Key Trends in Online Banking - Treasury Strategies

Key Trends in Online Banking

May 19, 2010

PRESENTED BY: Dan Miner, Principal

? 2010 Treasury Strategies, Inc. All rights reserved.

Market Trends - Overview

The Web is becoming the primary channel and face of the bank.

Treasury 3.0

Globalization

? Companies are looking for ? The Internet removes

solutions, not products.

boundaries.

? Companies seek deeper ? Global needs enhance integration opportunities. value.

Risk ? Heightened sensitivity ? Counterparty risk ? Payments fraud

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Market Trends - Treasury 3.0

Treasury Management Timeline

$1T+

TS 1.0

TS 2.0

TS 3.0

Rapid volume and service scope growth, but

revenues remained at $0 as industry failed to commercialize

Revenue

$100B

Business Services

Client Accommodations

Approaching zero-sum game

dominated by several "global" players & select regional players

Cash Management / Treasury

Management

Comprehensive payment & liquidity solutions

Supply chain solutions

Increased segmentation and refined competitive

identities

Web solutions / innovations

$0 1947 - 1970

Time 1970 - 2005

Now - Future

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Market Trends - Treasury 3.0

Billing

$1 Trillion

Receivables

Collections

Cash Concentration

A/P

Disbursement

Reconciliation

Receipts

Liquidity

Payments

? Establish and manage credit risk ? Create invoice ? Receive / acquire payment ? Remittance processing ? Exception processing ? Payment clearing ? Cash application ? Disputes / collections ? Customer service

? Concentrate funds ? Cash position ? Cash forecast ? Investment selection ? Investment policy management ? Reconcile investments ? Benchmark and portfolio

management ? Secure credit facilities ? Borrow and repay debt ? Manage interest rate, foreign

currency, and commodity risk

? Investigate vendors to work with ? Analyze supplier risks ? Negotiate contract with vendor ? Receive and sort invoice ? Enter invoice data into ERP ? Manually correct data entry errors ? Route invoice for approval ? Manage vendor file ? Resolve matching errors ? Authorize payment ? Clear and settle payment ? Reconcile payment ? Customer service / inquiries ? Make sales tax payment ? Issue 1099 ? Manage escheated payments ? Research and communicate with

vendors

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Market Trends - Globalization

Degree of Globalization

Purely domestic Limited foreign

sales, purchases, sales and/or

operations

inclusion of

foreign suppliers

More robust foreign sales and/or inclusion of foreign suppliers

Establish foreign sales office(s) or

retail outlet

Establish foreign management offices (beyond sales)

Establish more robust foreign

operations (manufacturing

plant, etc.)

N/A

Letters of credit &

+ Automated + In-country account

other trade

management of services, local coin/

services, foreign

trade services, currency services,

exchange trades, foreign exchange local branch access,

international wire risk management/ fund local operating

transfers

hedging

accounts, make local

payments, global

financial/ position

Global Banking Services Required

information management, local

collections

+ Global liquidity management tools,

pooling/ netting services, centralized

management of local small-value

payments

+ Full array of global cash management products and services

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