Cash Visibility Remains Top Concern of Firms Doing Business in Asia

Improving cash visibility remains the top focus of firms doing businesses in Asia, finds a joint survey by SunGard and Bank of America Merrill Lynch.

 

The Treasury Barometer 2013 survey notes that less than 30% of firms see their cash visibility as being optimal.

 

Cash visibility is generally defined as a firm's understanding of how much money they have and where they have it.

 

Combined with a focus on minimizing interest expenses, yield enhancement was cited by over 44% of respondents as a major treasury priority.

 

Approximately 44% of treasurers and treasury professionals will devote more attention to cash concentration, most frequently in the middle market.

 

Of respondents, 38% identify rationalisation of bank accounts as a key priority, particularly in corporations in the highest revenue bracket.  

 

Seventeen percent of respondents to the survey will focus more efforts on enhanced risk mitigation structures 

 

Looking at the use of tools, the report found that 66% of respondents regionally are not using cash flow forecasting tools. Less than 14% are totally satisfied with cashflow forecasting.

 

Technology adoption remains conservative across the region – as demonstrated through the persistent use of spread sheets for cash and treasury management and use of e-banking for connectivity to banks.

 

E-banking remains the preferred method of connectivity with Direct bank host-to-host (H2H) and SWIFT connectivity adoption remaining low across Asia Pacific but results indicate a shift over the next 12-24 months.

 

Just over half of companies manage bank accounts centrally, while a vast majority have no plans to implement BAM.

 

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