Ball Asia Pacific wanted to optimise its liquidity management and sought solutions to reduce physical bank accounts, achieve full visibility of accounts on a global basis, make reconciliation of payments and receivables more efficient and reduce overall operational and transaction costs. The company worked with a regional and local bank to deliver the solution, where host-to-host connectivity with the local bank is key.
Photo of Kaushik Shaparia, Deutsche Bank and Nicole Zheng, Ball Asia Pacific (Foshan) Metal Container Limited.
Senior Finance Manager, Ball Business Service Centre
Founded in 1992, Ball Asia Pacific (Foshan) Metal Container Limited is a large organisation in the metal can industry, located in Foshan, China. It has approximately 500 full-time employees.
in partnership with
Complete cash management solution for Ball
To optimise its liquidity management, Ball sought solutions to reduce physical bank accounts, achieve full visibility of accounts on a global basis, make reconciliation of payments and receivables more efficient and reduce overall operational and transaction costs.
The solution provided by Deutsche Bank offers a full package to meet all the company’s requirements, including comprehensive account structures, cash pool structure, ERP integration with host-to-host connectivity and liquidity consolidation via third-party bank connectivity. The key features of the solution are outlined below:
In China, RMB general accounts are maintained with Deutsche Bank whilst retaining the basic accounts with Bank of China (BOC). In Hong Kong, one account each for HKD, USD and RMB, potentially eliminates the need for non-resident accounts in Singapore.
Deutsche Bank’s solution was to set up a cash pool for Ball in China with a horizontal, without-master structure, along with multi-bank sweeping which supports liquidity centralisation and delivers tax benefits for all the liquidity, supplemented by intra-day and overnight overdraft facility to accommodate any ad-hoc funding needs.
Deutsche Bank completed the ERP integration with Ball’s existing system setting and with minimum development resource by leveraging the bank’s multi-bank solution.
The solution will incorporate host-to-host connectivity between Deutsche Bank and BOC in due course.
Best practice and innovation
The comprehensive cash management solution has greatly enhanced the company’s liquidity management by reducing the physical bank accounts, achieving system automated concentration of cash, minimising the financial cost and increasing the efficiency of payment processing as well as reconciliation.
Nicole Zheng, Senior Finance Manager at Ball Business Service Centre explains, “Once implemented, the host-to-host connectivity with BOC will be an important part of the comprehensive cash management solution as it highly concentrates the company’s full liquidity and realises full visibility of all our accounts.”
Zheng recalls, “It’s a truly innovative, market-leading and comprehensive solution which realises our expected cash management objectives of reduced banks, full visibility of accounts, more efficient payments and reduced operational and transactional costs – with host-to-host connectivity being an important component.”
Ball is able to enjoy comprehensive banking services benefiting from close proximity to Deutsche Bank branches as well as their local partnerships with Chinese banks.
More streamlined account structure with less physical bank accounts.
Achieve full visibility and centralisation of processes across all accounts, including local bank accounts, through a global uniform online banking platform.
Easily migrate payment files to Deutsche Bank through flexible implementation tools, allowing Ball to reduce or eliminate IT resource requirements.
Enhance the operational efficiencies by leveraging the host-to-host linkage with seamless integration to Ball’s ERP system, harmonising and automating the SSC’s processes for straight through processing of payments.
Achieve maximum liquidity consolidation, riding on their strong partnership with BOC and other major banks to centralise liquidity from these local banks.