Misys plc, the application software and services company, launches Misys Global Cash Pooling. The new application enables banks to offer cash pooling services to corporate and institutional customers, across multiple currencies, borders, banks and time zones, at a low cost.Designed to co-exist with other back-office systems, the technology delivers the flexibility banks need to both define innovative pooling products and operate in multiple regulatory jurisdictions, whilst minimising operational costs.
“As more and more corporations consolidate their treasury operations and reduce the number of banking relationships, banks are looking for new ways to compete for business, particularly against the largest global banks,” says Simon Lord, product marketing manager at Misys. “Banks are also targeting the increasingly sophisticated mid-sized corporations and SMEs hence the demand for intelligent technology solutions like Misys Global Cash Pooling.”Misys Global Cash Pooling uses a rules-based approach for processing standard SWIFT format statement messages, applied to a hierarchy of shadow accounts, to construct a full picture of balances and movements between accounts in the cash pool either within one bank or across different banks.
The system automatically handles complex sweeping and notional pooling arrangements such as global sweeping (from East to West or from West to East), back valued sweeps, cross-currency and cross-border margin netting, and the administration of inter-company debt. Support is provided for a variety of regulations including the treatment of withholding tax and charging options to cater for VAT in multiple jurisdictions.
“Misys Global Cash Pooling helps banks to improve customer service in a cost-effective way so they can better attract and retain corporate customers and increase share of wallet of those customers,” says Simon Lord. “Indeed, the research we carried out suggests banks are seeing an average 14.4% increase in business from existing customers as a result of offering these services.”
Furthermore, with Misys Global Cash Pooling, banks can provide corporations with online access to all information relating to the cash pool, either via Misys Cash Portal or the banks own eBanking platform.
D.C.