SunGard, which provides its AvantGard liquidity management solution for corporations, has identified 10 trends impacting how corporations approach liquidity management. These trends include:
- Corporations will increase demand for hosting and managed services of their financial applications.
- More organisations will use statistical modelling for corporate credit risk assessment.
- There will be a continued increase in trade financing of suppliers.
- Corporations will more strategically leverage their receivables in their overall capital structure.
- Organisations will continue to increase their vendor/supplier counterparty risk assessment.
- Corporations will adopt more advanced modelling for evaluating foreign exchange (FX) risk.
- As the single euro payments area (SEPA) ‘end-date’ nears, corporations will have a renewed focus on compliance.
- Hub and spoke networks will be adopted to facilitate corporate-bank communications.
- North American organisations will escalate migration from paper cheques to automated clearing house (ACH), electronic funds transfer (EFT) and card payments.
- Corporations in emerging markets will increase their adoption of SWIFT messaging.
Jeanne Capachin, research vice president, IDC/Financial Insights, said: “To succeed and grow in this post-crisis era, corporations will need to capitalise on change and seize new opportunities to generate cash and optimsise liquidity. Atop the priority list of the corporate finance executive is an emphasis on the receivables portfolio as a strategic asset and means to create liquidity. Continued streamlined management of banking relationships and prudent risk management will also be a focus. For many corporations, these initiatives will need to be managed within the context of evolving global business requirements, regional nuances and changing regulation.”
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