Cash Management Platform

Greater visibility and control over their cash balances around the world is what company’s treasurers are looking to achieve effective cash management.

Through Cash Management service provided by the Enterprise system, the Bank or Fintech can offer to company’s treasures the capability to optimize the overall liquidity, by minimizing the need for external capital, as well as to be able to predict better and therefore have a greater chance of avoiding any financial risks.

“Zero balancing”

The treasurer can opt between the two available operating modes: “zero balancing” which turns out to be the most popular: all “participant’s accounts” balances are automatically transferred within one business day or on a set date to the main account and at the same time negative balances are offset.

“Target balancing”

Alternatively, treasurers can also decide on “target balancing” mode: here the liquidity compensation is only up to a previously agreed amount. The “participants’ accounts” must have a certain amount of balance on a daily basis (or according to the frequency chosen in the system setup tables) which is defined in the min amount and max amount fields. According to the flexible set-up of the system, in case of excess liquidity on a participant’s account, the surplus is transferred to the Master account; vice versa, in case of lack of liquidity, the participant’s account is replenished by the Master.

Capability to set-up a range (minimum and maximum) of amount to be transferred is also provided.

The “Master account” can be requested by Companies with branches, subsidiaries and foreign subsidiaries, all having Accounts with the same Bank providing the service. A mixed scenario is also supported: some branch having the account with the same Bank providing the service and other branches or subsidiary having the account with other local and/or foreign banks. Similar scenarios may occur for Participants.

Dedicated dashboards allow the user to have clearer and faster overview of the current situation of all account’s balances.

Master & Partecipant Account

All incoming/outgoing messages supporting the transfer of liquidity between all the involved accounts as well as the charged fees and commission can also be monitored in detail by dedicated functionalities. These functions have also been segregated for “Master” and “Participant” accounts.

Each message can be parameterized to define whether it must be automatically processed and registered into the concerned Account, or it should be submitted to a user’s validation phase. Furthermore, each incoming message is subject to a matching phase in which the concerned Account involved in the transaction is identified; if the message passes the matching phase, then it can be processed and registered into the concerned Account, otherwise it will be flagged with a “to be matched” status to allow the authorized user to carry out all the respective controls.