Tackling the Challenge of Embedded Derivatives
New York – May 19, 2015 - Fundtech, now a part of D+H, is a market leader in global transaction banking solutions and today released a white paper on the reemerging relevance of embedded derivatives, and how this corporate accounting burden can be transformed into a business benefit. Titled, “Tackling the Challenge of Embedded Derivatives,” the white paper explains how automating receivables can simplify accounting for embedded derivatives, and ultimately mitigate accounting risk and optimize working capital.
For multinational corporations selling in multiple currencies, the strengthening U.S. dollar has made accounting for embedded derivatives a material issue. Most corporations have applied a "rear-view" perspective to account for and report on embedded derivatives, identifying and classifying them at the back end of the receivables process, rather than up front. By automating receivables and capturing them in a centralized hub, organizations can gain 100% real-time visibility into embedded derivatives, dramatically reducing associated risks, while realizing wider benefits ranging from a higher rate of straight-through processing to improved working capital.
“The most effective solution to accounting for embedded derivatives is to automate receivables processing,” says Danne Buchanan, Executive Vice President, Merchant Services, Fundtech. “By moving to a hub-based accounting framework, corporates will reduce audit scrutiny, improve working capital metrics, and even reduce customer service costs and costs associated with processing paper invoices.”
To download a complimentary copy of this Fundtech white paper, please visit: http://www.fundtech.com/library/white-papers/.
Fundtech is a leading provider of financial technology to banks and corporations of all sizes in the Americas, EMEA, and Asia-Pacific. Founded in 1993, the company develops transaction banking solutions that it offers as either a software license or Software as a Service (SaaS). Major product lines are: payments and liquidity management; cash management, financial messaging through the world’s largest SWIFT service bureau, financial supply chain including: electronic invoice presentment and trade services; remote deposit capture; merchant services such as credit card gateways; and mobile banking. Thousands of financial institutions and companies around the world rely on Fundtech to improve operational efficiency, increase revenues, and to provide greater competitiveness through business-to-business services. In April 2015, Fundtech was acquired by D+H.
D+H (TSX: DH) is a leading financial technology provider the world’s financial institutions rely on every day to help them grow and succeed. Our lending, payments, enterprise and global transaction banking solutions are trusted by nearly 8,000 banks, specialty lenders, community banks, credit unions, governments and corporations. Headquartered in Toronto, Canada, D+H has more than 5,500 employees worldwide who are passionate about partnering with clients to create forward-thinking solutions that fit their needs. With annual revenues of more than $1 billion, D+H is recognized as one of the world’s top FinTech companies on IDC Financial Insights FinTech Rankings and American Banker’s FinTech Forward ranking. For more information, visit dh.com.
Public Relations & Analyst Relations Manager
+1 917 286 1053
+1 646 395 6304