Real-time visibility of the current cash position and an accurate forecast of future cash flows, helps a treasurer make better decisions to efficiently allocate liquidity across the organisation. For example, surplus cash in one part of the business can be used to fund shortfalls in another, reducing the reliance on external funding in an environment where interest rates and inflation are on the rise. Some treasurers go one step further and automate these arrangements through Cash Pooling structures.
Finally, treasurers can use technology to optimise how they execute and manage their investments, in line with their organisation's investment policy – helping to meet security, liquidity and yield requirements.
Towards full optimisation
The journey toward fully optimised cash management takes a number of steps, which can each provide a renewed benefits to treasurers. HSBC can work with its clients at every step of this journey to realise efficiencies so that customers are able to focus their attention on value-activities, while confidently relying on technological processes to safely manage their cash.
Against the backdrop of macro uncertainty and rising interest and inflation rates, organisations that embrace the benefits of technology to maximise and optimally use their cash, will be best position for the future. To find out how HSBC can help you achieve this, please speak to your relationship manager.