Questions asked by CFO's
"How much surplus cash is available?"
"How do we diversify our cash?"
"Our cash process is too cumbersome and manual"
"How can we easily compare bank rates?"
"What is our runway? How can we park our cash?"
"How safe/credit worthy is that bank?"
Added value to clients
Cash by the numbers
57% cash in bank deposits (Safety/liquidity)
56% - more than 2 bank relationships
Idle cash loses ~2%
Automate cash processes
Generate added yield
Cash flow forecasting/ scenario modelling
Likwidity value:
-
Improve visibility
-
Optimize liquidity
Bank and liquidity
Likwidity value:
-
Increase banking options
-
Improve relationships
-
More strategic-less tactical
Treasury risk management
Likwidity value:
-
Multi-currency
-
Multi-portfolio grouping
-
Global cash placement
Working capital optimization
Likwidity value:
-
Cash focus
-
Large current asset
Automation and process
Likwidity value:
-
Automated price discovery
-
Automated reporting and interest
-
Embedded workflow, risk and compliance
Enhancing FPA
Risk identification
Likwidity value:
-
Diversification/ Concentration
-
Limits
-
Credit rating
Risk assessment
Likwidity value:
-
Limits policy
-
Counterparties
Risk response and mitigation
Likwidity value:
-
Proactive alert
-
Dashboard
Monitoring and reporting
Likwidity value:
-
Dashboard
-
Exposure by currency/ portfolio/counterparty
Delivering Governance, Risk and Compliance on cash
Example: Case Study
Clients concerns:
-How to monitor if banks are competitive?
-How to manage cash risk exposure?
-Can we evidence our cash investments decisions?
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
|
