporate treasury, where: DOGE’s mission to streamline government processes mirrors the ongoing push for simpler, leaner, and more automated treasury operations. 5. The Consequences of Bad Policy Decisions: Government vs. Corporate Treasury A well-run DOGE would highlight the importance of risk-aware financial management, something that treasurers already focus on. Final Thought: Treasury Needs Its Own DOGE If a Department of Governmental Efficiency were created to rein in spending and optimize financial decision-making, treasurers should ask: A well-structured treasury function is already the DOGE of the company, ensuring financial resources are used effectively, risks are managed properly, and liquidity is optimized. Would you like to explore how corporate treasurers could proactively implement DOGE-inspired efficiency strategies within their own organizations? Also Read Join our Treasury Community Treasury Mastermind is a community of professionals working in treasury management or those interested in learning more about various topics related to treasury management, including cash management, foreign exchange management, and payments. To register and connect with Treasury professionals, click [HERE] or fill out the form below to get more information. Notice: JavaScript is required for this content.
Patrick Kunz
KYC is Outdated. It’s Time for Know-Your-Counterparty (KYCp)
This article is a contribution from one of our content partners, Avollone We really should rename KYC from Know-Your-Customer to Know-Your-Counterparty. Until now, various KYC software suppliers have used KYB (Know-Your-Business) to cater to use cases that go beyond knowing your customers. But one should think that customers are your business as well? Obviously, KYB could also cover any due diligence on legal entities, and KYC could cover due diligence on private individuals. However, most companies also have customers who are legal entities, so this is not perfect either. The problem is that the number of use cases for KYC has exploded over recent years, making Know-Your-Customer a rather slim way of describing a broad range of examples of KYC collection and screening. To mention a few use cases we see in Avallone: Looking at the examples above, it becomes clear that KYC is so much more than Know-Your-Customer – and it should be, as the global risk landscape continues to evolve and companies become increasingly aware of the compliance and reputation risks they have to mitigate. On that note – half of our customers are not regulated. Then why bother collecting KYC and performing screening at all? The answer is to protect against reputation risks and non-compliance related to sanctions breaches. When it comes to sanctions, everyone is regulated, after all. I know I sound like an old compliance officer trying to convince the business to do more (or a KYC software CEO trying to sell more), but being really great at KYC and sanctions screening is a competitive advantage these days. Funds that are super good at screening their investment targets will attract more funding because investors do not want to support financial crime. Blue-chip corporations are more inclined to buy CO2 emissions certificates when they are sure the money will not be used in a money laundering scheme. Law firms with a super tight process when collecting KYC from their clients just get more clients, as everyone hates KYC and just wants it to be fast and painless. The list goes on. Also Read Join our Treasury Community Treasury Masterminds is a community of professionals working in treasury management or those interested in learning more about various topics related to treasury management, including cash management, foreign exchange management, and payments. To register and connect with Treasury professionals, click [HERE] or fill out the form below. Notice: JavaScript is required for this content.
Franklin
Measuring currency risks—what is behind CFaR and its cousins
This article is written by HedgeFlows Quantifying FX risk is one of the most challenging aspects of foreign exchange risk management. To determine whether managing currency risk is worthwhile, it’s essential to understand exactly what you’re protecting against. This knowledge is key to making informed decisions. While large multinational corporations often rely on concepts like Value at Risk (VaR), Cash Flow at Risk (CFaR), or Earnings at Risk (EaR) through their dedicated treasury or risk departments, these tools are less familiar and uncommon for smaller businesses with leaner finance teams. This article dives into the theory behind risk metrics and explains how to use them. Making sense of randomness Measuring FX risks is based on the notion that exchange rates move randomly over time and the changes in the value of currencies over a specific period of time have different likelihoods. This likelihood is distributed in a manner close to a normal distribution. For example, the graph below shows the historical distribution of 90-day moves of the Pound Sterling vs the US Dollar (grey) and its modelled distribution, which is normally distributed. As one can see, most potential outcomes are small moves clustered around zero, but in rare outcomes, the exchange rate moved more than 20% over 90 days. Asking the right question So, what is the right measure to use in order to quantify FX risks in a small business? It depends on what you want and what you’re trying to answer. In FX risk management, there is a big difference between asking the question, “What is the maximum I could lose due to foreign exchange?” and “What could I potentially lose on foreign exchange?” The former question emphasises the risks posed by rare but often catastrophic events – situations that occur infrequently yet have significant consequences when they do. These are the kinds of events that make headlines and can push businesses to the brink of collapse. Take, for instance, the aftermath of the Brexit vote, which triggered a sharp decline in the value of the Pound Sterling, or the more recent crisis during Liz Truss’ government, which temporarily plunged the Pound to multi-decade lows. Such events are notoriously hard to predict and, as a result, are not typically reflected in prevailing exchange rates. When they do occur, however, they can cause sudden and extreme market volatility, leading to lasting financial damage. Tools like Value-at-Risk, Cashflows-at-Risk, or Earnings-at-Risk are specifically designed to measure and account for these risks. However, because these moves are so rare, many businesses often ignore them until they have a real impact and become a topic of purposeful discussion. Hence, while knowing the maximum potential loss is essential, many CFOs are often more interested in more likely potential outcomes that can still have an impact on their business. The stability of cash flows or profit margins is often an implicit or explicit hedging objective, and even a 5% FX move can often have a sizeable impact on one’s cashflows. Because moves of such magnitude are a lot more likely to happen, it is not surprising that the jump in likelihood often makes such potential moves a lot more “real” to CFOs and their teams, and this is easier to relate to and thus manage. For example, as shown on the graph below, the likelihood of an FX move of 4% or greater is 20 times higher (probability of 20%) than that of 14.5% (probability of 1%). Different risks but the same solution Select the risk metric that best aligns with your business objectives and feels most intuitive to your needs. Fortunately, for most companies, this decision won’t affect the overall solution. FX forwards continue to be the preferred hedging instrument. You may have noticed that we refer to more minor, more probable outcomes as a move of “X% or greater.” This phrasing reflects that these outcomes represent not a specific point but a range of possibilities (losses) that extend beyond that threshold. If you choose to mitigate these risks, you will also reduce risks of larger, less probable outcomes. If, for example, you decide to hedge 50% of your exposure with FX forwards, the potential losses will halve, no matter which risk metric you choose. Also Read Join our Treasury Community Treasury Masterminds is a community of professionals working in treasury management or those interested in learning more about various topics related to treasury management, including cash management, foreign exchange management, and payments. To register and connect with Treasury professionals, click [HERE] or fill out the form below to get more information. Notice: JavaScript is required for this content.
TreasurySpring Announces Launch of a Public API and Partnership with Kyriba
[London, New York, 12 March 2025] – TreasurySpring, the global cash investment platform, has announced its API collaboration with Kyriba, a global leader in liquidity performance. Kyriba customers will now be able to access TreasurySpring’s suite of wholesale cash products ranging from collateralized repo from leading international banks to government securities and corporates. Kyriba’s AI-driven App Studio platform aims to eliminate “liquidity gridlock,” simplify API adoption, and streamline integrations for any software that supports APIs, including Enterprise Resource Planning (ERP). By endeavouring to empower finance teams to automate and control connectivity workflows without requiring technical expertise, Kyriba’s secure and scalable SaaS solution aims to help CFOs, treasurers, and IT leaders to connect, protect, forecast, and optimize their liquidity. The collaboration marks the launch of TreasurySpring’s first public API release, which provides select customers with the ability to view and access TreasurySpring’s fixed-term products across 90+ issuers and eight currencies, as well as the ability to view holdings and exposures across counterparties. This follows TreasurySpring’s recent expansion into the US to meet the needs of its growing US client base. As part of this growth, Tom Ryan was appointed Global Head of Partnerships, based in New York and US CEO & Global Head of Capital Markets, Henry Adams, has relocated to strengthen TreasurySpring’s on-the-ground presence in the US. Tom Ryan, Global Head of Partnerships, TreasurySpring said: “Platforms such as Kyriba play a critical role in helping our customers manage, forecast, and invest their cash, and we look forward to working with additional partners to expand access to TreasurySpring. The launch of our public API is a significant landmark moment for us as we continue to strengthen and grow the business in the UK, US and beyond.” Félix Grévy, Vice President Product, Open API and Connectivity, Kyriba added: “In an environment of continued market uncertainty, CFOs and Treasurers are turning to AI-driven SaaS solutions to automate workflows, enhance decision-making, and streamline cash forecasting. At Kyriba, our API-first strategy enables seamless connectivity between critical financial applications, empowering finance teams with real-time insights and greater control over their liquidity. By integrating TreasurySpring into Kyriba’s Marketplace, we are expanding access to innovative cash investment solutions that optimize liquidity performance and efficiency for our customers worldwide. Also Read
Treasury Contrarian View: Payments in Crypto—A Treasury Reality or Just Noise?
Cryptocurrency has been a hot topic in financial markets for years, but is it truly a viable payment method for corporate treasury, or is it just hype? While some companies have begun accepting and using crypto for payments, others remain skeptical about its practicality, volatility, and regulatory implications. So, should treasurers take crypto payments seriously, or is it still too risky and impractical? The Case for Crypto in Treasury The Case Against Crypto in Treasury The Balanced Approach: Testing the Waters Rather than fully committing to crypto, treasury teams can take a measured approach: Let’s Discuss We’ll be sharing insights from treasury leaders and industry experts—join the conversation and share your perspective! COMMENTS Noah Herman, Fortris Chief Revenue Officer, comments: The question of crypto payments in corporate treasury isn’t about hype – it’s about practical, strategic integration. While volatility and regulatory challenges are legitimate concerns, they’re manageable through thoughtful strategy, risk management, and proper infrastructure. Solutions like stablecoins and instant conversion into traditional currencies such as USD mitigate the perceived risks and offer clear paths to adoption without unnecessary exposure to volatility. However, instant conversion means companies miss out on the chance to fully operationalize crypto within their business, whether that be through balance sheet diversification or better cross-border payments. A “hands-on” approach to crypto payments means companies can explore these opportunities to the full but comes with two main challenges: security and interoperability. Take compatibility with existing TMS and ERP solutions as a case in point. Treasury teams are understandably reluctant to move away from their trusted tech stacks, but blockchain-based currencies aren’t compatible with those. We believe the answer lies in ensuring any new solution works with the existing back-office setup, without the need for manual processes that erode the time and cost savings of crypto payments. As for real-world adoption, we’ve observed this tends to move in step with regulatory developments and sea-change moments such as the approval of the first Bitcoin exchange-traded funds in the United States. More regulatory clarity and shifts in accounting guidance – such as the FASB’s move to fair-value measurement for assets including Bitcoin – provide an increasingly robust framework for finance teams to work with. These developments make adoption far less daunting. Ultimately, crypto payments are becoming a treasury reality – not overnight, but steadily, as organizations build comfort through strategic testing and practical use cases. Treasurers who explore proactively today will be well-positioned to capture tomorrow’s opportunities. Royston Da Costa, Treasury Masterminds board member, comments: From my experience, the key to integrating digital assets into treasury lies in cautious, measured steps. For example, while organizations like Save the Children have begun accepting crypto donations, they convert these assets into fiat immediately to minimize financial risks. This aligns with the idea of testing the waters, as mentioned in the article. I’m more optimistic about the potential of digital currencies—including CBDCs—which I believe will eventually become a more regulated, stable, and scalable alternative. These will likely offer the benefits of speed, cost, and transparency, without the extreme volatility that cryptocurrencies currently present. For treasurers, the focus should be on staying informed and being ready for future developments. Until regulation and infrastructure catch up, we should remain cautious but prepared for what’s to come. Also Read Join our Treasury Community Treasury Mastermind is a community of professionals working in treasury management or those interested in learning more about various topics related to treasury management, including cash management, foreign exchange management, and payments. To register and connect with Treasury professionals, click [HERE] or fill out the form below to get more information. Notice: JavaScript is required for this content.
Debunking the top 5 misconceptions about currency hedging
This article is written by our content partner, Ebury Understanding foreign exchange markets and hedging is essential for businesses looking to manage FX risk and succeed globally. Unfortunately, several myths linger around that can hold you back and lead to poor decision-making. Here, let’s debunk five common myths related to FX and hedging to help you manage your FX risk effectively. Myth 1: “Hedging is a headache—complicated, costly, and time-consuming!” Reality: Actually, it can be surprisingly simple and cost-effective with the right strategy, policy, and products (options, forwards *). And compared to the headaches and risks of not hedging (think: unpredictable pricing, cash flow chaos, potential loss of competitiveness, inaccurate budgeting), which is way worse, investing in a hedging strategy is always a wise decision. At Ebury, we help you design the strategy that’s just right for your business without all the fuss. Myth 2: “Hedging? Sounds like speculating or timing the market.” Reality: Not at all! Say, for instance, you have fixed prices. If your costs increase while prices stay the same, you have reduced your profit margins. Hedging helps you fix your costs for a period and brings certainty and future visibility to your finances. Imagine you know exactly what your costs will be for the next year. No more guessing games or tracking market movements daily! Myth 3: “Currency fluctuations? They primarily impact importers and exporters.” Reality: Even if you are not an importer or an exporter, your business is exposed to FX risks if you hold investments in other currencies or borrow funds in foreign currencies. For example, you are a European business with a 1-year investment of USD 100,000. If the EUR/USD rate depreciates, it will impact your investment value after a year. Any unwanted exchange rate volatility can unpredictably impact margins and cash flows, especially if your business makes frequent FX transactions. Myth 4: “FX policy is not for my business. Only large businesses and their treasury teams should worry about it.” Reality: Any business trading internationally, regardless of size, should have a plan and not leave its profit margins to chance. Think of an FX policy as your profit protection plan against unwanted currency volatility. And the good part: we’ve enabled companies of all sizes and across most industries to protect their budgets from unwanted currency volatility and can also help your business. Myth 5: “Hedging strategy is the same for all. I don’t need an FX partner to design it for my business.” Reality: Every business has unique circumstances, risk appetite, needs, goals, budget, and tenor expectations. Therefore, there is no universally applicable approach to hedging. That’s where Ebury comes in. We get to know your business and build a hedging strategy unique to your business. Like a tailored suit, not some off-the-rack thing. Final thoughts Any business can make informed decisions, effectively manage currency risks, and prepare themselves for success in international markets with the right hedging partner, knowledge, and tools. Also Read Join our Treasury Community Treasury Masterminds is a community of professionals working in treasury management or those interested in learning more about various topics related to treasury management, including cash management, foreign exchange management, and payments. To register and connect with Treasury professionals, click [HERE] or fill out the form below. Notice: JavaScript is required for this content.
Applying Hedge Accounting for Your FX Hedging: A Checklist, Tips, and Tricks
Written by Craig Haymaker Hedge accounting is powerful. It allows corporate treasurers to manage the risk inherent in foreign exchange (FX) exposures while reducing earnings volatility. By aligning the accounting for hedging instruments with the underlying risk exposure, hedge accounting provides a more accurate reflection of economic reality. However, hedge accounting can be complex and time-consuming without sufficient experience and knowledge of the guidance. While IFRS 9 introduced flexibility in certain areas, IAS 39 remains relevant for some organizations due to its stricter rules for hedge accounting qualification. Here’s a comprehensive checklist, along with actionable tips and tricks, to streamline the process under either framework. 1. Understand the Basics of Hedge Accounting Standards The two most commonly applied accounting standards for hedge accounting are IAS 39 and IFRS 9: Tip: Check which standard applies to your organization. If transitioning from IAS 39 to IFRS 9 is an option, assess how the flexibility of IFRS 9 might benefit your processes and reporting. Both standards recognize three primary types of hedges for FX: A clearly defined hedge relationship will involve a hedging instrument, or portfolio of hedging instruments, and a hedged item. Often, the hedging instrument is a derivative designed to reduce risk based on its underlying asset, rate, or index. The hedged item represents the critical terms of the risk exposure being hedged. Hedged item(s) could be assets, liabilities, forecasted cash flows, or equity-related balances driving the variability in expected future cash flows, changes in fair value, or reported investments in foreign operations. Both the hedging instrument(s) and hedged item(s) must be carefully and comprehensively identified within an entity’s documentation. 2. Build a Strong Hedge Accounting Framework A robust framework ensures compliance regardless of the standard you follow. Key elements include: Checklist: Tip: Use treasury management systems (TMS) to automate documentation and effectiveness testing to reduce manual errors and meet requirements. 3. Choose the Right Hedging Instruments The choice of hedging instruments must align with both your risk profile and the accounting standard requirements. Common instruments include forwards, options, and currency swaps. Tip: Under IAS 39, certain instruments (e.g., peculiar options) may not qualify due to stricter eligibility rules. Stick to simple and liquid instruments like forward contracts and vanilla options to simplify compliance. Trick: IFRS 9 allows you to exclude items such as changes in time value or forward points. For example, when hedging anticipated expenses denominated in a foreign currency across a given time period, the excluded forward element can be amortized to the statement of profit / loss over the life of the hedge, easing earnings impact. 4. Accurately Forecast FX Exposures For cash flow hedges, forecasted transactions must be “highly probable” to occur in order to qualify as an eligible hedged item under both IAS 39 and IFRS 9. Checklist: Tip: Involve key stakeholders (e.g., FP&A, procurement, and sales teams) to improve forecast accuracy and compliance. 5. Conduct Regular Hedge Effectiveness Testing Under IAS 39, hedge effectiveness must fall within the strict range of 80-125%, making it more challenging to qualify. IFRS 9, however, allows more qualitative or principle-based assessments, provided the hedge relationship is aligned with the risk management objective. Checklist: Trick: If your hedge fails effectiveness testing under IAS 39, consider redesignating the hedge using a different hedging strategy or hedging an alternative risk exposure to reset compliance and recapture earnings stability. 6. Understand Hedge Ineffectiveness and Adjustments Hedge ineffectiveness can arise from mismatches in the timing, currency, or amount of the hedged item and the hedging instrument. Valuation adjustments arising from the risk of non-performance, or counterparty credit risk, can also create a mismatch. This is because counterparty credit risk is considered only for the hedging instrument and not the hedged item. Tip: Avoid mismatches by ensuring critical terms (e.g., amount, currency, and maturity) between the hedging instrument and the hedged item are aligned. Trick: For cash flow hedges under IFRS 9, use hypothetical derivatives to mirror the critical terms of the hedged item to simplify ineffectiveness measurement. Applying a hedge ratio to the hypothetical derivative can help promote a highly effective hedge relationship. 7. Stay Compliant with Your Applicable Standard Compliance with accounting standards is non-negotiable. IAS 39 is more stringent in several areas, including hedged item eligibility criteria, testing, and measurement. IFRS 9 introduces simplifications and greater flexibility that reduce operational burdens while maintaining transparency. Checklist: Tip: Keep comprehensive documentation of hedge accounting processes and test results, especially if your organization still applies IAS 39. 8. Leverage Technology for Efficiency Whether under IAS 39 or IFRS 9, manual processes can be error prone. Treasury management systems (TMS) or specialized hedge accounting software can streamline your operations. Tip: Look for solutions that support dual compliance if you operate in jurisdictions requiring IAS 39 and IFRS 9 simultaneously. Trick: Automate repetitive tasks like hedge documentation, effectiveness testing, and compliance reporting to reduce administrative overhead. Final Thoughts Applying hedge accounting for FX hedging requires a well-structured framework, accurate data, and meticulous execution. While IAS 39 remains relevant for some organizations, IFRS 9 offers increased flexibility, making it worthwhile to explore transitioning if allowed. By following this checklist and leveraging the tips and tricks provided here, you can simplify the complexities of hedge accounting, enhance risk management, and achieve better alignment with your hedging strategy. Are you ready to optimize your FX hedging and embrace hedge accounting under the relevant standard? Share your thoughts, experiences, or questions in the comments below! Also Read Join our Treasury Community Treasury Mastermind is a community of professionals working in treasury management or those interested in learning more about various topics related to treasury management, including cash management, foreign exchange management, and payments. To register and connect with Treasury professionals, click [HERE] or fill out the form below to get more information. Notice: JavaScript is required for this content.
Handling Treasury Management in the Digital Era
This article is written by Embat In today’s digital age, treasury management has become more complex but, at the same time, more efficient. Companies no longer rely solely on cash and cheques for their routine financial transactions. There are now multiple payment options and digital tools available within this critical business process. For this reason, it’s crucial to manage cash properly to avoid future financial issues, and companies must pay special attention to their treasury. In this article, we’ll explore key strategies and insights for optimising corporate treasury operations in the digital era, helping to improve efficiency and ensure financial stability. Treasury and technology: a winning combination Without a doubt, cash is the most important asset of any company. It enables the financing of daily operations, investment in fixed assets, payment to suppliers, settlement of taxes, and maintenance of liquidity reserves for emergencies and unexpected events. Therefore, treasury management is increasingly vital, and new methods are continually being sought to optimise this important process. Treasury and digital transformation make for a winning combination, as it essentially allows the modernisation of business systems. However, for this process to be truly effective, it is important that treasury management is integrated with the rest of the company’s systems, such as asset management systems, accounting systems, or payment systems, among many others. The goal is not only to centralise all operations in one place but also to enable a banking connectivity channel between the company and the bank, allowing daily communication to flow much more smoothly. In this way, a real-time treasury is achieved, available from any location and device, and adaptable to the needs of each business. Benefits of digital applications in treasury management There are several advantages and benefits to using digital applications in treasury management. The following are some of the key highlights: Task automation Modern technologies, such as artificial intelligence and robotic process automation (RPA), can help automate many of the manual and repetitive tasks carried out in treasury. In fact, almost all activities in this department are susceptible to being automated through technology and digitalisation. These tasks include bank reconciliation, cash flow reporting, or fund transfers to clients and suppliers, among many others. Such actions reduce human errors, increase process efficiency, and enhance overall performance. Cost reduction Digital transformation, when applied to a company, drives significant cost reductions by minimising human errors. In the context of financial management, such errors can result in substantial losses, making the accuracy and efficiency brought by digital tools crucial for safeguarding the company’s finances. Moreover, digital treasury also enables the consolidation of bank accounts, reducing fees and improving the negotiation of rates with banks. Finally, by having real-time visibility of accounts in banks, companies can optimise balances and cash flows, which decreases financing costs and, consequently, improves the company’s profitability. Risk reduction Digital treasury systems provide the right tools for financial risk management. This helps companies make informed decisions about financial risk management and reduces the risk of financial loss in real-time and without any friction. Furthermore, digital treasury ensures regulatory compliance, such as verifying the applicant’s identity, monitoring transactions, and generating reports. Digital treasury systems can help companies comply with financial regulations and avoid penalties and fines for non-compliance, as they are quickly updated based on current legal requirements. Better cash flow management Digital systems allow centralised cash flow management in one place, in real-time, with the possibility of being updated and reviewed by anyone, on any device, and from anywhere. Additionally, they provide useful tools for cash flow forecasting, helping companies plan their short- and long-term cash needs. Treasury teams can use these systems to create cash flow forecasting models and simulate different financial scenarios. This allows them to identify potential risks and financing opportunities, helping them make more informed decisions about cash management. Top tools for treasury management in the digital era There are various tools for managing treasury in the digital era. Below are some of the most common and popular ones: Treasury management software This type of software can include features such as risk management, cash flow forecasting, and bank reconciliation, specifically designed for corporate treasury management. It may operate as a standalone solution or be integrated into a broader ERP (Enterprise Resource Planning) system. Embat is integrated with the main ERPs on the market, such as SAP, Oracle NetSuite, Microsoft Business Central, and Sage. Treasury management software can be customised to suit a company’s specific needs and can be used to manage multiple bank accounts and currencies. Electronic payment systems Electronic payment systems enable the receipt and sending of electronic payments, which can be particularly useful for companies conducting online transactions. These systems use secure networks and communication protocols to facilitate money transfers and online payments. Such payment systems offer businesses numerous advantages, including greater convenience and security for users, the elimination of cash and cheques, and improved efficiency in processing payments. Additionally, they provide enhanced security and can be integrated into accounting and finance systems to facilitate the management and tracking of a company’s financial transactions. Online banking tools and bank connectivity Most banks offer online banking tools that allow for the management of accounts and transactions, which can be especially useful for managing multiple bank accounts. Furthermore, some companies offer peer-to-peer (P2P) bank connectivity protocols to create a direct communication channel between the company and the bank. These tools enable access to bank account information on demand through bank statements, as well as automating payment management (with transfers, confirming, etc.) or the receipt of collections (with direct debits, for example). Cash flow forecasting tools Cash flow forecasting tools allow for the prediction of future cash flows and the identification of potential liquidity problems. Some of their main features and characteristics include: Why not integrate all these features into a single platform? In reality, it would be fantastic to have all these features available in one place, wouldn’t it? Well, such comprehensive solutions do exist, offering an automated, efficient, and secure treasury for finance teams. Among these solutions are the treasury management solutions offered by Embat. With our comprehensive cloud-based treasury solution you can…
Prepare for ISO 20022 Migration
This article is written by TIS Payments 2025 is a critical year for one of the most significant transformations within the financial landscape: the migration to ISO 20022, the new universal messaging standard for payments. It is estimated that by the end of this year, 80% of high-value payments will be ISO 20022-based, with Swift phasing out legacy MT messages. This shift represents more than a simple messaging update; it’s an opportunity for treasurers to enhance automation, compliance, and efficiency in their cash and payments operations. Why ISO 20022 Matters for Treasurers ISO 20022 brings a richer data structure, enabling faster, more transparent, and more structured, compliant payments processing. This reduces errors, enhances reconciliation, and strengthens compliance with regulatory requirements. For corporate treasurers, this is an opportunity for: However, as the migration to ISO 20022 progresses and MT legacy formats continue to coexist alongside the newer XML standards, several challenges arise. On the corporate side, many systems are not yet equipped to process the new formats or to provide the richer information required. This misalignment could lead to business disruptions due to issues in payment execution, reconciliation challenges, and process gaps that require manual intervention. As a result, businesses face an increased operational risk. Additionally, they are not able to fully leverage the benefits that ISO 20022 offers. Therefore, corporate finance professionals must take proactive steps to ensure that their businesses are prepared for the changes ahead. One important question you might need to ask yourself is: Are your back-end systems ready to fully digest the new ISO 20022 messages and to migrate all relevant formats globally to bank- and country-specific ISO XML? Actionable Steps for Treasurers To ensure a seamless transition, treasurers and other financial professionals should proactively assess their payment processes and banking relationships: How TIS Supports ISO 20022 Migration TIS stands on the forefront of ISO 20022 readiness for global payments execution. This includes the capability to read legacy payment formats and transform them into ISO XML, ensuring that clients can maintain their smooth and automated end-to-end payment operations, even if their back-office systems are not yet able to adhere to ISO 20022 standards. TIS has the capability to enrich the address data sets with the master data stored in TIS and transform the unstructured into structured data sets as per the ISO 20022 standard. On the bank-to-business side, TIS is able to split accumulated bank files, which makes the data easier to distribute and consume for the different back office systems, and avoids unnecessary data duplication and large file sizes. TIS can also gather and merge individual bank files to complete bank statement files, if a bank has not yet fully transitioned to ISO 20022 standards, but the corporate’s back-office systems are ready. TIS clients receive complete account statement files without the need to build or develop their own solutions. Additionally, TIS unifies the data sent from the different banks. Clients don’t need to worry about the different versions (camt.053v.02, v.03, etc) and the different data structures. Translation from any camt.053 version is possible – with the additional ability, to transform bank-country-specific versions to a unified MT940 version, as a solution for businesses whose back-office systems are not ISO 20022 ready yet. Conclusion: ISO 20022 A Strategic Opportunity Now is the time to engage with banking partners, review internal systems, and embrace the benefits of this transformative change. The capabilities described above, coupled with the fact that TIS already integrated hundreds of back-office systems, supports thousands of different payment types, maintains over 140,000 unique payment profiles, and invests in ongoing development and maintenance of these and new formats to ensure future-proofing, make TIS the ideal vendor for corporations with global payment operations and a complex back-office systems landscape when transitioning to ISO 20022. Also Read Join our Treasury Community Treasury Mastermind is a community of professionals working in treasury management or those interested in learning more about various topics related to treasury management, including cash management, foreign exchange management, and payments. To register and connect with Treasury professionals, click [HERE] or fill out the form below to get more information. Notice: JavaScript is required for this content.