Globalization has brought new challenges to the treasury and liquidity management arena. It requires solutions that integrate local and regional needs within a framework of a focused global strategy to optimize working capital, manage risk and maximize earning potential. Blurred time zones, the increasing commonality of cross-border transactions and differences in local banking practices pose significant obstacles to effective management of one of the corporation’s most precious commodities—its liquidity.

Clients are best served by reducing these complexities and can benefit from a fully integrated product offering that drives down the cost and difficulty of managing global cash flow and liquidity management needs. Client focus is increasingly shifting toward strong regional banking solutions in conjunction with robust global capabilities to meet their overall cash management needs. Reducing costs, improving operational efficiency, streamlining process flows and automating tasks that were previously performed in a manual environment are paramount. Also, the regulatory environment is forcing corporations to maintain better control of their cash flows.

A Newly Expanded Service
As a leading global provider of US dollar and euro cash management services, Deutsche Bank offers a same-day cross-border Global Cash Concentration (GCC) solution. GCC enables an organization to manage its treasury position from a single centralized location. Already providing US dollar cash concentration between Europe and the United States, Deutsche Bank recently extended its global reach to include Asia while introducing euro capabilities. The Bank’s GCC service is ideal for clients concentrating both their US dollar and euro positions between Asia-Pacific and the United States. This newly expanded GCC service has been designed to provide worldwide solutions for funds concentration.

These solutions are structured to help centralize cash positions currently held across multiple entities—irrespective of their locations. Centralizing cash into a single account position at a global level on a daily basis allows for greater transparency to shortfalls and reduces interest charges. Clients also benefit from greater opportunities to gain increased control over cash flows, reduce their liquidity risk and maximize the earnings potential of surplus balances.

Efficiency of Balances
GCC reduces concern about stranded liquidity or a missed opportunity to move idle funds. Based upon pre-defined setup parameters, the automated GCC transfer feature works off of the source account’s end-of-day cash position to calculate balance transfers. This ensures that all late-day credit/debit positions have been previously posted to the account and no missed cash projections occur.

Cover Funding Provision
GCC makes certain that in those instances when the source account has ended the local business day in a net overdraft position, the target account will provide cover funding to minimize the costly debit interest earnings imposed.

A Look Forward
As corporations expand their business into different parts of the world, providers will need to accommodate their broadening needs. In this highly competitive and regulated marketplace, it is critical to offer innovative solutions that impart increased control on a global level.

Deutsche Bank GCC assists in providing global centralized treasury management—without the restraints associated with regional processing. This newly expanded service offers a true global overlay in addition to strong intraregional capabilities—meeting the needs of corporate treasurers today and tomorrow.