hsbc-snaps-up-indonesia-cash-mandate

HSBC snaps up Indonesia cash mandate

HSBC will provide cash management services to car and motorcycle finance company Indomobil Finance.
HSBC has won a mandate to provide cash management services to PT Indomobil Finance Indonesia (IMFI), one of the largest financing companies in Indonesia's car and motorcycle sector.

The mandate forms part of the bankÆs ambition to expand its presence in Indonesia and follows its recent bid for an 89% majority stake in IndonesiaÆs Bank Ekonomi. HSBC has also launched a tender offer for the remaining 11%. The acquisition, which is subject to regulatory approvals, will give it access to Bank Ekonomi's 90 branches in over 20 cities across the country.

Meanwhile, the new cash management mandate will give Indomobil Finance full visibility across its cash positions, including the ability to identify incoming payments on a real-time basis. The company's collections and receivables will be further streamlined and its overall working capital management will be improved, the bank says.

"In the current market environment, where collection risks are increasing and the cost of credit is rising, it is important that companies manage their cash flow efficiently by implementing a robust receivables management solution," says Sunil Veetil, head of global payments and cash management at HSBC Indonesia.

"As one of the largest automotive financing providers with over 286,000 customers across Indonesia, this solution will help IMFI manage its risk better, reduce its cost of collection and also optimise its liquidity."

The new mandate allows all banking activities to be consolidated with HSBC via the bank's internet-based electronic banking platform HSBCnet, which will be integrated with IMFI's back office system.

"As one of the largest players in the multi-finance field, Indomobil has a large customer base spread across the country,ö adds Jusak Kertowidjojo, president director of IMFI. ôCollecting instalments from our customers cost effectively with minimal inconvenience is extremely important."

HSBC provides personal financial and corporate banking services through 105 outlets in Indonesia, across eight major cities. IMFI has 189 branch offices and outlets across the country.

HSBCÆs increase in staff numbers for cash management in Indonesia from 24 to 46 this year attests to is commitment to expand its Indonesian footprint, Veetil says.
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