Trésorier/Treasurer magazine - N°91 - Oct/Nov/Dec 2015 - (Page 8)

INTERVIEW Ben Poole, Ben Poole Editorial Services attended the Cash Management University BNP Paribas in May 2015. LE MAGAZINE DU TRESORIER / TREASURER MAGAZINE - N°91 - OCT / NOV / DEC 2015 GREAT EXPECTATIONS FROM BANK ACCOUNT MANAGEMENT 8 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. Corporate Perspectives 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 software.

Table of Contents for the Digital Edition of Trésorier/Treasurer magazine - N°91 - Oct/Nov/Dec 2015

Table of contents
INTERVIEW Ben Poole Editorial Services
To What Extent Should Treasurers’ Activities be further centralized?
Capital Markets Union (CMU)
Upsurge in fraud
CEO impersonation
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

Trésorier/Treasurer magazine - N°91 - Oct/Nov/Dec 2015