02/02/2011
IT2 Research Highlights Importance of Cash Visibility Across Organisations
New research has confirmed that many treasury departments are
actively engaged in continuous operations to improve their cash
visibility, finding that at present the estimated level of
visibility of cash as a percentage of the total cash in the
organization is 78%.
- General drive to increase visibility
- eBAM implementation approaching more treasurers'
radars?
The research, undertaken by IT2 Treasury Solutions, a leading
provider of treasury management software to corporate treasuries
and financial institutions, also found that in the next three
years, responding treasurers projected that the level of visibility
of cash as a percentage of the total in the organization treasurers
will rise to 91%.
Looking at ways to improve cash visibility, the survey found
that, over the next three years, treasury departments are
prioritizing: timely and accurate cash forecasting (68%);
rationalizing bank accounts and/or communication (58%) and
improving cash position reporting (58%).
Kevin Grant, CEO, IT2 Treasury Solutions, comments: "For all
organisations that are striving for greater cash visibility, most
are planning to achieve this by centralising the cash positioning
and forecasting processes, and are looking to improve the controls
around these workflows by using treasury management technology more
effectively. There may not be an economic case for going for 100%
visibility, but there is a growing consensus that a figure of above
90% is valuable - and achievable."
Treasurers were also asked about their attitude towards
Electronic Bank Account Management (eBAM), which allows a company
to open, maintain and close banks accounts electronically. The
survey found that 18% of respondents are planning to implement eBAM
in the next three years, with 12% planning to do so at some point
after this. A growing number of treasurers are identifying eBAM as
a valuable advance in bank account management, bringing greater
reliability, control and transparency to this aspect of cash
management.
Commenting on this finding, Kevin Grant added: "eBAM's primary
benefit is to decrease operational risk by accelerating,
streamlining and securing the bank account administrative process.
Therefore, it is surprising that eBAM is not a priority on more
treasurers' radar, especially given that the additional benefits it
brings are close to the top of the treasurers' agenda: increased
visibility and control on the global cash position and bank
exposure. I expect eBAM adoption to increase in the coming months,
as its benefits become more generally accepted by the treasury
community."
