BASF sustainability-linked payables finance programme launches in Asia

Deutsche Bank has launched BASF’s first sustainability-linked payables finance programme in Asia, focusing on its operations in China. The solution meets global standards and has been tailored to local business requirements.

The programme will support BASF’s activities in China. Deutsche Bank's solution converts BASF’s existing payables finance programme to sustainability-linked financing for some of its subsidiaries in China, allowing BASF to incentivize its suppliers to adopt sustainable practices.

EcoVadis, a globally recognised supplier sustainability rating platform, will measure suppliers' sustainability-related performance. Rated suppliers are incentivised to progressively improve their performance to qualify for preferential interest rates. Unrated suppliers are motivated to get rated, encouraging them to transition to sustainable practices. The programme aims to enhance the performance of BASF’s payables finance programme through shared value and common goals.

“With this programme, we can deepen our collaboration with our suppliers and strengthen the partnership in the area of sustainability transformation,” commented Birka Benecke, Senior Vice President Corporate Treasury at BASF. “This also gives us the opportunity to further optimise our supply chains.”

 

Payments Innovation Alliance releases BEC response action plan

Nacha's Payments Innovation Alliance, a membership programme bringing together diverse global stakeholders seeking to transform the payments industry, has published a Business Email Compromise Response Action Plan. 

The free publication, available from the Nacha website, offers guidance to companies that are victims of business email compromise (BEC) and provides steps organisations can take to actively mitigate the potential for being a victim. 

BEC scams occur when criminals send a fraudulent email message that appears to come from a known source making a legitimate request, such as a known company vendor appearing to send an invoice with an updated payment address or payment account information. These scams have resulted in substantial financial and reputational harm to corporate victims, with billions of dollars in losses.

“Business email compromise is on the rise, and information that is shared publicly about contracts and business relationships makes organisations vulnerable,” said Matt Luzadder, Managing Partner, Chicago Office, Kelley Drye & Warren LLP, and co-leader of the Alliance’s Cybersecurity & Payments AI Project Team. “The Response Action Plan details what to do if your company is impacted and practical steps to take to prevent business email compromise from occurring.”

 

OFX and Technosis to launch multi-currency payment solution

OFX, an international foreign exchange services provider, has partnered with the German finance software company Technosis to launch an integrated multi-currency payment solution. This solution aims to help businesses in Germany save time with fast, secure cross-border payments and competitive foreign exchange rates.

Through its ‘digital + human’ business model, OFX offers a self-service online platform with 24/7 localised customer support. The firm specialises in currency risk management for SMEs who trade overseas, helping businesses protect themselves from the risks associated with volatile currency markets.

Technosis has integrated functionality into its existing platform to enhance the user experience with simplified FX solutions provided by OFX. This will streamline finance operations for Technosis customers by eliminating the need to juggle multiple payment platforms, lengthy workflows, and manual processes. 

This integration is designed to streamline the transaction process, reduce transaction costs, and provide real-time tracking and reporting features to help clients manage their finances internationally.

 

CFTE and ACT collaborate on GenAI in corporate treasury

As the corporate treasury sector anticipates a US$300bn boost from AI by 2026, with 34% of treasurers already integrating AI into cash management and 70% noting improved regulatory compliance, the need for advanced training is clear. Recognising this critical knowledge gap, the Association of Corporate Treasury (ACT) and the Centre for Finance, Technology and Entrepreneurship (CFTE) have collaborated to deliver essential AI skills that are crucial for modern treasury management.

The partnership between CFTE and the ACT introduces the launch of Generative AI in Corporate Treasury course, accredited by the ACT and featuring insights from over 10 global industry experts. The programme aims to equip professionals with the skills needed to leverage AI’s full potential in treasury management. 

In the programme, experts will explore the transformations of AI in corporate treasury. The course gathers insights from ACT’s Annual Conference 2024, and participants will learn about the foundations of Generative AI, the pain points of AI in corporate treasury and leveraging AI in corporate treasury. 

According to a report by Deloitte, 85% of treasury functions plan to increase their investment in AI technologies within the next three years. With AI expected to automate up to 40% of manual treasury tasks, the potential for efficiency gains is substantial. Generative AI has the potential to transform corporate treasury functions. High-performing organisations are already leveraging AI to drive significant value, with some dedicating over 20% of their digital budgets to AI initiatives.

By addressing the critical skills gap through their collaborative course, CFTE and the ACT say they are positioning treasury professionals to thrive in an AI-driven financial landscape. The programme aims to provide the necessary tools and knowledge to leverage AI effectively, ensuring that treasury teams can harness the full potential of this transformative technology.

 

Open banking hits 10 million users in UK

Open Banking Limited (OBL) has announced that there are now 10 million consumers and small businesses regularly benefit from using open banking technology. OBL says this achievement highlights the positive momentum and growing adoption of open banking technologies as millions of consumers and small businesses benefit from innovative financial management and payment tools.

Competition has been a key driver of growth, and OBL says it has observed that when one company focuses on open banking technology, its direct competitors soon follow. It has also seen existing providers expand their offer and use of open banking and launch creative new propositions.

The UK’s Department for Business and Trade estimates the value of open banking and smart data schemes have the potential to increase GDP by £28bn. The UK’s open banking ecosystem is already worth more than £4bn to the UK economy, attracting inward investment and creating almost 5000 skilled digital jobs across the country.

 

Ripple joins Fenasbac’s Next accelerator to boost blockchain innovation in Brazilian finance

Ripple and Fenasbac, the National Federation of Associations of Central Bank Servers, have announced a partnership designed to advance fintech innovation in Brazil through the Next accelerator programme. Their combined effort will support the development of scalable financial services solutions that best leverage blockchain technology, such as the XRP Ledger.

Led by Fenasbac, Next is the largest accelerator programme in Brazil’s financial sector, providing mentorship, resources and investment opportunities to early-stage fintechs with strong growth potential. Ripple will sponsor two fintech companies developing scalable solutions that use blockchain technology in areas such as treasury management, asset tokenisation payments, and borrowing and lending.

This marks Ripple’s and Fenasbac’s second collaboration, building on the joint research initiatives with the Federal University of Rio de Janeiro (UFRJ) and Polkadot, exploring blockchain interoperability solutions for DREX (Brazilian digital currency) in conjunction with the Central Bank of Brazil.

“We see Brazil's forward-thinking approach as a catalyst for transforming financial services across international markets,” noted Silvio Pegado, Managing Director of LATAM at Ripple.

 

Chronicle and AbbeyCross collaborate on global FX payments platform

Chronicle Software (Chronicle) is collaborating with AbbeyCross to co-create its global FX payments platform, ABX Platform. The platform provides a single, flexible integration to global FX payments prices from multiple banks and real-time payments platforms. In a continuing engagement that leverages Chronicle’s software engineering and development expertise and resources, the first product from the platform, ABX Studio, went live in May 2024. 

ABX Studio provides unique FX market price data to global banks, MSBs and NGOs to support greater price transparency, insights and rate benchmarking capabilities. The next service to be launched, ABX Sync, aims to enable users to act on these insights to optimise transaction execution and send payment instructions to multiple FX payment partners.

AbbeyCross initially engaged a third-party trading technology company to build a tactical ‘proof of concept' before engaging Chronicle to work directly alongside its internal development teams (and other service providers). The pair say this approach resulted in faster design and development timelines for the development and phased launch of ABX initiatives in 2024. Chronicle continues to work closely with AbbeyCross, providing advisory services, software development resources and proprietary software solutions.