In an ‘organization,’ Cash Management is the discipline of managing a company’s short-term resources to mobilize funds and optimize liquidity in order to sustain its ongoing activities. The most important elements are:
- The efficient utilization of current assets and current liabilities of a firm throughout each phase of the business operating cycle.
- The systematic planning, monitoring, and management of the company’s receivables, payments and account balances.
- The gathering and management of information to use available funds effectively and identify risk.
In a ‘bank,’ Cash Management is a product design and management organization whose aim is to develop and implement market relevant solutions that, when executed flawlessly, attract deposits for lowering credit funding risk. It is a low-risk critical component to the future of a bank’s longevity and growth. Banks that understand how they fit into their client’s value chain focus on the following Cash Management functions:
- Receivables solutions for accelerating and efficiently collecting, matching and reconciling cash inflows.
- Account services for concentrating collected funds.
- Payables solutions for controlling the timing, matching and reconciling of cash outflows.
- Information solutions for forecasting the cash position.
- Supply chain solutions for securing adequate sources of short-term funds.
- Liquidity management solutions optimizing use of any temporary cash surpluses.
- Information management solutions for:
– gathering timely information.
– forecasting cash positions to monitor, manage, and control the cash position.
AppliedTechonomics helps banks craft and implement market relevant solutions and award-winning channels that reduce operating costs and optimize liquidity for both bank and bank’s clients.
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