Effective cash management is no longer as simple as receiving the best deposit rates. Increasing regulation, tighter budgets and further globalisation of world economies have all led to a rise in the importance of world class cash management for Public Sector.

The main purpose of cash management is to ensure the availability of funds for short-term and long-term obligations. This is particularly relevant as tighter budgets become a reality for Public Sector entities across the globe. Governments are being encouraged to find efficiencies, reducing the cost to serve whilst still needing to maintain the push around innovation and security.

The volatile economic conditions call for a safer approach to handling government expenditures such as payroll, pensions, benefits and vendor payments and receipts.

Improving processes and facilitating the ease at which cash can be accessed are central in optimising working capital and liquidity. HSBCs Global Liquidity and Cash Management solutions enable the public sector to efficiently and effectively manage global disbursements, receipts and liquidity.

Moreover, enhancing operations processes through automated solutions will lower the need for manual interventions, improving controls, reducing risk of errors. This results in enhanced budgetary management as savings can be re-allocated elsewhere.

The increased influence of digital as an enabler for smart government has created new challenges and opportunities. Government entities are encouraged to innovate to streamline processes and facilitate access to public serviced by introducing smart and secure tools to manage their funds and services.

HSBC plays a leading role in promoting awareness and understanding of innovation trends globally by engaging with external bodies and regulators on industry consultations. Through proactive collaboration with governments, our team is focused on the development and execution of innovative solutions.

Transparency and the control over transactions are paramount to maintain a proactive and disciplined approach to risk management for Public Sector clients who have to maintain the highest standards of accountability.

Through centralising payments and procurement systems and automating procedures, treasurers can increase control over their transactions and liquidity positions.

Enhancing transparency will not only foster trust, it will also provide greater control and visibility over accounts and operations. This will reduce potential misallocation of capital as well as protect against the occurrence of fraud and errors.

In a world that's more connected than ever, there's an even greater need for security. There have been a number of recent instances where government agencies have been the victim of attacks targeting financial systems. It is becoming more imperative for entities to invest in world class platforms which offer industry standard security.

Public Sector entities have a duty of care to ensure sensitive personal data and financial information are kept secure at all times. Our up-to-date systems and security controls are in place with vigilant oversight and constant system updates to help our customers stay ahead of potential threats and protect their reputation.