Where companies fall short with cash forecasting, and how to avoid those pitfalls
This article is written by Palm Cash forecasting often takes centre stage in board meetings, strategic business discussions, and auditor reports. Having a reliable cash flow forecast model can steer the course of a business. Conversely, a neglected model can sit in a folder, unused, leaving CFOs and treasurers feeling blind and unable to make key strategic decisions. Whether you opt for a decentralised model that collects inputs from subsidiaries or have the treasury team forecast for the entire business, the level of human intervention is key in determining the efficiency and accuracy of your forecasts. This blog explores common pitfalls in cash forecasting and offers solutions to enhance your forecasting accuracy with Palm’s predicative modelling capabilities and AI toolbox. Over-reliance on External Inputs Many companies depend heavily on inputs from subsidiaries or other entities. Unfortunately, contributors often lack consistency, motivation, or the capacity to prepare accurate forecasts, making this a considerable challenge. When various subsidiaries apply different forecasting methods, it leads to inconsistency. This inconsistency can distort the overall cash flow picture, making it hard to trust the forecast. Contributors may not fully understand the importance of their input or may not have the time to dedicate to accurate forecasting. This lack of engagement can result in half-hearted efforts that compromise the quality of the data. Without proper training, employees might not be equipped to provide reliable forecasts. This knowledge gap can lead to errors that cumulatively affect the entire cash flow model. The Challenge of Combining Data Combining data from various sources can be a painful and time-consuming process. Even with standardised formats, variations in how regions classify entries and inconsistencies month-on-month can occur. Time-consuming Data Combination Merging data from different sources requires significant time and effort. This process can delay the finalisation of forecasts, making them less useful for timely decision-making. Variations in Data Entry Despite using standardised formats, regions may still classify entries differently. These variations can create discrepancies that need to be reconciled, adding another layer of complexity. Inconsistencies Over Time Month-on-month inconsistencies can arise due to changes in classification or data entry mistakes. These inconsistencies can make it difficult to compare forecasts over time, reducing their reliability. The Difficulty of Assessing Submissions for Errors Assessing submissions for erroneous figures can be challenging without in-depth local knowledge. This difficulty can lead to overlooked errors that compromise the entire forecast. However, even small errors can snowball, without providing quality feedback to those preparing the entries. Currency Challenges in Forecasting Currency challenges often arise when forecasts are prepared in local currencies. While this approach provides detailed insights, converting these forecasts into the reporting currency can be complex. Converting local currency forecasts into the reporting currency can be challenging. Using spot rates or budget rates can distort the numbers. If using a hedge rate or a forward rate, this could increase the accuracy of the long-term forecast specifically. Enhancing Cash Forecasting with Palm Palm provides a solution that addresses these common pitfalls. By consuming and analysing historical data, Palm’s AI and predictive models can generate a reliable cash flow forecast you can start using in days. Automated Data Collection Palm automates data collection from your bank statements, and TMS via API connectivity, reducing the time and effort required for manual data collection. This automation ensures that your forecasts are based on the most up-to-date information. Then, utilising AI and predictive to identify patterns and trends that are not obvious to the human brain. This gives you confidence in your forecast and numbers, by verifying your assumptions and seeing them brought to life through the cash forecast. In Palm forecasts refresh daily with all the latest information available, ensuring that your numbers remain current and reliable. Adding Human Insights to AI Models While Palm’s AI models provide a solid foundation, your insight and knowledge give Palm valuable information to help refine the forecasts in the future. Palm employs machine learning technology to take your understanding, apply it to the forecast and enhance accuracy over time based on the adjustments you make. As you feed more data into the model, it learns about your business, this continuous learning, makes Palm’s models more accurate the more of your gut instinct you share in the platform. Reducing Time Spent Updating the Forecasting Palm reduces the time spent creating, collecting, and consolidating forecasts. This reduction allows you to focus on important tasks like variance analysis. Focus on Variance Analysis Palm’s variance analysis feature highlights notable areas, helping you focus on differences where you can have the largest impact on forecast accuracy. This focus ensures that you are making the most of your efforts. By completing regular variance reviews, you can continuously improve your forecasts and iron out those deviations. Improving Cash Management for Treasurers Having a cash forecast you can rely upon allows treasurers to run tighter cash management programmes and optimise interest income or reduce debt drawings to ensure that you can make the most of your available cash. Reduce buffers held in bank accounts, and use that idle cash to generate positive cash flow into the business. Taking the Next Step with Palm If you’re interested in learning more about Palm, book a demo with the team today and see how the model works using your data. This opportunity allows you to experience the benefits of Palm firsthand and understand how it can transform your cash forecasting process. 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
Choosing the Right Banking Partners: Navigating Treasury Needs Amidst Industry Shifts
In light of HSBC’s recent structural changes, corporate treasurers worldwide are, once again, considering reassessing their banking relationship strategies. The age-old question of whether to partner with global banking giants or smaller specialized institutions has taken on new relevance. How should treasurers balance the advantages of scale against the stability and focus of smaller banking relationships? Progressive corporate treasurers are rapidly moving away from their traditional role as stewards of cash management and funding to become strategic business partners driving digital transformation. In today’s volatile business environment, forward-thinking Treasury leaders recognize that maintaining the status quo is no longer sufficient. They seek banking partners who can support their journey toward Treasury 2.0, where real-time visibility, predictive analytics, and automated decision-making become the norm. Restructuring Impact on Treasury When large banks undergo restructuring, treasury departments often face both opportunities and challenges. Such reorganizations can lead to enhanced focus on specific market segments or regions, potentially resulting in improved services and more targeted solutions. However, they may also create temporary service disruptions, relationship management changes, and uncertainty about long-term strategic alignment. Smaller banks, meanwhile, often maintain more consistent organizational structures and service models. Their relative stability can provide treasurers with more predictable relationship management and service delivery, though they may lack the comprehensive global capabilities of larger institutions. The Technology Investment Equation Large banks undergoing restructuring often emerge with renewed focus on technological investment, particularly in areas like API development and real-time payment capabilities. These transformations frequently come with substantial technology budgets aimed at modernizing legacy systems. However, the implementation of these changes can be complex and time-consuming, potentially affecting service delivery during transition periods. Smaller banks, while operating with more limited resources, often demonstrate greater agility in technology adoption. Their partnerships with fintech providers and cloud-native solutions can result in faster deployment of new technologies, though perhaps with less extensive feature sets than their larger counterparts. In many cases, banks tailor solutions for their largest clients, which can be a significant benefit for large companies. Security and Risk Management During Transitions Major bank restructuring events often lead to enhanced security protocols and more sophisticated fraud prevention systems, as organizational changes provide opportunities to implement improved controls. Large banks can leverage their scale to invest in advanced AI-driven security systems and maintain global fraud prevention networks. However, periods of organizational change can also introduce operational risks and temporary vulnerabilities. Smaller banks, with their more stable organizational structures, often maintain consistent security protocols and may offer more personalized fraud prevention services based on intimate knowledge of their clients’ operations. They, however, might be unable to offer greater protection from potential hacking attacks. Service Continuity vs. Innovation One of the most significant considerations during bank restructuring is the potential impact on service quality and relationship management. Large banks typically promise enhanced service capabilities post-restructuring, but transitions can lead to temporary disruptions in service delivery and relationship continuity. Treasury departments may find themselves navigating new organizational structures or adapting to changed service models. Smaller banks generally offer more consistent service levels and relationship management, with fewer organizational changes affecting day-to-day operations. Their ability to maintain stable relationships can be particularly valuable during periods of market uncertainty or when rapid decision-making is required. Infrastructure Evolution Bank restructuring often catalyzes significant infrastructure modernization initiatives. Large banks may use these organizational changes as opportunities to overhaul legacy systems and implement new technologies. While these changes promise long-term benefits, they can create short-term challenges for Treasury departments relying on established processes and integrations. Smaller banks, typically operating with less complex infrastructure, can often implement technological changes more smoothly, though perhaps with less comprehensive feature sets. Strategic Considerations for Modern Treasurers In this environment of ongoing banking sector evolution, treasurers must carefully weigh several factors when selecting and maintaining banking relationships: Looking Forward As the banking sector continues to evolve, treasurers must remain adaptable in their approach to banking relationships. The distinction between large and small banks may become less about size and more about their ability to provide stable, innovative services that align with treasury departments’ strategic objectives. The coming years will continue to reveal whether treasurers predominantly opt for the stability and personalized service of smaller banks, the comprehensive capabilities of restructured global institutions, or maintain a hybrid approach that balances both. The most successful treasury operations will likely maintain a balanced portfolio of banking relationships, combining the innovation and global reach of large banks with the stability and personalized service of smaller institutions. This hybrid approach allows treasurers to mitigate the risks associated with bank restructuring while maintaining access to necessary services and capabilities. 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.
Bank statement fraud: how to avoid it?
This article is written by Trustpair Last year, the FBI reported that US companies lost over $6.9 billion in cybercrimes. The bulk of those? Crimes by business email compromise, bank statement fraud, and wire transfer fraud. When hackers steal your hard-earned money and financial data, it compromises your entire business operation. Businesses stand to lose much more than cash—trade secrets and passwords can be accessed. Assets from all departments are at risk. In this piece, you’ll learn about bank statement fraud and how to protect your company from falling victim to it. What are some examples of bank statement fraud? Wire transfer frauds have been around since the internet began. But each year, businesses are susceptible to more creative hacking techniques that leave them vulnerable. The most common type of wire transfer fraud is a phishing scam. Phishing scams A phishing scam is also known as business email compromise. Scammers start by cloning your company emails or buying up similar domains for one of your suppliers. When they reach out, they are able to fool employees into believing that the email is real. They send a fake email requesting either money (via an invoice) or asking your employee to reveal sensitive information. Some examples of phishing emails include: Since the hackers use urgency techniques, employees can be fooled easily into wire transfer fraud without checking the details of the email. Moreover, sometimes criminals can gain access to the system for weeks or months before they target your people. Scammers can make their attempts sound more genuine by confirming a relationship with a certain supplier or using familiar language. How to detect and avoid phishing These days, there are a number of security or software programs that should help protect your business against unauthorized access. However, criminals can still slip through the cracks with wire transfer fraud. There are two major workplace culture ways to prevent phishing in your business. The first is to build an environment where your employees work without time pressures and trust their supervisors. This would make spotting a suspicious email easier: since there’s usually a generic greeting, spelling mistake, or problem in the sender address. Moreover, the employee would not succumb to the urgency pressures inside the email. Secondly, you can avoid falling victim to phishing scams by building in a set of controls around invoices and security. This makes it harder for criminals to steal your information, and money. For example, ensuring that invoices are validated by three-way matching and then account details are verified with the real name and address. Likewise, the authority to wire money should only be granted to a handful of individuals. Fraud training is also important. Some of the other things that your business can do to spot and prevent phishing include: What are the types of bank statement fraud in the corporate world? Corporate fraud can have similar results to phishing, with companies losing out on millions if it’s not spotted on time. The types of corporate fraud you should be aware of include: Bank transfer fraud The most common type of bank wire transfer fraud is through an authorized push payment. Most people are familiar with these since banking apps and online payments technologies are so common. How does it work? The criminal poses as your bank, an official body or another genuine payee by sending a notification. Since authorized push payments act as an anti-fraud measure, employees are usually not suspicious at all. But this is a malicious attack. Granting the payment means that the criminal walks away with your money, and as an instant payment, clear out the cash before your accountants can catch up. False supplier fraud As the name would suggest, this type of fraud leads a criminal to impersonate one of your known suppliers, or create a new supplier persona. They send an invoice for work they haven’t completed or intercept a genuine invoice by changing the bank details from a real supplier. This is another form of wire transfer fraud. Many businesses fail to protect themselves against false suppliers since the technique relies on social engineering. After initial verification, most businesses won’t continue monitoring their suppliers’ details. But this is when criminals strike – so it’s required for companies to detect and prevent falling victim to false supplier fraud. CEO Fraud This technique involves the hackers impersonating your CEO or another senior figure in the business. A version of this fraud became very popular during 2021, known as the gift card scam. Here’s how it works: Fraud on the President can also happen through invoicing, cloning the CEO’s email address and urgently requesting finance to pay a fake invoice. Luckily, we’ve created a larger resource about CEO fraud so that your people can detect it, and protect the security of the business. Click here to read it. False customer fraud There are a number of different ways that fraudsters impersonate your customers, through: False customer fraud typically affects small businesses more than large, since they use third party programs to take payments instead of their own systems. This creates a responsibility gap, leaving the companies vulnerable to unfair chargebacks. Plus, it’s harder to three-way matching the documents – which could miss any payment detail discrepancies. Internal fraud Corporate fraud includes the likes of your own employees skimming money from the business. Most commonly, internal fraud is done through expenses, where your member of staff claims false expenses or for costs unrelated to their work. This is incredibly common, with 85% of employees admitting to lying on their expense reports. And it’s even easier to get away with for those working from home as it’s harder to verify how employees are spending their working hours. How to spot a fake bank statement Financial professionals must be vigilant in detecting fraudulent bank statements. To help identify fake documents, start by examining the overall layout and formatting. Legitimate statements typically maintain consistent fonts, spacing, and alignment. Check the bank’s logo and contact information for any discrepancies or low-quality images. Carefully review account details and transaction history. Look for inconsistent numbering patterns in…
Treasury for Non-Treasurers: Sophistication in Solvency Management (Part I)
Introduction In the last chapter, we reviewed different types of treasuries at a high level: the operational ones, internal and control-oriented, and the strategic ones, sophisticated and externally oriented to work with and support other organisational functions as well as customers and suppliers. We also reviewed tactical treasuries, neither completely operational nor entirely strategic, that either had too little underlying business cash flow to create value from or were constrained by cultural and contextual factors. We described these tactical treasuries as being in ‘The Chasm’ – trying to resolve too many conflicting objectives with too few resources. We reviewed methods of getting out of the chasm and making treasury strategic and materially value-adding to non-treasurers. This new chapter concentrates on corporate treasury’s most important objective, keeping the organisation solvent. We’ll start with an overview and then review solvency management in operational treasuries. After that, we’ll follow up with tactical and strategic treasuries in the next articles, and then, next, other objectives like profitability support. Note that this article builds on the previous ones. For example, we talked in detail about the impact of cultures and contexts in the two articles about crossing the chasm. You will find it harder to follow without reading these articles first. Each article is short – If you want to read or re-read them, the links are below. Overview: What are the different levels of sophistication in solvency management? Remember this diagram from the article on operational treasuries? Let’s look at all the different levels of sophistication relevant to solvency at all levels of sophistication, along with the associated-level productivity and management strategies: There are six types of treasury with six levels of solvency management sophistication. Before we dive in and talk about each, it’s important to note that these are descriptions of the ‘average’ treasury managing solvency in an ‘average’ way. There are variations in real-life treasuries: Organisations may be more or less sophisticated; Individuals may have unusual innate or previously learnt skills. These variations are noteworthy, especially when we compare sophistication in solvency management with sophistication in profitability support, productivity and management strategy. These can and do get misaligned. We’ll talk about this and its impacts in a later article. The six levels of solvency management sophistication are: 1. Cash management 2. Liquidity management 3. [New] Skills development and application 4. Working capital management 5. Financing optimisation 6. Value-chain financing We will investigate each in turn, including Who needs sophisticated solvency management? Not all companies need sophisticated solvency management, but it’s hard to think of anyone who shouldn’t be interested in whether these companies have appropriate solvency management in place. Imagine an international consultancy like McKinsey or a recruitment consultancy like Adecco. Compare these to manufacturing companies like car companies, long-term research and development investors like GSK or Johnson & Johnson, and even housebuilders like China’s Evergrande. This last one is now famous because it did, in fact, become insolvent. We can only speculate what would have happened if it had had more sophisticated solvency management. Consultancies’ costs, even global ones, are primarily related to their employees. Employees can be decreased or increased quickly in line with sales. In other words, outflows can be reduced fast if there aren’t sufficient current and future inflows. Manufacturing companies, long-term investors in research and development, owners of large amounts of inventory and work-in-progress, on the other hand, cannot adapt so fast. They must borrow or issue shares to remain solvent even in worse economic environments. They, therefore, need to be more sophisticated in managing their solvency. What’s this got to do with you, non-treasurers? It’s hard to think of anyone who shouldn’t be interested in knowing in advance whether these companies have appropriate solvency management and adapt the actions they take as a result. It’s too late once the companies hit hard times. So, imagine you’re a leading decision maker in Acme Manufacturing Corporation, a multi-billion-dollar turnover company that needs large amounts of funding. What kind of treasury do you have now, and what should it be like? You are not the Treasurer, however. How can you tell from the outside looking in? Let’s find out by looking at operational treasuries first. Operational treasuries’ solvency management For a reminder of operational Treasury types, see the article Operational Treasuries. Basic treasuries Basic treasuries do cash management only. They move money between head office, subsidiaries and or banks, doing the same day-to-day unless the CFO or head of the finance function says differently. They follow an ad-hoc management strategy with, usually, no written policies or processes. They have little specialised technology and a small staff – often just one person. This person or small staff will have little or no specialist training. They rely on on-the-job practical experience. What can you expect from this type of treasury if it’s what you’ve got in Acme Manufacturing? Not much – This type of treasury won’t have the tools and skills to assess future solvency. This type of treasury is likely to be found in a smaller turnover organisation, a startup-, a small- or medium-sized enterprise – my experience suggests one with $ 200 million or less in sales – or in organisations where the CFOs do not realise that treasury should be the guardian of solvency management. My experience working on the sales side in banks and as a consultant tells me that many multi-billion $ sales companies have treasuries like this. Let’s describe these basic treasuries in an easy-to-read format consistent with how we’ll describe other types later on: 1. Solvency management sophistication level: 2. Management strategy: 3. Focus: 4. Productivity: Technology: Outsourcing: Banking products and services: 5. Skills: 6. Organisation structure: 7. Ability to handle future funding shortfalls: The accounting department will usually handle all longer-term cash flow planning, not treasury. 8. Unintended consequences at this level: 9. ‘Tells’ non-treasurers might see from outside the function: As a multi-billion $ turnover company, ACME needs a more sophisticated treasury than this. This type is unacceptable except in any…
Nicholas
HSBC’s New Organisational Structure and Implications for Corporate Treasury
HSBC’s recent announcement of a simplified organisational structure, effective from January 2025, is a significant move designed to accelerate strategic execution. By dividing its business into four main units—Hong Kong, UK, Corporate and Institutional Banking, and International Wealth and Premier Banking—HSBC is positioning itself for more focused growth and operational agility. This restructuring reflects a trend seen in large global banks, aiming to streamline decision-making and reduce internal duplications. For corporate treasurers, especially those managing global operations, the implications of this new structure are critical. Treasurers often choose banks like HSBC for their global reach, yet frequently discover that even the largest institutions do not function as one cohesive entity across markets. Local forms, country-specific regulations, and the need for regional contacts remain a challenge, even with global giants. Global Bank, Local Challenges While HSBC’s vast presence in over 50 markets is undeniably a key advantage, treasurers know that navigating the complexities of local regulations, banking norms, and administrative requirements can undermine the efficiencies gained from a global banking partner. For instance, managing cash across jurisdictions may require unique account structures or compliance procedures that differ widely between markets. This is particularly evident in emerging markets where regulatory frameworks are less harmonized with global standards. In many cases, treasurers find themselves dealing with the same bank but essentially managing separate relationships with each local entity. This reality raises an important question: Is bigger truly better when selecting a global banking partner? Is Bigger Always Better? The idea that larger banks are automatically the best choice for corporate treasury has long been debated. While global banks like HSBC offer unparalleled scale, access to liquidity, and the ability to execute cross-border transactions, the local challenges cannot be overlooked. For corporate treasurers, a bigger bank might offer: However, these advantages come with their own set of challenges: The Corporate Treasurer’s Dilemma Corporate treasurers must weigh these pros and cons when choosing their banking partners. While HSBC’s restructuring aims to reduce these internal inefficiencies, it remains to be seen how much of this will benefit the day-to-day operations of corporate treasuries, especially those that rely on HSBC for managing complex global operations. For treasurers, this restructuring could offer some hope of a more unified service experience. By focusing on specific regions like Hong Kong and the UK, and by integrating its global banking and commercial banking functions, HSBC may reduce the fragmentation that treasurers often experience when dealing with different business units of the same bank. However, HSBC’s ability to execute on this vision will be key. Insights from Treasury Experts We thought it would be valuable to get perspectives from Treasury experts, who are also Treasury Masterminds Board members. Jeremy Reedus, Vice President and Global Treasurer, Varel Energy Solutions, Comments: Although we can all respect a bank for improving internal efficiencies, the Treasury professional has an additional issue that comes to mind. If the bank is fully integrated into the company’s ERP, then Treasury is faced with a migration to another institution in the near future. This requires additional SME personnel support from Accounting and IT at minimum. In other words, the bank’s strategic decision has larger ripple effects on an organization than just Treasury. Nicholas Franck, Founder, INTELIGANS, Comments: One question that come to my mind: does splitting into two segments mean the bank is looking to sell off one or the other? It’s normal practice when a company wants to sell part of itself off to another or to PE investors. That would be a market changing move. Patrick Kunz, Fonder/CEO, Percunia B.V. Treasury and Finance, Comments: I am struggling to see this as positive or negative news. So many questions that come to my mind. Will the distance between segments increase? how about global intrabank communication lines? A truly global bank would be great but this will remain challenging for a big bank like HSBC. Time has to tell if this is a smart move. The treasurer judges are still out there. Conclusion: Rethinking Global Banking Strategies In conclusion, while HSBC’s organisational changes aim to simplify their operations, treasurers must continue to carefully evaluate whether a bigger bank is truly the better option for their specific needs. In some cases, the answer may be a blend of global and local banking partners, ensuring that they have both the reach and the on-the-ground expertise required to navigate the complexities of international markets. As HSBC implements its new structure, treasurers will need to monitor whether the promised efficiencies translate into real-world improvements in banking relationships, especially in emerging markets where local compliance and bureaucracy often prove to be the largest hurdles. 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.
10 Years of Joint Treasury Excellence with Mann + Hummel
This article is written by TIS Payments For over a decade, MANN+HUMMEL Treasury has been using the TIS cloud platform to control their bank account management, global payments, and connectivity functions. Passing the 10-year mark in this relationship is the perfect opportunity to reflect on a journey marked by continuous technological advancement, innovation, and mutual trust. In this article, Saboor Seddiqi, Key Account Manager at TIS and Mario Parrotta, Group Treasury & Risk Manager at Mann+Hummel, explore what has made their collaboration so successful. Notice: The original version of this article first appeared in the TIS Quarterly Magazine: Summer Edition 2024. For Context: About MANN+HUMMEL MANN+HUMMEL is a leading global company in filtration technology. Under its two business units Transportation and Life Sciences & Environment, the German-based Group develops intelligent filtration and separation solutions that enable cleaner mobility, cleaner air, cleaner water, and cleaner industry. Thus, the company makes an important contribution to a clean earth and the sustainable use of limited resources. In 2023, over 22,000 employees at more than 80 locations generated a turnover of EUR 4.7 billion. The portfolio comprises fuel, oil and air filters for combustion engines and industrial applications, filtration solutions for electric and hydrogen powered vehicles, simulation technologies and filter media, as well as membrane technologies for municipal and industrial water and wastewater treatment. Furthermore, the family-owned company, founded in 1941, offers air and molecular filtration technologies for vehicle interiors, building filtration, as well as industrial applications and cleanrooms. SABOOR SEDDIQI, Key Account Manager at TIS Mario, how did your Treasury transformation with TIS begin back then? MARIO PARROTTA, Group Treasury & Risk Manager at MANN+HUMMEL I can start with an anecdote: About 10 years ago, our then-CFO asked the Head of Treasury: ‘How many bank accounts do we have world-wide?’ It turned out—we didn’t have a clear answer. Our overview was Excel-based and was perhaps updated once a year by being sent “around the world”. So, the directive was: Implement a system that provides full and always up-to-date visibility and allows you to track who has banking authorizations for which accounts, where are all the open accounts globally, and so on. It was also important that the headquarters be involved in the process of opening or closing bank accounts in the future. SABOOR SEDDIQI In this context, it’s interesting to note that in our conversations with various companies, we often hear that the issue is not only the lack of visibility over bank accounts but in particular the transparency on bank authorizations. Without a central system and a super-user approach, individuals who left a company long ago are often still listed as authorized on the bank’s side. Managed locally and across different eBanking tools, a central overview is completely missing. “Without a central system and a super-user approach, individuals who left a company long ago are often still listed as authorized on the bank’s side. Managed locally and across different eBanking tools, a central overview is completely missing.” MARIO PARROTTA Exactly. This was also one of our more challenging issues, but we have now resolved it. We implemented a quarterly process with TIS, where we cross-checked the HR list of people who had left the company. If colleagues at a local entity hadn’t kept in mind to set the necessary changes, we could then directly make them in TIS. This was much more efficient than before, when local systems still had eBanking users listed. But since we now also have Single-Sign-On (SSO) in TIS, we have completely eliminated this issue: As soon as a person leaves the company, the Windows user is deactivated, and they can no longer log into TIS. SABOOR SEDDIQI TIS was only founded 2 years earlier when MANN+HUMMEL decided to manage their bank accounts with us. You mentioned in our preliminary talk that master data and workflows were key topics for you. MARIO PARROTTA Yes, one of our main requirements was the workflows in the platform. We wanted a company-wide two-step procedure where accounts are only requested from banks after approval has been given in TIS. Only then should contact be made with the bank and the account opened. TIS customized and refined all this for us to fit perfectly. SABOOR SEDDIQI As the next step, you then also moved payments to TIS. MARIO PARROTTA Exactly. The first payment was processed via TIS at the beginning of 2016 with our pilot entity. By then, TIS had already been in regular use with us for over 2 years. The company and people out there already knew TIS, so it was a logical step for us to build on that. With TIS, we had good master data and functioning processes. Of course, we also looked at other tools, as required by procurement. But TIS totally convinced us back then. The functionality perfectly matched our requirements. SABOOR SEDDIQI What was a particularly important aspect for you here? MARIO PARROTTA One of the big drivers was the issue of formats. We primarily use SAP, but we also have other ERPs in use. Previously, many resources were tied up with format issues. Translating formats, maintaining formats. We could completely hand that over to TIS. “We primarily use SAP, but we also have other ERPs in use. Previously, many resources were tied up with format issues. Translating formats, maintaining formats. We can now completely hand that over to TIS.” SABOOR SEDDIQI This is clearly one of our strengths at TIS: the flexibility we offer customers through our format library. The relevant back-end systems can be smoothly connected, such as HR providers or TMS—also in different versions, of course. For SAP, this of course applies to the old R3 version as well as the current S4 HANA. Our customers need not worry about potential hiccups. We have a deep integration with SAP through our TIS add-on, and TIS is an SAP-certified partner. MARIO PARROTTA Exactly. We also have other ERP systems besides SAP. And even there, the integration with TIS works very well. Generally, we try to connect everything because we pursue…