June 2018

Despite a lot of noise around post-SEPA consolidation benefits, rationalisation and simplification efficiencies have remained somewhat elusive for most corporate treasurers. However, virtual accounts and virtual ledger management have the potential to help the treasury function successfully automate and standardise liquidity management. TMI’s Eleanor Hill talks to Vanessa Manning and Paul Cuddihy of Deutsche Bank to explain what this all means in practice

Finding the next generation of cost savings, simplicity and working capital optimisation is, says Vanessa Manning, “high on the corporate agenda”. Given market developments such as instant payments, treasurers are, she observes, “seeking solutions that will deliver real-time liquidity, and real-time risk management and decision-making”.

Additional drivers behind the current trend for re-thinking liquidity and concentration structures are FX and interest rate volatility, explains Paul Cuddihy. Managing negative yield, “which still has a two-to-three-year outlook across the Eurozone” is one of them, together with the rising dollar.

As treasurers look for new solutions to support their transformation and optimisation journeys, this helpful article explains not only what virtual accounts are and how they work, but the nuts and bolts of how corporates operate their in-house banks (IHBs) more efficiently. This includes exploring virtual ledger management – an outsourced IHB provided by the corporate’s bank.


Download Eleanor Hill’s article on page 40 of TMI, issue 260, here

Vanessa Manning

Head of Liquidity and Investment Solutions, Global Transaction Banking | Deutsche Bank

Vanessa Manning

Paul Cuddihy

Structuring Head for Global Development in Cash Management | Deutsche Bank

Paul Cuddihy

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