Deutsche Bank Makes Three Announcements on Eve of AFP Conference

On the eve of the Association for Financial Professionals’ annual conference in San Francisco, Deutsche Bank has made three announcements regarding: a new cash concentration product for Brazil; enhancements to its financial supply chain management platform; and a new receivables capability for its FX4Cash platform.

First, Deutsche Bank has launched a cash concentration product for corporations with multiple subsidiaries in Brazil. The product is structured as a credit receivables mutual fund and leverages Deutsche Bank’s strength in custody. Clients benefit from maximum cash flow optimisation with centralised liquidity for multiple legal entities, improved working capital management with flexible control for account receivables and account payables as well as effective risk management.

Second, the bank has also announced the launch of a new financial supply chain management (FSCM) platform that brings together the power of its trade and cash management capabilities. The platform will offer flexible financing solutions and be fully integrated with payments, reporting and SWIFT’s trade services utility (TSU). The standardised platform will be global and will offer both multi-currency and multi-lingual capabilities.

Additionally, the bank is in the process of augmenting its risk management methodologies to provide more flexible, event-driven finance.

Working alongside Deutsche Bank, Navdeep Gupta, director, treasury, Advance Auto Parts, said: “The average days payable outstanding with our vendors was 120 days, which put a lot of pressure on our working capital. We were essentially financing 98 days worth of inventory from balance sheet funds. Our challenge was to close that gap and given the restrictions we have around days inventory outstanding management, we chose to target the DPO. We decided to collaborate with Deutsche Bank after evaluating financial service providers on the basis of funding amounts available, cost of funds, their ability to support us in getting suppliers on board and the up-front IT costs that would be involved in implementing the solution.”

And third, Deutsche Bank has launched FX4Cash Receivables to handle incoming foreign currency wires to corporates, financial institutions and non-bank financial institutions. In the base currency of a client’s choice, Deutsche Bank is able to convert and remit funds to their designated account in up to 40 foreign currencies.

FX4Cash Receivables allows clients to streamline receivables processes, simplify settlement instructions communicated to remitters and consolidate the number of local in-country accounts maintained. Additionally, reporting is available with full details to help reconcile open account receivable items.


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