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Cash is still king — but the value of cash and forecasted liquidity held or planned by the company can only be realized via cash visibility, when the treasurer knows what cash is available,...

Cash is still king — but the value of cash and forecasted liquidity held or planned by the company can only be realized via cash visibility, when the treasurer knows what cash is available, where it is held and what flows are expected in the future. However, all too often, treasurers do not have access to their organization’s full cash picture. There are many good reasons for working with multiple banks across different markets, but complex banking structures and sprawling geographical footprints can make it difficult to achieve complete cash visibility into current balances, never mind impacting the accuracy of cash and liquidity forecasting. Luckily, achieving full cash visibility over cash is not an insurmountable goal. This eBook outlines the action plan treasurers can take to gain full visibility over their cash, from gaining a clear view of current bank accounts to increasing the accuracy of the cash forecast. "More than a quarter of global cash is not visible to corporate treasury on a daily basis.” Source: PWC’s Global Treasury Benchmarking Survey   What is Cash Visibility? Cash visibility is critical to making effective decisions. Armed with clear visibility over the company’s current cash position and future liquidity flows, treasurers can: Invest cash strategically Support the CEO, CFO in strategic initiatives with the right levels of cash and liquidity Use cash management structures effectively Minimize debt and interest expense Make better informed hedging decisions Reduce bank fees Bolster treasury’s reputation within the organization Key Vocabulary Cash Visibility means knowing what cash the company currently has and where it is held. It also means being able to predict what cash the company will have in the future. Cash Budgeting generally performed by FP&A, is more focused beyond one year and has an increased emphasis on free, cash-flow guidance. The reconciliation of indirect budget-based forecasts with direct cash flow forecasts are increasingly managed quarterly. Cash Positioning is concerned with today and often the next five business days. The purpose is to manage daily liquidity to ensure shortfalls are covered and surpluses are concentrated to earn some yield on excess cash. Cash and Liquidity Forecasting typically extends cash positioning with horizons anywhere from one week to one year. Forecasting leverages multiple data sources to increase confidence in the projected liquidity balances so that better cash decisions can be made. Why is Cash Visibility Important? Cash visibility is the lifeblood of any organization. A company that has clear visibility can invest or deploy cash strategically while minimizing debt and interest expenses. Accurate visibility also increases the effectiveness of hedging decisions and enables the treasurer to mitigate their organization’s risk to exposures while supplying the CFO with funding in support of strategic initiatives. Conversely, a lack of clear visibility can result in numerous issues, including: Insufficient buffer of surplus cash to absorb unforeseen expenses Idle cash, lower returns on investments Insufficient return on cash Higher than necessary borrowing costs Unnecessary bank fees and costs Inadequate support for CFO strategic decision-making Less competitive results and less effective treasury organization as a partner for finance Related Resource Unreliable cash visibility and forecasting is the treasury issue that causes CFOs the most concern. "The top benefits of using Kyriba are the visibility that it provides, the timeliness with which it provides that visibility, and the ease of use, in that it provides it all in one simple one-stop shop.” TRISH FISHER Director, Treasury Operations, WeWork The Path to Cash Visibility Whether the treasurer is seeking to pay down external borrowing or maximize return on investments, the first step is to know what cash is currently available. But that’s not all, treasurers also need to be able to predict future liquidity flows and keep the right people informed. Achieving cash visibility is possible by using 5 definitive steps to move towards greater cash visibility and flexibility: Identify and Record Without an inventory of your banks and accounts, a complete cash visibility picture is unattainable. Prioritize and Rationalize Identify where to begin, difficult regions or banks, and determine accounts for closure. Automate Bank Connectivity and Reporting Harness the most costeffective and leading connectivity methods to access data from banks in an automated way. Generate and Streamline Cash Positioning with Liquidity Forecasting Accurately predict cash flows over the coming hours and days, and match actuals to forecasts to speed up daily reconciliation and cash application. Enhance and Optimize Future Cash Flow with Liquidity Planning The ability to see a holistic, aggregated view of cash and liquidity sources creates more accurate views and predictable free cash flow. Knowing your predictable liquidity creates a better understanding of any future liquidity shortfalls. Step One: Identify and Record Regardless of the scale and breadth of your organization’s banking and accounts structure, it is important to understand the banking landscape of all business units and subsidiaries. Whether operating in a domestic or international capacity, banking relationships. the accounts, the purpose of those accounts, and the core attributes of the bank, the accounts and their purpose all are necessary to begin a cash visibility project. This has many implications for the success of global cash visibility projects, such as: Establishing a full inventory of managed accounts, ensuring all balances are identified Ensuring the proper scope and prioritization of your project Optimization and rationalization across banks and accounts Effective comparisons and evaluations across banks for technical capabilities for connectivity, tech, regional coverage and other important services An effective bank relationship and bank account management database is the starting point for successful projects, but particularly when it comes to cash reporting. Where cash is rolling up in concentration or pooling structures, how funds are being transferred, purpose of the accounts, and even regulatory limitations all have a say in how you engage with your banking partners and the extent of cash flexibility. Step Two: Prioritize and Rationalize Bank reporting rationalization ensures accounts are identified and open for the right reasons. Often, particularly in international or more complex organizations, accounts are opened in haste to support business development and decisions. This is often necessary for statutory purposes, or to deal with an unforeseen acquisition or reorganization. However, if this situation exists, it’s possible cash and liquidity is not well defined or identified, as well. Organizations must understand and rationalize accounts, prior to moving into the next ‘step’, but this can continue throughout the project in parallel, too. The focus here is on creating a streamlined, but effective banking and account structure that fulfills treasury’s mission of safeguarding and optimizing cash, while still meeting specific business unit or subsidiary’s requirements. Bank improvements in reporting quality as well as the leading application of configuration within leading treasury management systems, creates the scenarios where previously opened, special-purpose accounts are no longer required to serve special purposes such as revenue, collections, treasury, or payables accounts. With banks being able to provide significantly improved quality of liquidity information within bank statements and other special purpose reports, and the speed of that data increasing through APIs, some companies can conduct business with one or two bank accounts per legal entity, business unit or country office. The focus here is on creating a streamlined, but effective banking and account structure that fulfills treasury’s mission of safeguarding and optimizing cash, while still meeting specific business unit or subsidiary’s requirements. Step Three: Automate Bank Connectivity and Reporting Visibility over multiple accounts requires automated bank connectivity. Companies of all sizes are often challenged in finding and implementing the right bank connectivity solution and is a critical driver of lack of visibility into cash. On the surface, bank connectivity is easy, so long as treasury teams prioritize the following: Security Automation Speed and Cost There are a variety of connectivity options to deliver security, automation and cost objectives. Yet, not all connectivity options are alike. Bank connectivity comes in a number of different forms, including: Host-to-host solutions, such as FTP, or leading practice connections using application programming interfaces (APIs) Country or region-specific protocols such as EBICS, Editran, Zengin Global cooperatives like SWIFT , which offer flexibility to manage your own connectivity or use a service provider and fully managed service bureaus The ideal connectivity solution for an organization will actually depend on factors such as bank and payment transaction volumes, bank account structures, and the location of company banks. These characteristics — in combination with what technologies the banks can (and prefer) to support — will drive the ideal connectivity choices. In practice, a combination of connectivity methods is likely the best solution to optimize costs while maintaining automation and security. Without utilizing varying connectivity methods, the company may spend more than necessary and potentially sacrifice information transparency. While managing multiple connectivity methods on your own may seem complex, connectivity-as-aservice models gives organizations faster global access to banks with pre-configured and existing connections. This coverage of the connective landscape for banks saves effort and time spelling big cost savings for the project phase as well as ongoing productive operations. When you select the right vendor to simplify bank connectivity by taking care of everything — from building connections, monitoring availability, and delivering automation all while providing new technology like APIs, organizations win and save money. Step Four: Generate and Streamline Cash Positions and Liquidity Forecasts The goal of cash positioning is to establish a realtime view of cash at any point in time and to be able to reconcile prior-day forecasts to enable the deployment of cash throughout the organization more quickly and accurately. Effective cash positioning reduces idle cash, creating opportunities to earn immediate yield while providing certainty over risk exposures that cash is exposed to. As a process, cash positioning involves gaining a real-time view of the company’s cash position at any moment in the current day(s) by consolidating a number of different sources and replacing old data with more up-to-date information. With today’s APIs gaining the real-time, near-instantaneous view of cash and liquidity is easier than ever. Within treasury technology, building the cash position typically involves combining a number of data sources: Prior-day balance — automatically downloaded from banks at the start of the day Current-day bank reporting — automatically downloaded from banks throughout the day, either at specific times (e.g., 1st or 2nd presentment) or as a constant stream of data via an API Expected payables and receivables — from the organization’s ERP and reported/cleared from bank statement details Treasury financial transactions and settlements — which are integrated within the treasury system Building a cash position is just the start. After building a cash position, it is then necessary to maintain and reconcile it. Maintaining the cash position involves updating and replacing cash flow data with more accurate information via intra-day updates from internal systems and banks. Reconciliation of the cash position is the matching of actuals to forecast flows, which is often done first thing in the morning as a part of typical treasury processes. The goal is to identify and understand surprises — for example, if a transaction did not happen yesterday then it may happen today, meaning the unreconciled variance needs to be rolled into today’s position. For many organizations, this process can be time consuming, so rules-based automation or artificial intelligence can be introduced to simplify the process. Key requirements for cash positioning include interactive dashboards and clear communication within — and outside of the treasury organizations: Interactive dashboards enable cash managers to drill down through multiple levels into any component of the cash position. Positions should be viewable by multiple dimensions in real-time by line item, bank, entity, currency, etc. Communication within and outside of treasury is critical. The treasurer, CFO and finance personnel managing subsidiaries all require cash visibility, so delivering visual and detailed reconciled cash positions is a critical outcome of daily cash positioning. Effective cash positioning and liquidity planning leads to numerous benefits for the finance organization: Keeping the CFO and the Board up to date with reliable and accurate cash position information Mobilizing cash across the organization for funding and investment purposes Enabling cash management processes such as pooling, sweeping and intercompany borrowing Optimizing interest income and expense via better informed borrowing and lending operations Reducing external borrowing by using internal cash resources effectively Step Five: Enhance, Optimize and Predict Cash and Liquidity While cash positioning can be used to predict cash flows in the coming hours and days, cash forecasting with liquidity planning information creates more accurate, longer horizons beyond weeks, extending into months, years. Cash forecasting must not only be accurate, but predictive using more historical and current data to be truly effective. Without complete confidence in projected forecasts, the cash forecast cannot support treasury in improving cash utilization. Cash forecasting is needed to help treasury invest cash over longer maturities, secure borrowing to fund operations and make more effective hedging decisions. And confidence in the cash forecast is the difference between achieving these outcomes and hoping to do so. So why do so many companies struggle to achieve an accurate forecast? Common challenges include a lack of accurate data sources, lost results from past forecasts, ineffective methodologies and a lack of alignment with performance metrics. If a forecast isn’t reliable, treasury is unable to trust it and therefore cannot use the cash forecast to make critical decisions. It is crucial to incorporate data sources from treasury, like financial transactions along with all the normal P2P and O2C cycle flows from the ERP Cash forecasting and Liquidity Planning creates future views of anticipated free cash flow and helps all of finance from FP&A to the CFO better strategic accuracy in decision-making. Identify, Find the Data Consolidate the Information Measuring Forecast Accuracy Predictive Analytics: Optimize Your Forecast Find the Data: Collaborating with Other Teams Forecasting incorporates key data points from elsewhere in the business so that effective collaboration can be administered between AP, FP&A, IT and regional controllers who own valuable forecasts data and/or administer systems to enhance forecast visibility. This collaboration is essential in making sure everyone involved knows what they are expected to provide with executive oversight to ensure that collaboration is prioritized. Consolidating Forecast Data Automating the integration of forecast data into a single system of record is the next critical factor in achieving effective forecasting. In many cases, source data may come from various ERP modules or in some cases other special purpose systems like procurement or revenue recognition/accounts receivable. In the past and in some situations, spreadsheet data to augment or provide coverage for areas or business units without systems could be a source, too. While consolidating data into a single system could be an IT-intensive exercise, best practice is to eliminate the need for internal IT resources, reducing the cost and time required to integrate systems. This can be done by having pre-built connectivity and integration through APIs provided by your treasury system. Measuring Forecast Accuracy The final piece of cash forecasting is to measure the accuracy of the cash forecast at a detailed level. Measuring forecast performance is critical to understanding how effective each line item and source of information was, offering valuable insight into where the forecast can be improved. This analysis must be done at a detailed level. For example, measuring accuracy before and after a 90-day/13- week period can hide many anomalies and offers no meaningful conclusions. Many organizations will measure week over week, while some will drill down at a daily level. Once accuracy is measured, the treasury team must implement a feedback loop to effect meaningful change. Regional controllers, for example, can only improve if presented with detailed facts. Further, standardized KPIs — that ideally would form a component of performance reviews and compensation calculations — go a long way in reinforcing desired forecast behavior. This is where commitment from the CFO will drive effective forecast performance. Optimize: Predictions for your Cash and Liquidity Once the foundation is established for forecasting your liquidity with the prior steps, the next level naturally leads to identifying the technology solution that will offer your organization and team the support and improvements for your liquidity forecasting. Technology can do more to provide value through expanding the horizon of your forecast, depth of insight, accuracy, and enhanced user experience with information already within your organization’s grasp. Through tools that leverage artificial intelligence companies today should be more advanced and be capable of: Create predictive dashboards and enhanced reporting Cash forecasts with risk models built-in Identify optimum cash cushion, draw-down levels, and investment levels Characteristics to look for when evolving and upleveling your forecasting efforts should include looking to solutions using AI-based predictive analytics for forecasting including calculations based on risk models that give treasury and FP&A teams the optimal cash cushion. Additionally, look for solutions giving you: Cash flow by level of confidence Recommendations for optimal investment strategy Predict liquidity requirements To successfully deploy an AI-driven predictive forecasting model, organizations must prepare structured and normalized historical data. Machine learning algorithms will identify patterns within the data to make predictions about when, for example, customers will actually remit payment. This AI-predicted data stream will align with other forecast data sources to deliver a more intelligent cash forecast to predict future liquidity needs. Human interaction remains important to ensure liquidity forecasting and planning aligns with internal risk policies of the team and organization. AI is a tool to complement, rather than replace, treasury teams as they execute more complex tasks and processes. In this role, AI is a critical piece in the drive to towards real-time treasury decision making and the progressions towards 24/7 liquidity management. Optimizing Cash Visibility Benefits Achieving full cash visibility takes time and effort, but the rewards are significant. Armed with a complete, accurate and up-to-date picture of the current cash position and liquidity planning flows, treasurers can: Make timely and confident decisions about activities, including investments, borrowing, cash concentration and hedging Pay down external borrowing with a clearer view of the cash available Invest strategically with a clear picture of current and future flows Reduce bank fees by closing or combining redundant bank accounts or negotiating with banks from a position of knowledge Minimize debt and interest expense by making the best use of internal cash and reducing external borrowing Gain a clearer picture of risk exposures and manage those risks more effectively Optimize planning of borrowing and lending operations Increase effectiveness of hedging by ensuring decisions are based on complete pictures of current balances and planned future transactions Cash Visibility – Final Thoughts The future of treasury technology is here and advancing rapidly; some banks have deployed their own APIs to integrate with their customers’ systems. New platforms are opening new products and services for corporate customers. One of these innovations is the movement towards real-time bank reporting. In many parts of the world, intra-day reporting happens less than twice per day, and in some cases not at all, meaning that daily cash positioning is largely driven by prior-day reporting and expectations of clearings throughout the day. Real-time bank reporting, delivered only by APIs, is the future and will be a game-changer for cash managers looking to achieve instant cash visibility into accounts. Additionally, Liquidity Planning extends the value of real-time treasury with the inclusion of cash, treasury instruments, planning information and liability information to deliver longer range strategic decisions by the CFO. Combined with real-time payments, treasury teams will be in an enviable position of not only having real-time views into bank accounts but also being able to mobilize cash domestically — and eventually cross border — within seconds. The transformation to real-time reporting will further pressure treasury teams to employ the right processes and analysis to effectively manage cash information in real time. It will be a change for those organizations that lack modern treasury technology, but an opportunity for enabled organizations to earn a competitive advantage in the utilization and deployment of cash. How Kyriba Can Help Kyriba can support you in achieving full visibility over cash. Kyriba helps organizations reduce the cost and complexity of bank connectivity — whether a company is connecting via SWIFT, using APIs, leveraging country protocol or using a combination of channels prioritizing security, automation and cost minimization. Organizations can easily keep track of signatories, manage workflows and store documents thanks to the control over all global bank accounts given by Kyriba’s bank relationship management solution. Additionally, companies can maximize the accuracy of their cash and liquidity reporting with Kyriba’s detailed and flexible variance analysis and feedback loop to forecast sources. With a full picture of current balances and future flows, you’ll be better positioned to make confident decisions about cash.   Want to learn more about how to achieve cash visibility for better cash forecasting? Check out this webinar to hear Kelkoo Group, a leading e-commerce company, shares their best practices and the payoffs of superior cash forecasting.

Las APIs ofrecen un salvavidas para los CFO y tesoreros que buscan innovación y mejoras en costos. Además de la conectividad bancaria, las APIs abren la integración a diversos sistemas, mejorando significativamente la previsión...

Las APIs ofrecen un salvavidas para los CFO y tesoreros que buscan innovación y mejoras en costos. Además de la conectividad bancaria, las APIs abren la integración a diversos sistemas, mejorando significativamente la previsión de efectivo, la gestión de liquidez y los pagos. Permiten una transformación digital mediante una puerta de información y procesamiento. Las API abren la integración a una variedad de sistemas, incluidas las capacidades que mejoran enormemente la previsión de efectivo, la gestión de la liquidez y los pagos. Las API ofrecen una puerta de acceso a la información y el procesamiento para llevar a cabo la transformación digital. A diferencia de FTP, las APIs no requieren el envío o descarga de archivos. Los datos se intercambian punto a punto entre sistemas de manera inmediata, permitiendo una transmisión instantánea y eliminando riesgos sustanciales. Facilitan el desarrollo y uso de conectores predefinidos para reducir los tiempos de implementación y facilitar los pagos y la seguridad en tiempo real. En este whitepaper, exploraremos: Qué son las APIs y cómo funcionan en finanzas Los diferentes tipos de APIs disponibles Cómo las APIs pueden revolucionar la conectividad ERP, la gestión de efectivo, la gestión de liquidez, los pagos y más Los directores financieros invierten miles de millones Los directores financieros (CFO) están invirtiendo más que nunca en plataformas empresariales, con organizaciones que gastaron aproximadamente $675 mil millones de dólares en 2022, según Statista. Gran parte de esta inversión se destina a trasladar los sistemas de planificación de recursos empresariales (ERP) a plataformas en la nube, como SAP S/4 Hana, Oracle Cloud y Microsoft Dynamics 365, que lideran el mercado corporativo. Para los directores de tecnologías de la información (CIO) que buscan brindar un soporte efectivo a sus CFOs y socios comerciales de la organización, la conectividad entre el ERP y los sistemas y conjuntos de datos internos y externos sigue siendo un desafío costoso, que a menudo retrasa las fechas de implementación y genera importantes sobrecostos. Las APIs abren la integración a una variedad de sistemas, introduciendo capacidades y automatización de procesos que antes no eran posibles. Las APIs ofrecen una puerta de información y procesamiento para lograr la transformación digital. ¿Qué es una API? Una API es un programa que permite que múltiples piezas de software "se comuniquen" entre sí. Las aplicaciones en tu teléfono y los widgets integrados en un sitio web utilizan APIs para solicitar o proporcionar información. Por qué las APIs son importantes para las finanzas Investigaciones de Gartner revelaron que casi el 50 por ciento de los líderes financieros incorporarán un "sistema de gestión financiera componible" para 2024 "para ofrecer capacidades y resultados que se mantengan al ritmo acelerado del cambio empresarial". Las APIs están permitiendo ese cambio. Están transformando la forma en que los líderes financieros consumen datos y permiten la integración de múltiples aplicaciones que antes eran impracticables de soportar, creando una puerta de acceso a la inteligencia empresarial en tiempo real y soluciones digitales. A diferencia del protocolo de transferencia de archivos (FTP), las APIs no requieren que los archivos se envíen o descarguen. Los datos se intercambian de punto a punto entre los sistemas de forma inmediata, lo que permite una transmisión instantánea de datos y elimina riesgos sustanciales. Permiten el desarrollo y uso de conectores preconstruidos más rápidos para reducir los tiempos de implementación y facilitar pagos y seguridad en tiempo real. "Con las APIs para finanzas, tus plataformas evolucionan de ser sistemas de registro a sistemas de participación", dijo Bob Stark, Director Global de Estrategia de Mercado en Kyriba. "Tu plataforma se conecta con cualquier número de sistemas internos y externos para estar siempre actualizada.” Plataformas de API abiertas Las APIs facilitan redes abiertas. Mediante portales de desarrolladores, los proveedores de tecnología pueden construir aplicaciones sobre la plataforma del proveedor de API. La banca abierta es un ejemplo perfecto. La Directiva Revisada de Servicios de Pago (PSD2) en 2018 contribuyó a que las APIs sean aún más relevantes para la tesorería y las finanzas corporativas. La Directiva de la UE requiere que los bancos abran sus plataformas a los proveedores de tecnología de pago, y las APIs son una solución principal para gestionar esta cumplimiento. Aunque la PSD2 solo se aplica a la Unión Europea, iniciativas similares en otras regiones también han surgido rápidamente, ya que los bancos en Estados Unidos y en toda la región de APAC han reconocido la oportunidad de ofrecer servicios en tiempo real basados en datos a los clientes corporativos. "El movimiento de la PSD2 realmente ha animado a los bancos a comenzar a abrir APIs para las empresas” —Felix Grevy, Vicepresidente de Producto, API Abierta y Conectividad de Kyriba Una frustración común entre los líderes de tesorería y finanzas es la falta de visibilidad centralizada en múltiples departamentos, liquidez y pagos. Las plataformas de API abiertas actúan como un conducto entre equipos y sistemas dispares, permitiendo conexiones en tiempo real a aplicaciones, datos y nuevos productos y servicios. Estas plataformas reducen los procesos manuales y ofrecen soluciones tecnológicas componibles, permitiendo a los usuarios corporativos y bancarios tomar decisiones basadas en datos en cada operación financiera. APIs para la conectividad bancaria Es importante tener en cuenta que los bancos y los proveedores de soluciones tecnológicas que gestionan plataformas abiertas no están reemplazando los formatos heredados como FTP y SWIFT con APIs. En cambio, ofrecen APIs como complemento de estos formatos. Después de la aparición de la PSD2, los bancos europeos han comenzado a utilizar APIs "premium", que son APIs con mayor funcionalidad. "La diferencia entre las APIs de la PSD2 y las APIs premium es que las APIs premium son más poderosas", dijo Grevy. "Puedes obtener saldos y realizar pagos instantáneos. Además, son mucho más seguras y mucho más adecuadas para la integración con un ERP o un sistema de gestión de tesorería (TMS)” Los servicios bancarios optimizados a través de APIs varían, algunos ejemplos incluyen: Grupos bancarios Informes de sucursales Grupos de cuentas bancarias Informes de efectivo y flujo de efectivo Sin embargo, la implementación ha sido lenta. La mayoría de los bancos aún no utilizan APIs en producción en vivo y muchos de los que las utilizan solo las ofrecen para ciertos servicios en tiempo real, lo que significa que se necesitan múltiples opciones de conectividad para brindar un soporte completo a un equipo de tesorería y finanzas. Además, la mayoría de los proveedores de tecnología solo ofrecen funcionalidad limitada más allá de la conectividad bancaria y solo pueden conectar un ERP a un banco. No obstante, la conectividad mediante APIs ofrece ventajas clave en comparación con un enfoque basado en archivos, como una respuesta inmediata de los bancos y la capacidad de recibir nuevos datos y notificaciones en tiempo real. Por lo tanto, aunque la adopción puede ser lenta y gradual, las ventajas para el usuario final son claras. Conectores ERP Las plataformas ERP como SAP, Oracle y MS Dynamics han realizado grandes esfuerzos para desarrollar e integrar APIs en una amplia gama de funciones y flujos de trabajo. Afortunadamente, las funciones de TI y Finanzas no necesitan hacer el trabajo pesado; estas APIs son plug-and-play y permiten cada vez más integraciones y capacidades de informes principales. Gestión de efectivo Las APIs ofrecen a las organizaciones la capacidad de gestionar el efectivo de forma continua y en tiempo real. En lugar de depender de informes por lotes que se limitan a momentos predefinidos a lo largo del día, los equipos de tesorería ahora pueden acceder a informes según sea necesario.j8yh Recibir información de liquidez en tiempo real y sin lotes mejora considerablemente la conciliación de efectivo, la aplicación de efectivo y la precisión de la liquidez en general. Esto, a su vez, cambia los mecanismos para la previsión de efectivo según las mejores prácticas y conduce a la creación de productos de liquidez intradiaria, como la inversión por horas. Permitir que los profesionales de tesorería accedan a su efectivo fuera de las horas "normales" anteriores no solo amplía el alcance en el que las organizaciones pueden aprovechar su liquidez, sino que también permite que la tesorería realice mayores contribuciones estratégicas. Las APIs también permiten a la tesorería y las finanzas realizar un seguimiento suficiente de los movimientos dentro y fuera de las cuentas a lo largo del día. Esa visibilidad puede ayudar a las organizaciones a tomar decisiones significativas durante el día en lugar de al final del día o durante la noche. Pagos Las APIs financieras también pueden agilizar todo el proceso de pagos. En lugar de depender de procesos por lotes que se transmiten varias veces al día en momentos predefinidos, las APIs permiten iniciar pagos desde sistemas de gestión de tesorería y sistemas ERP según sea necesario, incluso en tiempo real. De hecho, los pagos en tiempo real a veces requieren APIs. En pocas palabras, si quieres que los pagos se liquiden al instante, las transferencias de archivos pueden no ser la mejor opción de conectividad. Con la transferencia de archivos, los archivos bancarios se extraen, reformatean, cifran y descargan en la plataforma de tesorería, un proceso que lleva al menos cinco a diez minutos. Una vez que se conocen los saldos, el proceso para enviar y confirmar un pago lleva otros cinco a diez minutos como mínimo. En cambio, las APIs pueden consultar el saldo bancario y enviar un pago en tiempo real al instante sin la transferencia de ningún archivo. Con el rápido aumento tanto de los sistemas de pagos en tiempo real nacionales (RTP de The Clearing House y FedNow en EE. UU.) como de las plataformas transfronterizas (SEPA Instant, SWIFT Go y Nexus), las APIs son una necesidad para las empresas que desean ofrecer pagos instantáneos. Aprovechar las APIs para utilizar pagos en tiempo real no solo revoluciona el proceso de inicio y confirmación, sino también la capacidad para mitigar el fraude. Si bien la Encuesta sobre Fraude y Control de Pagos de AFP 2022 encontró que los fraudes de compromiso de correo electrónico empresarial han disminuido recientemente, siguen siendo una amenaza persistente. Dado que los pagos en tiempo real no brindan a los usuarios la oportunidad de identificar transacciones fraudulentas después de la transmisión, ahora se deben incluir estrategias de mitigación de fraude en el proceso de aprobación. Incorporar APIs en la plataforma de pagos permite a los usuarios automatizar por completo la validación de cuentas bancarias y la selección de políticas de pago, identificando excepciones. Los valores atípicos pueden ser marcados y apartados para su revisión, mientras que todos los demás pagos se procesan de manera fluida según lo previsto. Crear sistemas flexibles de informes e información Las APIs son mucho más que simples conectores para bancos y ERPs. Las APIs pueden revolucionar la forma en que operan los departamentos de tesorería y finanzas tanto internamente como en su totalidad. Las APIs ofrecen la capacidad de crear un almacén de datos flexible y personalizado que podría existir dentro de su TMS, ya que algunos sistemas de tesorería pueden actuar como una única fuente de registro. Cuando otros sistemas tienen funcionalidad limitada, su almacén de datos puede llenar los vacíos al proporcionar datos de mercado, detalles de transacciones financieras como información sobre carteras, proyectos o riesgos, para ofrecer una fuente rápida y flexible de informes semanales de tesorería. Independientemente de dónde se almacenen sus datos, las APIs establecen los medios para integrar diversas fuentes de datos en un único repositorio o almacén. En segundo lugar, las APIs permiten que la tesorería y las finanzas automatice más allá de la automatización de tareas, lo que agiliza las capacidades de la organización. Las APIs permiten la automatización de procesos, lo que simplifica todo el flujo de trabajo, como el viaje completo de pago. Mediante las APIs, es más fácil reunir sistemas y procesos completos. Tanto la automatización como el alcance de la cobertura funcional facilitan la creación de sistemas de gestión financiera componibles. Cuando las redes de sistemas personalizados, informes, paneles de control y flujos de trabajo eficientes se habilitan e integran mediante APIs, los equipos de tesorería y finanzas pueden enfocarse en acelerar proyectos de innovación y reducción de costos. Los ERPs, aunque son críticos, no son el único sistema que requiere una integración sólida y el intercambio de información para una toma de decisiones más sólida. Las APIs son el pegamento que une todos estos componentes y cambian la eficiencia y las capacidades en tiempo real para los líderes de tesorería y finanzas. "Los CFO y los CIO, de la mano, están reconociendo que necesitamos APIs para reunir todo y acelerar la innovación", dijo Stark. "Antes de las APIs, la forma en que se creaba un sistema financiero componible era mediante el uso de interfaces personalizadas, clics manuales e inicio de sesión en los sistemas y, si tenías suerte, un poco de RPA. Las APIs son perfectamente adecuadas para mejorar la automatización de procesos, vinculando múltiples sistemas y flujos de trabajo, porque permiten a los equipos financieros construir un sistema de múltiples componentes." Figura 1. Progresión de las iniciativas de hiperautomatización Fuente: Gartner 2021 Referencias Gasto en tecnologías de la información (TI) en software empresarial en todo el mundo, de 2009 a 2023 Encuesta sobre fraude y control en los pagos de las AFP 2022 Gartner identifica las principales tendencias tecnológicas que deben abordar hoy los directores financieros   ¿Interesado en aprender más sobre cómo las APIs para finanzas cambiarán la forma en que los líderes consumen y actúan sobre la información? Echa un vistazo a este seminario web donde Alex Yang de Bank of America, David Miller de Hunt Companies y Bob Stark de Kyriba desmitifican el valor de las APIs para pagos, liquidez intradía, integración de ERPs, detección de fraudes, criptomonedas y más.

Aunque muchos directores financieros (CFOs) piensan en las interfaces de programación de aplicaciones (API) como una vía acelerada para la conectividad bancaria, las conexiones bancarias son solo la punta del iceberg. Las API abren...

Aunque muchos directores financieros (CFOs) piensan en las interfaces de programación de aplicaciones (API) como una vía acelerada para la conectividad bancaria, las conexiones bancarias son solo la punta del iceberg. Las API abren la integración a una variedad de sistemas, introduciendo capacidades y automatización de procesos que antes no habían sido posibles. Las API ofrecen una puerta de entrada de información y procesamiento para realizar la transformación digital.

Las implementaciones remotas del Sistema de gestión de tesorería (TMS) son posibles con una planificación, organización y comprensión adecuadas. Dependiendo de el alcance y los grupos de partes interesadas involucrados, también pueden ser complejos...

Las implementaciones remotas del Sistema de gestión de tesorería (TMS) son posibles con una planificación, organización y comprensión adecuadas. Dependiendo de el alcance y los grupos de partes interesadas involucrados, también pueden ser complejos con múltiples partes móviles.

Modern fraud threats are innovative and constantly evolving. To confront these threats, organizations that want to survive need to deploy the most up‑to-date detection and prevention solutions.

Modern fraud threats are innovative and constantly evolving. To confront these threats, organizations that want to survive need to deploy the most up-to-date payments fraud detection and prevention solutions. In this eBook, we will explore the most common fraud threats to businesses today and detail the leading, AI-based tools that CFOs and CIOs can use to stop attacks before they happen. We’ll explore the ways that Kyriba solutions protect our customers, and impart that knowledge to you. We'll also look into tools like artificial intelligence and machine learning (AI/ML) and application programming interfaces (APIs) are game changers in the fight against fraud. We understand and use these technologies, and it’s time that you did as well. The Changing Face of Fraud Fraud threats have grown exponentially throughout the COVID-19 pandemic as the remote working environment has left companies struggling to ensure that employees are following strict security protocols. According to a 2022 KPMG survey of over 600 executives, the shift to remote work has increased the risk of fraud, and most companies experienced fraud incidents last year. FRAUD OUTLOOK Source: 2022 KPMG Fraud Outlook The losses that stem from fraud are significant. Respondents reported an average profit loss of 1% from fraud and compliance violations in 2021. And the larger the company, the more criminals will target it. A Need for Corporate Investment and Attention With the pandemic continuing for the foreseeable future and challenging organizations’ ability to operate and staff effectively to counter the ever-increasing fraud threat, it is surprising that over half of the companies surveyed say there will be no changes in their budgets to invest in anti-fraud measures. With less than half of organizations today having a program in place to prevent, detect and respond to fraud, it is evident more focus on greater investments in their protections is called for. CFOs, treasurers and CIOs clearly require a more complete set of defenses in the form of new, leading, automated AI-based fraud detection. Pervasive and Emerging Fraud Threats Business email compromise (BEC) scams continue to plague treasury and finance departments. BEC scams typically begin with an urgent email sent to an employee that appears to come from a senior level official, requesting a money transfer. In actuality, a fraudster has copied a legitimate email address, usually after infiltrating a company’s email system via phishing. A variation of this scam consists of emailed invoices that appear to come from a routine supplier that have new instructions on where to send payment. According to the FBI’s Cyber Division, there was a 5% increase in BEC adjusted losses from 2019 to 2020, with over $1.7 billion losses reported in 2019 and over $1.8 billion losses reported in 2020. Check and wire fraud remains a significant problem for treasury and finance departments, as these are the payment methods most susceptible to fraud. AFP research found that 66% and 39% of financial professionals reported fraud activity via these two payment types in 2020. However, check fraud has been in decline in recent years as fewer organizations are using checks for B2B payments. Deepfake voice fraud is a relatively new method of attack but one that has proven highly effective. This brand of fraud consists of criminals making calls using deepfake voice technology, software that can successfully copy a person’s voice via a small audio sample. COMMON VULNERABILITIES FOR ORGANIZATIONS Deepfake voice fraud caught international attention last year when it was revealed that fraudsters used it to complete a $35 million bank heist. Ransomware attacks, though not technically fraud, are nevertheless prominent threats to companies’ systems and bank accounts and have surged in recent years. In a ransomware attack, a company’s internal system is compromised (usually through phishing) and taken over. Users are instructed to either pay a ransom or permanently lose access to their systems. Ransomware as a service (RaaS) is the latest innovation of this threat; it consists of developers selling or leasing ransomware exploits to customers who then unleash them upon unfortunate victims. Tools to Protect Against Fraud To combat the threats of today, your payments fraud detection and prevention solutions should include these capabilities: Automated payment processes to standardize controls Real-time screening of all payments data to identify suspicious transactions User-defined payments screening rules Resolution workflow to investigate suspicious payments An option to avoid alerting payments users who violated a payments rule Monitoring of the status and priority of alerts in a KPI dashboard Modern payments fraud detection software like Kyriba’s Payments Fraud Detection module offer these solutions and more. Real-Time Screening, Alerts and Notifications The rise of same-day and real-time payment systems has increased the need for real-time responses to fraud attempts. Modern fraud detection software uses artificial intelligence (AI) and machine learning to screen payments against historical payment data, pinpointing any anomalies. By providing more complete data, these solutions enable data-driven decision-making. For example, Kyriba’s Payment Fraud Detection solution determines the normality of each payment—whether automated or manual—flagging any with a low normality rank. The solution provides insights into the variables that determine payment normality, allowing users to see why one or more was deemed anomalous. And perhaps most advantageous for the user is that processes aren’t slowed down in any way, even with greater visibility into payment data. Payments could be flagged as anomalous for a variety of reasons, including: A high number of payments for the same third party Payments with unusually high amounts Payments to blacklisted countries according to company policy Suspicious changes to payments imported from an ERP Payments to a bank account used by several third parties Duplicate payments After testing multiple machine learning models, Kyriba’s data scientists selected two solutions to identify irregularities in payments. Isolation Forest An isolation forest model is an unsupervised algorithm that works on the principle of isolation anomalies; anomalous instances in a dataset tend to be easier to separate from the rest of the sample. In the following example, we can see that anomalies require fewer random partitions to be isolated, compared to normal points: Generative Adversarial Network One problem many machine learning models run into when trying to identify fraud is the lack of data around fraud. Most organizations haven’t experienced significant payments fraud and thus lack the depth of examples to share. Others who may have been the victims of fraud may be reluctant or unable to share the specifics. So, training AI models can be challenging because the algorithms can only learn from good payments and, at best, a handful of bad ones. Generative adversarial networks (GANs) can solve this problem. A GAN is a deep learning model that pits two separate neural networks against each other. One network (the generator) mixes real data and synthetic data together and attempts to outwit the opposing network (the discriminator). Kyriba creates a “fraudster” network (the generator), hiding synthetic fraudulent among legitimate transactions based on a client’s payment history. Then, a “police” network (the discriminator) sifts through the data, separating the illicit transactions from the good ones. By training the fraud detection model on these competing networks, Kyriba can better identify fraudulent transactions when viewing real data. Generative Adversarial Network (GAN) Model Dashboards Dashboards can be set up to display all suspicious payments and prioritize their resolution, based on factors such as detection rules, risk exposure, incident counts and a fraud detection scorecard. Dashboards provide authorized users with complete transparency into all payment screening and can resolve outstanding actions efficiently. Fraud Prevention Workflows Modern payments fraud detection modules also support fully automated, end-to-end workflows for the resolution of outstanding suspicious payments. Users can also determine how each detected payment should be managed, enforcing the separation of duties between the initiator, approver and reviewer of a detected payment. Reviewers can also be determined by payment rule and specific scenario (e.g., the treasury manager reviews payments less than $1 million, while payments over $1 million go to the treasurer), and non-treasury personnel can be assigned to review certain detected payments. Reporting and Audit Trails Leading technology solutions can ensure that detected suspicious payments are permanently tracked in the system for daily, monthly or annual reporting. History is maintained indefinitely and all details of the suspicious transaction—including the audit trail of detected and resolved actions—are retained for internal and external audit reporting. Payment Hubs With a payment hub, organizations have all their fraud protection capabilities in one place. Payment hubs consolidate payment streams from ERPs, finance, treasury, legal, capital markets and decentralized teams, transforming disaggregated processes into a single source of record for all outgoing payments. A payment hub also transforms payment data into bank-specific file formats and connects directly with global banks via multiple protocols, including host-to-host, SWIFT and regional networks. Payments from ERPs or other systems can bring an entire enterprise-wide payments landscape under the consistent and risk-focused payments fraud detection framework. With API-driven connections and integration tied into an approval and payment fraud detection and prevention workflow, controls and fraud are enhanced and easily governed. Payment Hub for Payments Fraud Detection Fraud Mitigation Matrix Treasury and finance professionals have many payment fraud detection tools at their disposal. The following list of solutions provides an overview of some the capabilities that today’s tools deliver for mitigating fraud risk. Fraud Mitigation Matrix Solution Key Protections Capabilities Payment Fraud Detection Scenarios Pre-Defined Detection Rules Flags unorthodox payments for further review Easy to customize and come up with your own rules Real-Time Screening AI/Machine Learning Dashboard Screens payments against historical payment data Displays all suspicious payments and prioritizes their resolution Payment Fraud Prevention Workflow Fully Automated Workflow Enables users to resolve outstanding suspicious payments Allows users to determine how detected payments should be managed Enforces separation of duties around a detected payment Designates reviewer(s) by payment rule and specific scenario Provides the ability to assign non-treasury personnel to review payments Features an option to hide alerts from initiators/approvers of a payment Allows scenario-based stopping of payments until resolved Enable to bypass for low-value payments Sets up tiered approvals Reporting & Audit Trails Complete KPI reporting Detected payments are permanently tracked in the system History is maintained indefinitely APIs: The Future of Payments Fraud Detection Real-time payments, which are gradually becoming more prevalent, bring unprecedented visibility and transparency to both the payer and the payee. However, there is also no stopping the transfer of funds once a real-time transaction is executed. Therefore, fraud needs to be prevented in the approval process before a payment request reaches the bank. Building APIs into the payment platform allows users to fully automate bank account validation and payment policy screening, identifying exceptions in real-time. APIs can instantly match payments against third-party data; for example, they can be used for sanctions list screening or verifying the ownership of the bank account to whom your company is paying. By using APIs for third-party system integration with your payment platform, your organization can ensure real-time access to any needed database for account or compliance validation. Exceptional payments can be immediately quarantined for further review, while unexceptional payments process normally. Learnings and Takeaways CFOs and treasurers require a more complete set of payments controls to mitigate modern fraud threats, including artificial intelligence/machine learning and APIs. Organizations have three common areas that make them vulnerable to fraud: technical systems, processes and human error. Modern threats include business email compromise scams, check fraud, wire fraud, deepfake voice fraud, and ransomware. Technologies that can be used to combat fraud include pre-defined fraud detection rules; real-time screening, alerts and notifications; fraud prevention workflows; reporting and audit trails; and payment hubs. As the threats continue to evolve, treasury and finance teams need to heighten their awareness. Interested in learning how to build out payments fraud detection and incident response programs to maximize protection end-to-end? Check out this on-demand webinar. Cybersecurity and fraud experts from Corelight and Kyriba outline fraud defense strategies.

La caja sigue siendo clave, pero para la empresa conocer su valor y la liquidez prevista solo es posible si el tesorero sabe cuánto dinero hay disponible, dónde se encuentra y cuáles son los...

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¿Qué significa el concepto de banco interno o In-House Bank? En el contexto empresarial actual caracterizado por cambios rápidos se exige que los equipos de tesorería líderes tengan visibilidad completa de su liquidez. Los...

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Durante la pandemia, fueron más que habituales las fluctuaciones inesperadas en los niveles de efectivo y liquidez de la mayoría de las organizaciones, consecuencia de una economía internacional volátil y agitada. Los modelos de...

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Impulso del crecimiento sostenible y las oportunidades de desarrollo para pequeñas y medianas empresas mediante programas de Supply Chain Finance (SCF). Impulso del crecimiento y la rentabilidad mediante soluciones de Working Capital. Las empresas...

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Hacer que los pagos en tiempo real sean una realidad para los equipos de finanzas y tesorería. ¡Envíe el formulario para recibir el eBook!

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Applying Principles of Quality and Efficiency from the Manufacturing World to Treasury and Finance to Achieve More Efficient FX Risk Management One of the principal tenets of Lean is a focus on customer value....

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El papel de las pequeñas y medianas empresas en la economía y el desarrollo. Las pequeñas y medianas empresas (pymes) son la columna vertebral de las economías y las sociedades, ya que desempeñan un...

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Robotics Process Automation (RPA), Machine Learning (ML) and Artificial Intelligence (AI) are no longer buzzwords and concepts. As technology advances and the applicability of various scenarios grow, treasury and the larger finance organization find...

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A major shift is underway in the world of enterprise resource planning (ERP) software. With both customers and ERP software vendors driving a mass migration to the cloud, many companies have already completed their...

A major shift is underway in the world of enterprise resource planning (ERP) software. With both customers and ERP software vendors driving a mass migration to the cloud, many companies have already completed their ERP cloud migration projects—and thousands more are set to follow suit by the end of this decade. But ERP cloud migration is a costly and time-consuming undertaking, particularly where IT is concerned. For companies seeking to digitize their enterprise applications, it’s clear that corporate IT will be heavily taxed for the foreseeable future. Meanwhile, cloud ERP software vendors and system integrators are poised to reap the benefits of years of migration project work. The Challenges of Bank Integration For corporations,  ERP cloud migration projects are often global in nature — and many will need to tackle the complexity of a global banking integration project. This element of ERP migration is particularly challenging, significant coordination is needed with the company’s banks, and there is a considerable disparity between the payment formats required by different geographic regions and clearing systems. Indeed, bank integration is often cited as one of the riskiest and most challenging elements of ERP cloud migration. Simplify and Accelerate The good news is that companies can considerably simplify and accelerate a major component of cloud ERP migrations: bank integration for reporting and payments. Connectivity-as-a-service (CaaS) providers deliver pre-delivered, pre-tested capabilities for bank reporting and payments formats that shave months off the migration project, and reduce connectivity and format costs by up to 80 percent. In this Ebook You will learn about the key areas to look at during an ERP cloud migration payments project, including: Following banks’ schedules Navigating variations due to geography, banks, statutory reasons Connectivity with your specific cloud ERP software (SAP, Oracle, Microsoft Dynamics, etc.) Resourcing challenges You’ll also find out how you can significantly reduce the cost and time required to complete your ERP cloud migration project. Bank and ERP Cloud Integration: What’s Involved? Bank integration is unlike any other system integration. Today’s corporate IT teams are experienced in building interfaces between different back-office systems—but these are typically stagnated interfaces that do not require additional resources. In contrast, when working on a bank interface, the IT team will typically need many different resources to coordinate with each other, including IT, treasury, accounts payable (AP), the connectivity team, the bank’s tech team, and others. What’s more, the project timeline is usually at the mercy of the bank’s schedule. Bank ERP integration can similarly be time-consuming. IT first has to determine if the cloud solution is compatible with their ERP. Then, the data needs to be extracted out of the ERP and re-formated. IT departments are often stymied and reliant upon outside consultants to deliver integrations or core capabilities within the ERP. Furthermore, once the initial specifications for these connections are determined, they need to be tested - and they rarely pass on the first try. As a result, the development team will need to rebuild, re-test and work through the coordination effort all over again. In some cases, two to five rounds of testing may be needed. What are the Challenges in ERP Cloud Migration? For IT, the bank integration component of an ERP cloud migration brings a number of additional challenges. Working on the Banks’ Timelines Delays in the ERP migration project often arise due to delays by the company’s banks. If the company has a robust relationship with a core banking partner, it may be able to move up the project queue for that particular bank. But with many corporations needing to manage dozens of banks globally, the IT team will be forced to follow those banks’ schedules—which means working across different time zones and navigating banking holidays and seasonal moratoriums on testing. Navigating Geographical Variations No two banks are the same, and it’s a common misconception that SWIFT is a standard message type across banks. While SWIFT is moving from MT to XML, each bank will still have its own unique requirement in terms of how it will accept incoming files. For any payment type, companies will need to ensure that payments are formatted correctly for a specific bank’s requirements and that they contain the information the bank needs to complete the payment. Most corporations will need multiple formats per bank, which might include different formats for low value, high value and FX transactions. Given the complexities, it’s no surprise that IT firms routinely take two years or more to work through all these bank connections and payment format testing. Payments Integration and Fraud Prevention Payments integration is a challenge, given the ever-increasing threat of fraud. Even with effective tools like artificial intelligence (AI) and machine learning, the threat level is the highest it's been yet, according to Strategic Treasurer's 2021 Treasury Fraud & Controls Survey. In addition to financial loss, fraud events damage a company’s reputation and lead to the loss of essential data or assets. It is therefore essential to use ERP integration as a way to put technology in place to protect your organization. This should include digitizing payment workflows, standardizing controls and screening payments as part of an integrated payments hub. Complexities for IT Adding to these challenges, bank integration brings a number of complexities where IT is concerned. Limited IT bandwidth Corporate IT teams are already thinly spread across numerous projects and support requirements. As such, the time involved in undertaking a bank integration project can be particularly onerous. No Reusable Data When IT teams work on an ERP implementation, they have to develop their banking interfaces as a one-off exercise. While ERPs may be moving to the cloud, ERP solutions are still typically private cloud providers—and no ERP in the market has readily available, reusable banking formats that can be shared among users. Multiple Stagings Bank and payment format development is no different than for any other interface or application, as IT has to work through the same rigorous processes. If the business users need a new payment format, such as a new ACH for an existing bank, they will still need to go through the process of testing, QA, nonproduction and production. This process can take months, meaning there will be a considerable delay before the end user has access to the payment format. Resource Requirements Once formats are in production, the IT infrastructure team will need to manage those formats going forward. This involves activities such as troubleshooting bank issues, editing formats as required by the bank and working with the business to add new banks when the need arises. Depending on the company’s banking footprint, two to five people will likely need to be tasked with managing these connections on an ongoing basis. Integration Made Easy Standard ERP integration is a lengthy process that is incredibly taxing on IT. But there is an easier way. Leading technology providers should offer a pre-built, pre-tested connectivity solution that takes minimal time to get up and running and provides access to even greater functionality immediately. Leading ERP and Bank Connectivity Technology Considerations ERP integration brings many challenges to IT - but these can be overcome by adopting a technology solution that simplifies both bank and ERP connectivity. With 20 years experience in connectivity, Kyriba can integrate bank reporting and payments, while mitigating risk--all in record time thanks to our use of application programming interfaces (APIs). Accelerate your ERP Migration Project and Reduce Costs Our out-of-the-box, bolt-on bank connectivity can help you achieve exceptional time and cost savings on bank integration. While standard integrations might required months of testing, our connections are pre-tested and ready to go. Access a Payment Format Library As a multi-tenant application, Kyriba is unique in the marketplace as our entire 2,500-strong customer base uses the same predeveloped and tested payment formats. What’s more, we have full-time staff whose sole responsibility is to build and test payment formats. As a result of 20 years of development, we offer more than 45,000 pre-developed and bank-tested unique payment scenarios. Simplify Interfaces Minimal IT resources are needed when it comes to interfacing between the ERP software and Kyriba. Using both SFTP and API, we take all payment files into our prebuilt interfaces with no code specs needed from IT. Focus on the Wider Project Kyriba’s connectivity platform frees IT up from the daunting task of bank integration—so you can focus on keeping the ERP project on schedule and on budget. Avoid the Need for Swift Connectivity and Certifications When you use Kyriba for connectivity, IT won’t need to manage the Alliance Lite2 SWIFT connection— and there will be no need for annual testing and certifications. Manage Ongoing Maintenance and Support When the project is over, Kyriba will handle all ongoing maintenance and will act as the banking IT support arm for business users, meaning you won’t need dedicated IT resources to troubleshoot bank issues. Connectivity as a Service By offering Connectivity as a Service (CaaS), Kyriba can actively manage bank connections on your behalf. As a result, no IT support will be needed to manage your company’s bank connections or undertake file testing with banks—and with Kyriba's API capabilities, companies can also add new banks in a fraction of the time that would be needed for custom development within the ERP. Market-Leading Payment Fraud Protection With IT increasingly tasked with risk mitigation, Kyriba’s market-leading payment fraud solution adds considerable value. The solution uses machine learning to detect any anomalies or suspicious activity, and provides alerts to stop payments for investigation before they are sent to the bank. Payment Tracking Kyriba offers real-time payment tracking with four levels of acknowledgement. By harnessing SWIFT gpi, Kyriba is able to track the entire lifecycle of the transaction. Innovation and Agility Hub Payment technology is evolving rapidly. Kyriba’s innovation and agility hub can deliver Real Time Payments (RTP) and can connect with other clearing systems and payment solutions. Smart Assignment Kyriba’s machine learning will have visibility to your banking partners and costs associated with each payment. Smart assignment can intelligently route your payments through the lowest cost provider. Bank Monitoring Kyriba offers global bank monitoring of all incoming and outgoing files. Kyriba clients can rest assured that they have fully outsourced banking support. Established Partnerships As an Oracle GOLD partner, Kyriba's Payments Network supports over 1,000 Oracle customers. Our payments solutions have also achieved SAP-certified integration with the SAP NetWeaver® technology platform and SAP S/4HANA. APIs and Connectivity The future of connectivity lies in Application Programming Interface (API) technology. This is where Kyriba has a key advantage. As the leader in connectivity in treasury and finance, Kyriba understands how to maximize the power of APIs to help finance leaders drive digital transformation and more informed decision-making. Bank APIs APIs offer an expedited pathway for bank connectivity, as well as a gateway to real-time business intelligence and digital solutions. Unlike file transfer protocol (FTP), APIs do not require files to be sent or downloaded. Data is exchanged point to point between the systems immediately, allowing for instant data transmission and eliminating substantial risk. Kyriba connects with over 600 global banks every day on behalf of our 2,500 clients using a variety of connection protocols, including APIs. Banking services available via API vary by bank, but can include real-time payments, domestic payments, cross-border payments, bank balance and transaction reporting, and SWIFT gpi payment tracking. Users receive immediate responses from banks, and the ability to access new data and notifications in real-time. ERP APIs Kyriba also works with ERP system providers to embed APIs into their workflows so that the user doesn’t need to take any action outside their ERP. These add-ons perform the initial formatting so that files can be exported from the ERP, translated to the API provider’s format and pushed out to the connectors. Corporate end-users can also integrate APIs into their ERPs on their own. These plug-and-play solutions are facilitated through our Open API platform, which provides users with common ERP integrations that connect to their own applications. Kyriba users can browse our online catalog, which lists all our available APIs and their prospective use cases. Here are a few examples: Bank Account Groups: This API allows for the creation of new account groups to filter and/or group accounts in processing and reporting. Users can modify the set of accounts that belongs to a specific group, and retrieve or update the pooling account of the group. Companies: This API allows for the setup of companies. Users can get a list of the companies located in a country, receive a list of companies whose name contains specific characters, and obtain all the setup fields of a specific company. Third Parties: With this API, users can manage and set up third parties who represent the companies they manage. Users can retrieve and update third-party details, and create or delete third parties via API. Optimized Bank Connectivity Conclusion There are many challenges for IT when deploying an ERP project, from working around banks’ schedules and specifications, to navigating the complexities of geographical variations - all while juggling an already heavy workload. Fortunately, Kyriba’s in-house developed, complete CaaS solution encompasses all ERP software vendors, internal financial systems, third party providers, and over 600+ pre-configured, pre-tested connections with banks across the globe - allowing for fast and simplified ERP migration. Payment and connectivity costs can be reduced dramatically, while the time spent on bank integration can be streamlined by as much as 80%. What’s more, freeing up the IT team from having to work within the constraints of the banks will help you keep the wider ERP project on time and on budget. Check out this webinar to learn how Treasury and IT worked together at Hilton Grand Vacations with Kyriba to speed up connecting more than 10 banks and 300 bank accounts as part of their Oracle ERP cloud migration project. 

 A Strategic Treasury Focus Boosts Cash Flow and Minimizes Risks Treasury operations manage the lifeblood of their companies: cash liquidity. CFOs know that their treasury teams are critically important, handling everything from cash flow...

 A Strategic Treasury Focus Boosts Cash Flow and Minimizes Risks Treasury operations manage the lifeblood of their companies: cash liquidity. CFOs know that their treasury teams are critically important, handling everything from cash flow forecasts to optimizing working capital, along with foreign exchange currency risk and investing and borrowing. The team’s performance has a direct impact on the bottom line. Yet, 22% of CFOs and senior finance executives say they don’t see their treasury team as a profit center, according to a recent survey by CFO Research and Kyriba. And only a quarter of the executives say their treasury operations are operating at a high level with a strategic approach. This report examines what the survey says about the links between treasury and overall performance, the obstacles that treasury teams face and how CFOs can boost their treasury performance to improve overall profitability. Which of the Following Best Describes Your Role? KEY POINTS Senior finance executives expect treasury teams to manage critical tasks linked to cash flow and risk, according to a survey. That three-quarters of finance executives view their treasury operations as strategically lacking. Obstacles faced by treasury teams include complex financial structures and siloed systems, and a lack of technology investments, real-time business intelligence, expertise and process automation. A lack of spending on treasury and a focus on everyday tasks over strategic objectives block progress for treasury teams. Working capital optimization is the top treasury concern of financial executives moving forward. The surveyed finance executives also acknowledge that their treasury organizations need to make technology and process improvements to meet industry best practices. Predictive analytics, payments automation and cash management are the top three technology and process improvements that treasury teams need to make, according to the survey respondents. WHY TREASURY PERFORMANCE SHOULD DEMAND YOUR ATTENTION There is widespread agreement among CFOs and other senior finance executives: Treasury performance is critical to the health of their organizations, and they expect their treasury teams to manage a range of critical tasks. According to a 2020 CFO Research/Kyriba survey, senior finance executives give similar weighting to a range of treasury department priorities: accurately forecasting cash flow, operational efficiency, fraud prevention, compliance, optimizing working capital and FX risk management are somewhat evenly matched. Rather than singling out one or a few of the priorities, the 156 surveyed executives indicate that all are nearly equally important. The survey also reveals another theme: finance executives tie treasury performance directly to cash and liquidity management. The surveyed executives measure treasury performance based primarily on free cash flow, cash used for working capital, productivity and efficiency, investing and borrowing performance, and reduced risk exposure. These are all important, of course -- liquidity drives business performance, CEOs often give guidance to the investment community about meeting free cash flow targets and cash is needed for working capital. What Are Your Current Priorities Related to Treasury? But whether or not the finance executives formally track these factors as key performance indicators for their treasury teams, nearly all of the executives have the same expectations. They want better returns from cash, more optimized investment and borrowing, best practices executed for liquidity and cash management, and protection against fraud. On the topic of the best ways for treasury teams to optimize liquidity, the survey respondents again see almost-equal priorities rather than one or two favorites, giving nearly the same importance to reducing borrowing costs, increasing returns on excess cash, generating free cash flow, mobilizing global cash more efficiently and implementing supplier financing programs. They also give similar weights to each of eight areas where their treasury teams could make a better contribution to overall business performance. Increasing cash flow is the favorite at 41%, followed by increasing interest earned on excess cash, protecting against payments fraud, improving treasury team productivity, centralizing treasury data and processes, reducing currency volatility impacts, providing secure and efficient global payments, and providing business continuity planning for global treasury. Finance executives expect their treasury teams to meet all of these cgoals, and if they aren’t done right, it costs their organizations in financial losses or missed opportunities. CFOs recognize that cash is the lifeblood of their organizations. When treasury can manage cash and liquidity well—if it can provide visibility to cash and deploy it effectively, optimize investment and borrowing, and protect cash from fraud and currency risks—then it sets itself up to optimize how cash is made available and deployed, such as for cash operations, stock dividends or company growth in other parts of the world. THE CURRENT STATE OF TREASURY Despite the consensus that treasury operations are integral to company success, the survey also shows that treasury operations are lagging considerably behind the vision that the CFOs and other finance executives have for them. Surprisingly, 22% of the surveyed executives say they don’t see their treasury team as a profit center. On behalf of those who don’t share that view, 53% of the surveyed executives say their treasury teams contribute as a profit center by earning greater returns on cash and 34% say they contribute by unlocking supplier discounts for early payments. Rounding out the profit-center views, 28% see contributions from treasury’s FX intercompany management and 24% from viewing treasury as an in-house bank. On the bright side, 78% of the CFOs and other senior finance executives in the survey view the role of treasury as actively contributing to the bottom line. And most are earning greater returns on cash from areas such as investment income on the large cash balances that companies frequently hold in today’s economy. They also value cash management and see cash as something that can help create profitability and improve margins. The glass-half-empty view? The executives in the 22% contingent probably are not aware of the potential links of treasury to value creation, and are likely not investing in things like cash forecasting or technology that will help their treasury teams contribute in strategic roles, viewing cash merely as a means to pay bills, and not much more. How Do You See Your Treasury Team Contributing as a Profit Center? When asked about their current state, only one quarter of surveyed finance executives describe their treasury operations as “strategic,” the highest level, meaning that treasury “creates value through enterprise-level insight and intelligence.” Three out of every 20 finance executives surveyed say treasury is operating at an “ad-hoc” level, or the lowest level, which is primarily reactive. Anything below strategic is suboptimal. But why are treasury teams being placed in the not-strategic category? The surveyed finance executives report several internal obstacles that restrict the CFO’s ability to support organizational growth and bottom-line value, with a fairly even distribution between those obstacles: complex financial structures, siloed or disparate financial systems, lack of resources, insufficient technology investments, lack of real-time business intelligence, lack of expertise and lack of process automation. All of these obstacles point to a mindset that the company hasn’t invested the time and money necessary to improve treasury processes and the systems that support them. They also signal a lack of collaboration and coordination in the way the financial structure is set up. A lack of spending on treasury and a tactical focus, where time is spent on completing everyday tasks at the expense of forward-looking achievements, translates to lower productivity for treasury teams, especially for the range of critical tasks and high expectations that CFOs have set out for them. Companies are getting in their own way when they fail to prioritize treasury operations and don’t invest in the capabilities and tools that treaury needs. HOW TO GET BETTER CFOs value the importance of treasury operations, and most of them recognize that their treasury teams haven’t reached a strategic level yet. So how do they set up treasury to achieve its full potential? The key barrier is that treasury teams often get so bogged down in reactive tasks that they don’t create opportunities to work on strategic tasks. If treasury can get around its mountain of tactical work, it can be more proactive with insights and analysis. One way that CFOs appear to be attacking this issue is through technology. The survey shows that more than one-third of the respondents use connectivity middleware/payment hub software, data visualization/business intelligence software and mobile devices for multifactor authentication with their finance teams. A slightly lower percentage of the surveyed finance executives employ application programming interfaces to banks and trading partners, as well as machine learning and robotic process automation. All of these technologies help harness data and can make treasury teams more effective and analytical, which helps them make better decisions about managing cash and liquidity. Fostering more analysis of data and information creates an opportunity for treasury and finance to become more strategic. TREASURY ORGANIZATIONS NEED TO MAKE TECHNOLOGY AND PROCESS IMPROVEMENTS TO MEET INDUSTRY BEST PRACTICES. PREDICTIVE ANALYTICS ARE AT THE TOP OF THE LIST, CITED BY 45% OF THE RESPONDENTS AS AN AREA OF INTEREST, FOLLOWED BY PAYMENTS AUTOMATION AT 32% AND CASH MANAGEMENT AT 31%. In Which of the Following Areas Does the Treasury Organization Need to Imporve Its Technology and/or Process to Match Industry Best Practices? The surveyed finance executives also acknowledge that their treasury organizations need to make technology and process improvements to meet industry best practices. Predictive analytics are at the top of the list, cited by 45% of the respondents as an area of interest, followed by payments automation at 32% and cash management at 31%. The number of organizations utilizing technology that still acknowledge the need for improvement show a level of aspiration. CFOs and their organizations are recognizing they need to make changes to achieve the performance standards they’ve set for their treasury teams based on free cash flow and other factors. What Are Your Top Three Treasury Concerns for 2020 and Beyond? Looking ahead, the top three treasury concerns for 2020 and beyond are working capital optimization, according to 41% of the surveyed executives, followed by payments fraud for 29% and low interest rates for 28%. The other items on the treasury concerns list include treasury operating costs, treasury productivity, currency volatility and business continuity. The diverse pattern of responses indicate that other than with working capital optimization, every organization will have its own individual set of priorities for fortifying its treasury operations. Also, with no consensus about treasury deficiencies, each organization will have to carefully examine and gain a better understanding of its own treasury team, which could lead to visibility that hasn’t previously existed. The bottom line is that CFOs and other finance executives value their treasury teams, and they have a good understanding of all the vital benefits that their teams can deliver—a point made repeatedly through the survey results. Although there may not be a simple fix, they’ve identified a list of internal obstacles that they must overcome to improve treasury. They also recognize the opportunity at hand: to bring their treasury operations up to a strategic level where they can fulfill their potential. To make that happen, they need to arm their treasury teams with the right tools to understand and analyze data, and to make better decisions. Starting with some simple investments in technology, CFOs can improve the efficiency and effectiveness of treasury. And as that efficiency and effectiveness grows, it increases the probability of good outcomes like increased profitability. CONCLUSION Treasury performance is tied directly to cash and liquidity management. CFOs know that accurately forecasting cash flow, operational efficiency, fraud prevention, compliance, optimizing working capital and FX risk management are all critical tasks that their treasury teams must manage to sustain the health of their companies. Most of them also recognize that their treasury teams need work. Most treasury operations fail to achieve their full potential because they get bogged down in tactical, reactive work. Treasury teams need investments in predictive analytics, payments automation and cash management. As technology and process improvements help treasury teams to harness more data and employ more analytics, those teams will become more strategic and capable of meeting their CFOs’ expectations. And companies will enjoy improvements in free cash flow, cash usage for working capital, productivity and efficiency, investing and borrowing performance, and reduced risk exposure.     Check out this on-demand webinar and learn how 2021 AFP Pinnacle Award Winner HCSC transformed into a data-driven treasury with 1000+ hours of productivity improvement and 90% reduction in working capital requirements.

This new e-book is designed to provide a quick, graphical overview into how payment hubs can help increase efficiency, reduce costs and enhance fraud prevention.

This new e-book is designed to provide a quick, graphical overview into how payment hubs can help increase efficiency, reduce costs and enhance fraud prevention.

For CFOs charged with safe-guarding corporate coffers, there is no silver bullet that can stop payments fraud in its tracks. Managing and minimizing the problem is a holistic, pro-active effort that combines best practices...

For CFOs charged with safe-guarding corporate coffers, there is no silver bullet that can stop payments fraud in its tracks. Managing and minimizing the problem is a holistic, pro-active effort that combines best practices with real-time detection and monitoring technology.