Global Treasury Management Revised June 2012. About BMO.
-
Upload
curtis-nicholson -
Category
Documents
-
view
214 -
download
0
Transcript of Global Treasury Management Revised June 2012. About BMO.
BMO Financial Group Overview
Established in 1817 as Canada’s first chartered bank
Ranked 8th largest bank in North America by total assets of US $532 billion1
Offering a full range of personal and commercial banking, wealth management, correspondent, investment and corporate banking services in Canada and the U.S.
Serving over 12,000,000 clients, small and large, throughout North America
Serving over 800 correspondent banking relationships across 130 countries throughout the globe
Serving over 40 Schedule I, II and III Banks and Credit Unions in a Direct Clearing banking partnership
Nearly 1600, Branches and offices – 900+ Canada and International; 650+ in the United States
1. Source: (SNL Financial, 05/31/12)
4
ADVISORY SERVICES Mergers & Acquisitions Strategic Advisory Fairness Opinions Takeover Defense Share Buybacks Valuation Analysis
TREASURY SERVICES Cash Management Risk Management Asset Management Foreign Exchange Trade Finance
SALES & TRADING Institutional Sales Trading Equity Research Fixed Income Research Investor Marketing Investor Conferences Account Sponsorship Retail Distribution
CORPORATE FINANCE Initial Public Offerings Follow-on Offerings Convertible Securities Mezzanine Lending High-Yield Debt Investment-Grade Debt Corporate Lending Securitization Private Placements
BMO Capital Markets
BMO Financial Group
F2011 Net Income by Operating Group
Key Operating Data
*As at April 30, 2012
Private Client Group Personal &
Commercial Banking
Market Cap* US$38 billion
Total Assets* US$532 billion
F2011 Revenue US$13.6 billion
Employees* 46,500+
26%
59%15%
5
Global Treasury Management at BMO Capital Markets
Sophisticated web-based treasury management platform with 15,000 Online Banking for Business customers, and 50,000 Online Banking for Business users
Global service and solutions
Extensive payment, receivables and information reporting capabilities
Actively shaping the future of the payments industry: Member of Canadian Payments Association, NACHA
and American Bankers Association Founding partner of Symcor and Moneris, leading
providers of payment processing
Full-service treasury management provider for over 35 years
We Process: Transactions Value
Wire Payments
318,528 Canadian dollar payments per year
All of BMO: 1 Million Items
CAD $915 billion
All of BMO: $1.3 Trillion
Electronic Payments
321 million EFTs processed per year
CAD $925 billion
Paper Payments
223 million checks per year
CAD $854 million
7
What Sets Us Apart
Commitment to service
Continued investment in our business
Experience, cross-border expertise and scale
Global solutions
High quality, proven solutions
Customizable solutions that produce highly-satisfied customers
Highly-satisfied customers
Trusted treasury management advisor
Superior service. Working capital expertise. Innovative solutions.
Online Banking for Business Overview
Online Banking for Business is a web-based cash management solution Real-time account information (mech accounts only) Single source for all treasury management products
and reports Flexible administration tools Ability to designate multiple users and approvers Receive Alerts
Make timely and informed business decisions
Save time with easy, anywhere access
Gain added security and control
Only need a PC and an Internet connection
You can choose the services you need today and add modules as your business needs change
Online Banking for Business supports full single sign on and private label functionality enhancing the end client experience
11
Online Banking for Business: Our Web-Based Treasury Management Platform
Online Banking for Business features: Account Information e-Statements Account Transfers AutoConnect Stop Payments Electronic Funds Transfers Tax and Bill Payments File Transfers & Cross-Border Transfers Centralised Customer Self-Administration DirectCheque Stops and Inquiries Wire Payments Check Image Search Bulk Image File Delivery Archiving Alerts & Notifications
Select the modules you need today and add services as your business needs change
Online Banking for Business: Benefits
Increased control
Timely information allows customers to make informed business decisions
Customers can control their own administration by setting up and deleting users in seconds, as well as resetting user passwords
Convenience
Allows customers to access their account information and perform transactions around the clock - from their own PC
Customers can receive all of their cash management reports electronically through file transfer facility
Flexibility
Tailor services to match their specific needs
Choose only the modules they need today and add modules as their business grows
Security
Online Banking for Business uses 256-bit encryption, the strongest form of encryption generally available in Web browsers today
Requires 2 levels of user IDs and passwords
Ability to limit user access by account, report template, transaction type and dollar amount
13
Online Banking for Business: Our Web-Based Treasury Management Platform
Flexible administrative tools allow you to: Set up and delete users, reset passwords Set up alerts and notifications of incoming, outgoing and pending transactions, exception items, available statements, user
information and balance thresholds Create customized user profiles and assign access to accounts and service modules Set dollar amount limits and approval requirements on payments Generate admin reports that allow you to comply with SOX requirements by tracking all admin changes and documenting
user entitlements Automate and schedule the secure downloading of Online Banking for Business reports
The Online Banking for Business platform maintains a multi-level security system that includes: Minimum 256-bit encryption, firewalls and system controls Two sets of user IDs and passwords; mandatory password changes Up to 3 administrative approvals An authentication device for payments System time-outs for inactivity and log outs for incorrect password attempts
Optional Security Features: Limit administrators to have Administrative Privileges only Add Multiple Approvals for all administrative changes
Comprehensive administrative and security features put you in control
Connecting to the Bank – High Speed Connectivity
BMO launched new high speed connectivity options to exchange files with customers. The new options are offered in conjunction with GXS (Global eXchange Services).
Supporting the most widely used communication protocols including AS2, Secure FTP, and VPN; GXS is able to meet and exceed our customers robust needs.
GXS offers special connectivity that customers currently do not receive via Online Banking for Business FTF (e.g. scripting). New options address the needs of both large corporate customers and small businesses who require automated file exchange.
These features help our customers to automate file exchange with much needed confidentiality, speed, integrity, and authentication of transferred data
New options address the needs of both large corporate customers and small businesses who require automated file exchange
File Connectivity - Benefits
Improved, Dependable, and Secure access anytime anywhere via the internet
Increased Flexibility and Time Saving by automating file and report processing
Improved Integration and Cost Savings for companies of any size by using the latest industry standard business to business technology
Customers may select from various connectivity options offering real time communication
Manual operator may not be required; therefore minimizing the risk of file manipulation (SOX compliance)
GXS vs FTF
FeaturesFile Transfer
Facility GXS
High Speed Internet Access Available Available
Server to Server Transmission Not Available Available
Scripted Automated File Exchange Not Available Available
Encryption Available Available
Security 128 Bit Encryption256 Bit to VPN IPsec Encryption
Compliance Component e.g. SOX
No - Manual Operator required to process files
Yes – Encrypted, Automated, and can be Scripted
Ability to Transfer Large Files (Over 10 Mega Bytes)
Not designed to transfer large files Able
Technology Support / Maintenance
Supported and updated Supported and updated
Image Transfer (Future) Not Available Available
19
DirectCheque
A low cost, fully automated check processing and reconciliation service designed for businesses that issue a high volume of checks
Features
Checks are cleared and sorted by serial number
Our check validation service combines: Positive Pay option matches check serial numbers and amount to your
issue file Optical Character Recognition used to match the recipient name and
address in your issue file
Make decisions to accept or return checks online
Reconciliation reports are produced to coincide with your accounting cycle
Benefits
Streamline check processing and reconciliation
Mitigate the risk of fraud
Mitigate check fraud through the use of Positive Pay
Daily file sent to BMO
Checks issued
Once checks are cleared, the cancelled checks and paid item file is returned to you
20
Firstbank Automated Clearing System (FACS)
A convenient and efficient alternative for check clearing that employs high-speed check reading technology for clearing and processing
Features
Receive a Paid Item File (PIF) detailing paid check information on a next day basis
Choose from numerous reporting options available, both paper-based and electronic
Choose to have cleared items returned daily or checks retained at the Bank for up to 30 days
Thousands of images received of your cleared checks via our bulk image delivery service
Benefits
Maintain control over check verification, returned items and stop payments
Facilitate accurate record keeping
A check clearing alternative for large volume check issuers
Checks are processed by the Bank using high-speed check
clearing and MICR technology
Cleared checks are sorted in date, amount or check serial number order and packaged for client pick
up, dispatched directly or retained by the Bank for
up to 30 days
Paid Item File is available in hard copy or via any of the supported
electronic file connectivity options
21
Electronic Funds Transfers (Credits)
A convenient and cost-effective way to electronically credit employee and supplier accounts at any Canadian financial institution in Canadian or US dollars
Features
Create electronic payments and transmit files via the Online Banking for Business platform
Perform online tracing, corrections and recalls through a single application
Recall individual credits, batches or whole payment files
Reports are delivered electronically
Benefits
Control timing of payments
Reduce operational costs
Reduce the risk of late payments
Most robust range of post-file delivery functions available in the Canadian market
Funds are deposited directly to payee accounts at BMO or other financial institutions
You send payment files to BMO Financial Group
Access a full range of online
post-file delivery
functions via Online Banking
for Business
22
Outbound Wire Payments
A comprehensive wire payments management service that enables you to initiate Canadian and US dollar wire payments easily and efficiently from your office computer.
Features
Send one-time payments or create payment templates for recurring transactions
Import wire payment instructions
Future date payments up to 30 days in advance
Receive customized summary and detail reports
Provides full control over outgoing wires, post transaction amendments, cancellations and investigations
Approve and release wire payments through your iPhone or Blackberry
Benefits
Finality of payment
Increase security and control
Send payments quickly and easily from your PC
Send Canadian and U.S. dollar wire payments from your PC
You submit payment instructions to BMO Financial Group electronically
BMO Capital Markets processes your
payment instructions and forwards the
funds to the payee’s financial institution
23
Tax and Bill Payments
An easy and convenient way to submit utility and corporate bills, as well as Federal and Provincial tax payments via the Internet
Features
Convenient web access
Easy-to-use payment templates
Enter payment details by midnight the day before due date or up to one year in advance
Receive tax refunds faster, right into your account.
Benefits
Control timing of payments
Reduce the risk of late payments
Reduce paperwork
Simplify record keeping and reconciliation
Fully web-enabled through the Online Banking for Business Platform
Submit utility and corporate bills, federal and provincial tax payments electronically and track payment details online
24
Imaging Services
Check Image Search:
Flexible search options
Download and print options
Archive available as far back as 100 days
CD/DVD ROM:
Easily search, retrieve, view, download and print images of processed checks individually or in batches
Choice of CD (up to 15,000 images) or DVD (up to 100,000 images)
Encrypted images offer increased security
Bulk Image Delivery
Daily, electronic delivery of check images
Optional (PGP) Pretty Good Privacy file encryption available for extra internet security
Images can be accessed in a variety of ways: online, via CD/DVD; or via electronic file delivery
25
Payables Outsourcing
A fully automated payment processing service that offers the flexibility of initiating paper and electronic payments through a single file
Features
Send a single payment file to execute multiple payment types
Payment files are validated for accuracy
Receive summary and detail reports online
Digitized signatures and printed checks are held under dual custody
Benefits
Streamline payment processing
Mitigate the risk of check fraud
Reduce check printing costs
Streamline payment processing by initiating paper and electronic payments through single file
We process and deliver the payments in the requested format
You send a payment file to BMO Financial Group
• Wire transfers• EFT – BMO (CDN/US)• ACH – Harris (US)• Financial EDI – BMO
(CDN)• Financial EDI – Harris
(US)• Check printing
Vendor
26
EDI Origination
A computer-to-computer electronic business exchange that facilitates the electronic payment of funds and related payment data
Features
Choose from several remittance data delivery options without having to be EDI-capable
Send payments and supporting documentation on the value date
Benefits
Control timing of payments
Reduce processing costs and errors
Improve trading partner relationships
Electronically submit payments and accompanying details to your business partners
You send the payment file and remittance advice to BMO Financial Group
Funds and supporting information are then forwarded to the payee’s financial institution
Vendor
28
Cash Concentration – Between BMO Accounts
Consolidate deposits into your central BMO business account for fast, convenient access to your funds.
Features
Deposits are automatically consolidated
Deposits can be made at select BMO Bank of Montreal branches
Detailed consolidation reports are available online
A 25-character alpha-numeric message field provides supporting information
Benefits
Receive immediate access to funds
Minimize excess balances
Monitor deposit activity of individual outlets
Improve cash flow by consolidating deposits from multiple locations into a central account
Your outlets deposit funds at selected BMO branches
The deposits are automatically moved to your central BMO account
Receive detailed
consolidation reports
29
Cash Concentration – Between Financial Institutions
Consolidate deposits made at any Canadian deposit-taking institution into your BWB account – by phone or web. Your business outlets can deposit funds at the nearest financial institution, while you retain quick and easy access to your funds
Features
DrawCheque transfers can be completed online or via a toll-free IVR system
24x7 access via the web; extended hours access to the IVR system
Same day value for payments received by 7:00 PM ET
Funds are are deposited into your account three times each day
Third-party transfers between B2B relationships for Accounts Receivable purposes
Benefits
Enjoy convenient and cost-effective deposit management and funds concentration
Access comprehensive on-line reports and 90-day rolling archive
Minimize risk with advanced security controls and optional dual-authorization
Control access through user-friendly online administrative tools
Conveniently and cost-effectively consolidate deposits into a central BMO account
30
Electronic Funds Transfers (Debits)
A convenient and cost-effective way to electronically debit your customers’ accounts at any Canadian financial institution in Canadian or U.S. dollars
Features
Create electronic debits and transmit files to the bank online
Perform online tracing, corrections and recalls through a single application
Reports are delivered online
Recall individual debits, batches or whole payment files
Benefits
Control the timing of payments
Increase operational efficiencies
Improve customer relations
Most robust range of post-file delivery functions available in the Canadian market
Funds are automatically
debited from your customers’
accounts on the value date and
deposited into your BMO account
You send payment files to BMO Financial Group detailing your pre-authorized debits
Access a full range of post-
file delivery functions via
Online Banking for Business
31
Wholesale Lockbox
An automated receivables processing solution that accelerates your B2B check-based remittances and consolidates deposits into a single account
Features
Multiple processing sites across Canada
Funds are consolidated into a single account
Receive detailed transaction reports and daily deposit advice packages
Access and retrieve images online
Receive thousands of images at a time via our bulk image delivery service
Benefits
Reduce mail float
Reduce processing costs and effort
Consolidate deposits into a single account
Convenient imaging options online, CD-ROM or Bulk Image Delivery service
Improve cash flow by automating the processing of your check-based remittances
Checks and supporting payment data are mailed to strategically located Canada Post postal stations
BMO collects payments directly from Canada Post and processes them for same-day credit
Receive a daily file with
all remittance data
information
32
Remittance Consolidation
A flexible receivables service that consolidates paper and electronic payments made through BMO or other Canadian financial institutions
Features
Receive same-day credit for all payments made through BMO
Consolidate payments made at other financial institutions
Receive a daily payment report and/or file
Benefits
Consolidate funds from multiple sources and deposit to single account
Reduce manual payment processing
Reduce the incidence of late payments
Receive same business day value for all payments made through BMO
Your customers submit payment by:
• Internet• Telephone• ABM• Branch
The funds are credited directly to your BMO account
Receive daily file with all remittance data information
33
Electronic Chargebacks
Receive electronic notification of chargebacks that occur when a check you deposited to your business deposit account is returned by your payer's bank.
Features
The Electronic Chargeback file captures the reason the check was returned, the name of the payer and MICR information of checks.
A Null File is delivered if there were no chargeback check for that processing day.
Continue to receive a Return Item Advice for any dishonored items.
Benefits
Turn the manual process of dealing with chargebacks into an easy automated process.
Be quickly notified of returned items and easily update your own database with information on the items that have been returned to you.
Decision your checks faster.
Collect funds owed faster and better manage your cash flow.
More easily flag potential bad accounts and possibly hold back shipments
Turn the manual process of dealing with chargebacks into an easy automated process .
Continue to receive a physical copy of:
Chargeback Images • Black and white• Front and back
Chargeback Advices• Provides reason for return• Includes advice #
34
Incoming Wire Payments
A convenient way to receive customer payments electronically from both domestic and international locations
Features
Domestic and international payments
Multiple notification options through FAX, Online Banking for Business and others.
Up to 140 characters of reference information
Full amount of wire payment credited with fee charged as a separate transaction
Benefits
Receive irrevocable payments from anywhere in the world
Track and identify payments easily
Receive domestic and international payments quickly and easily
The incoming funds are credited to your account as soon as they are received by the bank …
… receive an optional faxed payment advice immediately
Funds are wired to BMO from anywhere in the world
35
EDI Collections
A computer-to-computer electronic business exchange that facilitates the electronic collection of funds and related payment data
Features
Choose from several remittance data delivery options without having to be EDI-capable
Receive funds and supporting documentation on the value date
Benefits
Improve cash flow
Eliminate manual processing
Improve trading partner relationships
Receive payments and accompanying details from your business partners electronically
Payor Payor’s FI
The payor transmits the payment file and remittance advice to their financial institution
You view payment information via an electronic file or by fax
Funds are then transferred to BMO and credited to your BMO account
36
Customization
Customized Information Delivery
BMO’s expert advisory service that reviews your multiple data sources and recommends a quick and easy integration solution with output files or reports tailored to your specifications.
Performed entirely by BMO’s IT mapping team freeing up your internal resources
Supports informed decision making with targeted management reports
A streamlined process delivers: Reduced costs through automation and ERP integration Seamlessly integrated data with your existing in-house accounting software and systems Improved capabilities to accelerate data exchange and reduce barriers to partnerships Ability to monitor transaction data end-to-end Can reduce delays and errors created by multiple application, system fixes and patches Can deliver reports based on preferred format and/or map to an industry standard externally such as XML Convenience and Security - can be combined with our existing BMO line of products i.e.
EFT/Wires/DCH/EDI/others and secure high-speed transmission methods i.e.: GXS with PGP encryption option or FTF (File Transfer Facility)
One-stop shop for all your mapping needs
38
Technology
Industry Trends
Market
Regulatory
Keeping you informed is our business
Web-based service delivery platforms
Image technology initiatives
Connectivity and integration challenges associated with web services (STP)
Paper to electronic payment conversions
Corporate treasury centralization & “in-house” banking
Business process outsourcing (BPO) of treasury functions
Service provider consolidation – consultative partnerships with preferred vendors
Cash flow visibility through treasury automation
Sarbanes Oxley – Implications for Canadian organizations
Evolving role of the CPA in the technology-driven payments arena
39
CPA Rules Regarding Check Fraud
Reason Time Frame to Return Via ClearingAltered item:
Original check (amount, payee, and/or date) has been changed without the knowledge or consent of the issuer
90 days
Counterfeit:
A reproduction of an original, legitimate check Next business day
Missing Endorsement:
Signature of drawer is missingUp to 6 years in the clearing
Forged drawer:
Signature of drawer (person or company issuing the check) has been forged
Next business day
Forged endorsement:
Signature/endorsement of payee has been forged
Unlimited (CPA)
Bills of Exchange Act requires drawer to notify drawee bank within 12 months
40
CPA Rules Regarding EFT Exceptions
Reason Time Frame to Return Via ClearingUnauthorized debit with PAD agreement Business - 10 calendar days after date on which the PAD
was processed to payor’s account
Personal – 90 calendar days after date on which the PAD was processed to payor’s account
Unauthorized debit without PAD agreement 90 calendar days after date on which the PAD was processed to payor’s account
EFT credit error correction No later than 4 business days after delivery of the original credit transaction
OR
3 Business days after the date the funds are to be made available of the original transaction (e.g. late transactions)
*It should be noted that both recourses are contingent on the funds being available to retrieve
41
BMO – Your Partner in Fighting Fraud
Web-based treasury management – Online Banking for Business: Access management Session management User management - transaction, account and user
thresholds and controls Secure transactions File confirmation
Payables Plus – payables automation and outsourcing – EFT, EDI, wires, check
Positive Pay/Reverse Positive Pay – check fraud prevention tools
Check imaging
42
Disclaimer
These materials are confidential and proprietary to, and may not be reproduced, disseminated or referred to, in whole or in part without the prior consent of BMO Capital Markets (“BMO”). These materials have been prepared exclusively for the BMO client or potential client to which such materials are delivered and may not be used for any purpose other than as authorized in writing by BMO. BMO assumes no responsibility for verification of the information in these materials, and no representation or warranty is made as to the accuracy or completeness of such information. BMO assumes no obligation to correct or update these materials. These materials do not contain all information that may be required to evaluate, and do not constitute a recommendation with respect to, any transaction or matter. Any recipient of these materials should conduct its own independent analysis of the matters referred to herein.
“BMO Capital Markets” is a trade name used by BMO Financial Group for the wholesale banking businesses of Bank of Montreal, Harris N.A. and Bank of Montreal Ireland p.l.c., and the institutional broker dealer businesses of BMO Capital Markets Corp., BMO Nesbitt Burns Trading Corp. S.A., BMO Nesbitt Burns Securities Limited and BMO Capital Markets GKST Inc. in the U.S., BMO Nesbitt Burns Inc. in Canada, Europe and Asia, BMO Nesbitt Burns Ltée/Ltd. in Canada, BMO Capital Markets Limited in Europe, Asia and Australia, and BMO Advisors Private Limited in India.
BMO does not provide tax or legal advice. Any discussion of tax matters in these materials (i) is not intended to be used, and cannot be used or relied upon, for the purposes of avoiding any tax penalties and (ii) may have been written in connection with the “promotion or marketing” of the transaction or matter described herein. Accordingly, the recipient should seek advice based on its particular circumstances from an independent tax advisor.