Benefits Of Implementing Central Cash Management (In-house Bank) Solution
Improved Operational Flexibility
By implementing a Central Cash Management Solution (In House Bank), there exists the opportunity for improved operational flexibility, especially when integrating multinational businesses. The Central Cash Management Solution can also serve as the building blocks to a corporate centre of excellence, offering expert banking transaction-related customer service to the subsidiaries/participants.
Lower External Borrowing
A Central Cash Management Solution (In-house bank), lowers subsidiaries’ need to borrow at high local rates while others invest surplus cash at low rates by borrowing from or lending to each other and go to the bank only to cover the net shortfall or invest the net surplus improving your own bottom line instead of the bank’s.
Lower External FX Transaction
A Central Cash Management Solution (In House Bank) will lower the volume of external FX deals. You will offset the trades internally and pay the outside dealers only for the trades you need to cover the business’s nett needs.
Improved Visibility
A enables pooling of all the investable cash or short-term borrowing, corporations can command lower loan rates or higher investment rates for larger parts of the business. By streamlining accounts, corporations often can reduce bank charges and reconciliation tasks.
Lower Costs and Bank Independence
Implementing a Central Cash Management Solution (In-house bank) using a single technology for communication with the banking environment will result in lower costs and a greater degree of bank independence.
Read the Libstar Case Study on how TreasuryONE set up and manage their Central Cash Management Solution and the benefit they have derived.
The implementation of a Group central treasury function in H2 2020 which saved R2,4 million of interest during the reporting period.
