CRAIG JEFFERY - Corporate Treasury Consultants · 8/13/2019 · working for many of the best-known...

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GLOBAL PAYMENTS 2019 SURVEY RESULTS ANALYSIS

CRAIG JEFFERYManaging Partner, Strategic Treasurer

BOB STARK Vice President of Strategy, Kyriba

This presentation is provided by Strategic Treasurer & Kyriba

WHAT.2019 Global Payments Survey Results Analysis, Discussion, & Takeaways

WHEN.Tuesday, August 13, 201911:00 AM – 12:00 PM EST

WHERE.Live Online Presentation Replays at StrategicTreasurer.com

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ABOUT THE SPEAKERSGET TO KNOW TODAY’S

SUBJECT MATTER EXPERTS

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CRAIG JEFFERY, CCM, FLMI Craig Jeffery formed Strategic Treasurer LLC in 2004 to provide corporate, educational, and government entities direct access to comprehensive and current assistance with their treasury and financial process needs.

His 30+ years of financial and treasury experience as a practitioner and as a consultant have uniquely qualified him to help organizations craft realistic goals and achieve significant benefits quickly.

BOB STARK Bob has over 18 years’ experience in treasury technology, working for many of the best-known technology providers in the industry. As VP of Strategy at Kyriba, Bob is responsible for global product strategy and market development, and works with clients, partners, and industry influencers to ensure Kyriba is at the forefront of treasury technology.

Bob has provided treasury management strategy to some of the world’s largest companies, and is a frequent speaker and author on treasury, risk management, and the cloud. If it’s worth knowing about in the treasury, you can assume he knows it.

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ABOUT THE SURVEYRESPONDENT DEMOGRAPHICS, KEY FACTS & FIGURES

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TOPICS OF NOTE KEY AREAS OF FOCUS & ANALYSIS

EFFICIENCY EFFORTS INCLUDE STRUCTURE

▪ More are thinking end-to-end and Structurally

▪ Efficiency drivers include structural changes and POBO/ROBO

▪ Global nature of nearly all business

ONE SIZE DOESN’T DESCRIBE ALL

▪ Payment intensity varies significantly from company to company, yet most face complexity that must be handled better than it is today

EFRAUD & EFFICIENCY ARE THE RUN-AWAY DRIVERS

▪ Fraud/Control is #1 priority for companies and banks

▪ Desire to reduce costs, eliminate defects and expedite processes impacting B2B spend

SANCTIONED PARTY PAYMENTS

▪ Nearly 1 in 9 entities have made a payment to a sanctioned party

KYC BY A MILE

▪ Most significant challenge at 64%

▪ OFAC 30%

▪ FBAR 23%

PLANS TO SPEND ARE ROBUST

▪ 28% plan to spend more…on top of multiple years of increased spending

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SECTION 1

PAYMENT INTENSITY

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CENTRALIZED PAYMENTSStill the Norm

6Data Source: 2019 Global Payments Survey

72%

10%

11%

1%

6%

52%

25%

18%

0%

4%

CENTRALIZED

MULTIPLE SHARED SERVICE

CENTERS

DECENTRALIZED

OTHER

UNSURE

Treasury AP

48%

23%

14%

4%

10%

48%

25%

11%

5%

12%

PAYMENTS BY ENTITY

HYBRID (DEPENDING

ON LOCATION OR UNIT)

PAYMENT-ON-BEHALF-OF

(POBO)

OTHER

UNSURE

AP Treasury

What is your organization's account structure for payments across the following departments?

What is your organization's personnel structure for payments across the following departments?

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LIMTED NUMBER OF BANKSHeavy & Varies Significantly


How many banks do you originate payments with? How many bank accounts do you have?

13%

20%

26%

17%

7%

3%

4%

7%

4%

1

2

3 to 5

6 to 10

11 to 15

16 to 20

21 to 30

31+

Unsure

25%

14%

22%

25%

7%

5%

4%

1 to 10

11 to 24

25 to 100

101 to 500

501 to 1,000

1,001+

Unsure

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POLLING QUESTION #1

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PAYMENT INTENSITY

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What is the approximate volume of payments generated globally per month via:

Unsure and N/A responses excluded from data. Data Source: 2019 Global Payments Survey

35%

26%

11%

5%

3%

4%

4%

1-100

101-1,000

1,001-10,000

10,001-100,000

100,001-1 Million

1-10 Million

10 Million +

Wire / RTGS

17%

29%

17%

7%

8%

2%

2%

1-100

101-1,000

1,001-10,000

10,001-100,000

100,001-1 Million

1-10 Million

10 Million +

Check

18%

27%

11%

6%

5%

2%

1%

1-100

101-1,000

1,001-10,000

10,001-100,000

100,001-1 Million

1-10 Million

10 Million +

Card

25%

15%

11%

5%

2%

4%

2%

1-100

101-1,000

1,001-10,000

10,001-100,000

100,001-1 Million

1-10 Million

10 Million +

Other low-value transfers (non-ACH)

15%

22%

24%

11%

6%

2%

6%

1-100

101-1,000

1,001-10,000

10,001-100,000

100,001-1 Million

1-10 Million

10 Million +

ACH

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SECTION 2

BANK CONNECTIVITY

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CONNECTIVITY LANDSCAPE IS CHANGINGSignificant Number of Banks Are Offering API’s and More Are In Development


Banks: Which of the following connectivity options do you provide to clients?

96%

81%

79%

46%

42%

2%

23%

2%

2%

4%

2%

15%

4%

4%

6%

4%

17%

2%

8%

13%

13%

35%

Web Portal Upload

SWIFT

SFTP

APIs

AS2

Currently offer In development Plan to offer, but not currently in development No plans to offer Unsure

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POLLING QUESTION #2

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PAYMENTS & BANK CONNECTIVITYBank Portals and ERP Systems Still Dominate


Which of the following technology solutions do you use for payments or bank connectivity? (Select all that apply)

81%

51%

42%

27%

15%

12%

2%

3%

Bank Portals

Enterprise Resource Planning (ERP) System

Treasury Management System (TMS)

AP System

IT Supported Connections

Treasury Aggregator or SWIFT Service Bureau

Other

Unsure

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THE CHALLENGESDisparate Systems and Complex Formatting Top the List


Where do you see the majority of your bank connectivity challenges arising from? (Select all that apply)

43%

41%

29%

27%

26%

23%

20%

19%

17%

1%

Disparate internal systems result in overly manual workflows

Complex formatting requirements

The number of currencies we use, countries we operate in

Lack of available staff to manage the process

Vulnerabilities related to fraud / payment security

Diverse connectivity channels

Insufficient bank technology or services bog down the process

The high volumes of payments we generate

Issues related to compliance or sanctions delay our payments

Other

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SECTION 3

CROSS-BORDER & FX PAYMENTS

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HEAVY USE OF CROSS-BORDER PAYMENTS


How many currencies do you regularly make payments in? What is the average length of time it takes your domestic vs. international payments to settle?

11%

54%

26%

2%

4%

3%

2%

19%

53%

8%

7%

11%

Real-Time

Same-Day

2-4 Days

5+ Days

Unsure

N/A

Domestic International

19%

9%

28%

16%

8%

4%

5%

6%

3%

1

2

3 to 5

6 to 10

11 to 15

16 to 20

21 to 30

31+

Unsure

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SECTION 4

PAYMENT COMPLIANCE & SECURITY ENVIRONMENT

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SECURITY WISH LISTWhat Bank’s Wish Their Clients Were Doing vs. What Corporates Are Currently Doing


Banks: What are the TOP THREE security practices or tools you wish all your clients used but that many are not currently leveraging?

74%

58%

53%

35%

33%

33%

14%

Implement Dual Controls /Multifactor Authentication Wherever

Possible

Leverage Payment Controls such asPositive Pay, ACH Debit block, etc.

Timely Reconciliations (preferablysame-day, definitely within 1 week)

Only using secure networks &encrypting data at rest and in transit

Maintain updated antivirus software& firewall

Regular internal training & testing(i.e. on how to identify suspicious

emails)

Employ user monitoring software

Corporates: What controls does your organization have to prevent payment fraud? (Select all that apply)

72%

72%

71%

69%

59%

47%

47%

26%

19%

12%

9%

3%

Check (cheque) positive pay / payeematch positive payment

ACH debit block

Segregation of duties in accountspayable

Dual controls for executing payments

ACH positive pay

Physical check (cheque) controls

Multifactor Authentication (MFA) foraccessing payment platforms

Ghost / virtual card use

Technology penetration testing

Card P2PE (point-to-point encryption)

User monitoring software

AI / Machine Learning software (asmechanisms to detect and prevent…

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CAN’T IGNORE KYCOther Challenges Trail Far Behind


Which TWO payments-related regulations or requirements represent the MOST significant challenge for your organization?

64%

30%

23%

19%

7%

6%

3%

17%

KYC procedures

OFAC sanctions

FBAR

PCI-DSS (card)

SWIFT CSP

PSD2

Other (Please Specify)

None of the above

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SECURITY & EFFICIENCY ARE TOP DRIVERS


Rank the following payment initiative drivers on a scale from (1) most to (8) least important. NOTE: Only top four ranks shown

63%

9%

9%

6%

5%

3%

3%

1%

13%

40%

10%

14%

9%

3%

8%

2%

8%

23%

8%

36%

9%

5%

8%

3%

5%

10%

14%

16%

10%

4%

33%

8%

Fraud protection / management

Efficiency

Liquidity Management

Cost

Working Capital

Scalability – handling additional volume, formats or currencies

Visibility

Vendor / Supplier management

Rank 1 Rank 2 Rank 3 Rank 4

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PLAN TO SPEND Companies Have Plans to Invest in Technology This Year


What types of payment technologies do you intend to invest significantly in over the next 12 months? (Select all that apply)

31%

28%

28%

24%

24%

15%

15%

10%

10%

7%

7%

5%

AP Automation Technology

Bank Portals / Payment Services

ERP Payment Module(s)

APIs (Application Programming Interface)

TMS Payment Module(s)

Faster / Real-time Payment Services

Mobile Banking Apps

SWIFT Service Bureaus

Payment Hubs

Payment Factories

Blockchain-based Payment Applications

Treasury Aggregators

Other and None responses excluded from data.

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FINAL THOUGHTS & ACTION ITEMS WHAT ARE THE IMPLICATIONS OF THIS DATA FOR TREASURY IN 2019 & BEYOND?

OONE SIZE DOESN’T FIT EVERY COMPANY

• Solve for your unique needs

PCHANGE IN PAYMENTS IS A PRIORITY

▪ Safety

▪ Efficiency

▪ Management

SECURITY IS A BIG ISSUE

▪ Peers are spending

▪ Criminals are:

▪ Well funded

▪ Automated

▪ Persistent

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LET’S CONNECTDON’T LET THE LEARNING END HERE…CONTACT US WITH ANY QUESTIONS.

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Thank you for your interest in this presentation and for allowing us to support you in your professional development. Strategic Treasurer and our partners believe in the value of continued education and are committed to providing quality resources that keep you well informed.

WANT MORE INFORMATION? Reserve your copy of the 2019 Global Payments Survey Report today! The survey report will offer in-depth commentary on several key findings drawn out of this industry-wide survey.

Request Survey Report

KYRIBA

BOB STARK,Vice President of Strategy

[email protected]

+1 858.210.3560+33 177.92.1717

STRATEGIC TREASURER

CRAIG JEFFERY,Founder & Managing Partner

[email protected]

+1 678.466.2226

https://strategictreasurer.com/2019-b2b-payments-survey/?source=b2bwebinar

https://strategictreasurer.com/2019-global-payments-survey/?source=Web20190813

https://strategictreasurer.com/2019-global-payments-survey/?source=Web20190813

CRAIG JEFFERY - Corporate Treasury Consultants · 8/13/2019 · working for many of the best-known...

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Transcript of CRAIG JEFFERY - Corporate Treasury Consultants · 8/13/2019 · working for many of the best-known...