HSBC introduces seven-day cash concentration solution - Trade Treasury Payments

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HSBC introduces seven-day cash concentration solution

HSBC has launched a cash concentration solution for its corporate clients to manage their in-country liquidity seven days a week.

Cash Concentration, also known as ‘sweeping’ or ‘zero balancing’, is a service that can transfer funds between two of a customer’s accounts so they can be consolidated for other functions like investment or loan repayment. 

Traditional cash concentration solutions, which tend not to operate on weekends and holidays, can leave some corporations without the ability to consolidate their account for days at a time, which can have a significant impact given the rise in real-time processing.

HSBC’s new solution, which is initially available in the UAE and Egypt, can help company’s improve liquidity and reduce borrowing costs by allowing them to manage sweep execution and intercompany position parameters every day. The bank plans to expand the service to more regions throughout the year.

Manish Kohli, Head of Global Payments Solutions at HSBC, said: “As global businesses operate in an increasingly real-time environment, liquidity management must keep pace. HSBC’s seven-day cash concentration solution ensures that companies can optimise their working capital every day of the week, enhancing efficiency and financial flexibility, whilst taking the first step towards building a real-time treasury.”

This initiative is part of HSBC’s broader strategy to enhance digital banking and treasury management capabilities. By leveraging technology and automation, HSBC aims to provide corporate clients with more efficient tools to manage working capital and navigate the evolving financial landscape.