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Deploying an Automated Cash Management Solution to Avoid Costly Error

By September 24, 2020 No Comments
Deploying an Automated Cash Management Solution to Avoid Costly Error

Traditionally comprised of rather standard activities, the risks associated with the cash management process have grown exponentially over the years as firms continue to deal in high value transactions. Without the proper technology in place, many are forced to rely on the accuracy of esoteric manual functions, mainly within the wire approval process where a simple mistake can lead firms down a path of lawsuits and hefty fines.

In fact, several alternative fund managers have recently found themselves facing this issue as a result of millions of dollars in mistaken payments by a large global investment bank, proving that cash wires are far from a solved problem due to the costly ripple effects that one error can have. If the global investment bank at hand had previously harnessed the benefits of automation and technology, the error in question would have been flagged and immediately rectified before distributing large lump sums of money that is now proving to be difficult to return.

It is important to note that these risks associated with cash management are due in part to the error-prone and time-consuming nature of functions that have been used over the years that require firms to manually track, map, input and verify banking details for every beneficiary, custodian and intermediary account through paper-based wire management processes. However, with the implementation of fully automated wire generation, firms can avoid error and harness several benefits that will lead them to heightened levels of accuracy and efficiency, including:

Benefits of IVP Cash Master

  • Integration with SWIFT so that features such as SWIFT gpi tracker, acknowledgement and message confirmation can be easily used to track and update the status of payments directly within the system
  • Electronic Wire Forms that are built to replace paper-based processes, enabling straight through processing with a full audit trail
  • Communication with banks through SWIFT networks, including additional communication modules for cases of urgent payments or issues that require immediate attention and should be flagged
  • Single Wire to net out multiple payment instructions
  • Validations on overdrafts, crossing currency cut-off dates and available cash balance that provide users with checks and alerts to reduce the back-and-forth communication with banks should a payment fail
  • Enhanced Security with built-in fraud detection and automated notifications using the Office of Foreign Assets Control’s (OFAC) international sanctions list to alert users of payments that should not be made to certain accounts

By leveraging automation through off-the-shelf technology and services, firms are provided with simple, cost-effective tools, resulting in more robust controls and processes that are specifically designed to handle the high value transactions they deal in on a daily basis.

With the assistance of IVP Cash Master, IVP’s automated cash management solution, managers can avoid the mistakes associated with their manual wire management processes and maintain heightened levels of transparency that will enable them to continue operating with a clear conscious. To learn more about the benefits of IVP Cash Master, visit IVP CASH MASTER or contact sales@ivp.in.

 

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