Following a successful proof of concept, Bank of America is working with a Silicon Valley based fintech to bring to market a solution to address one of the top issues impacting corporate treasurers: how to effectively and accurately forecast their cash position. Currently, businesses face the problem of relying on time consuming and inaccurate cash forecasts, leading to suboptimal working capital and liquidity decisions.
“In today’s world, companies must rely on manual, repetitive work to forecast their cash needs, which oftentimes leads to stale and inaccurate results. Further compounding the situation, companies may need to make strategic decisions based off that old or erroneous data or otherwise put off the decisions and miss critical opportunities,” said Jo Miyake, head of Cross Product Solutions and Commercialisation in Global Transaction Services at Bank of America.
“We believe our solution will be transformative in helping companies receive that strategic intelligence closer to real time while also releasing key staff from performing manual work,” Miyake added.
The solution, which will be called CashPro Forecasting IQ™, follows a recently completed proof of concept involving select number of bank clients. The innovation is expected to use machine learning technology to more accurately predict future cash positions across a client’s accounts at Bank of America and other banks. CashPro Forecasting IQ™ will enable clients to streamline and improve the accuracy of forecasting without the need for any IT investment.
The forecasting tool is expected to be incorporated into Bank of America’s CashPro® platform, which is used by 500,000 users among the bank’s corporate, commercial, and business banking clients to manage their everyday treasury and lending needs. Bank of America’s leadership in digital banking for businesses is centered on CashPro.