Treasury Management Solutions

Cash Pooling & Intercompany Netting Cheat Sheet! In many multinational organizations, liquidity risk is not caused by a lack of cash. It is caused by poor internal cash visibility and inefficient capital deployment. I’ve seen corporate groups: ▪ Sitting on surplus balances in one subsidiary ▪ Running overdrafts in another ▪ Borrowing externally at >10% ▪ While internal liquidity earns < 1% in idle accounts That’s not a funding problem. That’s a Treasury process problem. The Real Treasury Mandate: Cash Pooling and Intercompany Netting are not operational tools. They are enterprise liquidity optimization mechanisms designed to: ▪ Centralize enterprise-wide liquidity ▪ Reallocate surplus from cash-rich entities to deficit positions ▪ Minimize external borrowing ▪ Reduce trapped cash across subsidiaries ▪ Lower interest expense & negative carry ▪ Improve working capital efficiency ▪ Streamline intercompany settlements ▪ Reduce FX transaction costs When deployed correctly, Treasury evolves into an In-House Bank (IHB) - funding the group internally before approaching external lenders. What Happens in a Pooling + Netting Environment? Instead of: Subsidiary A borrowing externally Subsidiary B investing idle cash Subsidiary C making multiple FX settlements Treasury can: → Sweep idle balances into a central header account (Physical Pooling) → Offset debit & credit balances without fund movement (Notional Pooling) → Multilaterally settle intercompany A/R & A/P via a Netting Center Result? ▪ Fewer cross-border payments. ▪ Lower FX exposure. ▪ Reduced banking fees. ▪ Optimized group-wide interest yield. The Interest Optimization Effect Pooling allows Treasury to offset: Debit balances with internal surplus liquidity Which means: ▪ Reduced reliance on external credit facilities ▪ Improved group net interest position ▪ Centralized investment of excess cash ▪ CPM-aligned internal capital deployment Liquidity stops sitting idle. It starts working for the enterprise. Implementation goes beyond technical expertise. Successful pooling + netting requires alignment across: ▪ Intercompany loan agreements ▪ Transfer pricing policies ▪ Withholding tax implications ▪ Capitalization rules ▪ Cross-border regulatory constraints ▪ ERP & TMS integration ▪ Subsidiary participation frameworks Treasury transformation is as much about governance as it is about technology. Strategic Outcome: Cash Pooling & Netting enables: ▪ Internal liquidity redeployment ▪ Reduced reliance on external borrowing ▪ Centralized funding strategy ▪ Enterprise-wide cash visibility ▪ More strategic capital allocation In other words: Treasury moves from managing cash…to controlling liquidity. ♻️ Repost & Share!

Mitigating Liquidity Risk: Key Tactics for Banking Treasury Management In the dynamic landscape of banking, liquidity risk stands as one of the paramount challenges for treasury management. It is not merely about having sufficient cash on hand but rather about ensuring the availability of liquidity when and where it's needed most. As such, mastering liquidity risk management is essential for the prudent functioning of any banking institution. Understanding the nuances of liquidity risk is the first step towards effective mitigation. It encompasses the risk of being unable to meet financial obligations as they come due without incurring unacceptable losses. This can arise from funding mismatches, unexpected deposit withdrawals, or disruptions in the interbank lending market. However, merely grasping the concept is not enough; proactive measures must be taken to mitigate this risk. Here are some key tactics that banking treasuries can employ: 1. Stress Testing Scenarios: Conducting rigorous stress tests to simulate adverse market conditions can provide valuable insights into potential liquidity shortfalls. By analyzing various scenarios, treasuries can identify vulnerabilities and develop contingency plans accordingly. 2. Diversification of Funding Sources: Relying too heavily on any single funding source can expose a bank to significant liquidity risk. Diversifying funding sources, including wholesale funding, retail deposits, and access to central bank facilities, can enhance resilience against funding disruptions. 3. Maintaining High-Quality Liquid Assets (HQLA): Holding a portfolio of high-quality liquid assets, such as government securities and cash reserves, serves as a buffer during periods of liquidity stress. Ensuring sufficient HQLA levels relative to funding needs is a prudent risk management practice. 4. Establishing Contingency Funding Plans (CFP): Developing robust contingency funding plans that outline strategies for accessing liquidity in emergencies is essential. These plans should outline clear escalation procedures and specify the roles and responsibilities of key stakeholders. 5. Monitoring and Early Warning Systems: Implementing robust monitoring mechanisms and early warning systems enables treasuries to detect liquidity risks in real-time. By closely monitoring liquidity metrics and market developments, banks can take timely corrective actions to mitigate potential threats. In conclusion, effective liquidity risk management is indispensable for the long-term viability of banking institutions. By understanding the nature of liquidity risk and implementing proactive risk mitigation strategies, treasuries can safeguard against potential liquidity shocks and ensure the uninterrupted provision of financial services. #Banking #TreasuryManagement #RiskMitigation #LiquidityRisk #FinanceManagement

The payments infrastructure underpinning global treasury is being rebuilt—and it will fundamentally change how businesses of all sizes operate. For years, Treasury teams have managed fragmented ecosystems and multiple payment processes running in parallel. It worked, but those systems weren’t designed for today’s on-demand, borderless world. Today, streamlined workflows that enable intelligent cash movement are the difference-makers. CFOs and treasurers need technology that supports an “always-on” model—enabling near-real-time execution where available, across borders and currencies, around the clock. Our clients are leaning into a digital-first treasury approach characterized by three factors: 1. Richer payment data with more structured fields and remittance detail 2. A single connectivity layer, with APIs bridging payment types, regions, and rails through one integration 3. AI elevating efficiency, intelligence, and decision-making As ISO 20022 and richer data standards become a key enabler of cross-border payments, they create the foundation for these factors to drive impact. When banking systems connect directly to a company’s ERP or TMS through a single API layer, a live, unified view of the financial position becomes accessible. This allows for real-time forecasting, speeds up processing, and reduces fraud. AI can go a step further—helping with anomaly detection, pattern matching, and enabling scenario planning in real time. Treasury payment solutions are evolving quickly. Organizations that embrace data-first, API-connected, AI-enabled systems are building a platform to drive growth over the next decade—and to continue to scale into the future. Now is the time to modernize treasury operations. J.P. Morgan is dedicated to supporting your journey. Learn more here: https://bit.ly/4e4cXVI So here’s the question worth asking: Is your treasury infrastructure giving you control of the next decade—or anchoring you to the last one?

Stop treating crypto as a separate strategy. The leading enterprise CFOs and treasury leaders are integrating blockchain as core financial infrastructure Traditional remittance costs average 6.5% per transaction, while Stablecoin transfers cost under 1% - representing 85% cost reduction for multinational operations. Settlement time comparisons prove even more compelling: → Traditional cross-border payments: 3-5 business days → Stablecoin settlements: 10-30 seconds Major institutions have already implemented this infrastructure: → JPMorgan processes billions monthly through JPM Coin, with transactions on their Onyx platform reducing settlement times by over 90% → PayPal launched PYUSD, now integrated into 430 million active accounts globally → Visa collaborates with Circle to use USDC for blockchain settlement, processing $3 billion in stablecoin payments in 2024 For treasury management, the advantages compound: → 24/7 liquidity across borders without banking hours or holidays → Elimination of pre-funding requirements in destination currencies → Direct settlement between parties without correspondent bank fees → Reduction in currency conversion costs Blockchain adoption for financial infrastructure continues accelerating. Stablecoin market cap reached $200B in 2024, with projections of $1.1T by 2035 according to Megatech Insights (17.8% CAGR) Implement this infrastructure through regulated partners like Circle (USDC), Paxos (supporting PYUSD), or JPMorgan's Onyx platform. Start with specific use cases in treasury operations or cross-border payments where ROI proves immediate and measurable The companies gaining competitive advantages now will maintain multi-year leads over those still deliberating

5 Strategies for a Successful TMS Implementation in 2026 After overseeing 100+ Treasury Management System implementations across industries, geographies, and complexity levels, one thing is clear: TMS success has very little to do with software and everything to do with how the program is designed and led. As treasury expectations rise in 2026, real-time liquidity, risk management, ISO 20022 data, stronger controls, and AI-ready forecasting, here are the 5 strategies that consistently separate successful implementations from failed ones: 1. Start with Strategy, Not Software The most common mistake is selecting a system before defining the outcome. Before demos or RFPs, treasury leaders must be clear on why the TMS is being implemented: • Cashflow & Liquidity visibility? • Working capital optimization? • Payment control and fraud reduction? • Forecasting and analytics? When strategy is unclear, the system simply automates legacy inefficiencies. 2️. Redesign the Operating Model Before Configuration A TMS should not replicate spreadsheets or old workflows. High-performing teams document the current state, design the future state, and eliminate manual work before touching configuration. This is where real ROI is created not during go-live. 3️. Treat Data as the Critical Path In over half of implementations, delays are caused by data issues, not technology. Master data quality, ISO 20022 mapping, bank connectivity, and transaction tagging must be addressed upfront. Clean data isn’t a technical detail but it’s the backbone of automation, forecasting, and control. 4️. Lead Change, Don’t Just Manage Tasks TMS projects fail when treasury, IT, AP/AR, FP&A, and banking partners aren’t aligned. Successful programs invest in: • Clear ownership and decision rights • Regular communication with stakeholders • Training tied to real use cases, not system features Change management is not a “soft skill” but it’s a delivery requirement. 5️. Plan Beyond Go-Live Go-live is the beginning, not the finish line. The strongest implementations include a post-go-live roadmap for: • Reporting and dashboard optimization • STP improvement • Forecasting and analytics enhancements • Continuous automation and control refinement This is where long-term value is realized. A TMS implementation is not an IT project. It’s an operating-model transformation that touches liquidity, risk, controls, and decision-making. Treasury teams that approach 2026 with strategy, discipline, and leadership will get the full value of their investment, not just a new system. Which of these has been the biggest challenge in your past TMS implementations?

After 3 years building Nilus and conversations with 150+ treasury leaders, here are 4 things I’ve learned about the current state of treasury operations: 1) LEGACY TMS VENDORS ARE STUCK IN THE PAST - 12-month implementations - 7-figure price tags - Clunky interfaces - Zero innovation 2) EXCEL IS BOTH HERO AND VILLAN  - Flexible but fragile - Powerful but error-prone - Quick but not scalable - Everyone's using it, no one loves it 3) REAL-TIME DATA IS STILL LARGELY A MYTH   - Bank data trapped in portals - Manual CSV downloads - Daily/weekly batch updates - No single source of truth 4) TEAMS ARE OVERWHELMED BUT UNDERUTILIZED  - High-skill talent doing low-skill work - No time for strategic analysis - Constant fear of mistakes - Burnout is common This is why we built Nilus differently: - Implementation in weeks, not months - The best of Excel flexibility with AI-powered forecasting - All-in-one platform (for finance, treasury AND accounting) that saves up to 100 hours per month - Data you can trust strait from the source with seamless integrations to 10,000+ banks - Proactive insights that actually drive strategic value (to optimize working capital, reduce cash buffers, increase yield on idle cash) We're helping companies like Taboola, Yotpo and Made-In transform treasury from a cost center into a strategic driver of value. Want to see how we can help your team? DM me and I'll share more details.

𝐓𝐡𝐞 “𝐈𝐧𝐯𝐢𝐬𝐢𝐛𝐥𝐞” 𝐁𝐫𝐢𝐝𝐠𝐞: 𝐖𝐡𝐲 𝐑𝐢𝐩𝐩𝐥𝐞’𝐬 𝐋𝐚𝐭𝐞𝐬𝐭 𝐌𝐨𝐯𝐞 𝐢𝐬 𝐚 𝐓𝐫𝐞𝐚𝐬𝐮𝐫𝐲 𝐆𝐚𝐦𝐞-𝐂𝐡𝐚𝐧𝐠𝐞𝐫 For those of us watching the space between TradFi and DeFi shrink the last couple years, Ripple just built a critical bridge that most might miss simply because of how "boring" it looks. By integrating stablecoin and digital asset management directly into their Treasury Management System (TMS), they’ve effectively removed the "crypto" headache for corporate CFOs.  No more juggling separate wallets, complex custody setups, or manual reconciliations that don't talk to your bank account. It’s all just... there, in one dashboard, alongside your fiat. This mirrors the "platformization" we’re seeing across the industry. Like Stripe’s recent move to bring back crypto payments or BlackRock’s BUIDL fund, the trend is clear, the most successful players aren't asking enterprises to change how they work. Instead, they are hiding the complexity of the blockchain under the hood of tools these companies already use. We are moving away from "crypto-native" apps and toward "crypto-enabled" infrastructure where the end-user doesn't even have to care about the underlying rails.  Markets move on simplicity. Strategically, this is the "Apple-ification" of enterprise finance. Ripple is no longer trying to convince banks to "switch to crypto." Instead, they are making crypto so invisible and easy to use that enterprises adopt it simply because it’s a better, faster tool for managing money. By acquiring GTreasury and Hidden Road, Ripple didn't just buy users; they bought the trust and the 40-year heritage of the existing financial system. They are positioning themselves as the ultimate abstraction layer. So where is this headed? Total liquidity convergence. Soon, the distinction between a "digital asset" and "cash" will be a relic of the past, and treasury teams will move value across borders with the same ease we send an email today. #Ripple #TreasuryManagement #Stablecoins #FinTech #DigitalAssets #CFOInsights

Large global enterprises move hundreds of billions between subsidiaries every year. Most of that capital disappears into correspondent banking for days. Money that could be reinvested sits idle, earning nothing, waiting to clear. Companies also pre-fund local accounts in volatile currencies with excess cash to avoid delays for wires and general business expenses. This creates FX exposure and operational headaches: treasury teams managing dozens of bank accounts across jurisdictions, reconciling transactions across systems that don't talk to each other. According to Oxford Economics and FIS Global, inefficient financial operations can cost a large enterprise up to $100M annually, with 51% of organizations saying the most friction occurs when money is actually moving. Modern settlement infrastructure eliminates the trade-off between liquidity and returns: Faster movement = smaller buffers. When settlements happen in seconds or minutes instead of days, 24/7 instead of banking hours, you don't need leave millions in a subsidiary’s bank account. That unlocks working capital. Yield while maintaining liquidity. Capital earns returns (currently ~4%) while remaining instantly accessible when needed. Real-time visibility. Treasury sees across all subsidiaries instead of waiting days for reconciliation and auditability. When you move hundreds of billions annually, improvements in settlement speed and capital efficiency create massive operational advantages.

Last week I sat down with a finance practitioner who was keeping excess cash in checking accounts earning as low as 0% because manual forecasting was too unreliable. Alex Manoukian, CPA, CA, Senior Director of Global Finance at StackAdapt, didn't lack expertise - he lacked trust in his data. His team was spending 30+ minutes every morning just downloading transactions from their three banking partners, manually tagging everything, and hoping the Excel formulas didn't break. "If I'm saving my team 6-8+ hours a week, that's huge. That's time they can spend moving strategic projects forward," Alex shared during our recent Live Case Study with San Francisco Treasury Management Association (SFTMA). What surprised me most was how familiar his story felt…. I worked as a treasury practitioner for 10+ years before I joined Nilus - so I understand the typical treasury workflow: - Login to multiple bank portals (each with different formats) - Download transactions manually - Reconcile everything in Excel - Tag transactions (with inevitable human errors) - Try to forecast with unreliable data - Rinse and repeat daily/weekly This is why StackAdapt, like many treasury teams, was keeping excessive cash buffers in checking accounts earning as low as 0% - because forecasting wasn't reliable enough to optimize liquidity. With Nilus, they've automated these tedious processes and gained: - Real-time visibility across all accounts - 95%+ AI transaction tagging accuracy - Improved stakeholder trust - Optimized idle cash positioning - Time back to focus on strategic initiatives Every treasury team should be asking: are we spending our limited time on data manipulation or strategic analysis? Watch our full Live Case Study here to learn more: https://lnkd.in/gScYMdA4 And feel free to send me a message with any questions.