Best Transaction Bank for Domestic Cash Management 2020
Ping An Bank
Ping An Bank’s cash management business offers an extensive range of products befitting a wide range of clients, including renminbi cash pool, foreign exchange risk management and business overdrafts. Li Yue, president of the transaction banking department, has led the bank’s drive to establish a cross-bank, cross-border smart cash management platform that allows corporate clients to monitor their bank accounts at partner banks, domestic and international, on a real-time basis.
Over the years, Ping An Bank has identified specific client problems and has found solutions. For example, many of its domestic conglomerate clients have a large number of subsidiaries: some of these clients found it difficult to track cash movements between those subsidiaries, so Ping An built a multi-tier cash pool, allowing its clients to track cash movements between subsidiaries and affiliates closely and to allocate cash to each business unit swiftly.
The bank went further, adding a human-resource management product to its cash-management platform so that companies could manage their employees’ income, bonuses and expenses across all subsidiaries and affiliates.
One of the most notable improvements at Ping An Bank in the last year was to its renminbi cash pool service. The bank noticed that one of its large clients spent a lot of time and energy making sure that its subsidiaries were punctual in paying the interest on their outstanding loans. The client managed all of its subsidiaries’ cash in a centralised cash pool and had to hire people to manually transfer the exact amounts to its subsidiaries on the days the interest payments were due.
To help, Ping An Bank improved its cash pool services and enabled automatic cash transfer from the group’s account to subsidiaries. As a result, the client now only needs to make sure that there are enough funds in the company’s centralised cash pool on the day of the interest payments.