The world of technological, product and process innovation creates a continuous flow of information and promises (this will change the world).
Could you plot the timeframe in which you believe the following innovations below will become relevant for your Treasury organisation?
Instant Payments and Instant Reporting (24/7)
Instant Payments are payments in Euro that are credited to the beneficiaries’ account within a few seconds, on every day of the week and at any time of the day (availability depends on participation to the Instant Payments Scheme of your bank).
Instant Reporting means that incoming and outgoing Euro payments will be booked 365 days a year.
API Bank Connectivity
APIs are the mechanism through which two systems can communicate with each other. Open banking and APIs are speeding up innovation and helping address some of the traditional pain points associated with cash management and treasury services. Systems can be more easily integrated with one another and data can be shared in real time. (Source: JP Morgan)
Trade Finance via Blockchain Technology
Blockchain can reduce processing time, eliminate the use of paper and save money while ensuring transparency, security, and trust. These are the key benefits of blockchain in trade finance.
SWIFT gpi is an industry-wide collaborative programme that aims to improve the customer experience in cross-border payments – and introduce new market standards by connecting all parties including correspondent banks in the payment chain end-to-end. It enables corporates to initiate and track gpi payments, to and from multiple banks, directly from their ERP and treasury management systems.
Artificial Intelligence (AI) and Machine Learning (ML)
Artificial Intelligence (AI) helps companies to gain insights in data and to make predictions by the use of algorithms. Machine Learning (ML) is used for pattern recognition. AI and ML can be used for cash flow forecasting, FX hedging etc..
Payment-on-behalf-of or POBO refers to a situation where the Inhouse Bank (IHB) executes payments on behalf of group entities using a bank account owned by the IHB.
Collections-on-behalf-of or COBO refers to a situation where the IHB receives collections on behalf of group entities using a bank account owned by the IHB.
Virtual Accounts are linked to that company’s physical bank account. They enable a company to segregate cash within its physical account, eliminating the administrative workload, complexity and costs associated with holding additional physical accounts for different functions or lines of business.
A digital signature is a mathematical scheme for verifying the authenticity of digital messages or documents. A valid digital signature, where the prerequisites are satisfied, gives a recipient very strong reason to believe that the message was created by a known sender (authentication), and that the message was not altered in transit (integrity). It is a helpful technique in signing and transferring documents electronically.
Digital identification, or “digital ID,” can be authenticated unambiguously through a digital channel, unlocking access to banking, government benefits, education, and many other critical services. For example with iDIN, a customer can confirm his identity because he has already legitimized himself when opening a bank account.