TMANE Conference 2014: "Nightmares in Finance - How to sleep tight again"

Nightmares in Finance

How to sleep tight again

TREASURY INTELLIGENCE SOLUTIONS | SMART PAYMENTS – BETTER DECISIONS Leading cloud platform for managing corporate payments, liquidity and bank relations

Who is TIS?

2 27/05/2014 TIS© | Classification: confidential | www.tis.biz

• 50 Employees

• 8 Nationalities

• 3 Locations

…and counting

TIS Snapshot

Overview Key Facts

• Founded in 2010, based in Walldorf, Germany

• Leading cloud platform for managing corporate payments, liquidity and bank relations

• Quick and easy implementation with SaaS

• Solution for midsize and blue-chip Corporations

• Rapid growth with excellent customer feedback

• Highest security standards: ISO 27001 certified

SOFTWARE AS A SERVICE: FAST, SCALABLE, SECURE


ERP INTEGRATION & SAP CERTIFIED

MULTI ERP SaaS

MULTIBANK 0.2 TO 1.0+ M DIRECT CONNECTIVITY IMMEDIATE COST SAVINGS

• Wytze Rijkmans, EVP Sales & Marketing; VP Central Europe Software SaaS vendors, global sales expert

• Dr. Wolfgang Kalthoff, COO & co-founder; VP Program Management at SAP; SaaS operations expert

• Erol Bozak, CTO & co-founder; Director of Development at SAP, cloud expert, holds 33 patents

• Jörg Wiemer, CEO & co-founder; Head of Global Treasury at SAP; 20 years of treasury experience

Built by Experts

Cloud Innovation


Giancarlo Laudini, responsible for Pre-Sales Operations at TIS, is a domain and product expert in the Payments, Bank Connectivity, Bank Account Management arenas as well as the SaaS (on-demand) Services. With a strong multi-cultural knowledge, he has been in the IT industry for over 15 years gaining international experience in Cash Management, Electronic Banking and strategic involvement in Global Payment Factory projects for large multinational clients. Email: [email protected]

Giancarlo Laudini

VP Presales

Martin Postweiler

VP Product & Client Services

Martin Postweiler, VP Product & Client Services, joined TIS in 2013. He previously was the Head of Financial and Liquidity Planning at Deutsche Lufthansa AG. Martin is well known in the treasury community in the D-A-CH-Region (Germany, Austria, Switzerland), having played an important role in establishing the TWIST Initiative (Transaction Workflow Innovation Standards Team) in this area. With TIS, he is constantly trying to make the lives of Treasurers easier, enabling them to contribute strategically to their company’s success. Email: [email protected]

Presenting:

mailto:[email protected]


Agenda


I. Business Risks

II. Reasons

III. Remedies

IV. Return on Compliance


EBAM – THE PATH TO EFFICIENCY

Oct. 2, 2001: Entire Swissair fleet (“Flying Bank”) grounded, due to cash shortage

passengers stranded worldwide

Takeover by Lufthansa in 2005 →

I. Business Risk - Liquidity

36,000

II. Reason – Grounding for nothing?



“Management had no full visibility on its cash. Swissair actually had a total of SFr 50m at its

disposal on the morning of Oct. 2nd “ Ernst & Young

I. Business Risk - Bribery



Violation of the Foreign Corrupt Practices act

Siemens was found guilty, CEO fired

damage $3-4bn

II. Reason – Why was Bribery so Easy?


“To avoid getting caught, Siemens used secret bank accounts in places like Switzerland and front companies“ Reinhard Siekaczek, Sr. Mgmt.

I. Business Risk – No Flexibility



Sept. 15, 2008: Police raid at KfW bank over an automated payment of $500m to Lehman

PR Nightmare (“Germany’s dumbest bank”)

Two Board members fired

II. Reason – Why did they not act?



“Lehman quickly needs further liquidity and equity. This is of vital importance for their existence.” Internal memo, Friday Sep 12, 2008 On Monday Sep 15, 8:37 local time, the transfer was released. One hour after Lehman had filed for Chapter 11.

III. Remedies


a. Visibility

b. Transparency

c. Flexibility

a. Visibility


Get the full Picture

Subsidiary

Subsidiary

Head Office

JV

Subsidiary

12 b$

Supplier Supplier

Supplier

Supplier

Customer

Customer

Customer

3 b€

3 b$

0,1 b$

1 b$ Supplier

Supplier

a. Visibility


a. Visibility – Lift the fog


• How much cash is on which

account?

• Investment/Debt?

• Total cash inflow from all

customers - across all entities?

• What is the payment behavior?

• How much money is paid to

which supplier?

• Working Capital

• Total net USD cash flow to be

used as natural hedge?

• Interest Rates

Liquidity Management Supplier Relations

Risk Management Customer Relations

b. Transparency – Key Questions


Which employee is allowed to sign off?

What is the specific limit per signee?

What are the exceptions?

How can you be sure that Accounting knows all bank accounts?

How can you guarantee that the visibility and transparency

worldwide will be regularly maintained?

Compliance in Cloud? – What we often find @ Corporates


Process Landscape

Branches

Joint Ventures

Head Office

Subsidiaries

Banks

Shared Service Center

- No single “Source of Truth” - Manual, paper based and

decentralized processes

→ No bank relationship overview → Potential compliance issues → Highly inefficient

How to get Transparency throughout the Entire Group


Centralized Bank Account Management

- Central repository - Cleaned up data - Audit-proof & streamlined processes - Semi-automated workflows externally

→ Bank Relationship overview → Compliance → Efficiency

Corporation

Banks

Master Data & Documents

Signatories & Workflow

Reporting & Audit Trail

Transparency – The Full-blown Solution


Adding two “e” to BAM

→ Use of 15 XML messages → STP internally + externally → SWIFT, EBICS, H2H

Workflow & Inventory

Reporting & Audit Trails

Master Data & Documents

Electronic Communication

ERP Integration

→ One single “Source of Truth” → Multi ERP → No IT-Project (with SaaS)

Corporation

XML XML XML

Banks

c. Flexibility – Ability to react fast


Transparency and Visibility

Insights (in Real Time)

Stop payments last minute or switch to another

bank at short notice

T

I

S


A Nice Bouquet of Flowers?

Payment Challenges

Banking Formats, Protocolls and Security


Customer IT

ERP Complex Landscape

Banks

Legacy / TMS / HR

Manual Payments Fax Banking

On-premise integration solution and payment systems

Various payment procedures and systems.

Various information systems are involved in cash management.

Various e-banking payment formats, protocols, channels and security measures.

International expansion results in decentralized cash management and payment processes as well as individual bank relations.

Co

mp

lexi

ty a

t al

l Lev

els

Situation

Lack of standardization and manual processing as well as the complexity of end-to-end integration and centralization result in…

reduced visibility into corporate cash-flow and liquidity increased process- and IT costs increased risk of fraud difficulties to comply with changing regulatory requirements (e.g. SEPA)

Challenges

Smart Payments

Innovation Across Banking Formats, Protocolls and Security


Customer IT

Agent Customer/Partner

Implementation SAP ERP Plugin

ERP-Integration

Other ERP and TMS

ERP

H2H, EBICS, SWIFT

Outgoing Channels

Incoming Channel

Processing Engine

Meta Model Formats

Communication Protocol

Security IDOC PEXR2002

CSB34

BACS

SWIFT-MT

DTAUS

Format

Web Service

EBICS

SWIFTNET

…

H2H-FTPS

Protocol

SAML

PGP

…

…

3DES

Security

…

…

…

ISO XML H2H-HTTPS SSL v. 3.0

Banks

Solution


One Token – All Banks

What some of our customers say


What some of our customers say


c. Transparency – Visibility – Flexibility


EBAM – THE PATH TO EFFICIENCY Best Practice (Lessons Learned)

4. Return on Compliance


Compliance and Efficiency as Drivers to Bundle Treasury Activities


Ability to React Fast

TARGET COMPLIANCE LEVEL:

FOCUS ON RISK MANAGEMENT AND CONTROL PROCESS

TARGET EFFICIENCY LEVEL:

FOCUS ON COST REDUCTION AND VALUE CREATION

STANDARDISATION

• Standardized processes

• Harmonized (IT) systems

• Standardized payment methods and formats

• Unified bank connectivity

CENTRALIZATION

• Centralized Treasury

• Payment Factory

• Platform for global cash mgmt.

• Bank relationship consolidation

• Central bank account repository

AUTOMATION

• Paper to electronic

• Straight-Through-Processing

Compliance and Efficiency as Drivers to Bundle Treasury Activities


Ability to React Fast

FOCUS ON RISK MANAGEMENT AND CONTROL PROCESS

TARGET COMPLIANCE LEVEL

FOCUS ON COST REDUCTION AND VALUE CREATION

TARGET EFFICIENCY LEVEL

STANDARDISATION

• Standardized processes

• Harmonized (IT) systems

• Standardized payment methods and formats

• Unified bank connectivity

CENTRALIZATION

• Centralized Treasury

• Payment Factory

• Platform for global cash mgmt.

• Bank relationship consolidation

• Central bank account repository

AUTOMATION

• Paper to electronic

• Straight-Through-Processing

Good Night, and Good Luck!

Please contact:

Question and Contact

How can TIS meet your needs?


Treasury Intelligence Solutions GmbH

Industriestraße 39c D-69190 Walldorf

T +49 6227 69824-0 F +49 6227 69824-97

[email protected]


Date post:	28-Nov-2014
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