Dec 23, 2022

Nike is the winner of the DACT Treasury Award with a multi-level virtual account project

For the third time, DACT organized a competition for the best treasury project. After an exciting competition, the winner of the DACT Treasury Award 2022 can be announced. Nike received the highest number of votes from the members of the Dutch Association of Corporate Treasurers (DACT). Wolters Kluwer and the Social Hub came in second and third, respectively.

The DACT Treasury Award is being presented for the third consecutive year. All DACT members could nominate Treasury projects for this competition. Entries were judged on several criteria: Innovation & Reach, Environment, Social, Governance (ESG), Excellence, Economics and Governance. Nike’s project was voted the winning entry.

About the project

NIKE were looking for a nimble treasury solution to support accelerated growth in digitalisation and to support the firm’s Consumer Direct Acceleration strategy.

Nike’s innovation is a collect-on-behalf-of (COBO) model, comprising multi-level virtual account structures in multiple currencies [with J.P. Morgan Amsterdam branch], segregating collections balance and transaction reporting across 100+ virtual accounts for the legal entities in scope.

The scope of the solution covers legal entity operations across many European countries and multiple different card acquirers who settle daily collections to the virtual accounts. The collection methods include wires, SEPA credit transfers and SEPA direct debits for Nike’s direct-to-consumer (D2C) via as well as business-to-business (B2B) segments via direct sales.

Nike achieved real-time cash pooling via centralisation settlements with granular collection reporting automation and room for further growth. Three key noteworthy innovations:

  • Summary-level reporting provides a single consolidated standard-format BAI2 virtual account reporting all transactions as of selected date.
  • Daily automated virtual-to-virtual position adjustment reporting between the IHB and each entity with standard BAI sweep reporting enables Nike to leverage standard TMS functionality to track intercompany movements as in physical sweeping;
  • Rules-based transaction reporting mapping features enable Nike to specify which virtual account will receive bank-generated transaction reporting, enhancing general ledger visibility significantly.

Award ceremony

Award ceremony will take place during the ‘DACT Treasury Targets Meeting 2023’ on Thursday, February 9th. DACT members and management representing the winning Treasury projects will be invited to attend.

About DACT

DACT, the Dutch Association of Corporate Treasurers, is the association for corporate treasurers and treasury professionals in the Netherlands. The association has more than 700 members, working at multinationals and large and medium-sized companies as well as government and non-profit organisations. DACT promotes the professional development of its members and the treasury profession, both within and outside the association.

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