Trésorier/Treasurer magazine - N°91 - Oct/Nov/Dec 2015 - (Page 8)
Ben Poole, Ben Poole Editorial Services
attended the Cash Management University BNP Paribas in May 2015.
LE MAGAZINE DU TRESORIER / TREASURER MAGAZINE
/ NOV / DEC 2015
FROM BANK ACCOUNT
The quest for end-to-end cash visibility is critical for today's treasurer. However, without a
full view of all bank accounts being used by the organisation, this is always going to be near
impossible to achieve. Due to this reason, bank account management has never been more critical for corporates. A workshop on day two of the 8th BNP Paribas Cash Management University explored this topic, with perspectives from treasurers, bankers and third parties.
The Current Landscape
Carsten Jäkel, partner finance & treasury management with
KPMG, kicked off the workshop by reporting some interesting
results from a recent survey on bank account management
carried out by the firm. Three-quarters (75%) of the survey
respondents have a revenue of €1bn or more per year.
A key finding of the survey is that the treasury landscape quite
scattered. Some 42% of respondents have an in-house bank
(IHB) or payment factory established. 29% have either partly
implemented, initiated or plan to initiate this kind of project,
while the remaining 29% don't have anything like this in place.
The variety of banks used for payment execution also differs. At
the lower end, 37% use between 1-5 banks and 21.7% use 6-10
banks. At the same time, 19.6% of treasurers are using 11-20
banks for payment execution, while a not-insubstantial 17.4%
use over 20 banks. The survey results also highlighted that a big
majority of treasurers (over 90%) recognise the need to reduce
the number of bank accounts that they hold around the world.
Jäkel's presentation described how the survey uncovered a
possible contradiction in the approach that corporates have
towards internal controls and fraud. When it comes to evaluating the processes they have in place to prevent black money
transfers, a majority of
treasurers (61%) say that
A central bank account
their prevention methods
management tool is vital to
are good or very good.
However, the survey
have full visibility over all
also found that 80% of
subsidiary bank accounts
treasurers do not have a
around the world.
central tool to run their
bank account management, while only 12% say that they have
an adequate tool for this purpose. A central bank account management tool is vital to have full visibility over all subsidiary bank
accounts around the world. 93% of treasurers surveyed say that
this single source of truth is the main benefit that they see from
a bank account management tool.
Patrick Pots from Statoil outlined the company's approach
to bank account management, which includes the use of an
electronic bank account management (eBAM) tool. The scale
of the company's operations means the Statoil treasury needs
to keep close control on its bank account management processes. The company has a presence in 36 countries and has
around 220 business entities around the globe. The company has
relationships with around 50 banks, 20 of these being part of
the core banking group, of which four are the company's main
banks. All in all, Pots said that the company manages around
836 bank accounts.
The eBAM model that Statoil uses manages the account opening
and approval processes, follow up status messages and bank
account reporting. Pots said that his treasury has realised
several benefits of proactive bank account management, citing
the control that a centralised process allows. The head of cash
management signing and the company has a service level agreement with its main banks. The company also has a central account database in its enterprise resource planning (ERP) system.
Pots said that the company is further analysing what else can be
achieved through eBAM and other bank account management
Table of Contents for the Digital Edition of Trésorier/Treasurer magazine - N°91 - Oct/Nov/Dec 2015
Table of contents
FINANCIAL HIGHLIGHTS Luxembourg Tax News
INTERVIEW Ben Poole Editorial Services
To What Extent Should Treasurers’ Activities be further centralized?
Capital Markets Union (CMU)
Upsurge in fraud
Using analytics to cope with uncertainty and volatility for treasury
IFRS 9 : Nécessite d’une reorganisation bancaire majeure
Taux zéro : de nouvelles stratégies pour un nouveau monde
Investing surplus cash in repos
Warranty & indemnity insurance
Making the switch from Excel to a Treasury System
Corporate treasury in the digital age
Fini le casse-tête des paiements internationaux pour les entreprises !
Bank Independent Cash Pooling
Gérer l’offre de retraites : un choix complexe pour l’entreprise
15 MINUTES AVEC CIAM
THE FINANCIAL RISK OBSERVATORY
LIFE BEYOND NUMBERS
Trésorier/Treasurer magazine - N°91 - Oct/Nov/Dec 2015