corporate treasury bank tieto public

Public

In-House BankingHype or Reality?

[email protected]

Public

In-House Banking

• Drivers

• Is In-House Banking

important

for Corporates?

• What is IHB actually?

• Who can benefit from

IHB models?

© Tieto Corporation

Public

Tieto - Reinforcing industry expertise

3

Building on our

long customer

relationships

Expanding existing

customer core process

understanding

Inventing in industry

consulting, technology

expertise and

selective own IPR

Enterprises

(incl. public sector)

headquartered in

core markets

Financial

Services

Public,

Healthcare and

Welfare

Manufacturing,

Retail and

Logistics

Telecom, Media,

Energy and

Utilities


Public

New demands drives changes in cash

management

Pace of change“Innovate or vanish”New normal for efficiency

Banks

drivers

Corporate

drivers

Automation

Cloud

Analytics

Real-timeMarket placeCustomer

Relations

RegulationsTechnology

Heritage

4

Public

Corporates and Banks

Automation is compulsory by

global corporates through

• Standards

• Technology

Improving the financial

value chain

Gap between corporate needs &

bank offerings

• Banks driven by factors like “financial consolidation”, “regulatory changes” & technology heritage

• Corporates needs information services,E2E STP enablement & real-time execution


Public

Market developments

Bank market

6

9600

45603640

2800

60007000

8000

12000

17000

2009 2012 2015 2018 2025

Market developments

Payment Banks Europe Cororates > 1 BUSD

• Consolidations & concentration

• Non FI competition

Corporate market

• Growth

More and larger

• Globalizations

Ref; McKinsey; MGI_Urban_world3_ES_Oct2013

European Central Bank statistics, 2014


Public

Bank Snapshot

7

“Agency banking”

Offer a bank’score services to

other FI

Reconciliation services for AR

Large virtual account set-up

New Product

launches

Client Money

Administration of funds on behalf of

E.g. lawyer’s client accounts

“Agency banking”

Offer a bank’score services to

other FI

Reconciliation services for AR

Large virtual account set-up

New Product

launches

Client Money

Administration of funds on behalf of

E.g. lawyer’s client accounts

Public

Is In-House Banking

important for Corporates?


Public

Addressing corporate priorities

• Effective cash and liquidity management

Performing cash flow forecasting

• Managing positions and risk

Providing compliance

• Automated processes

• Efficient operations

• Global connectivity

• Allowing centralization

• (Reducing bank charges)

9

Source: ACT (Association of Corporate Treasurers) Treasury Survey, 2015


Public

Corporate Business Challenges

Cost of Cash

• The cost of liquidity has

substantially changed during

the last years

• Driven by the financial crisis

• At the table of the group CFO

Visibility

• Cash is a corporate asset

• Global and transparent

treasury and cash

management setup to handle

financial risks and items

• Access to cash is a huge

challenge for many global

corporatesOwnership of cash

• In most global corporates,

Treasury is the owner of

all cash-related

processes with policies

supporting this obligation

• The operational set-up

many prevent execution of

ownership

Drive for

global efficiency

Move towards

• A centralized model

• Automation

• Real-time information

10


Public

InHouse Banking - why

11

Visibility of and Access to cash

Control and optimization

Risk reduction

Organizational efficiency

Better pricing, service and flexibility

from a centralized treasury function

• No banking fees for intra-company transfers

• Domestications' - Reduce banking fees from foreign

exchange and cross-border payment transactions

• Efficient pooling of cash and credit balances enables

higher return on investment through aggregation of

funds

• Loans can be provided to subsidiaries with a short

term cash deficit

Public

What is an IHB actually?


Public

• Governance

• Ownership of cash

related processes

• Risk

• Centralization of

bank operations

• Global / Regional

Service Centre

• STP

• e2e Automation

• Self Service

• Autonomy

• Legacy heritage

• Cash pool

arrangements

• Market standards

and formats

• Virtualization

Structural requirements for IHB

Technology &

infrastructure

Operational

Set-upBank

harmonization

Policies

14


Public

• Balances

• Positions

• Short term forecast

• Long term forecast

• Lending &

Investments

• Trading platform

• Financial instruments

• Risk management

• Reporting

• Services in the

name of

• Transaction

processing

• Statement

processing

• Bulking/

DeBulking – format

management

• Connectivity

• Services on

behalf of

• ICO (gross

settlement)

• Domestications

• Interest, credit

lines/loans/tax

• Statement generation

• Sub Ledger

• Loan management

• Account and productdefinitions

Required Features / Services

Payment &

Collection

factory

Treasury In House

Bank

Cash

Management

15

Public

Should you consider

an IHB set-up


Public

Should you consider IHB set-up?

What’s your vision?

What’s your current operational structure?

Can you get/afford the required services from your bank(s)?

Organizational willingness / ability to change?

17


Public

Who can benefit from IHB models?

18

• Local operations around

the world

• Number of legal entities

• Multitude of currencies

• Number of local bank

relationships accounts

• Proprietary arrangements

External factors

• Visibility and access to cash

• Treasury risk and FX exposure

• Decentralized set-up

• Organizational efficiency

• Direct and indirect cost elements

• Type of operations

Operational factors


Public

Tieto’s Value Proposition

20

• Access to cash

• Automation & STP

• Flexible Banking structure

• Control

Objectives

• 3rd generation solution

• e2e design

• Cloud / On Premise

Solution

• Services approach

• Open standards

• Adaptable to future requirements

Implementation


Public

The Times They Are a-Changin`

21

Cash

From

Instrument

To

Asset

Treasurer

From

Back-Office

To

Board

Treasury

From

Admin

To

Strategic

Banking (IHB)

Public

In House Banking is

evolving

Thinkbigger about your

businessThink bigger about your

life!

corporate treasury bank tieto public

Documents