Cash Management at the Leading Edge

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

What is it about?

This course examines the drivers and order of centralisation, banking service needs, how they are currently met or not by individual providers.

Go beyond the single-country environment and there are a host of challenges – and potential solutions – to effective cash management. The scope of cash management inevitably widens to embrace Payables and Receivables management, deciding on efficient account structures, and running effective ‘pooling’ of the balances on those accounts, whichever type of ‘pooling’ is meant: the course goes deep into the techniques and mechanics of ‘notional pooling’. Learn how industry initiatives such as SEPA and ISO20022 are intended to facilitate optimised cash management.

Programme

Centralisation of Finance Functions

• Treasury centralisation
• Payables and Receivables centralisation
• Mechanics of Multilateral Netting as a key first step towards Treasury centralisation

Treasury Centres and Shared Service Centres

• Treasury Centres: activities, locations, integration with subsidiaries and tax treatment, IT environment
• Shared Service Centres: activities, legal and operational relationship with subsidiaries, IT environment

International banks - structure, products and services for meeting the needs of corporates

• Branch/subsidiary structure and operational capabilities
• Treasury and wholesale banking services
• Local banking capabilities
• Basic funds transfer and electronic reporting
  Cash Management Products
• Zero-balancing and Target balancing under several scenarios
• Pooling Engines
• Partner Banking models (IBOS, Re Accounts, Bilaterals)
• Complex Account structures for Liquidity Management aimed at establishing a single counterparty

Cash Management Products

• Zero-balancing and Target balancing under several scenarios
• Pooling Engines
• Partner Banking models (IBOS, Re Accounts, Bilaterals)
• Complex Account structures for Liquidity Management aimed at establishing a single counterparty

Notional Pooling

• Notional Pooling as compared to Interest Enhancement
• Operational and pricing mechanics of Notional Pooling
• Treatment by banks for capital adequacy, liquidity reserves, asset-based reserves, deposit insurance
• Tax and legal issues

Challenges in achieving fully centralisation

• Centralising commercial payments in a multi legal entity business
• Collections centralisation
• Industry initiatives aimed at facilitating harmonisation
• Global initiatives - SWIFT Corporate Access and ISO20022
• European initiatives – Single Euro Payments Area and Payment Services Directive

How do you benefit?

Participants will gain an understanding of the challenges involved in moving through centralisation of Treasury (status quo) to further centralisation of financial processes, interlocking Payments/Receipts with cash management, and the role of industry initiatives like SEPA and SWIFT Corporate Access in this landscape. The course goes deeply into the range of account balance management techniques, tax/legal issues and current service offerings, with a special focus on the pricing of notional pooling by banks.

The two-day course will take the form of a workshop and involve some practical exercises

Who is it for?

Corporate treasurers and other financial professionals responsible for payments, bank relationships, and cash management processes.

Trainer

• Bob Lyddon