Trends in Corporate Treasury & Technology - Laurens Tijdhof, Partner Zanders - Eliane Eysackers, Executive Consultant Zanders

1. Trends in
Corporate Treasury & Technology
Laurens Tijdhof – Partner
Eliane Eysackers – Executive Consultant 1

2. Today’s Agenda
• EBAM: Your remote control in bank account management
• Presentations from different perspectives:
– Corporate case studies : Cytec and Liberty Global
– Standards & Central Utility : SWIFT
– Bank readiness & solutions : RBS and BNP Paribas
– Treasury system solutions : IT2 and SunGard
– Treasury Consulting : Zanders
• Key discussion topics:
– Introduction to EBAM
– What are the ‘Corporate’ pre-requisites for implementing EBAM?
– How far is the ‘Treasury Ecosystem’ in offering EBAM solutions?
2

3. Table of Content
• Introduction
• Simplification of the Treasury Model
• Treasury Technology & EBAM
3

4. About Zanders
• Zanders is an independent consulting firm specialized in the area of
Treasury and Finance:
– Cash & Liquidity Management
– Risk Management
– Corporate Finance
– Treasury Strategy & Organization
– Treasury Processes & Systems
• Founded in 1994 by Chris J. Zanders, currently with presence in the
Netherlands, Belgium, Switzerland and the United Kingdom
• With more than 150 professionals the leading company in Europe for
advisory, interim, outsourcing and transaction services
4

5. Table of Content
• Introduction
• Simplification of the Treasury Model
• Treasury Technology & EBAM
5

6. Expected Trend in Next Decade: Back to Productivity
1980.. 1990.. 2000.. 2010..
Working Working Working Working
Better Cheaper Elsewhere Simpler
Reengineering Outsourcing Globalization Simplification
6

7. Strategic Opportunities for Simplification
Treasury Area Trend Recent Past Near Future
- Virtualization - Decentralized - Virtual global organization
Treasury - Centralization - Local services - Centralized (IHB/PF)
Organization - Local empowerment - Enhancement of SSC concept
- Maintain company culture
- Independence - Multiple banks - Balanced banking wallet
Banking - Rationalization - Multiple bank accounts - Simplified account structure
Landscape - Balancing bank fees - Multiple EB tools - Independent bank connectivity
vs. credit commitment - Multiple single cash pools - Multi-currency overlay cash pool
- Automation - Stand-alone system - One global portal
System - System integration landscape - Integrated best-of breed TMS
Infrastructure - STP - Non-automated interfaces vs. full ERP solution
- Seamless interfaces
Treasury - Simplification - Many different processes - Uniform processes
Workflows &
Processes
- Standardization
- Enhance compliance
- Not very standardized
- Labor intensive EBAM
- More with less
- Dematerialization of paper
7

8. Building Blocks for Treasury Transformation Projects
Key Drivers Trends Results
- Virtual Global Treasury Organization
- SSC / Payment Factory
Centralization - In-House Bank
Reduce Cost
- Single ERP/TMS
&
Create Value - Seamless IT interfaces
Automation - Dematerialization of paper (EBAM)
- Straight-Through-Processing (STP)
- Wallet distribution
- Disintermediated funding strategy
Independence - Bank connectivity (SWIFTNET)
Reduce Risk
&
- Process Improvement
Improve Control
Standardization - Products and formats (SEPA)
- ISO XML 20022
8

9. Table of Content
• Introduction
• Simplification of the Treasury Model
• Treasury Technology & EBAM
9

10. Treasury Technology - Catalyst for Corporate Change
Level of
Centralization
Virtual Treasury (centralized
and paperless, combined
with local empowerment)
Simplifying and automating
Treasury Processes (EBAM, FSCM)
Shared Service Center,
Payment & Collection Factory
Regional / global liquidity
Local liquidity centralization (Netting & In-House Bank)
Decentralized centralization
cash management
by subsidiaries
Time
Today
10

11. EBAM – What is it about?
EBAM helps corporate treasuries to increase control, visibility and efficiency by
dematerializing the tedious process of bank account management.
Drivers Electronic Bank Account Mgmt Enablers
Standardization
Control Integrated global application (XML)
for bank account
Bank
Opening
Visibility Connectivity
(SWIFT)
Maintenance
Efficiency / Closing Virtualization
Automation (e-doc’s)
11

12. EBAM – How to get there?
Good in-house digital data management is key (e.g. accounts, signatures).
From a conceptual perspective, there are three possible ways to set up EBAM.
EBAM Connectivity Options Key Features
• Add-on to the electronic
banking system
• Bank proprietary solution
• Client-hosted solution,
e.g. as a module of the
treasury management
system
• Bank independent
• EBAM application is
outsourced to a 3rd-party
vendor (e.g. a service
bureau)
• Bank independent
12

13. Zanders’ EBAM-related services
EBAM provides an opportunity for corporates to review the current BAM
policies and processes before taking it to the virtual level.
Policy • As-Is: Review and assessment of current BAM policies and
related processes
Processes
• To-Be: Solution design of future (audit-proof) processes,
Organization EBAM-related policies (e.g. digital signatures, 3SKey)
Compliance • Roadmap: Blueprint of ideal EBAM set up (incl. EBAM
solution from TMS, banks and/or 3rd-party vendors)
Applications
• Implementation: Phased approach for implementing
future EBAM solution (different roles per phase, depending
on the scope of the project and the chosen IT set up)
EBAM
13

14. Are You Ready for the Next Step?
• EBAM will change the way you communicate with your banks
• It will reshape bank account management (BAM) in the same way as email
changed the concept of mail (the ‘new’ normal)
• Main benefits of EBAM include a faster and more controlled corporate-to-
bank communication for opening, closing and maintaining accounts
• Best market practice is to approach EBAM in two steps:
– Optimize internal treasury organization, processes and systems (BAM)
– Dematerialize external paper-based bank account management with
EBAM technology available from system vendors, banks and/or SWIFT
• The ultimate goal is a ‘virtual and paperless treasury organization’
14

15. Questions
Simple
Treasury? ≠
K.I.S.S.! Easy
15

16. Contact Information
Zanders Netherlands
Brinklaan 134
1404 GV Bussum
The Netherlands
T: +31 35 692 8989
Zanders Belgium
Place de l’Albertine 2
1000 Brussels
Belgium
T: +32 2 213 84 00
Zanders UK
26 Dover Street
W1S 4LY London
United Kingdom
T: +44 207 763 72 96
Zanders Switzerland
Bächtoldstrasse 5
8044 Zurich
Switzerland
T: +41 79 372 08 01
16

17. Disclaimer
These materials are for the recipient’s use only and may not be copied or
distributed in whole or in part to any other person. All information contained herein
is confidential and proprietary to Zanders and any of its subsidiaries. This material
is not to be disseminated, reproduced in whole or in part without the written prior
consent of Zanders.
By furnishing this presentation to the recipient, Zanders is not committing to any
transaction. Although any indicative information is reflective of the terms under
which a transaction might be arranged, no assurance is given that such a
transaction will be executed on the specific terms indicated, due to changes in
circumstances or new understanding through further analyses.
17