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Cash & Liquidity Management
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From Cash Management Bank to Information Bank: Fulfilling a New Role in Cash and Liquidity Management

by Ravindra Madduri, Head of Payments and Cash Management Propositions and Mark Davies, Head of International Corporate Payments, Barclays Corporate

Since the financial crisis, increased globalisation, the emphasis on risk, liquidity and operational efficiency, and a transition from crisis management to strategies for growth, have all had a significant impact on corporate approaches to cash and liquidity management.

In this article, we look at some of the evolving requirements that we are helping our clients to address, and illustrate how we at Barclays Corporate are positioning ourselves to support the cash management objectives of our clients in the future.


Domestic, multi-domestic and international

As companies extend their horizons from domestic to international business, they need to optimise their cross-border payments and cash management activities, and simultaneously support domestic cash management in each of the locations in which they have a significant presence. Not only do they require international capabilities from their bank, they also need partners who have a direct presence, local expertise and experience in managing domestic payments, collections and cash management, often in multiple countries and regions.

In the years leading up to 2008, many corporate treasurers sought a single banking partner to accommodate their international and multi-domestic cash management requirements. In particular, they wanted to avoid the problems of different bank communication channels, integration formats and fragmentation of cash, that working with multiple banking partners can cause. This search typically proved unsuccessful; while a certain number of banks have an extensive global network, the depth of local knowledge and capabilities required in each market can be lacking.