Bert van Drie, Global Head Cash and Liquidity Management, ING and colleague Elly Bouwman, Customer Journey Expert Cash and Liquidity Management, discuss the benefits of establishing real-time cash management through centralisation.
In today’s rapidly changing world, the focus of the treasurer is continuously changing. With interest rates fluctuating, managing real-time cash positions, processing payables and receivables, and cash flow forecasting have become crucial in enabling treasurers to take advantage of the investment opportunities that stem from excess liquidity.
Centralising these activities helps treasurers to manage their risk and ensure that their financial needs are met. If corporates are impacted by geopolitical instabilities, cash management can become especially important. Companies need to be able to respond quickly to changes in the marketplace – and this requires effective cash management. Another focus for treasurers is the impact of inflation. Increases in the price of goods and services can have a huge impact on FX positions.
Treasurers can benefit from Virtual Cash Management
Through centralisation, Virtual Cash Management (VCM) is designed to help companies optimise their cash positions and gain real-time access and control. It is a unique combination of two solutions that can work separately or together to provide full real-time cash concentration and control, while also managing intercompany positions. The two solutions are Virtual Bank Accounts (VBA) and Virtual Ledger Accounts (VLA).