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Cash management is the process of managing short-term liquid assets by controlling and safeguarding deposits, payments and transfers in order to meet requirements and regulations as well as balancing the cash flow. Financial institutions rely heavily on this process and must have a compliant treasury department that’s able to adapt to the changing industry trends. Banks can no longer get away without implementing cash management solutions in their organization. To cut costs and gain more efficiency, banks are rapidly moving towards an optimized software solution for cash management.
Do you have your own company? Are you the main responsible person for your company’s bank statement to be accurate in time? If so, you might feel the need for using some kind of software or program that will help you to have a neat way to deal with your cash flow. It is not just bureaucracy, it is also convenient and in fact, it will help you to always remain successful. We are talking about the cash management software. A tool by which you can take care of your bank transactions and always make sure they are on track.
This article will take you to my personal experience of using Quyasoft.com which is a cash management software for Banks that i experienced one of the best software available and easy to use also it’s more easy to learn .
Cash Management Software For Banks
A bank’s cash management system is used to manage the bank’s cash and liquidity. The goal of a cash management system is to maintain an adequate amount of cash in the bank’s vault while also keeping enough money on deposit at any given time to meet demand. As such, there are many different factors that go into determining how much money should be kept in the vault at any given time.
For example, if a bank has a lot of customers who like to use their ATM cards or write checks during non-business hours, then it would make sense for them to keep more money on hand at night than during the day. Another factor affecting how much money should be kept in the vault is whether or not there are any upcoming holidays or other special events that will cause an increase in demand for cash from customers. If a holiday falls on Monday but banks are closed until Tuesday morning, then banks will want more cash available on Monday than they would otherwise need so that they can meet customer demand when they reopen after the holiday weekend.
Quyasoft Cash Management System provides an easy way for banks to keep track of all these different variables so that they can make sure they always have enough money available for their customers’ needs!
A cash management system is used to forecast, track, and report corporate cash flows. The solution is especially helpful to manage cash flows (including in various currencies) across multiple, including international, company branches and across complex bank account structures.
Cash management software integrates with ERP, accounting software, and bank accounts. Implementing a custom cash management system of average complexity may take 6 – 12 months, while building a high-end solution may require a minimum of one year. Average costs for building the cash management system are $150,000 – 400,000, depending on the solution complexity.
Annual ROI for custom cash management software may reach up to 230%. An average payback period for a custom cash management solution is about 6 months.
Features
Cash Management
The Cash Management module allows the user to set up multiple accounts for the customer in a variety of currencies and to pay interest on it less a nominal handling fee. It can also be configured to take a monthly account maintenance charge if that is what your business model requires. Similarly one or more debit cards can be attached to the account.
Payments and Transfers
The Payment Module enables the user to initiate payments in a variety of formats SWIFT, BACS, FPS, CHAPS and to deliver those payments electronically to their clearing bank for action. The accounting for those transactions and the deduction of the appropriate commission is automated.
Customer Internet Access
For those Cumulus customers who require it Internet access can be given to the virtual account holder to provide a better customer experience and to automate the payment process making valuable savings in terms of efficiency and accuracy.
Cash Management Techniques In Banks
Top level of cash management in every county is associated with work optimization of national banks who operate as regulatory body and sometimes as market constituent.
Due to the specifics of legislation and regulation, the structure of the organization and the process of managing cash circulation can differ significantly.
1. Centralized model
National Bank is a crucial part of the national cash distribution cycle. It operates through its branch network as a main storage, processing, and distribution center. The Central Bank is present and controls the entire cash circulation cycle. This model is mainly used in developing countries.
2. Joint venture model
A joint venture is created between the national bank and commercial bank. Both sides also act as shareholders. This joint venture deals with all aspects of trade and logistics of the national currency, thus optimizing operating costs. This model is often the main direction for the further development of cash circulation in developing countries.
3. Partial delegation model
The National Bank delegates certain cash handling operations to affiliated contractors. Authentication, sorting, as well as the distribution of cash for the commercial sector (commercial banks, merchants, and collection services). Currently, a significant number of countries in the world use this model for partial outsourcing of their activities.
4. Full delegation model
Commercial banks and independent CIT companies take responsibility (and cost) for all transactions. The National Bank is not present in the money supply cycle, except for the processes associated with the issue and control of the disposal of banknotes and coins. The countries of the Eurozone, as well as the United Kingdom, Norway, and the United States, operate approximately in this model.
Activities of National Central Banks in cash circulation
To organize and control an effective cash circulation in the country, the central bank needs to control and set optimal operating rules for all cash circulation cycles. Cash Management software allows companies to optimize the logistics and supply chain, working capital, surplus cash, which leads to a decrease in the financial costs of national banks and commercial banks.
Tasks of Central Banks for cash flow optimization:
- Improving the organization of cash circulation;
- Planning, forecasting, and optimization of cash flows;
- Improving the organization and planning of transportation;
- Improving the organization and planning of cash processing and storage;
- Reducing the cost of organizing and maintaining cash circulation;
- Generation of the optimal list of denominations for each cash point;
- Introduction of new technologies;
- Counterfeit protection;
- Improving the cash management services of banks;
- Control of the processes and participants of the cash circulation
Each cash circulation project, requires a complete cash management solution, software, and hardware capabilities to handle the tasks. Cash Management in banks is a crucial part in the optimization of human resources, cash circulation expenses, and improves the overall risk management by providing various real-time monitoring and forecasting tools.
How to Choose the Ideal Cash Management Software Solution
As the role of the corporate treasurer continues to become increasingly complex, many are turning to automation and software in a bid to keep on top of day-to-day tasks.
A common example is cash management software – a solution often turned to by time-pressed treasurers looking to improve efficiency, and security in an operating environment where organisations are facing cash management challenges daily.
Successful treasury cash management involves gaining clear visibility of the cash management situation so that the cash flow situation is known, liquidity can be enhanced, days in account receivables reduced, collection rates increased, and overall financial profitability boosted. All of the above can be helped with the right cash management solutions.
An effective cash management solution, or ‘payment factory’ enables an organisation to centralise, automate and streamline payments and cash management within business units or across an entire organisation. This results in improved operational efficiencies, mitigation of risk, greater cash visibility and reduction in costs.” According to Craig Jeffery, managing partner of Strategic Treasurer, the benefits of cash management software fall into each of the elements of the FIVEC model: flexibility, insight, visibility, efficiency, and control. Some key examples provided by Jeffery include:
- Real-time visibility into your bank accounts anywhere in the world by country, currency, or bank. The best solutions offer connectivity to each of a client’s banks so that data can be pulled automatically from bank portals/systems as it becomes available and displayed centrally through a single interface.
- Flexible dashboards that let management and operations view a) items that require attention b) limits and policy compliance c) risk levels d) custom views. These dashboards commonly include “drilldown” functionality that allows users to view additional information on any items of interest.
- Automatic control of processes within the system; this can include security controls for reducing the risk of fraud, and control over specific workflows so that processes/dashboards/views can be customised to fit client preferences.
- Powerful accounting logic reducing time required to support the recording process and cutting back on errors. Many leading cash management solutions can also easily integrate with a client’s back-office systems, such as an ERP, for streamlined reporting and accounting workflows.
- Better risk management functionality – from gathering exposures, to executing trades and handling the reporting.
Selecting the Cash Management Software Solution
The benefits of cash management systems are clear – so what steps can a company take to ensure they end up with the right software solution? “Start with the ultimate business case and business goals and work backwards,” says Conor Deegan, managing director, Cash Analytics. “The features offered by cash management software can be quite broad and therefore the benefits provided will depend on the exact use case. So, clearly define the top one, two or three things the new software solution must do and engage with vendors who have a clearly demonstrated offering and track records in these areas.
After this, you will want to see the product in action, understand how company specific requirements can be met while also getting an insight into how other clients of the vendor use the solution. “A full suite cash management solution will have payment, bank reporting and cash flow forecasting capabilities. The market demand is for better and more advanced analytics solutions, from all vendors. Simply automating a process is no longer good enough. Companies now want vendors to help them do things dramatically better than done in the past, not just slightly better.
Jeffery adds: “For any company seriously considering the adoption of a cash management solution, there are two primary questions that must be answered. “Firstly, what does my technology infrastructure need to look like so that my current requirements are met without jeopardising future developments and growth? This question requires treasury to consider both their current and future requirements. What functionalities and capabilities do I need now and in the foreseeable future, so we intentionally avoid creating systems that become obsolete in the short-term. “Secondly, who are the major players in the space and how do the vendors themselves compare to one another?
Once a firm has a solid understanding of both current and future state needs, they must then look at the vendor landscape and determine which solution provider is in the best position to meet their needs. “For effective research it is important to include multiple points of analysis. For instance, factors in focus should include areas of functionality, customer service structure, number of current clients, financial strength, cost and the trajectory for future growth and R&D. The benefits of adopting a solution depends on more than just the solution itself. Researching various elements of the landscape can help identify the right provider and solution.”
Software features
To help with choosing the ideal cash management solution, Marshall says there are several significant requirements for any cash management solution:
- Secure sign-on and multi-factor authentication
- Centralised real-time/intra-day statement reporting. This is becoming a key pre-requisite for corporates as end of day reporting is insufficient for today’s treasury functions
- Multiple payment workflows – e.g. Bacs, local ACH, SEPA and connectivity to the various platforms.
- Seamless integration with external systems and the transformation of different types of data
- Cloud services – corporates are now looking for a complete outsourced service hosted on the vendors own infrastructure
- Robust multi-bank connectivity
- Full audit of all user/payment activities
- Risk and compliance – Cyber Fraud & Risk Management tools increase organisational security giving central visibility into user behaviour across an organisation. Strict control around the payments and processing functions will help to reduce fraud losses and data theft. Effective sanctions screening also helps to ensure compliance with sanctions and anti-money laundering requirements
Ongoing support
As well as the features of the software solution, Deegan points out that it’s important for treasury departments to have access to effective ongoing support – and to look for this during the search for a suitable solution. “Business hours phone and email support from a vendor provided to all users of a system is now the industry norm,” he explains. “Service has become a huge part of software offerings and companies now have very high expectations regarding the service provided by their software partners.
From a technical perspective, Service Level Agreements (SLAs) should outline official response and resolution frameworks but in most instances, the customer should not need to reference an SLA due to the vendor taking a proactive approach to solving the problem.”
Conclusion
Cash management software, also known as Cash Manager Software or Banking Solutions Tools, is an application used by banks and other financial institutions to create and monitor reports on the cash flow of their business. If you are looking for such a program that is able to offer you the possibility to manage your cash flow in real time and generate information which will help you make crucial decisions, this kind of software may be just what you are looking for.