by Aymeric Pourchasse, Treasury Advisory Practice, PwC Belgium
SEPA implementation was considered a compliance exercise only a year ago, but corporates and banks are now starting to perceive it as a key enabler for enhanced treasury efficiency and process standardisation. Among the new SEPA-driven opportunities, the collection factory integrating a Collection on Behalf of (COBO) scheme has become an attractive concept, notwithstanding its associated challenges. Although a lot of corporates talk about it, there are very few that have moved ahead so far. So is COBO a myth or reality?
A collection factory with COBO: what is it?
As one would suspect, a collection factory with an embedded COBO scheme is the mirror image of a payment factory with a Payment on Behalf of (POBO) scheme. A collection factory including COBO can be seen as a processing centre in charge of centralising collections of receivables within a single collecting entity, on behalf of other operational entities.