diversified-industries-navigating-the-treasury-of-tomorrow

by Celero Playground

JPMorganChase

Navigating the Treasury of Tomorrow

J.P. Morgan Payments | Diversified Industries

Foreword

How can you establish a solid foundation for your treasury strategy in a time marked by transformative disruptions, conflicting perspectives, and numerous macroeconomic factors? Identifying a clear guiding principle for treasurers can be challenging, especially with the changing happening across the Diversified Industries (DI) sector.

In this inaugural edition of J.P. Morgan's treasury benchmarking analysis for the DI sector, we have summarized our analysis of treasury practices to present the current state within the DI sector on core, practical treasury topics. J.P. Morgan's comprehensive understanding of the treasury ecosystem across select 200+ global DI clients provides insight on how treasurers are navigating a changing landscape.

From industrials to airlines, aerospace to defense, transportation to automotive, J.P. Morgan can help drive new possibilities for your business as you evolve into the Treasury of Tomorrow.

Five core trends emerged in this treasury analysis:

1 Centralizing treasury operating model for greater efficiency and improved risk management has been a long-lived trend, and adoption of an In-House Bank to formalize this structure remains strong across our client base, with nearly a third using such set-ups. However, the structure can vary widely depending on the global breadth and depth of our clients with 45% of clients having Regional Treasury Centers and 60% being supported by Shared Services Centers.

2 Obtaining highest level of visibility while optimizing yield and efficiency is core to cash management, and close to 90% of our industry clients are leveraging physical Cash Concentration structure to execute on this goal. We clearly see a focus on mobilizing own-cash as the cheapest source of funding in a time of high interest rates and volatility, and for those clients managing multiple currencies, 27% are utilizing multi-currency Notional Pools to manage varying currency positions without physically converting.

Foreword (cont'd)

3 Adoption of Virtual Account structures – allowing for immediate instead of overnight consolidation of cash – is slowly ramping-up, with over 10% adoption globally (Industrials as a sub-sector lead in adoption at 22%). While single-entity virtual account structure is often utilized for sub-ledgering of activities for the same entity, multi-entity structures are used to support the more advanced "On-behalf-of (OBO)" payment model (to maximize on control and efficiency). Globally clients in APAC and LATAM may face greater complexities in adopting the OBO model.

4 Increasing focus on working capital optimization amidst the uncertain market conditions – is seen across the industry, with well over a third of clients utilizing Supply Chain Finance (SCF) to facilitate global trade and support key suppliers. This trend highlights the strengthened need to support local and regional ecosystem through enhanced supplier relationship in times of volatility and political uncertainty. It is a mature solution for Industrials sub-sector with two thirds of clients utilizing SCF.

5 Finally, with regards to Treasury technology, SAP remains the number one ERP across our client base, with close to 70% using the platform. With the 2027 deadline for all legacy ECC6 users to migrate to S/4HANA, many clients are already implementing the upgrade or are planning in near future. In contrast, the usage of treasury management system (TMS) is segmented with SAP, FIS, and Kyriba solutions leading the scene. As clients review and upgrade their tech stack, time is prime to review advanced treasury tools from their banking and business partners.

"Transforming your treasury from an operational to a critical business growth engine requires a strategic mindset, strong collaboration with key partners, and the drive to execute. This research is designed to guide you in navigating & evolving into the Treasury of the Future."

Michael Nelson, Managing Director J.P. Morgan Payments

Connect with your J.P. Morgan Payments representative today to find the right solution for your business and benchmark your Treasury approach against your industry.

Diversified Industries Treasury Analysis

Global Results

Treasury Model

A focus on centralization, control and maximizing operational efficiencies

KEY INDICATORS ACROSS J.P. MORGAN'S CLIENTS IN THE DI SECTOR

In-House Bank — 32%

32% of J.P. Morgan's DI Clients leverage an In-House Bank (IHB), with many incorporating a dedicated entity to allow for efficient management of cash and risk across the group globally.

Regional Treasury Center — 45%

45% of DI Clients use a Regional Treasury Center (RTC), either regional or global. Most of these perform payables, receivables or reconciliation duties; sometimes expanding into HR, IT, Legal, etc.

Shared Service Center — 60%

Shared Service Center (SSC) is a mature construct for DI clients, with 60% of clients having the structure, either regional or global. SSCs commonly support payables, receivables, reconciliations and reporting activities, with more mature set-ups expanding into more value-added services.

On-Behalf-Of — 19%

19% of Clients surveyed have adopted On-Behalf-Of ("OBO") processing. Most of these OBO structures are focused on payables and supported by a Payment Factory. Receive On-Behalf-Of lag behind payables but recent technology advancements – including Virtual Accounts – are upping the game.

"Clients across the sector are increasingly adopting a centralized treasury model, to optimize both capital and operational efficiency, while strengthening control as companies tackle a complex global value chain. Clients should review their Treasury set-up and approach to managing capital & risk, to ensure they are fit to face an evolving future."

Tristan Attenborough, Managing Director J.P. Morgan Payments

Liquidity & FX Management

Turning cash into a truly liquid asset

KEY INDICATORS ACROSS J.P. MORGAN'S CLIENTS IN THE DI SECTOR

Physical Cash Concentration — 87%

Majority of DI clients – 87% - are concentrating cash physically to centrally manage, optimize, and utilize as an internal source of funding. Regional differences do exist however, with Clients in LATAM and selected regulated APAC markets lagging behind due to a more complex regulatory environment.

Notional Pooling — 27%

27% of J.P. Morgan's DI Clients are leveraging Notional Pooling structure, often used to offset currency exposure or optimize capital without co-mingling cash, improving overall risk management and potentially lower transactional expenses.

Virtual Accounts — 12%

While 12% of clients use Virtual Accounts today, adoption is on the rise with clients either in implementation stage or considering the solution. A bank provided sub-ledger solution, virtual accounts allow for an immediate consolidation of cash into the "Header" account, with segregation of activities and reporting needed for today's complex organizations.

FX Hedging — 61%

61% of J.P. Morgan's DI Clients are proactively participating in FX hedging programs, from cash flow hedging to Balance sheet hedging.

"While traditional liquidity management practices remain prevalent in optimizing capital efficiency for our clients, there is an increasing shift towards innovative solutions that offer greater automation and real-time capabilities."

Shao Shroff, Executive Director J.P. Morgan Payments

Technology Set-Up

Strengthening the foundation to enable real-time Treasury

KEY INDICATORS ACROSS J.P. MORGAN'S CLIENTS IN THE DI SECTOR

Enterprise Resource Planning — 69%

SAP clearly dominates the DI world, with 69% of DI clients operating this as their key ERP system. With the deadline for migration to S4/Hana fast approaching, clients will need to carefully plan resources as well as treasury priorities to ensure a successful upgrade.

Treasury Management System — 88%

While TMS landscape is more fragmented, the top three providers for the DI sector are FIS (36%) with Quantum and Integrity leading the scene, SAP (32%), and Kyriba (21%) – together comprising 76% of TMS configurations across our client base.

Connectivity — 77%

While clients can leverage multiple ways to connect to banking partners, Host-to-host connectivity remains the key channel for the DI sector (77%), in conjunction with e-banking (35%), SWIFT (18%), and increasing use for APIs (4%).

Cash Forecasting — 66%

Cash forecasting remains a key area of challenge for our clients, and for the DI sector, Excel still dominates as a primary tool utilized for cash forecasting, though many clients are leveraging TMS to streamline and automate the process.

"More and more clients are exploring ways to streamline connectivity and adopt solutions to enable real-time visibility – not only to improve operational efficiency but also to strengthen controls with greater than ever focus on safety."

Lillian Sim, Managing Director J.P. Morgan Payments

Trade Finance

Increased focus on Working Capital optimization

KEY INDICATORS ACROSS J.P. MORGAN'S CLIENTS IN THE DI SECTOR

Supply Chain Finance (SCF) — 37%

With working capital levels reaching a 10 year high, clients are ever more focused on unlocking trapped liquidity in working capital – leading to significant expansion of trade finance tools. For the DI sector, SCF is a key trade solution utilized, with over a third of clients implementing the program with its suppliers.

Virtual Cards — 30%

Virtual Cards – often used as a complement to SCF for tail-end expenses – have historically been far more developed in the North American market where it originates. But we begin to see more appetite in other regions as these solutions are being brought to market.

Sales Finance — 23%

At the other end of the spectrum, we see adoption of Sales Finance solutions reaching 23% of J.P. Morgan's DI clients. Off-balance sheet treatment and scalability make Sales Finance a compelling solution to companies witnessing rapid balance sheet growth fuelled by both increasing volumes and rising commodities prices.

Inventory Finance — 6%

Inventory Finance, while still in its early stages, is being increasingly explored by clients to enhance working capital and optimize inventory management amidst volatility in global markets.

"With a fast-evolving market environment and supply chain uncertainties, businesses should focus on strengthening balance sheet management while maintaining access to liquidity. While there isn't a one-size-fits-all solution, treasurers should look to improve overall working capital efficiency by analyzing and adopting a number of strategies."

Eric Reimer, Executive Director J.P. Morgan Payments

Global Summary View

ASSESSING YOUR TREASURY SET-UP & PROCESSES WITH KEY INDICATORS ACROSS J.P. MORGAN'S DI CLIENTS

Treasury Model

In-House Bank: 32% | SSC: 60% | On-Behalf-Of: 19%
With over 30% adoption, DI clients are increasingly centralizing treasury operations with an In-house Bank structure, with support from Shared Service Centers.

Technology Set-up

ERP (SAP): 69% | TMS (FIS, SAP, Kyriba): 88% | Connectivity (H2H): 77%
DI clients leverage SAP for ERP. FIS, SAP and Kyriba dominating the scene for TMS, with Host-to-host being the primary connectivity channel.

Liquidity & FX Management

Physical Cash Concentration: 87% | Notional Pooling: 27% | Virtual Accounts: 12%
Majority of DI clients have Cash Concentration structure with nearly a third of clients leveraging Notional Pools as a liquidity platform. Uptake is still low for Virtual Account Management.

Trade Finance

SCF: 37% | Virtual Card: 30% | Sales Finance: 23%
SCF remains an important option for global DI clients looking to optimize working capital, with virtual cards increasingly being adopted for tactical spend.

Diversified Industries Treasury Analysis

Regional Results

Based on headquarter location

Region: EMEA

ASSESSING YOUR TREASURY SET-UP & PROCESSES WITH KEY INDICATORS ACROSS J.P. MORGAN'S DI CLIENTS

Treasury Model

In-House Bank: 57%
SSC: 79%
On-Behalf-Of: 32%
EMEA is a leader in In-house Bank adoption with over 1/2 of clients using this governance structure and capital optimization set-up. DI clients in EMEA are also leaders in the usage of SSCs.

Technology set-up

ERP (SAP): 78%
TMS (SAP): 54%
Connectivity (H2H): 58%
SAP clearly dominates the region, with over three quarters of clients using SAP as their ERP and over half for TMS (followed by FIS at 38%).

Liquidity & FX Management

Physical Cash Concentration: 93%
Notional Pooling: 36%
Virtual Accounts: 13%
DI clients in EMEA have one of the highest level of Cash Concentration at 93%, and highest for Notional Pooling, to manage across currencies versus strategic FX execution.

Trade Finance

SCF: 44%
Virtual Cards: 9%
Sales Finance: 27%
While SCF solutions have a meaningful traction in the region, Virtual Cards are not as prevalent of a solution and this product is largely reserved for clients with meaningful presence in the U.S.

Region: APAC

ASSESSING YOUR TREASURY SET-UP & PROCESSES WITH KEY INDICATORS ACROSS J.P. MORGAN'S DI CLIENTS

Treasury Model

In-House Bank: 20%
SSC: 35%
On-Behalf-Of: 10%
There is low adoption for In-House Bank in APAC, though many considering it or operate with a regional treasury center structure. Only 10% of APAC clients utilize On-behalf-Of processing.

Technology set-up

ERP (SAP): 68%
TMS (Kyriba): 25%
Connectivity (e-banking): 64%
Kyriba leads the TMS market in APAC with a quarter of the share, followed by FIS and SAP at 17% each. SAP clearly dominates the APAC DI world, with close to 70% using it as their ERP platform.

Liquidity & FX Management

Physical Cash Concentration: 88%
Notional Pooling: 23%
Virtual Accounts: 13%
DI clients in the APAC region exhibit high adoption rates of Cash Concentration and are increasingly showing interest in Notional Pooling, driven by the region's diverse currency mix.

Trade Finance

SCF: 15%
Virtual Cards: 21%
Sales Finance: 9%
Virtual Cards are gaining traction amongst APAC clients, however the region trails in adoption of SCF and Sales Finance solutions.

Region: LATAM

ASSESSING YOUR TREASURY SET-UP & PROCESSES WITH KEY INDICATORS ACROSS J.P. MORGAN'S DI CLIENTS

Treasury Model

In-House Bank: 11%
SSC: 59%
On-Behalf-Of: 0%
SSC penetration stands at over 50%, a key enabler of treasury efficiency, while cash mobilization restrictions across the region result in low In-house Bank adoption in LATAM.

Technology set-up

ERP (SAP): 78%
TMS (FIS): 80%
Connectivity (H2H): 100%
Among DI LATAM clients who utilize TMS, FIS is the predominant choice, used by 80% of these clients—however, most clients have opted to operate without one. As for ERP, SAP dominates the scene.

Liquidity & FX Management

Physical Cash Concentration: 31%
Notional Pooling: 12%
Virtual Accounts: 0%
Given regional complexities, there is limited adoption of Notional pooling, while growing number of clients are using Cash Concentration to consolidate funds.

Trade Finance

SCF: 75%
Virtual Cards: 9%
Sales Finance: 82%
Most surveyed clients use SCF and Sales Finance programs to optimize working capital. Virtual Cards have low penetration in LATAM, being mainly reserved for clients with significant U.S. presence.

Diversified Industries Treasury Analysis

Sub-Industry Results

Sub-Industry: Industrials

ASSESSING YOUR TREASURY SET-UP & PROCESSES WITH KEY INDICATORS ACROSS J.P. MORGAN'S DI CLIENTS

Treasury Model

In-House Bank: 37%
SSC: 72%
On-Behalf-Of: 23%
Over a third of Industrials clients are operating with an In-house Bank structure with many having adopted a regional treasury center and on-behalf-of structures, to increase efficiency and better manage risk.

Technology set-up

ERP (SAP): 62%
TMS (Kyriba): 32%
Connectivity (H2H): 88%
SAP clearly dominates the Industrial sector as the ERP platform, and Kyriba leads in TMS solution. H2H is still the primary connectivity channel with a growing number exploring APIs.

Liquidity & FX Management

Physical Cash Concentration: 85%
Notional Pooling: 38%
Virtual Accounts: 22%
More than a third of Industrials clients have optimized currency management through Notional Pooling structures. While adoption remains low, Virtual Accounts have the highest uptake across all sub-industries.

Trade Finance

SCF: 67%
Virtual Cards: 38%
Sales Finance: 50%
SCF is vital for global Industrials clients optimizing working capital, with many using Virtual Cards for tactical expenses as a complementary payables solution.

Sub-Industry: Airline

ASSESSING YOUR TREASURY SET-UP & PROCESSES WITH KEY INDICATORS ACROSS J.P. MORGAN'S DI CLIENTS

Treasury Model

In-House Bank: 11%
SSC: 52%
On-Behalf-Of: 4%
While there is limited adoption of On-behalf-of structures, more than a half of Airline clients are being supported by SSCs across the globe for process efficiencies.

Technology set-up

ERP (SAP): 67%
TMS (FIS): 55%
Connectivity (H2H): 63%
FIS leads the TMS market for Airline industry at 55%, followed by SAP at 27%. For ERP, SAP leads the scene with nearly two thirds of clients utilizing the platform.

Liquidity & FX Management

Physical Cash Concentration: 67%
Notional Pooling: 0%
Virtual Accounts: 0%
Airline clients commonly consolidate cash using physical cash concentration structures versus notional (but shows room for growth). Many are in exploration stage for virtual accounts.

Trade Finance

SCF: 4%
Virtual Cards: 40%
Sales Finance: 22%
Given the fragmented nature of supplier base, Airline clients have relatively high adoption for Virtual Cards at 40%.

Sub-Industry: Auto OEM

ASSESSING YOUR TREASURY SET-UP & PROCESSES WITH KEY INDICATORS ACROSS J.P. MORGAN'S DI CLIENTS

Treasury Model

In-House Bank: 58%
SSC: 55%
On-Behalf-Of: 19%
With over 50% adoption, Auto OEM clients are the most active in-house bank users across the industry, supported by SSCs for process efficiency.

Technology set-up

ERP (SAP): 97%
TMS (SAP): 42%
Connectivity (H2H): 58%
SAP dominates the Auto OEM sector, with nearly all using this ERP platform. As such, SAP equally leads in TMS, although a lower share. Many complement H2H connectivity with Swift and API.

Liquidity & FX Management

Physical Cash Concentration: 94%
Notional Pooling: 16%
Virtual Accounts: 9%
Most Auto OEMs use Cash Concentration structures to consolidate global cash. Some have also adopted virtual accounts for real-time cash availability and usability.

Trade Finance

SCF: 33%
Virtual Cards: 24%
Sales Finance: 5%
SCF remains an important option for managing working capital for Auto OEM clients with many using Virtual Cards as a complement for tactical spend.

Sub-Industry: Auto Suppliers

ASSESSING YOUR TREASURY SET-UP & PROCESSES WITH KEY INDICATORS ACROSS J.P. MORGAN'S DI CLIENTS

Treasury Model

In-House Bank: 38%
SSC: 57%
On-Behalf-Of: 45%
Over a third of Auto Suppliers have adopted In-house Bank structure, but trails that of OEMs. And more than half of these clients have shared service center, whose primary functions evolve around AP, AR and reconciliation.

Technology set-up

ERP (SAP): 91%
TMS (SAP): 46%
Connectivity (H2H): 88%
SAP leads the scene for Auto Suppliers when it comes to ERP and TMS solutions, with Host-to-Host as the most preferred channel to connect with banking partners.

Liquidity & FX Management

Physical Cash Concentration: 96%
Notional Pooling: 43%
Virtual Accounts: 5%
Over 40% of Auto suppliers use Notional Pooling for currency management. While Virtual Accounts are being explored, only 5% currently benefit from this sub-ledgering tool.

Trade Finance

SCF: 55%
Virtual Cards: 33%
Sales Finance: 25%
Given the importance of supply chain management in Auto sector, nearly half of the Auto OEM clients have adopted SCF in their operations, complemented by Virtual Cards for tactical spend.

Sub-Industry: Transportation

ASSESSING YOUR TREASURY SET-UP & PROCESSES WITH KEY INDICATORS ACROSS J.P. MORGAN'S DI CLIENTS

Treasury Model

In-House Bank: 16%
SSC: 41%
On-Behalf-Of: 22%
There is limited adoption of In-House Banking for Transportation clients, lagging others, though a higher number are supported by a SSC structure.

Technology set-up

ERP: 92%
TMS (Kyriba): 29%
Connectivity (H2H): 77%
SAP and Oracle lead the ERP market with an equal share of 46% each, with Kyriba leading the TMS share for Transportation clients.

Liquidity & FX Management

Physical Cash Concentration: 82%
Notional Pooling: 22%
Virtual Accounts: 15%
There is high uptake of Cash Concentration structures for Transportation clients. There is a relatively higher adoption of Virtual Accounts, possibly to support the unique business models of the sector.

Trade Finance

SCF: 15%
Virtual Cards: 33%
Sales Finance: 9%
Almost 1 in 3 Transportation clients use Virtual Cards for managing tactical spend, and nearly 15% use SCF solutions for enhancing working capital and addressing strategic spend.

Region: North America

ASSESSING YOUR TREASURY SET-UP & PROCESSES WITH KEY INDICATORS ACROSS J.P. MORGAN'S DI CLIENTS

Treasury Model

In-House Bank: 25%
SSC: 56%
On-Behalf-Of: 14%
In-house Banks are growing in adoption in North America, with 25% of the clients already active with the structure, and more than half of DI clients utilizing SSC for their operations.

Technology set-up

ERP (SAP): 63%
TMS (Kyriba): 29%
Connectivity (H2H): 87%
SAP dominates the ERP space with over 60% market share, Oracle is a distant 2nd place. Kyriba, followed by FIS leads the TMS penetration in North America.

Liquidity & FX Management

Physical Cash Concentration: 93%
Notional Pooling: 27%
Virtual Accounts: 13%
North American (and EMEA) DI clients have the highest adoption rate for cash concentration structures, with some adopting Virtual Accounts, enjoying the benefits of real-time liquidity.

Trade Finance

SCF: 35%
Virtual Cards: 47%
Sales Finance: 8%
Virtual Cards are prevalent as a complement to SCF solutions for tactical spend, with by far the highest adoption in North America.

Diversified Industries Treasury Analysis

Revenue Results

Revenue Results: Less than USD 10bn

ASSESSING YOUR TREASURY SET-UP & PROCESSES WITH KEY INDICATORS ACROSS J.P. MORGAN'S DI CLIENTS

Treasury Model

In-House Bank: 12%
SSC: 54%
On-Behalf-Of: 6%
Many clients in this revenue bracket have established SSCs to support their operations, while a growing number are exploring advanced treasury structures such as an In-house Bank.

Technology set-up

ERP (SAP): 60%
TMS (SAP): 32%
Connectivity (H2H): 83%
SAP leads the market for both ERP and TMS within this revenue bracket.

Liquidity & FX Management

Physical Cash Concentration: 44%
Notional Pooling: 15%
Virtual Accounts: 16%
Clients in this revenue bracket are increasingly considering regional and global solutions to consolidate cash, but trails clients with a higher top line.

Trade Finance

SCF: 11%
Virtual Cards: 13%
Sales Finance: 10%
Adoption for advanced trade and working capital solutions trail that of clients in higher revenue bracket.

Revenue Results: Between USD 10bn and USD 25bn

ASSESSING YOUR TREASURY SET-UP & PROCESSES WITH KEY INDICATORS ACROSS J.P. MORGAN'S DI CLIENTS

Treasury Model

In-House Bank: 35%
SSC: 59%
On-Behalf-Of: 8%
Clients in the revenue bracket of USD 10bn-25bn, show sizable adoption and growing interest for advanced treasury structures such as In-house Bank.

Technology set-up

ERP (SAP): 63%
TMS: 24%
Connectivity (H2H): 82%
Kyriba, SAP and Quantum (each with 24% share) are the top 3 choices for a TMS platform for this revenue bracket. SAP leads the scene in ERP.

Liquidity & FX Management

Physical Cash Concentration: 76%
Notional Pooling: 23%
Virtual Accounts: 10%
Clients are increasingly adopting Notional Pooling for interest offset and multi-currency management, while many have already implemented Cash Concentration structures.

Trade Finance

SCF: 30%
Virtual Cards: 32%
Sales Finance: 12%
Clients of this revenue bracket show highest adoption for SCF to optimize working capital.

Revenue Results: Greater than USD 25bn

ASSESSING YOUR TREASURY SET-UP & PROCESSES WITH KEY INDICATORS ACROSS J.P. MORGAN'S DI CLIENTS

Treasury Model

In-House Bank: 53%
SSC: 65%
On-Behalf-Of: 15%
For this highest revenue bracket, expectedly so, many clients have adopted advanced structures of Treasury such as In-house Bank and On-behalf-of for payables.

Technology set-up

ERP (SAP): 78%
TMS (SAP): 34%
Connectivity (H2H): 78%
SAP dominates the scene for ERP and TMS for this highest revenue bracket clients, with Host-to-Host as the key connectivity channel complemented by Swift and APIs.

Liquidity & FX Management

Physical Cash Concentration: 84%
Notional Pooling: 19%
Virtual Accounts: 19%
Majority of clients in this revenue bracket have adopted Cash Concentration structures, with many utilizing Notional Pooling for interest offset and proactive multi-currency management.

Trade Finance

SCF: 25%
Virtual Cards: 37%
Sales Finance: 1%
Nearly a quarter of clients in this revenue bracket have adopted SCF programs, complemented by Virtual Cards to optimize working capital across spend categories.

Glossary

Connectivity – primarily required for Corporates to initiate payments and collect reporting from their Banks. Typically performed via Host-to-Host, SWIFT or API.

Enterprise Resource Planning – a comprehensive software system that organizations use to manage various essential parts of their business, with each department using a system optimized for specific tasks.

In-House Bank – an internal banking system that operates within a Corporate to manage the cash flow within the group efficiently and enhance processes for subsidies, improving efficiency & cost across the organization.

Notional Pooling – a tool that offsets debit balances against credit balances in one or multiple currencies to minimize currency management and maximize yield opportunities.

On-Behalf-Of – a set-up whereby a central Corporate entity (typically the In-House Bank) processes a Payment or Collection on behalf of a subsidiary, regulation allowing.

Physical Cash Concentration – a liquidity management technique that involves consolidating cash from various accounts into a single header account to improve cash visibility, control and yield.

Sales Finance – an alternative source of liquidity provided by a Bank through purchase of Corporate receivables.

Shared Service Center – a specialized organizational entity within a Corporate providing support for various functions including AP, AR, accounting, HR, payroll, IT, compliance, purchasing and security.

Supply Chain Finance – a set of solutions to optimize cash flow by allowing businesses to lengthen their payment terms to suppliers while allowing them to collect earlier.

Treasury Management System – a software application which automates a Corporate's financial operations, helping with day-to-day activities such as cash flow, assets and investments.

Virtual Accounts – a series of sub-accounts linked to a single header account, providing Corporates with improved availability and usability of cash while enhancing visibility and control.

Virtual Card – business to business payments solution enabling companies to create & manage unique virtual card numbers to facilitate payments to suppliers.