Press Release: Companies focus on cash visibility

Feb. 1, 2011--New York--New research has confirmed that many treasury departments are actively engaged in continuous operations to improve their cash visibility, finding that at present the estimated level of visibility of cash as a percentage of the total cash in the organization is 78%.

The research, undertaken by IT2 Treasury Solutions, a leading provider of treasury management software to corporate treasuries and financial institutions, also found that in the next three years, responding treasurers projected that the level of visibility of cash as a percentage of the total in the organization will rise to 91%.

Looking at ways to improve cash visibility, the survey found that, over the next three years, treasury departments are prioritizing:
-- Timely and accurate cash forecasting (68%)
-- Rationalizing bank accounts and/or communication (58%)
-- Improving cash position reporting (58%)

Kevin Grant, CEO, IT2 Treasury Solutions, comments: "For all organizations that are striving for greater cash visibility, most are planning to achieve this by centralising the cash positioning and forecasting processes, and are looking to improve the controls around these workflows by using treasury management technology more effectively. There may not be an economic case for going for 100% visibility, but there is a growing consensus that a figure of above 90% is valuable--and achievable."

Treasurers were also asked about their attitude towards Electronic Bank Account Management (eBAM), which allows a company to open, maintain and close banks accounts electronically. The survey found that 18% of respondents are planning to implement eBAM in the next three years, with 12% planning to do so at some point after this. A growing number of treasurers are identifying eBAM as a valuable advance in bank account management, bringing greater reliability, control and transparency to this aspect of cash management.

Commenting on this finding, Kevin Grant added: "eBAM's primary benefit is to decrease operational risk by accelerating, streamlining and securing the bank account administrative process. Therefore, it is surprising that eBAM is not a priority on more treasurers' radar, especially given that the additional benefits it brings are close to the top of the treasurers' agenda: increased visibility and control on the global cash position and bank exposure. I expect eBAM adoption to increase in the coming months, as its benefits become more generally accepted by the treasury community."

About IT2 Treasury Solutions Ltd.
IT2 Treasury Solutions is a leading provider of treasury management software to corporate treasuries and financial institutions. The IT2 TMS is a fully integrated best practice solution that supports treasury in its entirety, fulfilling cash, debt and investment, financial risk, treasury accounting and hedge accounting requirements. Founded in 1982, the company is located in New York, London and Hong Kong and serves over 240 customers worldwide, including Abbott Laboratories, Celio, Chiquita Brands, Hyatt, Hysan Development Co., GSK plc, Marriott, Pirelli International, Tyco International, Volkswagen International Finance and Volvo Financial Services.


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