The start of January is most definitely the time for bold (or not so bold) predictions for the upcoming year. In the past weeks we have seen predictions suggesting that advanced business intelligence will be the number one priority for CFOs in 2017, predictable analytics will effectively replace hedge fund managers, and that blockchain is ready to emerge as the next coming of the internet for finance – in 2017. None of these things are going to happen – in 2017, or maybe at all.
Bob Stark's blog
Bob Stark, vice president of strategy
Bob has 18 years’ experience in treasury technology, working for many of the best known technology providers in the industry. As VP of Strategy at Kyriba, Bob is responsible for global product strategy and market development, and works with clients, partners, and industry influencers to ensure Kyriba is at the forefront of treasury technology. Bob has provided treasury management strategy to some of the world’s largest companies, and is a frequent speaker and author on treasury, risk management, and the cloud. If it’s worth knowing about in the treasury, you can assume he knows it.
Fraud and cybercrime have been a concern for corporate treasurers for several years, and this past year showed us that there is a new risk to consider: connectivity. The stories of banks being hacked and losing millions through unauthorized payments shook the industry, since protecting payment connectivity workflows was low on the priorities list for treasury.
While unfortunate for those involved, there are valuable lessons to be learned for the rest of us in treasury:
The 2016 annual AFP conference in Orlando, Florida was all about breaking boundaries. For those of us who attended and who have practiced treasury, we were reminded of just how treasury continues to evolve.
As global treasurers continue to take control of global payment processes, including payment factories and payment-on-behalf-of structures, the need for pre-notification against sanctions lists, such as OFAC in the United States, is becoming a must-have requirement within treasury technology.
Additional reading: The business case for a payment hub
On October 15th, Treasurers investing in prime (i.e. non-government) money market funds will face the consequences of the SEC’s 2a-7 reform on money market funds. The most talked about impact of this legislated reform is the introduction of a floating net asset value for these prime funds. In fact, in the 2016 AFP Liquidity Survey respondees were not only talking about it, but suggesting they would abandon prime funds for the perceived safety and liquidity of government funds or bank products.
Managing corporate payments is becoming a riskier proposition. The threat level, primarily due to fraud and cybercrime, is growing in volume and sophistication. The AFP Payments Fraud and Control Survey found that 73% of organizations were the target of payment fraud in 2015, with 42% reporting that fraud attempts were successful.
Fortunately, there are best practices that corporate treasurers can implement that will reduce the risk of fraud occurring – and increase the timeliness that fraud is detected should an event occur.
1. Securing access to payment systems