Ripple Acquires GTreasury: What It Means for Corporate Treasury
From Treasury Mastertminds When Ripple announced its $1 billion acquisition of GTreasury, reactions across the treasury community ranged from curiosity to cautious optimism. For some, it marks a watershed moment — the convergence of digital-asset infrastructure and traditional treasury management. For others, it’s a long-term experiment whose practical impact will take years to unfold. Either way, it’s a move that deserves attention. The Big Picture Ripple is known for its blockchain-based payment and liquidity network. GTreasury, by contrast, is one of the most established Treasury Management System (TMS) providers, supporting corporates with forecasting, payments, connectivity, and compliance. By combining forces, Ripple positions itself not just as a payments player, but as a provider of enterprise liquidity infrastructure — bringing blockchain into the mainstream of corporate finance. As Jessica Oku, Treasury Mastermind board member, put it: “This isn’t just about a fintech acquisition but a structural shift in how corporates may manage cash, liquidity, and digital assets.Ripple’s $1Bn buy of GTreasury puts it squarely in the game of thrones — sorry — treasury operations.” From Excitement to Realism When the news first broke, many treasurers — including Patrick Kunz, founder of Treasury Masterminds — reacted with excitement at the possibilities. “When I first heard the news I thought: ‘wow this is cool,’ and started to imagine the end state — a TMS fully integrated into blockchain or stablecoins for almost instant global payments in any currency.” But, as Patrick reflects, the reality check followed quickly: “Thinking about it longer, I realized this end state will take years to achieve — if it even will. And is that really Ripple’s goal? I had more questions than answers.” That mix of curiosity and caution captures how many in the treasury world feel. As Jessica noted, the deal “signals that Ripple is positioning itself not just as a payments enabler, but as a full-stack infrastructure provider for liquidity and capital.” Patrick adds that regardless of how quickly integration happens, the move is already shaking up the TMS market: “It brings a bit of noise and challenges the status quo — which is always good in a competitive environment. It also makes treasurers think about the possibilities of using crypto or blockchain in treasury. Which, in my opinion, is not a matter of if but when.” The Promise: Smarter, Faster Liquidity Ripple and GTreasury’s shared ambition is clear — to enable faster, smarter liquidity management by merging digital-asset rails with deep treasury functionality. Jessica outlines the potential: “Combine GTreasury’s cash forecasting, FX, and compliance logic with Ripple’s blockchain infrastructure, and you get a platform that could move value instantly across fiat, stablecoins, and tokenized deposits.” Tanya Kohen adds that tokenized deposits may be the real breakthrough: “They open the possibility of using on-chain benefits without leaving fiat currency. You can embed logic, automate liquidity, reconcile in real time, and move cash dynamically instead of letting it sit idle.” For treasurers, this could mean a shorter cash cycle, automated movement of funds, and programmable payments — if, and only if, regulatory and operational foundations catch up. The Caution: Real-Time Comes with Real Risks Bojan Belejkovski offers a grounded counterpoint: “Treasurers aren’t losing money because payments take 30 minutes instead of 3 seconds. Their value lies in liquidity forecasting, risk mitigation, and visibility. Real-time only matters if it brings measurable improvements — reduced FX risk, freed working capital, or better yields.” He warns that 24/7 liquidity isn’t free of cost: “It means continuous monitoring, more automation, tighter risk controls, and possible regulatory friction. Many treasurers actually prefer predictable batch cycles that align with reporting and governance windows.” In short, blockchain brings potential efficiencies — but also complexity. Pros and Cons at a Glance Potential Benefits Key Challenges Broader access to liquidity and markets via blockchain rails Integration complexity between legacy TMS/ERP and on-chain systems Faster settlement and real-time visibility Continuous monitoring, audit, and risk-control overhead Ability to earn on idle balances and unlock trapped cash Regulatory uncertainty and compliance requirements Opportunity to explore tokenized deposits and programmable cash Conservative adoption curve — treasurers value reliability Strategic synergy: Ripple’s network meets GTreasury’s enterprise reach Execution risk from merging different technologies and cultures What Comes Next In the short term, adoption will remain slow. Treasurers are pragmatic — they’ll wait for proven use cases, clear regulation, and seamless system integration. As Jessica notes, “Adoption won’t happen overnight. Treasuries are conservative. Integrating blockchain with compliance, risk, audit, and visibility will matter more.” In the medium term (2–5 years), we’ll likely see experimentation — Ripple bringing new liquidity tools to GTreasury clients, and other TMS vendors accelerating their own innovation agendas. Bojan foresees this evolution: “Treasurers will operate within increasingly intelligent, connected ecosystems — powered by AI-driven forecasting, API-linked liquidity, and modular TMS platforms that deliver end-to-end visibility.” And over the long term, as Tanya points out, tokenized deposits could bridge the gap between fiat and digital — giving treasurers programmable liquidity without leaving traditional banking infrastructure. Final Thoughts Ripple’s acquisition of GTreasury is bold — and possibly transformative. It’s not about making payments faster; it’s about redefining the infrastructure of corporate liquidity. It will challenge the status quo, force vendors to rethink their roadmaps, and push treasurers to imagine what digital liquidity could mean for their organizations. The big question isn’t whether treasurers will use blockchain or tokenized cash — it’s when, how, and through whom. And on that, as Patrick Kunz summed up: “Exciting times ahead — but we’re only at the beginning.” 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.
Franklin
Working capital in service of shareholder value
This article is written by Embat Creating sustainable value over time depends on efficient management of financial resources, with optimising working capital as a critical element. It acts as a financial health indicator, measuring the organisation’s stability while directly supporting shareholder returns. Far from being just another finance KPI, working capital reflects operational discipline across the entire business and demands active engagement beyond the finance function. Linking daily operations to long-term strategy Working capital is fundamentally the difference between current assets (short-term resources) and current liabilities (short-term obligations). It represents the liquidity buffer available to meet near-term commitments, sometimes described as operating liquidity or a financial cushion. It serves as the essential link between daily operational management and the company’s medium- and long-term financial strategy. By providing a clear measure of operational solvency, it ensures that the business can meet its obligations on time, maintaining stability even as priorities evolve. Effective working capital management is about having the right liquidity levels, tailored to the specific operating model and the stage of the business cycle. This helps reduce reliance on external borrowing, improves return on invested capital, and directly supports shareholder value. Additionally, it acts as a shock absorber for unforeseen disruptions or internal issues, such as production line stoppages in manufacturing. The goal is to achieve balance: avoiding both liquidity shortages that create financial stress in the short term, and excess idle cash that cannot be deployed to generate additional value. Poor working capital management can effectively paralyse the core of any company, even one with strong paper profitability. Turning efficiency into cash flow Often, companies can unlock more value through effective working capital management than through simply expanding operating margins. It is about improving the conversion of assets into cash while managing liabilities with precision. Optimising working capital creates a virtuous cycle over time. By shortening the cash conversion cycle, businesses can accelerate the return on investments and improve overall profitability. This process directly increases free cash flow, which becomes a powerful lever for corporate strategy. Companies can choose to reinvest in new projects, reduce debt, or return value to shareholders through dividends and share buybacks. It also builds the capacity to adapt to market changes quickly, funding growth opportunities without compromising financial stability. A strategic priority for the entire organisation Improving working capital should never be viewed as a narrow technical exercise owned solely by the finance department. It is a strategic priority that demands collaboration across all business functions. Operations, procurement, sales, and finance must work in concert to manage payment terms, inventory levels, and receivables in a way that aligns with the company’s overall strategy and risk appetite. Ultimately, cash remains the central measure of a company’s resilience and opportunity. Optimising working capital is about reliably turning profit into cash, and managing that cash to deliver sustainable value for shareholders over time. It is the practice of converting earnings into liquidity—and liquidity into lasting strategic advantage. 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.
EuroFinance 2025: AI Takes the Stage, but Core Treasury Still Reigns
From Treasury Mastertminds This year’s EuroFinance conference was buzzing with energy — and Treasury Masterminds was there in full force as an official media partner, with nine board members attending sessions, moderating panels, and walking the floor. If one theme stood out above all, it was clear: AI has moved from curiosity to conversation — and now to early experimentation. “I clearly see strong interest in AI,” said Patrick Kunz, Founder of Treasury Masterminds. “My sessions on this topic were fully booked. When polling the audience, there was a noticeable shift — more treasurers are experimenting or running first use cases. Last year it was mostly about interest.” But while AI dominated headlines and hallway chatter, the classic topics of treasury weren’t going anywhere. “That doesn’t mean that the standard treasury topics were less in demand,” Patrick added. “Cash optimisation, working capital management, and yield enhancement for cash investments remain high on the agenda. The roundtable knowledge-sharing sessions were particularly popular — treasurers still love learning from each other.” AI Everywhere – But Still Early Days For many first-time attendees, the scale and scope of EuroFinance were eye-opening. “I was amazed by the number of banks and fintechs, especially smaller ones focusing on AI and innovation,” shared Kortam Mohammed. “All the sessions were highly relevant — from working capital to digital assets and AI adoption.” Kortam observed a growing number of practical AI solutions already in the market — particularly around cash flow forecasting, working capital optimisation, and digital payment automation. But he also noted two key challenges holding treasurers back: That tension — between the potential of new tech and the reality of operational focus — seemed to echo across the event. AI, Upskilling, and the Future of Treasury Roles AI wasn’t just about technology — it was about people. “AI was mentioned in nearly every session — even by José Manuel Barroso in his closing remarks,” said Benjamin Defays. “Many treasurers were uneasy about what it means for their roles, but the message was clear: AI will replace tasks, not entire jobs.” Benjamin’s takeaway was that upskilling is now non-negotiable. “It’s time for treasurers to look at their work and identify where they add value. We shouldn’t be ashamed to say we used AI to get something done — we should foster this mindset in our teams. Learn the AI language, and teach it internally.” Benjamin also highlighted growing interest in Fixed Term Funds (FTFs) — an investment approach offering greater control over counterparty risk — and virtual accounts, which continue to evolve but still lack clearly defined corporate use cases. Tokenised MMFs Make a Comeback “Adding to those comments, I was curious to see the return of tokenised money market funds,” noted Nicholas Franck. “There’s no sign of corporate adoption yet — mainly financial institutions — but their reappearance suggests the market is maturing.” This re-emergence fits into a broader trend of digitalisation of liquidity and investments, where treasurers are increasingly looking for secure, transparent, and efficient ways to deploy excess cash. 🎙️ Live from EuroFinance: The Treasury Masterminds Podcast One of the highlights for our community this year was hosting a LIVE podcast recording right from the EuroFinance venue, in collaboration with Nomentia. The discussion explored the hottest conference themes — from treasury digitalisation and TMS innovation to how AI is reshaping the way treasurers work and collaborate. “Conversations like these capture the pulse of treasury,” said Patrick. “It’s exactly what Treasury Masterminds is about — connecting experts, sharing real stories, and turning ideas into action.” 🎧 Listen to the full live recording here:👉 Treasury Masterminds LIVE with Nomentia at EuroFinance 2025 Looking Ahead: From Awareness to Application EuroFinance 2025 confirmed that treasury innovation is no longer a niche side conversation — it’s part of every treasurer’s strategic agenda.But as our board’s observations show, the gap between awareness and application remains wide. Bridging that gap is where communities like Treasury Masterminds play a role — helping treasurers share experiences, experiment safely, and translate technology into real impact. Were you at EuroFinance 2025? We’d love to hear your takeaways — especially your first-hand experiences with AI, digital investments, or other treasury innovations. 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.
7 Tricks of the Trade to Enhance Your Cash Reconciliation Process
This article is written by Treasury4 Treasury professionals know that cash reconciliation is an essential part of cash flow management for any organization. It shows the company’s cash position, identifies errors or fraud, and allows management to make informed, strategic decisions based on the most up-to-date information. Unfortunately, the cash reconciliation process comes with several common hurdles that CFOs and treasurers must constantly deal with. And if you’re not careful, these issues can quickly snowball into larger financial risks. Today, we’ll share several actionable tips to improve your cash reconciliation process. First, let’s look at the most common pain points of the cash reconciliation process—and how they can create even larger problems. Key Challenges in Cash Reconciliation Cash reconciliation is the process of making sure your company’s financial records match up with actual bank balances. And it can come with several challenges, including: The good news is that there are strategies to overcome these challenges. Let’s look at some of the most effective ones. 1. Use Automation Automating your cash reconciliation is one of the most effective ways to optimize the process. It minimizes the manual workload, reduces errors, and accelerates the entire workflow. Here’s how automation can transform your process: Treasury4’s automation features provide near real-time visibility into your cash position, ensuring better accuracy and freeing up your finance team to focus on more important duties. Scalability is another key feature of Treasury4. As your business grows, so do your financial transactions. With a scalable solution, your reconciliation process evolves effortlessly—and automatically—alongside your operations. 2. Create Clear Guidelines Inconsistent practices across departments can lead to confusion and errors in your reconciliation process. Consider creating a step-by-step guide that clearly defines the reconciliation process. Include which systems to use, how to verify transactions, and how to resolve discrepancies. Make sure this guide is used by any team member involved in the process. Treasury4 can help standardize your cash reconciliation process by enabling custom workflows so that everyone follows the same procedures. Having a structured, repeatable process ensures consistency and reduces the risk of errors or discrepancies. 3. Use Templates to Ensure Nothing Is Overlooked Using standardized templates for various parts of the reconciliation process ensures every step is being carried out properly. Types of templates to consider: Treasury4’s customizable templates allow you to create tailored solutions for your organization’s unique needs, ensuring every task is completed to satisfaction. 4. Move to Daily or Weekly Reconciliations Monthly reconciliations can create a backlog of discrepancies that pile up over time. By moving to daily or weekly reconciliations, you can catch errors early and resolve them before they grow into larger issues. Keeping your accounts reconciled more often reduces stress (and bottlenecking) at the end of the month. Treasury4’s user-friendly interface improves the reconciliation process, making it easy to manage as often as you want. 5. Monitor Key Accounts Closely Not all accounts require the same level of attention. Make sure you give particular focus to accounts with high transaction volumes or frequent fluctuations. This way, you can make sure they’re reconciled accurately and efficiently. Treasury4 offers advanced reporting capabilities that allow you to set up custom alerts and track key accounts in real time. By watching these accounts closely, you can find issues before they escalate. Analyze Discrepancies and Trends to Refine Your Process Discrepancies will inevitably arise, but tracking and analyzing these issues over time can help you spot patterns, identify root causes, and implement preventive measures. Here are some best practices for analyzing discrepancies: With Treasury4’s detailed, customizable reporting features, finance teams can track discrepancies, show recurring issues, and gain valuable insights into their root causes. 6. Analyze Discrepancies and Trends to Refine Your Process Discrepancies will inevitably arise, but tracking and analyzing these issues over time can help you spot patterns, identify root causes, and implement preventive measures. Here are some best practices for analyzing discrepancies: With Treasury4’s detailed, customizable reporting features, finance teams can track discrepancies, show recurring issues, and gain valuable insights into their root causes. 7. Use Accurate Documentation to Simplify Audits Documenting every step of the reconciliation process is crucial—both for day-to-day operations and to be prepared for audits. For one thing, it enhances transparency and allows stakeholders to feel confident in the data. For another, properly documenting discrepancies—including their root causes and how they were resolved—makes audits more efficient and ensures compliance with regulatory requirements. 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.
AI in Treasury: Real Use Case for Faster Close & Better Forecasting
This article is written by our partner, Nilus Treasury teams are under pressure like never before. Disconnected systems. Manual month‑end crunches. Limited visibility. Cash that could be put to work, sitting idle. At Techsommet’s Reimagining Treasury Management Summit 2025, we explored what happens when AI stops being a buzzword and starts being part of your treasury infrastructure. The conversation featured Flare, a fast‑growing company operating across 25+ bank accounts, multiple countries, and currencies, and how they moved from reactive, manual processes to real‑time visibility and forecasting in just three weeks. The Reality for Many Treasury Teams Before AI transformation, Flare’s treasury challenges were common across the industry: These challenges aren’t about talent; they’re about infrastructure. Without the right systems, treasury leaders spend their time fighting fires instead of shaping strategy. What AI‑Powered Treasury Looks Like When AI becomes part of the infrastructure, the workflow changes dramatically: 3 Lessons from This AI Transformation 1. Data chaos is the biggest blocker. AI success starts with clean, connected data.2. Explainable automation matters. AI should enhance, not replace, human judgment.3. Speed to value is critical. You don’t need a 12‑month rollout to see impact — Flare implemented in 3 weeks. Why This Matters for the Future of Treasury AI in treasury isn’t about replacing people, it’s about replacing outdated processes. When infrastructure enables real‑time visibility, automation frees teams to focus on strategic decisions, not month‑end firefighting. More from Nilus 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.
How treasury teams master multi-bank connectivity
This article is written by Nomentia What is multi-bank connectivity? Multi-bank connectivity allows treasury teams to manage cash positions and payments across several banks and ERPs from one central platform. Instead of logging into multiple portals and reconciling spreadsheets, treasurers gain real-time visibility, standardized workflows, and stronger controls. This reduces risk, prevents errors, and ensures compliance—making it a core capability for mid-market and enterprise companies operating internationally. With the proper connectivity, treasurers gain real-time visibility across all banks and entities in one place. Instead of chasing spreadsheets and portals, they can focus on optimizing liquidity and supporting important business decisions. Why multi-bank connectivity is the missing link in modern treasury If your treasury team is still juggling multiple bank portals, scattered ERP connections, and endless spreadsheets, you’re not just wasting time—you’re leaving your company exposed. A single missed cut-off or duplicate payment can lock up millions in working capital, while delayed cash visibility may force the business to borrow unnecessarily or miss an investment opportunity. Payment operations and cash visibility determine whether salaries are paid on time, suppliers are settled without delays, and the company has the liquidity to fund daily operations and strategic investments. And yet, many treasury managers spend hours every day piecing together fragmented data instead of making decisions that move the business forward. For mid-market multinationals, the complexity is ever-present. You may run a subsidiary in France, another in the Nordics, a shared service center in Eastern Europe, while you yourself are sitting in a mid-sized German town. Suddenly, you’re managing connectivity not only across borders and jurisdictions, but also across time zones and conflicting bank cut-off times. You might have arrived at this situation in different ways: through acquisitions that left you with multiple ERPs, by expanding into new markets with local banking partners, or by building a patchwork of systems over time. In the end, the origin doesn’t matter—the reality is that complexity won’t resolve itself. It will only get harder to manage until treasury takes deliberate action to centralize and regain control.. Without centralized connectivity, treasury teams can’t answer the most basic questions with confidence: “How much liquidity do we actually have today?” or “Can we trust that all payments are executed correctly and on time?” The result: sleepless nights, manual workarounds, and a constant risk of errors or fraud. Multi-bank connectivity is not a “nice-to-have.” It’s the foundation for running treasury with control, confidence, and credibility. Real-life treasury scenario: the struggles of multi-bank connectivity Let’s step into the shoes of Maureen, a Group Treasurer at a €700M German manufacturing company. Her mandate from the CFO is clear: ensure liquidity, keep payments under control, and prevent surprises. But here’s her reality: On Monday morning, she faces the same questions: The truth? Maureen doesn’t have the answers at her fingertips. Instead, she spends hours coordinating with colleagues, chasing down reports from different subsidiaries, and piecing together siloed updates over email. Even once she gathers CSV files from portals and pastes data into Excel, she’s still playing catch-up—and by the time a liquidity update reaches the CFO, the numbers are already outdated. It’s not that Maureen lacks expertise—she knows treasury inside out. The problem is that her processes are fragmented by design. And because visibility and control are scattered, she’s left exposed to risks she can’t fully manage: Maureen’s story is fictional, but every treasury manager working in a multi-bank, multi-ERP environment will recognize themselves in it. Key challenges of multi-bank cash and treasury management Managing liquidity across several banks and ERPs may sound straightforward on paper. In practice, it quickly becomes a daily obstacle course. Treasury teams are expected to deliver reliable insights and oversight, yet fragmented processes often make that impossible. In an ideal world, Maureen would log into a single platform each morning, see consolidated balances across all banks and entities, and share a reliable update with the CFO in minutes. Instead, she spends hours chasing data and reconciling mismatched reports to build a partial view. The biggest challenges in multi-bank payment operations Cash visibility is only one side of the equation. The other is ensuring that payments flow smoothly, securely, and on time across multiple banking partners. Multiple banks mean multiple formats and portals Every bank still has its own formats and processes. While industry standards have helped, they haven’t removed the complexity—leaving treasury teams dependent on a solution that can harmonize these differences automatically. Manual reconciliation and compliance risks grow with scale The irony? Treasurers are tasked with reducing risk, but fragmented bank processes create new ones. The role of bank connections Companies don’t work with multiple banks by accident. They do so for: But these benefits come with operational trade-offs. Complexity, cost, and overhead Every new bank adds unique formats, portals, and maintenance requirements. Instead of increasing control, it creates silos. Why Seamless Connectivity Is Essential Treasury needs a platform that delivers: Without this, the benefits of multi-banking are lost in inefficiency. With it, diversification becomes a strategic strength. Why multiple ERPs complicate multi-bank payments and cash visibility Many companies also run multiple ERPs, often due to M&A or regional legacy systems. For treasury, this creates: Treasury’s mandate is to provide accurate liquidity insights. That requires independence from ERPs — and the ability to unify data across them. What treasury teams really need from multi-bank connectivity Treasury’s requirements can be summarized into four essentials: A Quick Snapshot With manual connectivity With holistic connectivity Cash Visibility Fragmented, outdated Real-time, consolidated Payment Execution Multiple portals, manual uploads Centralized, automated Fraud Prevention Manual, inconsistent Built-in, standardized Forecasting Excel-driven, error-prone Integrated, reliable Multi-bank connectivity equips treasurers with the control, confidence, and credibility they need to meet rising expectations. How modern multi-bank connectivity solutions solve treasury challenges Nomentia approaches these challenges by focusing on simplifying connectivity and standardizing processes without adding unnecessary complexity for treasury teams. Instead of treasurers having to manage multiple portals, formats, or integration projects themselves, Nomentia provides a central hub that connects to banks through established channels such as SWIFT, EBICS, APIs, or host-to-host links….
Verification of Payee Is Live — But What Really Changed? With real life examples.
From Treasury Masterminds After years of regulatory buildup, Verification of Payee (VoP) officially went live across Europe on October 9th, 2025. For some, this marks a major step forward in fraud prevention and payment integrity. For others, it feels like business as usual — with little visible change.As often happens in treasury, the truth lies somewhere in between. This article looks at what’s actually happened since go-live — the early real-world cases, the operational impacts, and what treasurers should keep an eye on. A Quick Reminder: What VoP Is Meant to Do VoP verifies whether the name and IBAN combination entered before a payment is consistent with the official records held by the bank.The goal is to reduce fraud, misdirected payments, and typing errors — an extra safeguard before funds move. In theory, this should be straightforward.In practice, it’s exposing how inconsistent master data and banking records really are. Real Stories From the First Week 1. Tax Payments in Brandenburg Triggered False Mismatches In the German state of Brandenburg, many taxpayers received “name–IBAN mismatch” warnings when paying local tax offices. The problem wasn’t fraud — it was minor differences in how names were stored at the Bundesbank. Authorities later confirmed all accounts were valid, but the incident highlighted how even public institutions can fail VoP’s data precision test.Source: Tagesspiegel / Brandenburg Ministry of Finance, October 2025 2. Customers Hit by Formatting and Umlaut Issues Focus Online reported that almost one-third of users encountered warnings or rejections due to name format variations — missing umlauts, reversed order, abbreviations, or extra spaces.For corporates, this means supplier names like “Müller GmbH” versus “Mueller GmbH” can now trigger verification warnings.Source: Focus Online, October 2025 3. Batch Payments Slower to Process BNG Bank in the Netherlands confirmed that batch payments are now subject to VoP checks on each individual transaction. As a result, payment runs may take longer to complete — a relevant consideration for payroll or high-volume AP files.Source: BNG Bank client update, October 2025 4. Cross-Border Payments Show Gaps Rabobank noted that certain foreign IBANs currently return a “cannot be checked” message because some international accounts are not yet covered by VoP databases. Those payments proceed as before, but users need to accept or override the warning.Source: Rabobank business portal, October 2025 5. Mixed Feedback From Banks The Frankfurter Allgemeine Zeitung reported that banks generally described the rollout as “stable,” but several institutions have invited customer feedback to identify remaining friction points.Source: FAZ, October 2025 What’s Actually Changed for Treasurers The Treasury Takeaway VoP may not have revolutionized the way treasurers work — but it has quietly introduced new friction points that will affect daily operations.The infrastructure works, but the rollout is exposing long-standing issues around data standardisation, naming conventions, and bank integration. This isn’t a “no-news” event. It’s the start of a new phase of operational fine-tuning across treasury teams. Share Your Experience How is VoP affecting your payment processes?Did your first post–October 9th payment runs go smoothly, or did you face unexpected mismatches and delays? We’re gathering real-world stories from the Treasury Mastermind community — both wins and fails — to build a collective picture of how VoP is landing in practice. Share your experience or start a discussion in our community forum at www.treasurymastermind.com. Let’s turn individual experiences into shared learning for all treasurers navigating this new reality. 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.
3 Step Plan to Mitigate FX Risks
This article is a contribution from one of our content partners, Bound Efective FX risk management. The big corporations have long been perfecting it, and yet few smaller tech companies do any sort of FX risk management, even though they are suffering the most from it! Why? Because tech companies have more obstacles in the way. Fortunately for you, one of the greatest hurdles is simply knowing about the problem, and if you’ve clicked on this article, chances are you recognise FX risk as something that needs to be dealt with. So, what can you do about it? There are some tools and techniques available to tech businesses that allow them to take control of FX risks themselves. Here are 3 practical steps worth considering to kickstart your FX strategy: 1. Assess risk exposure As a small or mid-sized company decision-maker, is it worth your while to expose your firm to foreign exchange risk? That’s a fair question to ask. If you’re only making smaller payments overseas, the need for a substantial FX risk program is relatively low. Yet if the level of foreign exchange transaction activity can impact your bottom line, you should consider a strong risk and volatility FX campaign. Our volatility simulator might be able to help you answer that question – you can assess potential risk based on the business’s revenue and expenses. This article could also help. 2. Set your sights a) Low risk? Get the best rates So you’ve decided that your currency risk exposure is low? In that case, a substantial FX program may not be necessary, but you still want to make sure you’re getting the best exchange rates possible for your business’s overseas transactions. With an abundance of options for currency conversion – banks, online platforms, brokers, fintechs – it can feel like trying to boil the ocean to choose the right one. To cut through the noise, we’ve got articles that can help you decide a whole lot faster. b) High risk? Manage it So you’ve decided that your currency risk exposure is significant? Well, it might be wise to employ a hedging strategy to minimise this risk sooner rather than later. Hedging can seem daunting and complicated because there is a lot of misleading information out there, but in reality, it is as complicated as you make it. To keep it simple, start by figuring out what your FX risks are, and the resources you have to dedicate to FX management. Pinpoint and prioritise risks that can be dealt with through hedging. Then you can move on to step 3. 3. Get aggressive with hedging You’ve understood your risks and internal resources, and want to hedge. But what hedging strategies are out there? Let’s very briefly cover the bases. Internal hedging is doing it in-house, using methods like risk sharing, price variation, matching, or simply sticking solely with the domestic currency. Each of these come with their own risks and challenges. External hedging is a very popular option, seeking external help from a third party. Banks, forex brokers, and specialised tech firms are the options here. They allow you to hedge via financial instruments like forward contracts, options, and futures can be extremely effective, albeit complicated. Many treasurers look to automate these hedging strategies for the easiest management. There’s a lot to learn about hedging, so take your time choosing the best strategy – you should know what you’re doing and why you’re doing it. Once you’ve implemented your hedging strategy, be sure to keep on top of it, stay educated, and make adjustments when necessary. That’s the 3 step plan, good luck! Recommended Reading 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.
Balance Sheet Hedging: what many companies get wrong
This article is written by Kantox In the context of the firm’s commercial exposure, FX gains and losses reflect fluctuations in exchange rates during the time lapse between the moment an FX-denominated transaction is recognised as receivable or payable in the firm’s balance sheet, and the settlement of the corresponding transaction. To remove the impact of FX gains and losses from the P/L, firms can implement balance sheet hedging programs. The most common setups include: In this and in the following blog, we provide an answer to the following questions: How do firms run their standalone balance sheet FX hedging programs? Do they follow a time-based approach, or do they attempt to hedge every single piece of exposure? Finally: Is there a more convenient, middle-ground approach that makes a better use of fx-automation solutions? The ECB exchange rate When a firm recognises an FX-denominated transaction as a balance sheet item, the basic accounting principle is clear: the receivable/payable must be booked at the spot rate of the day. For European companies, this often means the ‘reference rate’, also known as ‘ECB reference rate’. What is the ECB reference rate? The reference rate is published daily by the European Central Bank (ECB) on its website at around 16:00 CET. Its levels are set after consultation between central banks across Europe, reflecting market conditions around 14:10 on weekdays. As the ECB is careful to remark, reference rates are for information purposes only, i.e., not for transaction purposes. How to remove FX gains and losses When we consider the FX risk map in the context of balance sheet exposure, the ‘pricing moment’ and the ‘firm commitment moment’ are already in the past. What matters is the exposure that arises from the recognition of the balance sheet item until the settlement of the corresponding transaction. To manage this exposure, firms usually hedge with forward contracts. Some companies may choose to partially or completely hedge that exposure. We know, for example, that the German global health care company Merck hedges balance sheet items in full, a practice that started in the 1990s as the firm sought a way to lower the cost of equity capital. As balance sheet items are revalued alongside the hedging instrument, changes in opposite directions offset each other. If the currency of a receivable appreciates against the firm’s functional currency —displaying an FX gain—, the reverse happens to the forward contract, as the foreign currency was sold, by definition, at a less favourable rate. Removing FX gains and losses: things to consider Pitfalls of removing FX gains and losses: hedging at set dates The most common method used by companies as they seek to remove the impact of FX gains and losses is to take currency hedges at a given, arbitrarily set date. This method consists in pulling, out of the ERP, accumulated pieces of exposure —i.e., FX-denominated balance sheet items— and then taking the corresponding hedge with a forward contract. The process is then repeated at one point in the month, usually at the end of the month. The main pitfall of this procedure is easy enough to figure out: there is still a time lapse between the moment the exposure is captured and the corresponding risk mitigation exercise. This results in FX gains and losses, undermining the main goal of the program. Balance sheet hedging: Hedging at set dates We often see that, if the balance sheet item has a maturity of 90 days until settlement, then probably about 75 days are effectively hedged, which leaves —on average— two weeks with open FX risk. In some currencies, this can represent a material P/L impact — Antonio Rami, Kantox Chief Growth Officer Pitfalls of removing FX gains and losses: basic micro-hedging Some companies use a different method altogether. Instead of hedging accumulated positions at fixed dates, they attempt to hedge every single FX-denominated balance sheet item. Needless to say, this is quite a resource-intensive activity. Members of the finance team are constantly collecting and hedging the exposure. The cumbersome nature of this technique is a shortcoming because it may force the finance team to neglect some currency pairs. These could well turn out to create a P/L headache for the finance team. In the event, the goal of removing FX gains and losses would not be achieved. This approach also fails to reduce the cost of hedging in the presence of unfavourable forward points. A EUR-based or USD-based firm that immediately hedges a receivable in the Brazilian currency will leave a good deal of money on the table. This is because BRL trades at a 6% one-year forward discount to EUR on account of the gap between BRL and EUR interest rates. As we will see in our next blogs, there are better ways to deal with such forward discounts/premiums. Towards a market-based approach to removing FX gains and losses The two traditional approaches to removing the impact of FX gains and losses on the P/L present flaws. For different reasons, both of these approaches ultimately may fail to achieve the goals set by finance teams. On the one hand, hedging at arbitrarily set dates does not completely remove FX gains and losses due to the time lapse between the moment the exposure materialises and the risk mitigation exercise. On the other hand, attempting to hedge every single item in isolation is a resource-intensive activity that is only adapted to a situation of favourable interest rate differentials between currencies. 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.