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CASH MANAGEMENT | Staff Reporter, Singapore

JPMorgan launches Cross-Currency Sweeps, Just-in-Time Funding

Both are first-of-its-kind solutions for treasurers.

Leading global financial services firm J.P. Morgan announced the worldwide launch of its Cross-Currency Sweeps (CCS) and Just-in-Time Funding (JIT) treasury services offerings, innovative solutions to help treasurers better manage cash in an operating environment that’s increasingly dynamic and unpredictable.

Cross-Currency Sweeps automatically transfer balances from an account in one currency to another account in a different currency, reducing FX exposure and decreasing the number of non-functional currency accounts at a central location, while Just-in-Time Funding automatically calculates and funds local currency payments from a central account, so payments get processed on time.

When combined, both offerings provide powerful, first-of-its-kind solutions to the daily challenges treasurers face.

“These solutions are very relevant to corporates today who are dealing with uncertain regulatory changes, trapped cash, complexity of managing multiple currencies and the need for reliable cash flow forecasting,” said Martijn Stoker, head of global liquidity and escrow services for Treasury Services in Asia Pacific at J.P. Morgan.

“By integrating payment, liquidity and FX functions, the solutions will allow treasurers to manage operating cash and payments more efficiently, transact more swiftly while minimizing currency exposures,” he added.

Both CCS and JIT are fully modular to meet the individual corporate’s unique needs and complement the treasurer’s existing liquidity management strategies. They are targeted at corporates that have centralized treasury functions in home markets but limited local presence in overseas markets they operate in.

“The solutions create efficiencies as the treasurer needs to focus and manage just one major account. When the time comes for a payment to be made in a specific market, the system will calculate the right amount of funding and move cash into the desired currency exactly when and where it’s needed, just in time for the transaction,” said Stoker.

“We are delighted with our decision to entrust J.P. Morgan with the strategic cash management mandate for our European operations. The deal team demonstrated a strong understanding of our requirements and developed a robust cash management and liquidity solution which delivered value-add through increased automation and improvement in operational efficiency via the Just-in-Time Funding and Cross-Currency Sweeps solutions. We are likewise impressed with the end-to-end project management discipline towards delivering on the implementation plan on time. We look forward to expanding our close partnership with J.P. Morgan in the future,” said Tony Mo, group treasurer with TPV Technology Limited.

J.P. Morgan continues to invest heavily in technology; in 2016, the bank spent $9.5 billion in technology firm-wide, of which approximately $3 billion was dedicated toward new initiatives. By 2017, the firm’s Treasury Services business is expected to increase its technology budget by 12% versus 2014, with investments that include block-chain, big data, cloud computing, robotics and machine learning.

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