In-House Banking Outsourcing Solution
Client Profile: US Headquartered company operating in the tech sector with annual revenue of approximately $3.7 billion and operating on a global basis through the Americas, Europe, Asia and ACPAC.
Client Problem: This clients Target Balancing Arrangement is used to access cash from its global subsidiaries and the client needed to have this efficiently managed in a cost effective and secure manner. This client also wanted to run regular intercompany netting cycles to deflate the balance sheet and eliminate FX risk at a local subsidiary level.
FTI Solution: FTI manages the IHB operations of this client including the daily management of their target balancing arrangement, management of netting process including software and also the management of a large intercompany loan portfolio. We also provide a balance sheet and cash flows FX hedging services to this client from the IHB. Additionally a cash forecasting service is provided to this client using dedicated forecasting software which we have fully integrated with their banking information systems and ERP system.
FTI looks after the management and statutory accounting/reporting requirements of the IHB and provides an accounting upload file for automated consolidation purposes.
This solution means that he client has a full turnkey IHB management service at a fraction of the cost of creating the necessary infrastructure, resources and systems internally