FI D I N E WS MOVING FORWARD: FIDI AND THE FUTURE JESSE VAN SAS, SECRETARY GENERAL OF FIDI GLOBAL ALLIANCE Despite the challenging environment, FIDI is pressing ahead with three key initiatives that, if accepted by Affiliates, will transform the organisation to the benefit of its membership. Secretary General Jesse van Sas gives us an overview I t is not an easy task to make plans and develop new projects in the current context of uncertainty and economic crisis. However, adapting to changes is crucial if we want to remain active players in our industry and FIDI is always looking into how we can make our services and actions more relevant and useful to our membership. With this in mind, an informal Delegates Meeting took place on 26 January 2021, when regional association representatives discussed the potential future developments in FIDI and, specifically, the following items: the introduction of a netting system; adding new membership categories into FIDI; and the continuity of the FAIM Financial Assessment, following its initial two-year pilot phase. All potential developments and projects are discussed within the membership before being put to vote at the General Assembly. Below is a summary of the main questions arising, and information on each item: Netting questions Following growing demand from our membership, the FIDI Board is carefully analysing the implications of developing a bespoke financial netting system for FIDIs network of affiliated companies. Q: What is netting? Jesse van Sas (JVS): In a netting system, multiple financial transactions between participating companies are consolidated and calculated regularly. The aim is to create a single figure from all of the exchanges, to determine which 20 FF301 Q2 21 pp20-22 Jesse finance.indd 20 party is due payment and in what amount. Essentially, it is like an invoice offset but instead of offsetting between two companies, it involves the entire membership, so that FIDI Affiliates would process a single payment on a monthly basis. Q: How does netting work in principle? JVS: In a payable-driven netting system, Affiliates upload payable invoices from other FIDI Affiliates, and the system consolidates the invoices due against those that the company owes, arriving at one monthly consolidation payment, or receivable sum, to be made. Q: Are the terms of payment flexible? JVS: Yes, the netting system would be configured to reflect the agreed payment terms between trading partners. Q: What are the benefits? JVS: The most direct saving is in bank transaction fees, estimated to be, on average, 8,000 a year. Additional benefits include better cash management and forecasting, as well as reductions in mismatched invoices or incorrect payments. The centralisation of foreign exchange dealing should produce better exchange rates for everyone involved. Q: Can I pay in different currencies? JVS: Yes. Q: What are the limitations? JVS: For the system to work, it requires a majority of Affiliates to use it. In principle, this means 60 to 70 per cent of our membership should actively use WWW. F I D I FOC U S . OR G 16/03/2021 09:50