Improving the collection process to better manage treasury

Improving the collection process to better manage treasury

  • Managing Collections
  • Optimise your Collections

A three steps, holistic approach to achieving more efficiency.

From carefully choosing your collection instrument to integrating reconciliation (and increasing your collection rate as a result), there is only one step to SEPA 2.0, our favourite master key to continuous improvement in treasury management. Our step-by-step guide provides the information you need to make the very best of SEPA and enables you to use it as a springboard for a more efficient future.

Step 1: choose the right collection instrument

Choosing the right collection instrument is the first step to optimising your treasury management process. If you have implemented SEPA, you are one step ahead as you have already addressed local specifications and format related issues. If you are a global player, it did not come easily. The banking partner you chose had to offer a whole range of variants to match the requirements of your local customers. Even if your headquarters are outside the SEPA zone, you had to be SEPA compliant to carry out your transactions in Euro.
Maybe you chose a conversion solution and did not migrate yet? Clearly, migrating to SEPA will bring multiple benefits.

What we offer
BNP Paribas built up a broad expertise as the #1 cash management bank in Europe, and as a global player, we offer the whole scope of SEPA standards and variants. Our Bank boasts a track record of 57 countries with direct cash management coverage and over 200 live payment factories.

Step 2: make sure you integrate reconciliation

Reconciliation comes with a cost: if you can monitor and rapidly detect which clients or transactions are at risk (the 3 R’s: rejects, returns, refunds), you can significantly increase your collection rate. Thanks to our enriched SEPA reporting tool, your remittance information is readily available. With SEPA we provide relevant information that goes further than legacy reporting tools (longer End2End reference, remittance information…). So you don’t get a flat file (MT9XX), but a tagged CAMTXX report, which gives you fast access to the data you really need. And in the end, a relevant payment status report (PSR) means an easier reconciliation process.

What we offer
When we say local footprint, we mean a deep knowledge and understanding of local cultures, regulation and practices. And because we also are a true global player, we offer a broad set of local and global reporting tools. Above all, we provide the best experts to help devise solutions that are adapted to your real needs.

Step 3: optimise your processes with SEPA 2.0

Step 1 was mandatory; step 2 triggered some change and led you to question or even reconsider your reconciliation process; but step 3 actually offers real benefits. Its code name is SEPA 2.0. Of course, you will always want to rationalise your bank accounts; but maybe you’re considering optimising and harmonising your processes and organisation by centralising your treasury activities or reviewing your mandate management systems; or else you want to set up a collection factory with identical processes everywhere you operate.

What we offer
BNP Paribas offers expert advice to harmonise your processes. We know that treasurers are under pressure to deliver more for less. We know that your performance impacts your organisation. And these days, it is more than ever a priority.

Optimise ‘Outstanding Days Sales’ (OSP) and circulating capital

After step 3, you might need to review your existing collection instruments again, a challenging and demanding task. But it will help you to optimise your Outstanding Days Sales (OSP) and circulating capital.