digital treasury summit 2019 · 2020-05-23 · contribute faster –under design register connected...
TRANSCRIPT
Digital Treasury Summit2019Tuesday, 5 November 2019, Zurich
1© 2019 KPMG AG is a subsidiary of KPMG Holding AG, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss
legal entity. All rights reserved.
2© 2019 KPMG AG is a subsidiary of KPMG Holding AG, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss legal entity. All rights reserved.
Agenda – Part 1Time Topic
1:30 PMWelcomeMartin Thomas, KPMG
1:40 PMFifty Shades of KYC – How a dinosaur is driving digitalization in the regulatory spaceSebastian Niemeyer, SWIFT
2:00 PMFuture of WorkCaroline Pfeiffer, Lee Hecht Harrison (Adecco)
2:30 PMNext-Generation Treasury: AI powered forecastingNicolas Christiaen, Cashforce
3:00 PM Break
3© 2019 KPMG AG is a subsidiary of KPMG Holding AG, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss legal entity. All rights reserved.
Agenda – Part 2Time Topic
3:30 PM
A new era for international payments – How SWIFT GPI changes the daily life of banks and corporate treasuries Giovanni Gaggioli, UBS
4:00 PMWorking Capital Solutions 2.0 – A MarketplaceFrank H. Lutz, CRX Markets
4:30 PM Break
4:45 PMTreasury 2025 – Where do you see the future of Treasury and what does it take?Panel Discussion
5:30 PM Apéro riche, educational booths & networking
4© 2019 KPMG AG is a subsidiary of KPMG Holding AG, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss
legal entity. All rights reserved.
One System fits all
Ecosystem
Treasury 4.0 | Treasury IT architecture
kpmg.ch/socialmedia kpmg.com/app
© 2019 KPMG AG is a subsidiary of KPMG Holding AG, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss legal entity. All rights reserved.
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KYC for Corporates
Fifty Shades of KYCHow a dinosaur is driving
digitalization in the regulatory space
The KYC Registry for Corporates
Be part of the journey!
Digital Treasury Summit 2019
8
The story of new technologies and the dinosaur…
9
…joining forces to tackle true common industry challenges!
EuroFinance ReportSOLVING THE KYC CONUNDRUMThe survey’s respondents included professionals from Europe (54%), Asia (17%), North America (10%), Africa (9%),
South America (5%), Middle East (3%) and Australasia (2%). Eighty six percent were treasury professionals; 10%
were CFOs, finance directors or controllers and 4%
said they had a supervisory function in finance.
10
Standardization is key to digitization
The KYC Registry Baseline for Corporates
Built based on the baseline for Correspondent Banking and allows banks and corporates to
further drive efficiencies by reducing bilateral exchange in their KYC process
Defined in close
collaboration
with 34 Working
Group Members
Supports
risk-based approach
by providing
basic and extended*
KYC data
* Basic level contains mandatory and recommended KYC data, extended level contains only optional KYC data
The new baseline
created for corporates
containing 4 different
categories
It is all about collaboration
BANKS CORPORATES
The KYC4C Working Group34 Members
16 Countries
3 Regions
100+ Relationships
190+ participants
36+ countries covered
60+ bank groups
100+ corporate groups
Follow
Learn
Share
Benefit
JOIN!
Extract of the Engagement Group
2014-2019 2019 2020
Q4 Q1 Q2
October November December Jan Feb Mar Apr May Jun
13
Contribute to baseline
- Registration of connected
entity
- Registration of non connected
entities
- Corporate baseline modules
Contribute faster
- Share information between HO/branches
and subsidiaries
- Central management of stakeholders data
New features - contribution
Contribute more – to be designed
Consume
- Search for corporates KYC
data
- Request access to corporates
KYC data
Contribute faster – under design
Register
connected
corporates Consume - Under development
Contribute to baseline
Contribute more
- Private documents
sharing
Pilot start
GO LIVE
Target
Target
Bringing KYC to the digital era
Standardisation Platform Digitization
Foster standardization at
industry level based on
collaboration including all
relevant parties as well as
regulators.
Offer API connectivity to allow
easy consumption of data.
Structured data fields to allow
automation based on the global
baseline.
✓
Collaboration with vendors,
local initiatives and local
authorities will drive adoption of
new technologies and
processes like e-ID to enrich the
KYC experience.
15
How to make KYC work again
The KYC Registry for
Corporates
Together for a better KYC!
Future of WorkKPMG Digital Treasury Summit
Caroline Pfeiffer Marinho, Executive VP, Europe, Middle East & Africa
Lee Hecht Harrison (LHH) - overall capabilitiesSimply put, we provide solutions and services to organizations like yours that help you transform your workforce.
A s s e s s m e n t s & A n a l y t i c sIncrease the accuracy of your talent decisions, accelerate and maximize talent and leadership development, enhance the impact of coaching and drive transformation by
providing actionable insights to your leaders.
L E A R N M O R E
T a l e n t & L e a d e r s h i p D e v e l o p m e n tShift mindsets, change behaviors, build accountability and develop
transformational capabilities across your workforce to achieve results that matter today and in the future
LEARN MORE
C a r e e r D e v e l o p m e n tOrganize and formalize an approach aligned to the individual’s career needs of
your people with the organizations workforce requirements to create a culture of shared responsibility
LEARN MORE
C h a n g e & T r a n s f o r m a t i o nDeliver an aligned approach that incorporates manager and employee support with sustainability coaching to ensure engagement and workforce productivity
LEARN MORE
C a r e e r T r a n s i t i o nMaintain your brand reputation, ensure business continuity, keep remaining employees engaged and makes sure that people leave feeling positive about
their contribution to the workplace
LEARN MORE
C o a c h i n gDevelop high potential talent, transition leaders into new roles, manage change effectively and enhance team effectiveness through a proven and adaptable approach
designed to support a coaching culture that will continually enhance your competitive edge in today’s marketplace
LEARN MORE
• Operating in nearly 400 offices in 70+ countries
• 7,800+ client firms
• LHH is managed as a centralized, global business unit under Adecco
• 4,000+ employees worldwide
• LHH brand everywhere – consistency across footprint, operating procedures, service quality and team members
• LHH is the industry leader in size & scale
Canada
30
USA
86
Asia
25
LATAM
26
EMEA
208 AU/NZ
6
LHH global capabilities – footprint
Think, work and include differentlySecuring the competitiveness of the Swiss Labor Market
Agility & Adaptability
Three critical areas are undergoing tremendous transformation and constitute the foundation for the future
Foundations for a sustainable and competitive labor market
Skills and continued education for everyone,
Integration of workers of all age groups, including the senior workforce,
Alternative work forms responding to the fact that people today are willing to work longer, but less.
2
1
3
Future skills – More than half (55%) of LHH’s candidates think that
further education is essential to their long-term professional success, while 85% would
recommend further education to the senior workforce to maintain
their employability.
The future is all about skills. Employers and employees must ensure continuous education, further training and reskilling in the professions with high talent shortages to be able to cover for the future demand and maintain a competitive skill level.
Way forward
• Active promotion of a lifelong learning infrastructure to close the gap between over and undersupply of skills.
• All actors in the market such as the government, businesses and policy makers need to continue focusing on a working social dialogue and thinking about who is held accountable for the resulting costs of re- and up-skilling.
Fostering (future) skills1
Future skills, integration of the senior workforce and alternative forms of work are the key success factors to ensure the sustainable
competitiveness of the labor market in Switzerland according to
a new study published by LHH
With the aging of the Swiss population, everyone in the workforce becomes more important. The integration of senior workers will become more crucial in the future considering the skills shortage and that senior workers bring high potential, motivation and skills to the table.
Way forward
• From mid-40s, active career support combined with further training to enable lifelong learning
• Employers should offer immediate career guidance in the event of redundancies –particularly critical for older workers
• Flexibility of the retirement age must be introduced; support measures for companies and workers to ensure healthy social protection
• Breaking down prejudices is everyone’s responsibility. Positive examples of people over 50 in companies and in the media
Integrating senior workers effectively2
Alternative forms of work –
67% of LHH’s outplacement candidates would recommend
working more flexibly as an alternative to full time employment
.
28% of all interviewees recommend becoming self-
employed to be more relevant on the labor market regardless of
age.
The digital world and the new economic reality combined with a new desire for flexibility from both employers and an employees have given space for new ways of working.
Way forward
• Embrace these alternative forms of work and treat them as standards
• Governments, employers and social partners need to re-design regulations to ensure that all work opportunities are secure and sustainable for workers and business alike’
Embracing alternative forms of work as a catalyst3
Recommendations for the state,
companies and individuals
Active promotion and support by the public authorities around relevant, simple and current instruments
• Fostering understanding of and awareness for lifelong learning, both for individuals and employers
• Flexibility of the retirement age must be set on the political agenda; support measures for companies and workers are also necessary to ensure healthy social protection
• Continuing to promote career orientation from the age of 45 onwards as an important steering instrument for employability. In that context, engage with private suppliers to ensure all of those most in need can be supported
• Reviewing the social protection scheme for what is considered non-traditional forms of work and ensure consideration of those when revisiting the social protection scheme. 21
At the state level
A timely offering of robust career coaching, must be considered an integral part of the employer’s responsibility for diversity and corporate social responsibility
• Regular career check-ups for employees in their mid-40s to secure sustainable employability (up to and beyond retirement age)
• Offering career guidance immediately following redundancies
• Considering performance and diversity from different angles and include the age question. Positive +50 examples in companies can strengthen trust and offer more balanced perspectives.
• Complementing strategic personnel planning and management with different employment models. Consider the impact on individuals and management structure
• Including new work models in their ‘employee ecosystem’ as an addition to the existing traditional work models
At a business level
Every person is an actor in their professional life - responsible for shaping and strengthening their own professional perspectives and should not wait for a dramatic event like a job loss to realize the need for proactivity
• Adopting a ‘lifelong learning’ mindset. Learn consciously, acquire new skills regularly and strengthen your employability
• Seeking support early for navigating your professional career path
• Flexibility is not a matter of age – keep a flexible mindset
• Maintaining and developing a professional network
At an individual level
Thank you
Next-Generation Treasury:AI-powered forecasting
Corporates can unlock
$1.1 trillionin cash from their operations
Source: PwC Global Treasury Benchmark Survey 2017
Cash visibility & transparency remains a challenge
BUT
?
Cash forecasting
in global businesses is
Multi
Entity
Multi Bank Multi
Currency
Multi
ERP
Reporting on cash can be
time consuming
Most treasurers/controllers are still
manually consolidating data
Forecast accuracy is a
for 75% of treasury professionals
makes organisations
save time and money
What/Who is Cashforce?
Cashforce is a ‘next-generation’ Cash Forecasting & Working Capital Analytics Platform,
focused on automation and integration.
▸ Team of 45 Cash flow & IT specialists
▸ Offices in US (New York) & Europe (BE, NL, UK, DK). Opening up in DACH (2019)
▸ Dev Center in Ukraine (Kiev)
▸ Our clients are large & mid-size global enterprises
▸ Backed by Techstars (US), Volta Ventures, Pamica (EU), INKEF (NL), BNP Paribas
(Global) & Citi (Global)
Best-in-class & award-winning technology
▸ Best Use of Artificial Intelligence in
Treasury Management 2019 – Global
Finance
▸ Best Practice in Working Capital – CFO
magazine
▸ European Fintech Awards – Nomination
▸ First Cash flow forecasting software
adopting AI
▸ Mentioned in Forbes
▸ Mentioned in Wall Street Journal
Some of our References: cash flows from over 200 countries…
AWARD WINNING
Bank Balance Reporting
Automated Cash Flow Classification
based on G/L & bank statements
Credit facility Management
GL - Bank account reconciliation
CASH FLOW
ANALYTICS
Integration with ERPs/TMS & other data sets
+
Manual input with audit trail
+
Trend-based forecasts (incl. seasonality, AI…)
Smart Cash flow logic
Simulations
Target Balancing / Funding
Actuals vs Forecast Analysis
Forecast vs Forecast Analysis
CASH FLOW
FORECASTING
Order-to-Cash Analytics
Purchase-to-Pay Analytics
Inventory / WIP Analytics
WORKING CAPITAL
ANALYTICS
CASHFORCE CONNECTIVITY
Banks, ERP, TMS, Financial Market Data
Multi-Tenant Architecture
Tailored access-levels, Flexible reporting, Easy distribution
Reduce Working Capital by deep analytical insights
Identify cash savings through a better understanding of your cash flows
13
Make an accurate cash forecast scenarios and reduce your buffer
14
A.I.-powered
Cash Forecasting
Confidential
Cases
Disruptive working capital project delivers exceptional results at Dawn Foods: from P&L to Cash-driven
17
Key facts
• In 2015, new CFO was appointed• Focus on KPI reporting & facilitation of employees to reach set targets• Understanding the underlying processes & relevant dimensions for working capital
needs was key.
Challenges
• a lack of focus on cash & working capital• Shortfall on reporting • Shortfall towards management between departments• Complex data landscape.
Benefits & Impact of Cashforce
• Working capital dashboard that provides 24/7 insights• Simulations in different dimensions, relevant for each department• Bridge between finance department & other departments• 10% year-over-year reduction of net working capital days→ $ 9 million dollars saved since setting up the new project (over a three year period)
Industry: Bakery ingredient supplier
More than 50 locations worldwide+40,000 customers
Solutions:
Working capital (AR & AP)
Interfood
$ 2 bln global food distributor Interfood chooses Cashforce to increase working capital performance & factoring efficiency
18
Key facts
• $ 2,0 bln in yearly turnover• Over 15 sites across 5 continents• ERP system: Complex MS Dynamics AX system & JD Edwards• Borrowing Base Financing program
Challenges
• Low margin industry with high trade volumes• Goal to optimize working capital & financing strategy• Current cash forecast inaccurate due to complexity
Benefits & Impact of Cashforce
• From a 5-day visibility to a 3-month visibility on the borrowing base for both Controlling team, the traders and the bank (!)
• Undisclosed amount of reductions in financing costs
Industry: Food distributor
Turnover: $ 2,0 bln
Solutions:
Cash forecastingBorrowing base forecastingInventory forecastingWorking capital (AR & AP) forecasting
Interfood
Staples Solutions chooses Cashforce to increase Working Capital Performance, Cash Visibility & Forecasting Accuracy
19
Key facts
• Group Treasury focuses on cash management, forecasting & working capital mgmt• Dispersed set of >10 ERP systems, ongoing roll-out of SAP • Short timeframe available: solution was needed ASAP
Challenges
• Lack of group-wide visibility on cash improvement areas• FP&A, Finance, IT & Treasury have manual-intensive & error-prone reporting
processes in place
Benefits & Impact of Cashforce
• Uniform reporting on the different Cash & Working Capital Drivers• FP&A, Finance, IT & Treasury involved into the same cross-departmental project• Fast executed implementation: pilot on SAP set-up in 3 weeks (!!)• 100% visibility on Cash & Working Capital• Accurate Cash Forecasts, embedded in an organization-wide process
Industry: Wholesole / Retail
Solutions:
Cash ManagementCash forecastingWorking capital Analytics
Interfood
External
Zurich, 5th November 2019
How SWIFT gpi changes the daily life of banks and corporate treasuries
A new era for international payments
Strategy & Development CIC Products, UBS Switzerland AG
Giovanni Gaggioli
2025202420232022202120202019201820172016
Completed and planned* milestones
EU SEPA
ISO 20022
(2009)
EU PSD2
access to
account
EU PSD2
regulatory
technical
standards
(RTS)
SIC
Interbank
SPS ISO
20022SPS
ISO 20022
mandatory
(end DTA)
EBICS
go-live
QR-bill
go-live
SPS
ISO 20022
version 10
Banks
SPS
ISO 20022
offering
Legend
= Milestone International
= Milestone Switzerland
= tentatively planned
milestones
EU end
national
payments
(2014)
EBICS
mandatory
Germany
(2008)
Hong Kong
ISO 20022
CHATSEU
ISO 20022
TARGET2 /
EBA EURO1
EBICS
3.0
today
IBAN
mandatory
UK
ISO 20022
CHAPS
Renewal
US
ISO 20022
FED /
CHIPS
Global Start
SWIFT MX
ISO 20022
Global End
unstructured
addresses
End
unstructured
addresses
End
payment slip
ESR/ES
Global
End
SWIFT MT
Start
Instant
payments
Switzerland
EU SEPA
Instant
Payments
eBill
relaunch
eBill
KMU
eBill
network
partner
PF SIC
only
Corporate
API
payments
Introduction
of structured
addresses
A digital
(banking)
world
More and
more
money
invested in
payments
• Standards drive digitalization forward quickly
• New standards have a direct influence on the
product offering and product range
• The expansion of standardization to include invoicing
and instant payments forces affected participants to
follow suit
• Global investment in fintech is rising, with payments
as the single largest sub-sector
• Continuous investment in global ISO20022 initiatives
and other standards is inevitable in order to comply
with international and domestic standards
• Investments in e-billing and instant payments
required
The way forward
Global
standards,
quick
adoption
and new
regulations
Initial situation
Payment standards like DTA and SWIFT MT date back to
the seventies, when storage space and transfer rates were
very limited
International anti-money laundering efforts require
additional payments information to create efficient control
framework, EU and Swiss law adapt
The standardization emerges into topics like secure
transmission protocols, APIs and billing
Specific payment offering is enforced by law in some
jurisdictions, like EU. Switzerland forced to be equivalent
After the digitalization of the payment order process, the
digitalization of the billing process is accelerating
Instant payments is quickly becoming the new market
standard for payments around the world
SEPA
ISO 20022
version 10
eBill
sharing
private
End
EBICS
2.5
EBIC
S
3.0
Instant
payments
Switzerland
mandatory
*
Current payment related initiatives globally and in Switzerland
SWIFT
officially
launches
gpi
36
The SWIFT global payments innovation (SWIFT gpi)
The gpi journey started in 2017 and continues
Source: based on SWIFT information as of July 2019
Live services Piloting / Development Exploration
Customer Credit Transfer
Cover PaymentFin
an
cia
l
Ins
titu
tio
ns Instant International
Payment
Financial Institution
Transfer
Fin
an
cia
l
Ins
titu
tio
ns
Request to Pay
gpi Link
Co
rpo
rate
s
Stop & Recall
Re
du
ce
Fri
cti
on
Case Resolution
Account Pre-Validation
Re
du
ce
Fri
cti
on
Payment Data
Pre-Validation
Re
du
ce
Fri
cti
on
Mandatory Universal
ConfirmationBa
sic
se
rvic
es
Inbound Payment
Tracking
Co
rpo
rate
s
Pay & Trace
Co
rpo
rate
s
37
How does SWIFT gpi work?
Real time payment tracking and more transparency
What is SWIFT gpi?
SWIFT gpi is a new standard for cross-border
payment processing which enables real-time tracking
Since November 2018 banks add and forward a
unique reference to payments processed via SWIFT
gpi participants actively send payment status updates
to a central database and can consult the status of
"their" payments at any time
Currently not part of the gpi initiative are SEPA
payments as well as purely non-SWIFT payments
(with exceptions, e.g. some SIC payments)
Why a new era for international payments?
First time – real-time status updates on cross-
border payments
Long awaited - transparency on charges and
currency conversions
Finally - Credit confirmation
Efficiency – Clear view on bank processing times
Payment
order
UB
S
Tracker update
Sender
SWIFTTracker query
Beneficiary
SWIFT
message
(UETR)
Clearing
message
(UETR)
Clearing
message
(UETR)
Credit
Intermediary
bankLocal
clearing
Beneficiary
bank
Tracker update
Improved cash flow
management
Less investigations
Enhanced provider
benchmarking
38
Significance for banks and corporate treasuries
SWIFT gpi changing the payment landscape
What gpi means for corporates What gpi means for banks
Changing competitive landscape
New bank selection criteria by corporates
Own network performance assessment
Back office processes visible to the client
New "operational mindset"
Opportunity to improve own cash management process
Evaluation of different payment schemes and options
Bank provider selection based on gpi services
Improved intercompany flow management
Simplified post-payment processes
Universal credit confirmation for all SWIFT payments (Nov 2020)
UETR as a golden reference standard?
Changing dynamics in the bank-client and bank-bank relationships
Investments needed to exploit the full potential of gpi
39
SWIFT gpi @ UBS
October: UBS goes
live on gpi, first bank
in Switzerland
2018
SWIFT gpi is an ongoing initiative at UBS as well
UBS internal
operations team have
access to the SWIFT
gpi tracker
UBS sends payments
in all currencies, for
all client segments
and all key locations
as gpi payments
September: UBS Payment
Tracking is launched,
giving corporate clients
access to real-time gpi
information through UBS
Digital Banking
gpi stop & recall is
implemented, allowing
simpler handling of
payment recalls
gpi information is
integrated into the
internal investigation
systems
Payment statuses
delivered directly into
the client's systems
(g4C / gpi 4
Corporates)
Extension of UBS
Payment Tracking to
other client
segmentsImplementation of
enhanced
investigation
management system
(gCase)
Full utilization of gpi
potential for bank's
own treasury
payments (gFIT)
2019
2020
tbc
40
UBS Payment Tracking via UBS Digital Banking
Your advantages
User-friendly and free-of-charge feature in UBS
Digital Banking for all UBS corporate clients
Status1 of your cross-border SWIFT payments and of
selected domestic transactions in real time
Credit confirmation2
Transparency over deductions and potential currency
conversions2
Visibility into the processing times of banks
Simplified communication with your commercial
partners in the case of payment-related problems or
queries
Reduction of the manual effort in your payment
processes
1 UBS Payment Tracking foresees the following statuses:
– completed: payment credited to the beneficiary
– in progress: payment being processed by a bank
– on hold: payment being held by a bank
– rejected: payment has been rejected by a bank
– no longer traceable: payment cannot be tracked further as it
reached a bank which does not participate to SWIFT gpi
2 if the bank in question is a gpi participant
Full transparency in one click – the times of lengthy investigations are over
41
Contact information
Giovanni Gaggioli
Strategy & Development CIC Products
+41-44-237 38 88
UBS Switzerland AG
Postfach
8098 Zürich
Tel. +41-44-234 11 11
www.ubs.com