Cash Management-Some Truths
Cash is your lifeblood.
Make it count!
Many finance teams neglect cash optimization due to its historical complexity, manual processes, and a lack of established KPIs. This oversight, often unnoticed by executive teams and stakeholders, can cost a company up to 2% in lost interest income. For a firm with a $100 million average cash balance, this represents a significant $2 million opportunity to improve net income.
With a low cost, pure Non-Brokered, Non-Custody and easily implemented platform, Likwidity delivers a clear benefit and improves yield, automation, risk and compliance with a 2-3 month payback.
See clips below
Example: Case Study
-Client believed that banks were not competitive
-That cash was too concentrated
-Too much manual processes
Attribute | Before | After | Improvement |
|---|---|---|---|
Audit | No evidence for decisions
| Fully audit trail to support cash investments
| Evidence |
Visibility
| Balance
| Cash visibility by portfolio
| Visibility |
Systems | Manual from ERP and CSV from TMS
| Optional:
Integrate into TMS (Kyriba)
| Integrated
|
Risk
| No diversification
Minimal update on bank credit rating
| Manage and monitor -concentration risk
-credit rating allocation
-maturity profile
| Peace of mind
|
Reporting and reminders
| Spreadsheets Manual interest Outlook calendar
| Automated dashboard
Interest
Automated reminders and actions
| Automated
|
Process
| Emails, calls, spreadsheets
| 1-click full automation
| Automation
|
Rate spreads
| Unable to verify rate spreads
| Improved rates and transparent pricing
| ~40% increased interest income
|
Cash concentration | Approx 90% of cash with a single bank
| Cash diversified through competitive process
| Diversification
|
Key Issues | Banks not competitive -Manual processes
| Competitive process Bank relationships more strategic
| Strategic bank relationship
|
Is this familiar?
Likwidity delivers
Optimize
Need to optimize idle cash over short, medium and long term
Diversify
Need to diversify across multiple banks
Cash Pooling
Not using or ready for cash pooling
Manual process
Bank comparison and notices are manual and cumbersome
ERP/ TMS
Existing systems only show balances
Optimized
Automated optimization can increase yield by up to 2%
Diversified
Automated comparison with 10+ banks at same time
Aggregation
No need for bespoke bank pooling systems/contracts
Automated
1-click AI powered workflow and automation
Actioned
Bridges the gap across finance, FPA and treasury
Automated bank comparison
Automatically generate Request for Quotations to multiple banks ensuring competitive pricing-Enhance relationships
