BNP Paribas, PwC, SAP and the European Association of Corporate Treasurers released the second edition of their thought leadership initiative, the Journeys To Treasury report at EuroFinance Barcelona.
The first edition of the report, released at EuroFinance Vienna in 2016 made a lasting impression on the corporate treasury community, with more than 1000 downloads across the world and more than 24,000 visits to the report’s website within the first three months of its launch. The 2017 edition of the report has taken the narrative further and discusses some of the most important issues and trends affecting the corporate treasury.
The second edition of Journeys To Treasury follows in the footsteps of the 2016 edition with three key topics of discussion. Distilled from the results of a survey of more than 100 corporate treasurers, several panel discussions and interviews, the report is structured around the topics of data analytics, regulation, compliance and geopolitics, and cybersecurity. As part of the introduction, JTT 2017 also gives an update on a few other important topics, such as blockchain, instant Payments and FinTechs.
The advantages of relying on the analysis of treasury data as opposed to the ability to handle the three Vs of Big Data (volume, velocity and variability) form the backbone of this section of the report. In order to be able to use Big Data, a company needs to have the necessary systems and skillsets for harnessing it before it can be put to any use in the treasury. Unfortunately, most companies do not have these competences. However, all treasuries do have organised data regarding cash balances, bank statements and other financial transactions. The report uses several convincing arguments and a case study to make recommendations on the various analyses this data can be subjected to in order to make it useful for the corporate treasury function.
This section of the report also discusses data analytics supported by Artificial Intelligence (AI) and Robotics. Using real-world examples it demonstrates how corporate treasuries are co-developing tools that are likely to change the workings of the industry with real-time monitoring and automated responses to events.
Regulation, compliance and geopolitics
The ever-changing geopolitical scenario and the shifting regulatory landscape are at the top of most corporate treasurers’ agendas. Events like the decision of the United Kingdom to leave the European Union or the coming into power of the new administration in the United States of America continue to have far-reaching implications. The second section of JTT 2017 discusses how agility of response and risk resilience have become important elements of policy as new regulations bear down on corporate treasuries around the world.
The section goes on to discuss the impending imposition of compliance measures like the General Data Protection Regulation (GDPR) by the European Union and the EU Payments Services Directive (PSD2), both of which will come into force in 2018. While GDPR will affect the corporate treasury in the way it deals with the data of its customers, employees and vendors, PSD2 is likely to dramatically change the existing payments landscape. The report, while discussing these issues, makes to-the-point recommendations regarding dealing with and making the best of such changes on the regulatory landscape.
Any discussion on the corporate treasury function is incomplete without a thorough analysis on cybersecurity which remains one of the biggest challenges faced by corporate treasuries across the world. The final section of JTT 2017 deliberates this extremely important topic at length. Financial loss due to a cybersecurity breach in a company is not the only loss it suffers. The associated reputational loss and the cost of investigation and resolution of the issues resulting from such a breach can have long-term consequences. The report makes recommendations regarding the involvement of ‘ethical hackers’ in order to stay one step ahead.
The report lays emphasis on the need to ensure measures to protect against the targeting of individual members of the staff as the ‘weakest link’ in the chain. While it calls for cybersecurity strategies to be better aligned with the actual risks faced by a company, the report also emphasises the importance of a detailed incident plan and a strong communication plan to ensure that all stakeholders are on-board. As an illustration of a holistic approach towards the prevention and management of fraud, JTT 2017 uses the example of a leading agro-industrial group’s adaptation of its internal culture and updated arrangements with its financial partners.
The second edition of the Journeys To Treasury report is available online and can be downloaded at www.journeystotreasury.com.
Source : journeystotreasury.com
Do companies really want a more sustainable world?
Yes, the success of our Sustainable Business Ateliers is good proof of that. Most companies are aware of their social responsibility, but some are in need of information. To help them on their way, BNP Paribas Fortis organises regular regional Sustainable Business Workshops. Last year, our bank organised two pilot sessions in Liège and Limburg and more recently it was the turn of Namur, Gits (in West Flanders) and Ghent. Other Belgian cities will be announced soon.
During the Sustainable Business Workshops the invited clients are inspired by the experts from our Sustainable Business Competence Centre, and by other clients who speak about the actions they have already taken with their business.
After the presentations, participants are divided into groups and share experiences led by a moderator.
How do clients rate them?
Feedback from the participants revealed that the focus on cooperation and networking opportunities are the greatest advantages of the Workshops. Those attending always include representatives of small, medium-sized and large businesses from a variety of sectors - a diversity which participants find highly enriching. After all, no single company can overcome all of the present challenges on its own. Companies will not only have to cooperate with one another, but also with the government, universities, startups, etc. to make progress.
According to the participants, BNP Paribas Fortis is also the only financial service provider that goes great lengths to support companies in the area of sustainable business, by analysing at which stage of the sustainable business path the companies are and by guiding them to use sustainability as an opportunity for their activities.
Do you want to participate in one of our Sustainable Business Workshops? Please contact your Relationship Manager for the practical details.
Not a client yet? And do you want to know more about the guidance we offer and the benefits of sustainability for your company? Discover what our Sustainable Business Competence Centre can do for you.
Solvay links the cost of credit to a reduction in greenhouse gases
Solvay has agreed new terms in an existing €2 billion revolving credit facility, linking the cost of credit to a reduction in greenhouse gases. Solvay concluded this positive incentive agreement with its syndicate of nine banks. BNP Paribas Fortis is acting as Sustainability Coordinator and agent bank to Solvay’s long-term banking partners.
Solvay announced in September 2018 a commitment to cut greenhouse gases from its own operations by 1 million tonnes by 2025 relative to 2017 levels. The Group intends to achieve this reduction by further improving energy efficiency, energy mix and by investing in clean technologies. “We seek to integrate sustainability into all key aspects of our business, including financing. Associating Solvay's ambitious greenhouse gas emissions target to the cost of credit is a logical step. The successful teaming up with our banks shows that the way towards more sustainability is a collective effort," said Jean-Pierre Clamadieu, CEO of Solvay.
“I am proud that Solvay has mandated BNP Paribas Fortis to introduce a Positive Incentive Loan mechanism that supports Solvay’s ambitions in reducing greenhouse gas emissions. This innovative solution is a clear example of how we and the syndicated banks we represent aim to serve our clients in terms of value creation. Collaboration between banks and clients is key in driving the economy forward to a more sustainable future,” said Max Jadot, CEO of BNP Paribas Fortis.
BNP Paribas Fortis : 2018 annual results
CEO Max Jadot: “In spite of the lower pace of economic growth, low interest rates and tensions in international trade, our net profits of 1.9 billion in 2018 held up well. We continued to realise our mission to support the economy in a sustainable way by enabling our clients’ projects and safeguarding and developing their assets. (…) In a highly competitive and fast-changing environment, we are building the bank for the world of tomorrow. I would like to thank our customers for their trust and our colleagues for their engagement and effort in achieving our goals.”