CASH POOL AGREEMENT MANAGEMENT APPLICATION

ORGANIZATION

A multinational financial services conglomerate operating in 56 countries specializing in commercial lending and leasing. The company manages millions of dollars every day, serving thousands of business units, guaranteeing business unit commitments to their customers, collecting money from business units, and paying banks internationally for letters of credit.

CHALLENGE

One of the services provided by the Treasury team is the management of Cash Pool Accounts. A cash pool account is a group of bank accounts where funds can be combined to maximize credit and debit positions through a process called cash pooling.

In order for movement of money between accounts to occur, a Cash Pool Agreement (CPA) must be in place between the legal entities of each account. The existing CPA generation process consisted of predominately manual activities and was deemed inefficient.

• Multiple manual or email-based handoffs.
• Manual document generation and management.
• Manual identification of approvers and signers.

THE EXISTING PROCESS LACKED:

• Visibility within wing-to-wing process.
• Integration with other treasury systems.
• Ability to amend or terminate existing agreements.

AS A RESULT OF THE EXISTING PROCESS, THERE WERE SEVERAL CONSISTENT ISSUES:

Agreements were:

• Incomplete
• Unsigned
• Missing
• Redundant
• Incorrect approvers were being assigned to review agreements.
• Overall process was lengthy and time-consuming.

The most concerning issue resulting from their existing process was that the client was not meeting regulatory and audit compliance because they were not able to produce approved and signed agreements for all of their cash pool accounts. Overall, with the current process, there was a lack of controllership and organization.

SOLUTION

The XTIVIA solution was a brand-new, robust, workflow enabled web-based application to replace the existing manual process for generating and completing CPAs. Functions of the application include:

• Ensured regulatory and audit compliance.
• Provided enhanced and complex workflows.
• Used the XTIVIA Workflow Framework to support business processes related to the management of CPAs.
• Addressed pain points and inefficiencies of the current process.
• Is flexible and extensible to support the evolving requirements either through system configuration or system extensions as appropriate.
• Utilizes new treasury IT infrastructure.
• Provides rich user experience and seamless integration with other treasury applications.
• Provided electronic document management.

RESULTS

The implementation of the new web-based application provided the client with several benefits, including:

• Regulatory and audit compliant.
• Improved turnaround time and efficiency for processing CPAs.
• Eliminated missing agreements for cash pool accounts.
• Improved automation and standardization.
• Reduced paper usage.

KEY COMPONENTS

TECHNOLOGIES USED

Service Oriented Architecture (SOA)

Business Process Management (BPM)

XTIVIA Workflow Framework (XWF)

Java & J2EE

Enterprise Service Bus (ESB)

Download the Case Study PDF here

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