Bank Connectivity: The Key to Success?
July 16, 2021
Connectivity is key – A common saying gaining more and more momentum in current times; does this also apply to commercial banking? Multibanking is a generally known term for software solutions that allow customers to connect and access all bank accounts across banks in one central banking platform, thus achieving connectivity. But what makes bank connectivity so crucial in today’s economy?
In a traditional corporate setup, finance and treasury teams rely on separate logins for each banking partner for their day to day operations. Consequently, providing ad-hoc answers to essential questions regarding the company’s cash such as total cash at hand, currency mix and liquidity per entity seems almost impossible. Preparing the relevant information requires repetitive manual work retrieving data from multiple tools and data sources. These time-consuming and error prone activities result in delayed information and prevent decision-makers from optimizing their cash effectively. In contrast, a Multibanking solution allows companies to connect all bank accounts across all banking partners, entities and locals into a central platform, saving valuable time and enhancing data quality. The bank agnostic connectivity provides clear visibility of the company’s cash position is of fundamental value for any finance team supporting essential financial decisions and strategic business objectives.
A centralized Multibanking solution becomes more advantageous in today’s increasingly complex environment. Companies must balance and monitor multiple risk factors in their daily operations: Keeping covenant limits, managing internationally distributed operations, potentially including exchange rate risks, while remaining fully compliant becomes more challenging when working with decentralized managed banking relationships. Unifying and optimizing your company’s banking is, therefore, a core requirement to address all these interrelated problems more effectively and mitigate risks.
Connecting all accounts across banking partners in a central system enables reliable real-time liquidity management. Such a connected Multibanking solution creates company-wide transparency over cash positions and currency exposures based on complete, reliable, and timely data. This foundation allows you to manage your liquidity accurately and confidently.
The Financial Navigator’s Multibanking feature provides exactly this connectivity and visibility. It provides an integrated cash management solution that automatically consolidates your liquidity position. The Financial Navigator delivers timely and accurate global cash visibility across banks, geographies, and corporate structures. Our in-house banking feature tracks all inter-company credits and investments centrally, providing maximum transparency and supporting your compliance. As a result, you will receive a reliable and up-to-date liquidity overview. The Financial Navigator frees your finance team from repetitive manual work through process automation and reliable banking connections. This allows finance teams to spend more time on higher-value tasks, supporting decision-making activities.
Our Multibanking feature allows you to:
- Stay up-to-date with real-time liquidity information
- Analyze and display liquidity data tailored to your needs
- Have full cash visibility over all credits and investments