The global financial industry is subject to an endless array of changes driven by innovative technology enabling process optimisation, cost savings and efficiency. With advances in big data, artificial intelligence, and distributed ledger technology, and next to that new regulations such as IFRS 9 Accounting Standards and OECD/G20’s Base Erosion and Profit Shifting (BEPS), digital transformation is now imperative to win the race in achieving automation and regulatory compliance in the areas of treasury, risk, and financial management.
Zanders, a leading consulting firm across the entire spectrum of treasury, risk, and finance, has successfully steered through major technology and regulatory changes. With an international client footprint of multinational corporates, financial institutions, organisations in the public sector and NGOs, Zanders’ experienced consulting teams have handled altogether more than 3,000 projects for 500 clients in 35 countries worldwide. The company, fully owned by its senior management, presents a proven and very successful project approach ranging from defining a client’s strategic roadmap, streamlining complex treasury, risk and financial processes and formulating operational policies and procedures, to implementing best practice treasury and risk technology solutions.
The company follows an ‘idea to implementation’ approach when assisting its clients in reaching their goals in the areas of treasury, risk, and finance. “Zanders helps its clients to create a strategic roadmap and to identify key priorities, sub-projects, and business cases for management approval.
These insights enable clients to implement best practice solutions following a transformational and phased approach,” explains Laurens J.A. Tijdhof, Partner of Zanders. The company also assists clients in the execution and implementation of technological solutions such as treasury management systems, bank connectivity solutions and various tools required for treasury or risk requirements.
Zanders InsideTM, a unique cloud-based platform, focuses on providing clients access to three elements: tools, best practice knowledge and education. This innovative FinTech solution is designed to give Corporate Treasurers and Tax Directors easy access to global treasury and financial risk tools. The Zanders InsideTM platform leverages Microsoft Azure’s built-in security capability to enable the highest level of data protection, processing and reporting capabilities. The scalable solution is offered on subscription-based models for each of their foundation, advanced, and professional client groups, with each package built on a predefined functionality.
Assisting clients to optimize their current intercompany finance activities, the Zanders InsideTM platform supports with analysing the financials of a subsidiary, determining a standalone subsidiary credit rating, evaluating explicit or implicit group support, and pricing of the intercompany finance instrument. Based on Zanders’ proprietary database containing detailed information from bond markets, clients can define the arm’s length pricing for a specific intercompany loan and use that rate for BEPS and local transfer pricing compliance purposes.
The award-winning Intercompany Rating & Pricing (ICRP) tool utilizes a bottom-up approach to price intercompany financial transactions ‘at arm’s length’. A detailed transfer pricing report can be generated for different intercompany finance instruments (term loans, current accounts, credit facilities, loan guarantees, and leases), rankings (senior secured, senior unsecured, subordinated and near-equity), currencies, repayment schedules, and tenors. This approach provides Zanders’ clients a transparent best practice solution based on the Basel credit risk methodology (PD, EAD, M & LGD), which means no ‘black box’ calculations that cannot be explained to local tax authorities.
For the coming years, Zanders continues to have a very ambitious strategy and vision. “As the next maturity level of our company, we are developing towards a highly specialised consulting boutique that also offers clients complementary FinTech solutions,” says Tijdhof. In addition, the company intends to increase its global reach across its home markets in Europe and the US and has long-term plans to have presence in Asia as well. “Finally, besides tools, our cloud-platform Zanders InsideTM also plans to inject gamification and on-demand specialised courses into our future FinTech offering.