- How can corporates take their first step to implement a strategy? What should they be focusing on?
EAZ: The first step is to get a full overview of the cash structure in the group, both in and outside the cash pool, from the top accounts down to each individual transaction account in the subsidiaries. Once you have the current view, you can start to pinpoint cash positions that stand out, for example, large EUR positions in a local Swedish entity or excess liquidity in a subsidiary with low working capital needs. Then address those points in your guideline.
We recommend focusing on the source of your headaches. Besides trapped cash, we often see that corporates start with restructuring or eliminating unnecessary FX positions.
- How can Nordea support corporates looking to adopt an FX and liquidity strategy – what do we offer?
EAZ: In Risk Solutions at Nordea Markets, we offer a free deep dive into our customers’ cash pool. We have developed a new advisory product, Liquidity Structure Analysis (LSA), which analyses and presents a detailed and historical view of the company’s cash balances. We then offer a roadmap approach, breaking down and working through the customer’s specific areas of interest.
KJ: On top of that, when you have a clear view of what needs to be done, we can take care of the implementation – without you having to spend a single minute on it. Through our AutoFX offering, we ensure the job gets done, from monitoring, calculation, hedging and trading all the way to accounting.
Many companies, big and small, are discovering the benefits of automation. We previously shared the stories of L&T and Thule Group, which have both used automation to revamp their approach to liquidity management with great success.