Liquidity Management Service Developed by KBank to Assist in Liquidity Management of Thai Union Group

Monday 24 July 2017 12:00
KBank has introduced its liquidity management service for large corporations, the first customer being Thai Union Group – the world's top seafood business. With enhancement of efficiency and flexibility of daily cash transfers within the group, even among different banks, this service has already garnered an award for Thailand's best liquidity management.

KBank Executive Vice President Mr. Silawat Santivisat said large corporate customers have to manage a considerable amount of working capital, with fund inflows/outflows via many channels and accounts held with various banks. Such a colossal task may prevent them from having sufficiently agile financial operations. Recognizing this burden, KBank has developed a liquidity management service, which KBank believes is the most advanced of its kind, to help increase the efficacy of daily financial liquidity management. This service aims to provide the ultimate convenience and rapidity of cash transfers between subsidiaries, and interbank account management.

KBank's first customer for this service is Thai Union Group PCL (TU), the world's top seafood producer and exporter. Every day, TU has to manage extremely large amounts of income and expenses, domestically and globally, via its accounts held at different banks. Under this facility, KBank can report cash data compiled from those banks to TU, and TU teams may verify the group's financial status on a real-time basis, thus boosting its efficiency while cutting expenses and borrowing costs. The service's success thus far has inspired KBank to expand it to other large-scale customers in the future.

Mr. Joerg Ayrle, Group Chief Financial Officer of TU, said that KBank's liquidity management service has helped facilitate liquidity management of the company by reducing daily cash management procedures, thus making it more efficient and flexible in processing inter-day funds transfers to various banks.

The development of this liquidity management service between KBank and TU has also significantly helped bolster TU's financial management, as evidenced by the Best Cash Management Solution, Thailand award, presented to TU by The Asset – Asia's top financial magazine – in recognition of its efficiency in liquidity management.