Volante Technologies announces best practices on “How to build an in-house corporate bank”
Whitepaper explores opportunities, challenges and potential pitfalls of establishing an ‘in-house bank’ approach and how to address the technical complexities of managing financial standard complexities
NEW YORK, LONDON, DUBAI, MEXICO CITY, 25 November, 2013 – Volante Technologies, a global leader in the provision of financial data integration tools, today announced its corporate treasury best practices on ‘How to build an in-house corporate bank’.
After supporting numerous Fortune 500 companies with the integration of their treasury systems, Volante Technologies discusses its experience over the past ten years and offers a checklist of items that a corporation must review when building its own in-house bank. Taking into account business and technical considerations, Volante Technologies takes treasurers through their core competencies of payments, trade/supply chain finance, and investments, and details how these processes benefit when bringing them in-house. Volante Technologies also details some common options designed to help firms manage the integration of the vast array of networks, standards, and protocols inherent to treasury systems.
Says Balaji Kumar Alamanda, CPA, CTP, and co-author of SOX Compliance with SAP Treasury and Risk Management, “Through relevant examples, the whitepaper highlights the best practices required to set up an in-house bank to help firms gain potential cost savings, efficiency gains, and higher straight-through processing rates. It is highly relevant for companies with global subsidiaries, which are trying to improve their liquidity management capabilities, as their cash tends to be concentrated into a few main accounts. With an in-house bank, the corporate treasury improves visibility into its global cash and also increases investment income.”
Many companies establish in-house banks by default, adding new treasury capabilities slowly over time. Initially, these modified systems are likely to be highly effective. However, as business processes start to change, these corporate treasuries lack the necessary flexibility required to adapt their systems to the new information flow. This is especially true when these organizations grow beyond national borders and have tax and compliance issues of international consequence. In addition to managing increased financial complexity, corporate treasuries must also address the integration of inconsistent and rapidly changing messaging standards. As the whitepaper explains, that is when Volante Technologies recommends separating technology responsibilities from the corporate treasury functions.
Commenting on the whitepaper, VijayOddiraju, CEO of Volante Technologies states, “Over the past few economic cycles, we’ve noticed a trend in organizations looking to build their own corporate treasury infrastructures. We’ve worked with scores of these firms, implementing processes and integrating systems to ensure their compliance as regulatory demands change. It is this experience that inspired us to publish the white paper. Over the past decade we have seen some definitive patterns and clear solutions and it is these components that we have documented as best practices to aid other organizations with the integration of their in-house banking processes and to ensure they are as risk-free as possible. The efficiencies of an in-house bank are definitely worthwhile, but precautions must be taken to avoid the worst possible outcome if there are errors in processing these highly-regulated corporate financial transactions.”
By using a neutral third-party to insulate corporate treasuries from their own maintenance of complex domestic and international financial standards, treasurers can assemble the best business applications and the most appropriate partner institutions to fulfill the vision of creating an optimal in-house corporate bank.
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Media Contact: On behalf of Volante Holly Finn Aruna Inalsingh Streets Consulting Tel: +44 (0)20 7959 2235 Tel: +1 (917) 553-3790 Holly.Finn@Streetsconsulting.com Aruna.email@example.com