Implementing Efficient Treasury Management Services in China

by Xu Yan,General Manager, Payments and Cash Management Department, ICBC

With the ever accelerating growth of the global trade and increasing expansion of business operation areas, it has been, for a long time, an important part of business development strategy for multinational corporations aspiring for development after the financial crisis to formulate a correct global treasury management strategy. In light of this, the Chinese market is undoubtedly an important factor in this strategy, which is taken into account by treasurers around the world.

After years of reform and development, China’s financial environment has become more and more open and suitable for business treasury management operations. This provides an unprecedented platform for businesses to engage in economic activities in the country. In such an increasingly open environment, Chinese banks have taken an active part in treasury management businesses, contributing to their growth and enabling them to become more and more mature. At present, the vast majority of national commercial banks in China have already launched their cash management services, which are based on RMB and foreign settlement and liquidity management services. Some banks have even launched their own cash management brands.

As a pioneer in cash management services and the market leader in China, the Industrial and Commercial Bank of China has been committed to providing professional treasury management services for its clients. As far as the system is concerned, the bank was the first in the industry to put in place a centralised system for data storage and processing. As its core business process systems, the bank has implemented a full function national banking system (NOVA) and an integrated business processing system for international institutions (FOVA) to satisfy its domestic and international business processing and product innovation needs. The bank has also set up a multi-bank cash management service platform, which integrates its domestic and international transactions and also enables partner banks to achieve two-way interactions. The platform has helped the bank to provide global (regional) cash management services for its domestic and international customers. As far as its products are concerned, the bank keeps enriching and optimising its existing product portfolios, which cover each production and operational area of a business. It is also intensifying its innovation efforts to create and promote its competitive premium products.

In terms of services, the bank is committed to improving its business implementation capabilities as well as the quality of its customer services. It is actively extending its treasury management service range from selling a single product to providing integrated treasury management solutions, and from providing domestic treasury management services to global treasury management services. In addition, the bank is adding more treasury management service products and value added services, which cover financial advisory, investment management, and supply chain financing. From the human resources perspective, the bank is dedicated to building a professional treasury management customer service team, which is tailor-made to satisfy different corporate treasury management requirements. As far as its branch network is concerned, the ICBC has nearly 17,000 branches across the country and 194 overseas institutions across 27 countries as well as 1,435 partner banks in 131 countries. All this acts as a strong support for ensuring excellent services.

Focusing on customer requirements, the Industrial and Commercial Bank of China is relentless in its efforts to improving its treasury management offerings and capabilities, while ‘amassing wealth and creating value’ for businesses. After many years of development, the bank’s treasury management business has been a market leader in China with constant improvements and innovations. The bank provides customised services for its high-end premium customers and tailor-made high quality treasury management solutions for businesses. These business solutions include payments and receipts management, investment management and advisory services, which are designed to help businesses to develop their operations in China.