by Jerome Hoffman, Business Development Director for Africa, Broadridge Financial Solutions
Corporate treasury departments operating in the evolving and dynamic African marketplace are seeking the tools to give them improved control and transparency in their cash and liquidity management. And they are doing so against a backdrop of cost, risk and regulatory pressures while managing the demands to drive workflow efficiency and achieve processing accuracy.
Transforming the existing model
Broadridge has encountered a growing challenge experienced by corporate treasurers who feel hindered by a lack of standardisation and process control in their operations, which can lead to a disparate view of cash management across business units. A large multinational organisation operating in Africa today has to deal with numerous agent banks across its many internal departments and affiliated entities within the group and each with its own systems, making an overall view of the company’s cash positions and movements extremely difficult to accomplish. Today’s corporate treasurer needs to have the capacity to exchange financial information with all counterparties via a centralised operation – to have one single, highly secure, standardised communication platform at their fingertips as opposed to one that has to handle multiple connections via a range of interfaces and technology protocols.
The creation of a single, unified approach allows corporate workflow to be captured and managed more efficiently. A treasury department which can clearly see the status of cash positions, in real time, and is able to consolidate and aggregate disparate data, is empowered to coordinate better decision making within the organisation. Operating with improved transparency and control, the treasury can move monies around the group more effectively, for example to cover funding requirements and minimise overdraft and other costs.