Critical Thinking for Treasurers with Strategic Treasurer & Kyriba: Payments
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Transcript of Critical Thinking for Treasurers with Strategic Treasurer & Kyriba: Payments
Proprietary & Confidential: Strategic Treasurer, LLC © 2015
The Webinar will begin shortly.
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Webinar SeriesCritical Thinking for Treasury: Managing
PaymentsPresented by
&
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Upcoming WebinarsFall 2015
Next Webinar: November 2015
Building the Business Case Date2:00 – 3:00 PM EST1.2 CTP Re-certification credits
Proprietary & Confidential: Strategic Treasurer, LLC © 2015
Craig A. JefferyManaging PartnerStrategic Treasurer
Today’s Speakers
Bob StarkVice President
Kyriba
Global Treasury Management
Treasury & Risk
Technology
Financial Risk Management
Working Capital
Optimization
Staffing FBAR Filing
Implementation Support
DART: Dashboard
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Agenda
Changes in the Payment Space
Standardization & Scalability
Fraud Issues & Concerns
Q&A
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Changes in the Payment Space
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Scope & Growth
0% 10% 20% 30% 40% 50% 60%
Treasury
Invoicing
Payments
Cash Reporting
None
We intend to make significant information technology investments in the next year in the following areas:
2013 2014
30%
25%
19%
14%
11%
0% 5% 10% 15% 20% 25% 30% 35%
Less than 1,000 per month
Between 1,000 and 10,000 permonth
Between 10,000 and 100,000per month
Between 100,000 and1,000,000 per month
Over 1,000,000 per month
Our monthly check payment volume falls most frequently into the following range:
2015 Rapid Research: Check & Check Signature Survey2013-14 Cash Forecasting & Visibility Survey
Proprietary & Confidential: Strategic Treasurer, LLC © 2015
Treasury vs. A/P
• Low Volume• High Value
• Distribute Repayments• Internal Payments• Cash MGMT Movement• FX Settlements• Deals
• Wire• Account
• High Volume• Low Value
• Check • Card• ACH
• Rent Payments• Payrolls• Supplies• Etc.
Treasury Types Types of Payment
A/P, P/R Types Typical Payment
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Formats
BAI: fixed location, positionalSEPA (XML) Example: flexible format description
Newer formats add value over time through increased efficiency and flexibility and less time spent chasing down files which have rejected. Date in the enriched file formats has the label with it <Dt>2015-10-11</Dt> (is October 11).
• Dependent on tags rather than placement and order in the file, an error in one tag or an accidental omission by the bank will no longer cause an entire file to reject.
• Date in the positional files is determined by location, ,860621, is June 21st in the 4th record of the header.
Proprietary & Confidential: Strategic Treasurer, LLC © 2015
Standardization & Scalability
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Payment Flows
TMS
Treasury
PMTs
DebtFXCash
Accounts Payable
ERP
Order Received A/P
Print USPS USPS
Communications
£ $ €
£ $ €
Payment Flows
Banks
Banks
SWIFT
Vendor
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Payment Centralization
Centralization of Payments = Convergence of Treasury & Supplier Payments into a standardized workflow
Primary Drivers
Shared Services/POBO
Cost reduction
Improved visibility
Fraud prevention
Treasury
Accounts Payable
Proprietary & Confidential: Strategic Treasurer, LLC © 2015
Payment Centralization
Centralization of Payments = Convergence of Treasury & Supplier Payments into a standardized workflow
Primary Drivers
Shared Services/POBO
Cost reduction
Improved visibility
Fraud prevention
Treasury
Accounts Payable
Features
Centralized connectivity via payment hub
Multiple connectivity channels
Intercompany transactions (on behalf of)
Standardization across all banks, geographies, payment types
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Payment Controls
1. Data Security
Encryption of data ‘at rest’
Encryption of data in transit to/from banks
Physical layers of security – including separating people from data
2. Application Security
“don’t lose your password…but if you do, don’t let that be enough to access your systems”
Strong password controls
Multi-factor authentication
IP Filtering
Separation of duties – approval limits
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Regional Differences in Approach
North America
• Historically disparate payment workflows
• Globalization/Fraud driving payment centralization
• Ease of connectivity
Europe
• Strong history of payment factories
• Trend towards format standardization (e.g. SEPA)
• More complex connectivity
Asia
• Varying degrees of sophistication
• Much manual processing
• Regions like China quickly “catching up” with CIPS
• Disparate connectivity
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Regional Differences in Approach
Domestic Payments
• Centralized payments out of US
• Minimal banks
• Host-to-host connectivity
Growing Internationally
• Payments still driven from US
• Banks start to increase
• Additional connectivity channels (e.g. SWIFT)
Globalized treasury
• Decentralized payments shared services
• Payment factory/POBO model
• Difficult to centralize visibility & control
• Multiple connectivity channels
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Sources of Confusion 1. Equivocation of Terms
Payments
• Card
• Wire
• ACH – LVP
• Check
Connections & Integration
• File Transfer
• EAI
• API
• Full Integration
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Sources of Confusion 2. Payment Challenges
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Fraud Issues & Concerns
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Weakest Link? BYOD
Point of Exposure
• Computer
• Laptop
• Tablet
• Phone
Target Hack
• HVAC System
28%
50%
31%
14%
8%
39%
0% 10% 20% 30% 40% 50% 60%
Information viewing.
Email access.
Event Notification
Transaction approval (example wires)
Transaction initiation (example wires)
None of the above.
Bring Your Own Device. Our company allows treasury to do this for (check all that apply):
From the 2015 Ongoing Global Treasury Fraud & Controls Survey. *Responses as of 9/15/15
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Imposter- Man in the Email
31%
58%
11%
0% 10% 20% 30% 40% 50% 60% 70%
No attempts.
Some attempts, no success.
Yes, we suffered a loss.
Has your organization experienced any type of impostor fraud / man in the email attempts or
otherwise in the past two years?
From the 2015 Ongoing Global Treasury Fraud & Controls Survey. *Responses as of 9/15/15
Proprietary & Confidential: Strategic Treasurer, LLC © 2015
File Exposure
Manual User
$
Area File
File Exposure
Data Access – Validating PMTs
Controls within the system
Controls Outside the system
$
Checks
Approving PMTs and PMT Register within the
systemSigning a PMT register
Change Key Info Bank
Bank
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Questions & Answers
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Craig Jeffery, Managing Partner, Strategic [email protected] | +1 678.466.2222
Bob Stark, Vice President, [email protected] | 604.916.2760
Kelsey Stephens, Marketing & Webinar Management, Strategic [email protected] | +1 678.466-2234
Contact Information
Proprietary & Confidential: Strategic Treasurer, LLC © 2015