Effective cash management enables organizations to derive maximum benefits at minimal cost. For companies both large and small with global operations, managing liquidity has its own special challenges:
FinnAxia supports Inter-company loan agreements/mandates and tracks all loans created under the agreement. It allows interest calculation and posting to be done as per applicable interests rates which may be fixed or floating. The loans can be in different currencies from countries where bank accounts are maintained by customer. Interest reallocation feature helps reallocation of interest to be charged / credited to different accounts.
Cash Concentration, module of FinnAxia’s liquidity management, works on principles of automatic fund transfer between master and child accounts to aggregate balances physically and achieves the mobilization and consolidation of the available balances to a master account.
FinnAxia Liquidity Management Cash pooling/Sweeps offers various criteria to determine fund movement basis for enhanced cash management
Notional pooling refers to the off set of interest income and expense (credit and debit interest), resulting from the varying cash positions in separate bank accounts held at the same bank. Notional Pooling Solution is particularly suitable for corporates with a decentralized treasury, which aims to preserve a certain level of subsidiaries cash management autonomy.
FinnAxia Liquidity Management-Notional Pooling offers:
The balances in accounts are pooled on a virtual/notional basis. Balances remain available in the individual accounts for Subsidiaries to meet their Working capital requirement.
Cash Flow Forecasts indicates likely future movement of cash in and out of the business. It's an estimate of the amount of money one expects to flow in (receipts) and out (payments) of business and includes all projected income and expenses. FinnAxia, Nucleus Software’s integrated transaction banking software provides proactive forecasting of corporate customer’s working capital. The module enables effective cash management through the following key elements:
FinnAxia Liquidity Management supports setting up and execution of Hybrid Structures. In Hybrid Pooling – both notional pooling and sweeps can be used together to maintain credit and debit positions of various accounts in the book of the bank.
The funds consolidation happens in respective header account of the participating subsidiaries of corporate through sweeps; (Parent- Child relationship along with rules). The header accounts in each country then participate in the notional pool structure as a participant. Account balances get notionally pooled and interest calculated is reallocated as per the model selected.
FinnAxia Global Liquidity Management helps banks enable complete visibility into cash positions for their corporate customers. This results in better utilization of available funds and reduced interest costs through short-term bank borrowings. Liquidity Management helps the bank setup and manage complex cash concentration and pooling structures for automated fund transfer and consolidation within the group.
FinnAxia Business Internet Banking is a delivery channel for bank’s customers, offering convenience to bank anytime and anywhere. It allows banks to provide easy access to information from multiple back-end systems as relevant data into a single customer view.