Deutsche expands cash concentration capabilities in Asia

Deutsche Bank has announced that it has recently expanded its global cash concentration (GCC) capabilities within the region. The new platform, which aims to help global corporations better manage their liquidity needs, complements Deutsche's existing real-time and multi-bank reporting services, including db-direct internet, its online platform that allows users to receive information on accounts held in its other branches and with other correspondent banks.

Although GCC was launched in October 2005, the announcement comes as Deutsche has been mandated by Celanese, an industrial chemical corporation based in Dallas, Texas for use for its Asia-based US Dollar positions.

According to Deutsche, its GCC platform allows clients to consolidate their US dollar and euro positions into target locations and also allows for recalling of funds from target locations to cover deficit balances and the movement of surplus end-of-day funds between Asia, the US and Europe. In addition, the platform helps global corporates with Asian offices to mitigate the complexities associated with liquidity management within the region as a result of the different cultures, traditions, regulations, clearing systems and taxation rules.

“Deutsche Bank’s expanded GCC capability leverages on the current domestic cash concentration capabilities in Asia,” says Kok-Keong Tay, head of liquidity management and account management services, global transaction banking – Cash Management of Deutsche Bank. “Namely, it enables automated conversion of local and third currencies into US dollar or euro and subsequently automatically moving these funds across the different regions. This serves to give clients access to their funds as and when they are required, regardless of time zones. By maintaining collaborative relations with our clients such as Celanese, we are able to provide innovative cash management solutions that will best meet our clients’ needs.”

Also on offer are same day funds availability services, where funds are automatically available on a same-day basis and skip the traditional float associated with moving end-of-day balances. Clients hooked into the GCC solution are also offered cover funding provision wherein funds are transferred to overseas locations to cover the deficit balances, thus eliminating the often costly source account overdraft positions.

““We are pleased that Deutsche Bank has expanded its already extensive suite of liquidity management products to include global cash concentration for our US dollar positions,” says Hildegard Beck-Westenberger, head of cash management, corporate treasury of Celanese. "With the new capabilities, we are able to move US dollars effortlessly from our Asian offices to any of our offices in the US or Europe within the same day. When we need access to our funds, we merely recall them from our targeted locations. The global cash concentration capability automates a process that used to be manual and tedious, allowing treasurers to tighten control over their funds' management as well as their daily cash forecasting position."