The changing treasury technology landscape
The advent of Virtual Accounts
Due to the increased regulatory oversight that banks face from regulators, opening and maintaining bank accounts at multiple providers has become a time consuming and expensive task.
Recently technology has been utilised to provide solutions to this problem.
Virtual accounts are ledgers that identify multiple individual entities and provide unique identifiers. This allows easy management of multiple accounts by simplifying the account opening process.
Virtual accounts can be utilised in foreign exchange or cash management solutions such as pooling, to create efficiency and reduce risk.
Automated Payment processing
The way that payments are made has been developing over the last few years from a purely manual task to a process that utilises technology to streamline creating, checking and releasing payments.
The arrival of ISO 20022 is further updating the process and the payments landscape is entering the most significant change in the last 20 years. Understanding the changes and how they will impact your business and assessing the solutions available will be time consuming.
Utilising multiple banking providers in cash management has always been sound practice as it provides for diversification of risk.
Accessing the solutions from multiple banking providers in one place aids better decision making and optimises returns.
Cash pooled accounts have always been popular as they achieve diversification and improve returns but the need to hold designated accounts at the core bank created inefficiencies as well as cost.
Advances in technology now allow for virtual accounts to be maintained at the core bank, meaning that funds from several banking counterparties can be pooled without the requirement for individual designated accounts at the core bank. This solution allows for easier implementation of a cash pooling solution and greater opportunities to extend the scope of cash management to multiple jurisdictions.
Please contact TreasuryAll for further information.