Advanced Cash Management

Efficiency through centralisation – techniques, barriers, banks’ offerings and industry initiatives

Course overview

This course looks at advanced cash management techniques from two highly functional perspectives; centralisation of transactions and centralised availability of cash balances. Go beyond the single-country environment and there are a host of challenges – and potential solutions – to effective cash management. Its scope inevitably widens to embrace payables and receivables management, deciding on efficient account structures, and running effective cash pooling.

This course examines the drivers and order of centralisation, banking service needs, the extent to which they are currently met by individual providers or through industry initiatives, and goes deep into the techniques and mechanics available today for pooling account balances.

Programme

• Traditional account structures, locations and
  management tools in an international company
• Centralised treasury and its expansion to embrace Payables and Receivables
• Payments and information needs for a centralised Payables and Receivables operation
• ISO 2002, SWIFT Corporate Access and Single Euro Payments Area as enablers of centralisation: scope, objectives and current status
• Challenges to effective account balance management in a multi-entity, multi-country, multi-bank and multi-currency environment
• Techniques for multi-bank balance management, and the impact of SEPA and PSD
• Banks’ offerings in the European arena (including network banks, banking clubs, pooling engines)
• What drives the pricing of Notional Pooling (RAROC, Basel II) and legal and tax barriers to effective pooling

What you will gain

Participants will gain an understanding of the challenges involved in moving from centralisation of treasury to further centralisation of financial processes, integrating payments/receipts processes with cash management, and the role of industry initiatives like SEPA and SWIFT Corporate Access in this landscape. The second half of the course deals specifically with account balance management techniques, tax/legal issues and current service offerings, with a special focus on the pricing of notional pooling by banks.

This full-day course will take the form of a workshop and involve some practical exercises.

Who will benefit?

Corporate treasurers and other financial professionals responsible for payments, bank relationships, or cash management processes in companies of any size, seeking efficiencies in international cash management.

Trainer

• Bob Lyddon