How to Prevent Payment Fraud?
This article is written by Nomentia Executive summary: The increasing frequency of accounts payable payment fraud has compelled treasurers and cash managers to pay attention to how to prevent payment fraud. “How to prevent payment fraud: Payment Process Controls explained” outlines the current landscape of payment fraud and highlights how Nomentia’s Payment Process Controls can detect and stop external and internal payment fraud with real-world examples of fraud prevention. Learn payment fraud prevention best practices along with actionable steps to enhance payment. Payment Process Controls explained Payment security should never be overlooked. Secure corporate payments are crucial to protect financial assets, maintain trust with stakeholders, and ensure compliance with regulatory standards. Put more succinctly, safe and secure payments are the backbone of business resilience and continuity. As technology has advanced, payment fraud and payment fraud tactics have grown increasingly more sophisticated and prevalent. AI, machine deception, real-time payment systems, and even collaborative fraud networks are making methods like phishing, social engineering, and even synthetic identities more common. The defenders of payment security have their hands full. The fraudsters launch new attack vectors, forcing defenders to scramble—tweaking rules, updating models, and adding more layers of authentication just to keep up. Failing to do so can have dire consequences, not just reputation damage or operational disruptions, but fines and legal consequences – not to mention substantial financial losses due to fraudulent transactions. These financial losses can significantly impact the bottom line of your organization and potentially lead to reduced profits and shareholder dissatisfaction. I had the opportunity to touch base with Jukka Estola, one of Nomentia’s Senior Product Managers, to discuss the evolving landscape of payment fraud detection and prevention and how Nomentia’s Payment Process Controls work to secure corporate payments from payment fraud. Meet the expert Jukka Estola, one of Nomentia’s seasoned experts with nearly 20 years of experience in developing software solutions designed to secure corporate payment processes, is the person you want to hear from. As a Senior Product Manager, he has been instrumental in creating advanced tools to prevent payment fraud, enhance compliance, and optimize financial workflows for global organizations. His extensive experience and deep understanding of the payment technology landscape make him a trusted source of information in the field. Payment fraud: The current landscape Payment fraud is a deceptive and increasingly publicized act that targets a company’s financial transactions. While it is often suggested that much of the payment fraud that occurs goes unnoticed or at least unpublicized, there is no shortage of headlines toting its near-epidemic prevalence. Examples, like Toyota Boshoku Corporation being defrauded $37 million through fake invoicing or Nikon losing approximately $29 million due to a Business Email Compromise (BEC) scam, underscore payment fraud’s increasing prevalence and sophistication. Using advanced, even AI- or machine learning-driven techniques to create deceptively convincing fake invoices or emails, fraudsters are making it difficult to distinguish them from legitimate ones. Scammers employing social engineering tactics or convincingly impersonating trusted contacts or high-ranking executives can manipulate employees into bypassing standard verification processes by creating a sense of urgency or authority. Critical components of payment fraud prevention with Nomentia’s Payment Process Controls The role of blocklists in payment fraud prevention “Blocklists are an essential tool in our payment fraud prevention arsenal,” Estola noted. “Utilizing blocklists helps to streamline payment processing by identifying proper and appropriate payees — like regular suppliers or partners- and what kind of payments can be made to what accounts. This minimizes the risk of mistakenly flagging routine payments as suspicious, which helps reduce operational friction.” Blocklists serve as a safeguard against unauthorized or suspicious entities, which can sometimes include also internal actors. “Blocklists should be thought of as a way to catch any attempts by employees or insiders to divert funds to their own accounts,” he explained. Organizations can include specific bank accounts—such as those of employees—or even payment types in their blocklists. This allows them to flag unusual transactions, like attempts to modify accounts payable data to route funds to unauthorized accounts. “It’s an effective way to prevent internal fraud without interfering with normal salary payments.” Payment fraud prevention through conditional payment rules Estola explained that conditional rules are another critical component of Nomentia’s Payment Process Controls. “Conditional rules allow companies to set specific criteria that a payment must meet to proceed,” he says. For example, organizations can establish rules based on payment amounts, frequencies, or even destinations. “If a payment doesn’t align with these predefined conditions, it’s flagged for further review.” This proactive measure helps to identify potentially fraudulent activities, like unusually large transactions or payments to unknown recipients. Preventing payment fraud with time-based conditions “Time-based conditions are particularly useful in preventing fraud that takes advantage of off-hours or low-oversight periods,” Estola pointed out. Companies can define specific times when users are allowed to log in to process payments. “When users are blocked from initiating payments outside working hours,” he said, “it helps to reduce the likelihood of fraudulent activity slipping through during periods with lower oversight.” Automated detection of anomalies in outgoing payments “We’ve built automated anomaly detection into the system to identify any transactions that deviate from the norm,” Estola explained. The solution analyzes payment patterns in real-time and flags transactions that stand out — for example, if a payment amount is significantly higher than usual or the destination country is unexpected. “This real-time detection capability allows for immediate intervention, stopping a suspicious payment before it’s even processed,” he highlighted. Manual or automated review of payments Nomentia’s Payment Process Controls solution provides flexibility in both automated and manual review options. “Payments that are flagged as irregular can either be halted automatically or sent to the finance team for manual review,” Estola said. This combination of automation and human oversight “creates a robust mechanism for catching and stopping fraud before it causes any damage.” Notification and alert system “Our notification system is designed to ensure that the right people are alerted immediately when a payment is flagged as an anomaly,” said Estola. “It is all about enabling a quick response. The sooner you know about a potentially fraudulent transaction, the faster you can act to stop or investigate it.”…
Franklin
Treasury Contrarian View: Are Treasury Certifications Still Worth It?
Let’s debate the value of certifications. Some argue that traditional treasury credentials are essential for credibility, while others believe practical experience and adaptability matter more than letters after your name. So, are certifications still a must-have—or are they becoming obsolete in today’s fast-evolving treasury landscape? Do Certifications Really Matter? The Case Against Certifications The Hybrid Approach: Balancing Credentials & Experience Perhaps the solution isn’t to dismiss certifications entirely but to combine them with practical skills: Discussion Starters Share your insights in the comments below! We’ll feature thoughts from board members and treasury tech partners on whether certifications remain a key differentiator—or just another line on the resume. Zhanna Irgaliyeva, CTP, Treasury Masterminds board member, comments: The hybrid approach is the most effective for treasury professionals from my point of view, as certifications not only demonstrate awareness of expertise but also highlight essential soft skills such as dedication, hard work, continuous learning, a willingness to develop as a treasury professional. For newcomers to treasury or those transitioning from local markets to international treasury, certifications offer a structured understanding of treasury functions and key topics. However, professionals should continue their development by exploring innovations, Treasury Management Systems, AI, and other emerging trends. Staying current with technological advancements, digitalization, and regulatory changes is crucial for long-term success in the treasury field, as the industry evolves towards greater automation and data-driven decision-making. Bojan Belejkovski, Treasury Masterminds board member, comments: While certifications in treasury are often seen as a mark of credibility, their actual value deserves scrutiny. The CTP, for example, may provide treasury practitioners with added confidence, but it does not necessarily reflect real-world expertise. The exam preparation materials often lag behind market developments, failing to keep pace with the rapid changes in treasury and finance. Relying on multiple-choice questions to assess someone’s knowledge, talent, and skills seems inadequate, especially in a field that demands adaptability and strategic thinking. With AI and digital transformation reshaping treasury, are we really preparing professionals for the future by reinforcing outdated theories? Practical experience—problem-solving, adaptability, and direct exposure to evolving treasury challenges—matters far more than memorizing textbooks and passing an exam. As treasury gains momentum and becomes more dynamic, leaders should shift their focus from credential-based qualifications to real-world expertise. Modern treasury demands professionals who can implement new systems, drive digital transformation, and develop strategic financial solutions. Strong analytical and technological skills are essential to staying ahead, yet certifications often fail to emphasize innovation and modernization.Instead of treating certifications as a must-have, the industry should prioritize hands-on experience, technological fluency, and strategic problem-solving—qualities that truly define a high-performing treasury professional. Alexander Ilkun, CGMA, Treasury Masterminds board member, comments: I don’t think there’s such a thing as a must-have in the area of Treasury certifications, unlike, for example, Accounting, where some roles absolutely require them. What is important to understand is that if you have one and if it does open some doors, you will likely know about it and be glad you have one. For example, the hiring manager has the same qualification as you do, and they choose you over another candidate that doesn’t have one. They will probably tell you about it. Is it something you can plan for and count on? Absolutely not, since stars aligning so perfectly so as to tip that balance is quite close to luck. Going through the learning process for the qualification is something that makes it very much worth it. If one has significant experience, they may wonder if there is any point in obtaining a qualification. I myself have a CIMA (Chartered Institute of Management Accountants) CGMA qualification, which I obtained in 2018. By the time I started, I already had about 8 years of Accounting and Treasury experience, so the learning process was quite interesting for me as it allowed to structure a lot of the practical knowledge that I had. I decided to go for a Management Accounting qualification as it allowed me to learn to be a broader leader in Finance, taught me to use numbers to tell a story about the strategic direction of the company. Importantly, most of my Treasury career I greatly benefitted from knowing Accounting as well as Treasury to connect the dots between what happens in both worlds. It helped me in countless ways from FX Risk Management Framework Transformations, influencing discussions about intercompany structures, hedge accounting, FX Gain/Loss analysis to understand hedging inefficiencies, even troubleshooting TMS/GL interface issues. I’d definitely say there is a great benefit of having Accounting experience for someone who is a Treasury professional, backed up by a Management Accounting qualification CIMA offers. Networking opportunities should definitely be mentioned here as you do become part of a community as you get qualified. How active and large the community is depends on your location, of course, but at present many opportunities exist to be connected at the very least regionally, if not globally. For those who are more senior in their roles, the question about giving something back to the community or the younger generation may also cross your mind. Community of other members and students is a great way to do so through, for example, mentoring schemes. You may also have a possibility to participate more strategically in development of the qualification you hold by applying for roles within the Qualifying Association. When considering whether certifications can keep pace with technological advancements such as automation, APIs, and AI-driven analytics, it certainly makes sense to research whether the qualification you’re about to obtain is adapting to the changing environment. It is not reasonable to expect that they will keep pace with every technological change immediately – updating syllabus takes time, so qualifications will not be able to keep pace. Having said that, many qualifications have adapted their syllabus to devote more space to matters that have become somewhat more noticeable in recent years – be it cybersecurity, sustainability, AI, etc. The qualifications do need to strike the balance between the old and the new though as they…
FX Hedging – The “Seat Belt” Paradox
This article is written by HedgeFlows The vast majority of multinational corporations proactively manage their currency risks. Between balance sheet hedging, cash flow hedging, and other strategies, well-accepted frameworks and straightforward processes help businesses achieve specific objectives. Yet most SMEs and a half of mid-market corporations that trade internationally shy away from proactively managing currency risks. According to the British Business Bank, 96% of UK SME exporters do not manage currency risks despite having international revenues. It is not because multinational corporations are more exposed to FX fluctuations than smaller businesses. Given their size and diversification, the finances of a typical multinational corporation can withstand larger currency swings than their smaller competitors. The issue of FX risks can pose a significant challenge for businesses operating globally, regardless of their scale. HedgeFlows has helped numerous businesses manage their international finances and FX risks. Throughout the journey, we encountered numerous teams who suffered losses amounting to tens, sometimes hundreds, of thousands, due to currency fluctuations, all because they disregarded the risks associated with currency. All of them could put processes in place and leverage solutions such as HedgeFlows to avoid unexpected currency losses going forward. An intriguing phenomenon I’ve noticed during the process is what I call the “seat belt paradox.” The Seat Belt Paradox The modern three-point seat belt was invented in 1959 by Volvo engineer Nils Bohlin. Seat belts are estimated to halve the risk of death or critical injuries, but most people were indifferent to their safety benefits at first. Being a “useless nuisance” 99.99% of the time, the value of a seat belt was hard to demonstrate. Not surprisingly, one 1984 survey found that 65% of Americans were against mandatory seat belts. It took government regulation that made seat belts compulsory in the 1980s to shift the status quo. Fast-forward to the modern day and 97% of UK drivers wear seat belts. Try driving your car without the seatbelt—your car will continue to annoy you with seat belt alert sounds, and your passengers will look incredulously at you. From being a “useless nuisance,” wearing your seat belt has become a norm. If you work in a treasury function of a large multinational, FX hedging is viewed similarly to the seat belt. It demands resources and skills, but critical stakeholders commonly understand and accept the benefits. Try ignoring your FX risks; the internal risk management team or external auditors will make noises that are much harder to ignore than the seat belt alarm in your car. Manage your risks poorly, and external investors punish you by deeming your shares risky. FX hedging has become the norm. The fallacy of seat belts that makes you go faster. Unfortunately, FX hedging is as popular with many smaller businesses as the seat belt in the 1960s. Without proper education, guidance, and frameworks, many businesses perceive it as useless until they learn about its benefits from first-hand experience of losing money on their international trade due to currency moves. Many also mistake FX trading in order to get a better rate for hedging. This is akin to trying to figure out how to use the seat belt to drive faster! Yet, the virtues of hedging currency risks are more easily understood when its objectives are aligned with specific financial or accounting metrics. Minimising the effect of currency swings on financial statements is the natural starting point. But FX rates are unpredictable, so how do you convince someone if they don’t know the benefits of hedging upfront? FX Hedging on the Cloud With cloud-based accounting and ERP systems making financial data easily accessible, solutions like HedgeFlows can help even small businesses quantify and understand their potential FX risks in minutes. With automated risk monitoring, real-time transparent pricing for hedging transactions, and automated reconciliations, FX risk management can be easily automated and embedded into existing financial processes. From micro-hedging individual foreign invoices to more complex rule-based hedging frameworks, adding a risk management process can protect growing businesses from the volatile effects of foreign currencies without hidden costs or surprises. 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.
🤔 Are We Defining Treasury 4.0, or Is It Defining Us?
Treasury 4.0—buzzword or breakthrough? It is undeniably exciting, but it’s worth asking: are we shaping its future, or are we letting the technologies, trends, and ESG mandates shape us? Written by Nirav Kanakia Let’s take a step back. We’ve traveled a long way: Now we stand at the threshold of Treasury 4.0, integrating AI, blockchain, and advanced analytics with a spotlight on sustainability and ESG. The promise is immense—but so are the questions we need to answer. A Reality Check Artificial Intelligence (AI) was supposed to change the game for cash forecasting and liquidity management. But many companies are still struggling to make it work in their treasury departments. Blockchain was expected to transform cross-border payments and trade finance. While companies like Shell have demonstrated its potential, most organizations haven’t embraced it yet. Robotic Process Automation (RPA) was designed to handle repetitive tasks, giving treasury teams more time for strategic planning. But many treasurers are still stuck doing routine work. 🌠Sustainability and ESG: Are We Walking the Talk? Using sustainability and ESG (Environmental, Social, and Governance) principles in treasury sounded like a move toward responsible finance. However, there are growing concerns about “greenwashing”—when organizations claim to be environmentally responsible without real action. 💡 Real-World Success Stories: Rare Exceptions or Common Practice? Big players like IBM and JP Morgan have successfully used Treasury 4.0 technologies. But for most companies, these advancements feel out of reach. 🤷 The Unanswered Questions As we reflect on the journey of Treasury 4.0, several questions remain: It’s time for a candid assessment. Where do we stand, and where should we be heading? . 👇 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.
How to optimise cash flow management
This article is written by Embat Cash flow is an essential indicator for any business, whether large or small. It is the backbone of its financial success and helps keep the business running smoothly. Optimising it not only increases the company’s financial stability but also enhances its ability to achieve growth objectives and maximise profitability. In this article, we will explore various strategies to optimise cash flow in your business, enabling you to gain greater predictability and control over a company’s liquidity. What is cash flow? Cash flow, also known as cash flow management, is a financial indicator that shows the amount of money coming in and going out of a business over a certain period of time. Broadly speaking, it represents a company’s liquidity at any given time, which is essential information as it reveals the financial health of the business and its ability to meet payments to suppliers, creditors, and employee payroll, among many other expenses. Types of cash flow In reality, there isn’t just one type of cash flow. Essentially, there are three main categories into which this indicator can be classified: Why it’s critical to optimise your cash flow Cash flow is one of the most important aspects of any business, as it directly affects a company’s ability to pay its debts, fulfil its financial obligations, make investments, pay dividends to shareholders, and, ultimately, finance its growth. In general, when a company does not have healthy cash flow, it may struggle to meet its financial obligations and may need to resort to loans to finance operations, which could ultimately lead the business into insolvency. Additionally, this situation can create a vicious cycle, as more debt results in higher interest costs, which in turn can reduce profitability and put the company’s long-term financial stability at risk. However, excessively high cash flows are also unhealthy for most businesses. For example, if a company lacks clear investment plans, it could end up accumulating large amounts of cash in its bank account, leading to high opportunity costs and significantly lower returns. For all these reasons, optimising cash flow, ensuring it is always adequate to meet all business obligations without negatively impacting profitability, is an essential task for corporate treasury departments. Benefits of optimising your cash flow Optimising cash flow is fundamental to the financial success of any business, regardless of size. The key benefits of doing so include: Solutions for optimising cash flow Some of the most powerful solutions for optimising your company’s cash flow include: Tips for optimising your cash flow Managing cash flow effectively can be a complex task. Some tips to help you achieve this include: 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.
Upgrading Supply Finance: Case Study
This article is a contribution from our content partner, PrimeTrade For many corporates, supply chain finance (“SCF”) fails to live up to its potential. Corporate treasurers and CFOs tell us about underutilization, limitations on the scope of programs, and a lack of transparency. | A large, global corporation is upgrading their existing SCF program—read this 3-minute case study. PrimaTrade provides a smart and streamlined approach. We upgrade existing SCF programs with minimal disruption. It is simple to implement, maximizes supplier participation, expands scope to the enterprise level, automates processes, and puts corporate treasury teams in control—achieved without material changes to existing SCF programs. Take control by upgrading your SCF The corporate is a global multinational with multiple operating hubs. They have a large SCF program implemented in only one hub. This existing SCF program is managed by a relationship bank on its in-house SCF platform. There is an active syndication process behind the scenes to distribute participations to relationship banks. Their existing SCF program is falling short of expectations: Automate approvals and expand utilisation The corporate buyer has three main objectives: Upgrade without material changes They have given us three important constraints: PrimaTrade: delivering P&L and utilisation PrimaTrade’s platform can be added to the existing SCF program operated by the bank, delivering the objectives whilst observing the constraints. PrimaTrade’s platform is used to: How does PrimaTrade do this? PrimaTrade can achieve these results because our platform is powered by data from suppliers provided at shipment. What about the existing SCF program? The existing SCF program is driven by a simple “approved payable” file. This file is produced from its accounting system each time there is a utilisation of the program. That same approved payable file is created by PrimaTrade instead, so the funder gets exactly the same file but earlier, with P&L wins, with automation and across the whole enterprise. And adding new funders? Each new funder will usually have its own way to receive an approved payable file for an SCF program—perhaps onto its own platform or direct to its banking systems. Adding new funders is straightforward. PrimaTrade simply outputs an approved payable file to each funder in the format they require. If funders do not have their own SCF platform, they can choose to use PrimaTrade themselves. And now the corporate is in control. Corporate treasury decides who should get what on the PrimaTrade platform. What is the result? The existing bank platform and SCF program are simply fed from PrimaTrade instead of the buyer’s accounting system. And: 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.
Treasury Contrarian View: Treasury Without Borders—Should Treasury Teams Go 100% Remote?
The global shift toward remote work has transformed industries across the board, and corporate treasury is no exception. With advanced technology, cloud-based platforms, and virtual collaboration tools at our disposal, the question arises: Is there still value in physical treasury hubs, or should treasury teams go 100% remote? The Case for Going Fully Remote Why Physical Treasury Hubs Still Matter The Hybrid Model: A Practical Middle Ground? Rather than choosing between fully remote or fully centralized models, many organizations are adopting a hybrid approach. This allows for: What Do You Think? We’d love to hear your thoughts. To kick off the discussion, we’ll share insights from our board members and content partners who have experience navigating this transition. Join the conversation below! Jeroen Overmaat, Sales Account Executive, NL, at Kyriba, comments: Treasury Without Borders is an enticing concept. But like most things in life, extremes tend to miss the sweet spot. Fully remote? Fully centralized? Both have merits, but the real magic lies somewhere in between. Going fully remote means you can hire that brilliant treasury analyst from Singapore while your cash manager sips coffee in Stockholm. Your overhead costs plummet faster than cryptocurrency on a bad day, and your team gets to dodge rush hour traffic – permanently. Cloud-based treasury management systems and AI-driven analytics have made it technically possible to manage billions from your backyard. Remote work undeniably breaks down barriers—geography, time zones, and even talent shortages. The catch is the “people factor”. Remember that time when the market went haywire, and your team had to make split-second decisions about hedging strategies? Try doing that over Zoom with a dodgy internet connection. There’s something about crisis management that makes you appreciate having everyone in the same room, making eye contact over their third espresso of the day. Sure, remote setups shine for routine operations (because let’s face it, no one needs to commute to update a forecast), but treasury isn’t just about numbers. It’s about judgment calls, nuanced relationship management, and putting out fires when the market goes haywire. Those are moments when face-to-face collaboration isn’t just nice, it’s crucial. Physical hubs still bring something to the table: the immediacy of communication, the tactile nature of collaboration, and the security blanket of controlled environments. When crises hit or regulations tighten, having a command center isn’t just old-school, it’s smart. So, why choose sides? A hybrid model lets you have your cake and eat it too. Use remote capabilities to handle the day-to-day but keep those physical hubs for the high-stakes moments. It’s about putting the right tools and people in the right places at the right times. Treasury without borders doesn’t have to mean treasury without boundaries. The key is finding your organization’s sweet spot between digital efficiency and human connection. It’s not about choosing sides – it’s about choosing smart. Sebastian Muller-Bosse, Treasury Masterminds board member, comments: Having worked 100% remotely in treasury for over five years, I can confidently say that modern technology makes this not only feasible but highly effective. From an employee perspective, the flexibility and work-life balance remote work offers are unparalleled, and I personally wouldn’t trade it for a traditional office setup. However, from an employer’s standpoint, the decision to go fully remote is more complex. Treasury teams alone may not justify closing physical offices entirely, but the ongoing talent shortage in treasury presents an opportunity to rethink hiring strategies. Offering fully remote roles would definitely attract a more diverse pool of candidates, including those from different countries who might otherwise be overlooked. This could lead to more globally diverse teams communicating seamlessly in English, with some members working remotely and others in-office. The challenge lies in how open organizations are to international talent and the administrative complexities of remote hiring, such as managing social insurance and tax compliance across borders. Interestingly, the IT sector has already embraced this model by hiring developers as individual contractors globally. If treasury teams can leverage similar infrastructure and practices, why shouldn’t they follow suit? The future of treasury could very well be a hybrid model that combines the best of both worlds—remote flexibility and strategic in-person collaboration. Ricardo Schuh, Treasury Masterminds board member, comments: Remote work has become a popular option in recent years, offering flexibility and convenience. However, I believe it’s not suitable for everyone. While it works exceptionally well for disciplined, self-motivated individuals, it can present significant challenges for others. In my experience, I had to let go of two employees who failed to meet expectations while working remotely. Despite clear guidelines and regular check-ins, their lack of commitment and productivity during working hours became apparent. This highlighted the fact that remote work requires a high level of accountability and a structured mindset, which not everyone possesses. One of these “forget” to pay an important vendor an amount of USD 12MM > generating an huge “discomfort” to deal and receive fuel during a busy period of sales. Office environments provide natural oversight, direct collaboration, and a structured atmosphere that some employees need to thrive. While remote work is undoubtedly a great option for the right people, it’s important to assess if it aligns with an individual’s work style and the nature of the role. I would add that PERSONALLY, I love the WFH setup. As a people manager, my experience was not that good due to these episodes. Hybrid is the best world. 🙂 Recommended Reading 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.
How Legal Entity Management Can Transform KYC Regulation Compliance and Optimize Client Onboarding
This article is written by Treasury4 Ed Barrie In my decades of experience in treasury professional, handling KYC regulations and smoothing the client onboarding process were some of the greatest challenges I encountered—in large part due to the siloed and disparate nature of legal entity data. Gathering relevant entity information is vital to both processes, but with the data spread between various individuals and teams across departments, it becomes far more arduous and time-consuming than it should be. The Complexities of KYC Regulations Several years ago, when I worked at a large public company, I was responsible for foreign bank account reporting (FBAR) and had to manage the issuance and renewals of legal entity identifiers (LEIs). I inadvertently let the LEI lapse for a legal entity, which delayed a tax refund from a foreign government of over $1 million. I did not thoroughly manage the company’s data and maintain the Know Your Customer (KYC) requirements of having an active LEI to complete a cross-border payment, which cost the company significant time and delayed the receipt of money. KYC regulations are ever-changing. Many of them were created to prevent money laundering and terrorist financing after the events of 9/11. Some requirements predate this as well, dating from the global financial crisis, where regulators needed look-through capabilities on the underlying exposures that financial institutions had with counterparties. Since then, regulations and complexity have only increased, leading corporates and financial institutions into perpetual, costly, and painful KYC compliance. The industry has made attempts to centralize and standardize KYC, but with limited success because it is hard to have a single global standard and develop a centralized data repository when there is no single universal standard of what’s required. There is no single standard around KYC data requirements because of the following: There is significant risk with noncompliance for corporates and financial institutions, including: How to Optimize KYC Regulation Management with Technology Corporations need to invest in people, processes, and technology to manage the underlying genome, including legal documents. They need to be able to collaboratively share data with banking partners efficiently, and they need a way to provide active notifications when that data changes. Banks in turn need to be able to consume that in a systematic way and share their own updates back with the corporate in a medium other than email. Email is far too manual, unsecure, and untimely to effectively manage such complex compliance processes. Corporations need to invest in people, processes, and technology to manage the underlying genome of legal entity data. I see a future in which KYC requirements are managed with a centralized golden copy of all the most current data in a system with a full audit trail, historical tracking, and an active alerting system that sends notifications to all relevant parties so they in turn can update their systems and action those changes accordingly. The system would also integrate the underlying dataset with relevant legal documents circulated for digital signature and stored long-term. This would ensure that these documents leverage data and workflow automation throughout the compliance process, rather than manually completed. For years, banks have asked a lot of questions of their customers. The tides are shifting, and customers are starting to ask a lot more questions of their banks. KYC requirements will continue to increase, but they are not the root cause of the friction and frustration between corporations and their banking partners. At the heart of this friction is the lack of managing data productively, in an active and collaborative process. Corporates and financial institutions could communicate and share data, including active updates and changes, in a straight-through process, by managing their legal entity data effectively. How Entity-Related Data Silos Slow Client Onboarding Few corporations are happy with the client onboarding experience because of the friction and repeated requests for data and documents. Financial institutions — such as banks, insurance companies, merchant processors, and asset managers—are held accountable by regulators and subject to fines or other penalties if their information is incorrect, even though they’re often the last ones to be notified when entity data changes, resulting in risk-averse institutions that are challenging to work with. Businesses also don’t usually have a singular owner for entity-related data. This data is often owned, managed, and dispersed across multiple teams and individuals. The treasury department is responsible for collecting relevant data and communicating it with their banking and financial services partners. When underlying source data changes, it is often not communicated in a timely manner to internal stakeholders, and these updates reach external partners like banks and financial institutions even later, creating financial risk for both the businesses and the banks. Gathering and sharing up-to-date entity challenges is an arduous process. Entity data includes underlying legal documents such as articles of incorporation, bylaws, banking resolutions, and tax certificates, for which banks need to validate the entity, what the entity is authorized to do, and who on the entity’s behalf is empowered to bind it to certain transactions or services. Consider the different places data exists external to your organization and your banking partnerships: 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.
Lessons from 10 Years of Failing to Sell My Dad Treasury Software
Is the title a bit click-baity? Yes, it certainly is. But then again, so are most of the 20+ sales solicitations that my dad – a seasoned Treasury practitioner with nearly 30 years of experience – receives every day from various software vendors, banks, and consultancies. If you’re an active treasury practitioner, I’m guessing you receive these solicitations too. In fact, you’ll probably receive one or two more by the time you’ve finished reading this article. I will personally apologize for some of the clutter, as I’m likely responsible for at least a few of those messages. I’ve helped send hundreds—if not thousands—of them over the past decade. Since 2015, I’ve attempted to follow in my father’s footsteps by pursuing a career in treasury. Not as a practitioner, but as a sales and marketing liaison for various treasury consultancies and fintech vendors. Ultimately, this means I create content and pitch products that I’m hoping would help convince my dad (and others like him) to invest in a new TMS, banking platform, or financial service. Because my dad is my target customer, I take every opportunity to collect his feedback on my projects. Over the years, I’ve pitched him on dozens of sales decks and demos, asked for reviews of countless factsheets and whitepapers, and sought his insight on almost every new piece of content I develop. Of course, due to inconvenient issues like “nepotism” and “conflicts of interest” (joking of course…), it’s not easy for my dad to justify the purchase of whatever shiny treasury solution his son spends all day trying to sell. I understand this and respect it. But because I’ve also had a front-row seat to analyze how each new vendor and bank advertises and sells to him—and what his response to each approach is—I’ve acquired a unique perspective on the process. As we enter 2025, the following insights are those that I’ve found most relevant and impactful as I prepare for my 11th year of service in the treasury sales, marketing, and content arena. To make matters worse, the security filters on most modern email platforms will send a large portion of your messages straight to spam. And cold calls? You’re lucky if the receptionist answers, and even more so if they actually transfer you to the desired extension. So, while sending emails and messages is fine, just know there’s a decent chance they might not ever be read or responded to. This shouldn’t be interpreted as a sign to just stop all sales and marketing communications entirely (although many practitioners might prefer that…). However, it should resonate that just because you have someone’s contact information or have constructed the “perfect” email does not mean it will be acknowledged, read, or responded too. Preparing yourself for this reality—and learning how to diversify your outreach as a result—is very important. Wrong. In all likelihood, that first demo call may be the only call (if it ever happens to begin with). Or, it’s the first of what will become 50+ calls over the course of not just days and weeks, but likely months and years. I’ve seen some sales cycles last as long as 3-5 years for large, blue-chip companies—especially when it involves a largescale migration of critical infrastructure, payment channels, and bank connections. There will likely be dozens—if not hundreds—of stakeholders involved across numerous departments. And due to the large number of participants and sheer scale of processes that are impacted, no experienced treasury team will ever rush a purchase. In most (but not all) cases, treasury software sales take time. Which leads us to point #3. If you’re wondering how many touch points are required to engage a corporate treasury team and maintain their interest during a multi-year sales cycle, the answer is usually hundreds, if not thousands. I don’t just mean emails and calls, but demos, workshops, dinners, events, etc. Vendors today will try to stay top of mind through any way possible, but the ones that succeed are usually ensuring that each stakeholder has all the information necessary to identify value. This usually means providing tailored material not just to Treasury but also to Accounting, IT, AP, and perhaps the CFO or CEO directly. Some might take it a step further and customize their outreach for each rung of the treasury ladder (manager, analyst, etc.), depending on the use case. Unfortunately, this multifaceted approach to sales is not easy for all reps to stay on top of, especially when it is extrapolated out across dozens or even hundreds of companies. Of course, there’s Salesforce and other tools to help with that problem, but just like in treasury, it’s never really that simple. The hard truth is that many treasury sales teams try to fill their pipeline with as many prospects as possible but ultimately fail to properly establish and maintain a good relationship with each one. Today more than ever, that’s an easy way to lose the opportunity. Whenever I attend the annual AFP or EuroFinance conferences, I like to walk the floor with my dad and listen to how various booths and vendors approach him. While many do a fantastic job, a fair number also struggle to demonstrate true product or market expertise, and those conversations rarely last long. Even for those who’ve memorized the pitch for their own product, a few follow-up questions from a seasoned practitioner can easily determine who understands the market and who has simply rehearsed a script. The same goes for those who use AI to generate highly authentic emails and digital messages but then struggle with in-person communication and dialogue. These are both major red flags, and in the end, it’s almost impossible to convince a treasurer that your product is a good fit for them if you clearly don’t understand the market or industry. As a final point here, it’s worth noting that out of the 20+ treasury sales reps emailing a random treasurer on any given day, at least SOME of them will be…
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