Innovative approaches to improving cash flow

29 April 2016 / Published in Business

Our Transaction Banking team has helped hundreds of large New Zealand organisations improve their cash flow and financial processes.

They’re specialists in finding innovative ways to optimise your cash flow and simplify your processes.

So how can Transaction Banking help your organisation?

Better transaction management means better cash flow

Managing high-volume or complex payment flows can be expensive. It can also create friction in an organisation’s cash flow, slowing down your ability to convert revenue into usable cash.

Our integrated transaction banking solutions simplify processes, reduce transaction costs, optimise returns and eliminate risks.

Our Transaction Banking specialists will invest time with your finance team to understand your business and processes. Our clients often comment on how quickly they analyse even the most complex businesses.

This diagnostic analysis allows the Transaction Banking team to understand every aspect of your cash management, payables, receivables and connectivity requirements, within the context of your strategic goals and growth plans.

They then give you an innovative and integrated transaction banking recommendation. These recommendations are optimal for your immediate needs, and flexible enough to cope with the demands of the future. They identify ways to reduce your strategic costs associated with cash flow management and optimise returns, improve efficiency and maximise your capital holdings.

Sue Tindal, Auckland Council Group CFO, was faced with a huge transformation task after the amalgamation of eight councils into the one super city five years ago. “Auckland Council continues to drive the pace of change towards achieving our vision of becoming the world’s most liveable city, with an economy that delivers opportunity and prosperity for all Aucklanders and New Zealanders. But, we can’t do this on our own! ASB embraced the challenge, earned the opportunity to support us and has clearly brought their passion for transformational change to the table.”

Four starting points for improving cash flow capacity

1. The first step is reducing paper-based transactions. Electronic alternatives are faster and cheaper to process, and usually preferred by customers and suppliers. Innovative solutions like electronic invoicing help to increase visibility and control, reduce paper costs, and result in fewer outstanding payments.

2. Another source of efficiency is integrating accounting and banking platforms. That could be as simple as switching on our existing Xero integration. But most larger organisations create a direct link to our systems. Both approaches eliminate double-handling, which saves time and removes a potential source of error.

3. The third change is to put in place better online banking systems. Many large organisations say FastNet Business is the best online banking platform in New Zealand. It has high capacity, a wide range of online services and mobile capability through ASB Mobile Business. You can check and authorise payments with hundreds or even thousands of payees, online or on mobile, with full permissions control and security.

4. Finally, there are often opportunities to extend efficiencies across the business. Better expense management systems and simpler supplier management tools can reduce the unprofitable overhead costs of receipt checking and authorising.

Creating positive change

Switching banks can be a challenge, but it’s also an opportunity.

It’s the perfect time to challenge long-standing processes and approaches and implement more innovative solutions.

David Ison, Foodstuffs North Island Group Financial Controller, switched to ASB at a difficult time for the business. “We were merging two businesses into one. It would have been simpler to merge with one of the existing banks, but the ASB team really impressed us with the depth of their understanding of our business. They spent time with our teams and came up with a document outlining ways to make our operations more efficient, and we’re still referring to that two years later.”

Clyde Rosanowski, former ASB Head of Transaction Banking, has found that the biggest fear of change is around disruption. “It’s totally understandable. No one wants revenue to go missing, or to break your automatic payments. We can automatically capture all incoming payments, even those to your old accounts. We’ll shift your automatic payments, direct debits and bill payees from your existing provider.”

Wellington SPCA moved to ASB in 2013.  The team needed more efficient financial processes, so they called in Transaction Banking. The new approaches suggested by our specialists saved Wellington SPCA $30,000 in the first six months. “They take the time to understand us and our challenges, and then provide effective solutions that are specific to us, and not just generic. This insight is essential in such a critical partnership.”

Create the change you want to see in your business

For more information on how the Transaction Banking team could help your business, call Gemma Macaulay, ASB Head of Transaction Banking, on 021 845 808, or email her and see what you could achieve together.


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