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Cash In On Financial Professionals' Knowledge

B y Brandes Elitch

The Association for Financial Professionals (AFP) was formed as a resource for corporate cash managers, but, in an ironic twist of fate, a large percentage of its members are now bank calling officers and vendors who sell cash-management services to their corporate clients. In this respect it is similar to the Electronic Transactions Association, the ISO organization, where it is rare to actually spot an ISO in the crowd of vendors.

The AFP evolved from what originally was called the National Corporate Cash Management Association (now that's a mouthful). It later was changed to the Treasury Management Association and then to the AFP. There are about 14,000 members, most of whom work in the world of cash management with titles like CFO, Treasurer, Assistant Treasurer and Cash Manager. Like all respectable associations, it has a certification (Certified Cash Manager) and an organized body of knowledge.

Make no mistake, this is a big business; banks sell billions of dollars of cash-management services to the corporate market annually. The products are sold under names you might recognize (lockbox, ACH processing, check clearing, cashletter, controlled disbursement, wire transfer, account reconciliation, cash handling, etc.). All companies with more than $100 million in sales (and a lot of smaller ones with large transaction volume) need them and are billed via an "account analysis."

I just returned from the AFP's annual conference, which featured more than 150 sessions divided into 13 categories. The three areas of most interest to Green Sheet readers would be e-commerce, financial reporting and accounting, and information technology strategies.

I found seven presentations to be particularly well done, and if you are interested in these subject areas, I can put you in touch with the presenter so you can get a copy of the slide show. They are:

+ How to Survive the Latest Trends in Payment Card Acceptance

+ E-Transformation: Where Are We Going?

+ NACHA Update: The Impact of New NACHA Initiatives on Corporate Payment Practice

+ Security and Controls for Financial Transactions on the Internet

+ Electronic Transactions: Is Your Organization Safe?

+ What is the Real Impact of E-Commerce on the Treasury Area?

+ How to Minimize Payment Acceptance Fraud

If you are interested in learning more about the cash management world, you can join the AFP via its Web site, www.AFPonline.org. Conference registration and annual dues run about $1,000. You can earn a "Certified Cash Manager" designation by taking an exam, which is given four times a year. They even have review courses for the exam.

You can call the Professional Development Department at 301-907-2862 to learn more. The next conference, on electronic commerce, is scheduled for Jan. 13-16, 2002 at the New Orleans Marriott. These regional conferences are about the size of the ETA, but the annual conference typically draws about 5,000 people.

If you just want a general overview of the cash-management landscape, you can e-mail me at brandese@cross-check.com and I will try to answer your questions. In the past there has been a wall between the treasury types and the bankcard people, but with the advent of e-commerce and new payment types this is changing. Each group is going to need to know more about the other as the two converge.