After its decision to operate a treasury hub in Singapore the company decided to begin small and use Singapore as a pilot before expanding the solution globally.

Phase 1: Desay Singapore implemented a single entity multi-currency notional pool (MCNP) in Singapore which comprises four accounts in four different currencies (USD, EUR, SGD and RMB) and uses balances in one currency to notionally offset negative balances in another currency. It also implemented the bank’s cash flow forecasting solution, CashPro Forecasting, driven by artificial intelligence and machine learning to automate cash reporting and predict future cash positions across both its accounts with BofA and other banks. Desay Singapore rapidly went from multiple bank platforms to a single consolidated view of its existing and future cash positions. It had also eliminated 90% of its FX spot costs and was earning favourable interest rates on its credit balances.

Phase 2: establishes and connects its multi-bank sweeps in Indonesia, Taiwan and Japan to its Singapore MCNP. After the set-up of the MCNP in Singapore, Desay Singapore began the process of adding sales office entities in Indonesia, Taiwan and Japan to its MCNP. The scope of this phase is to use automated multi-bank sweeps to move surplus cash at the agreed cut-off time to the MCNP in Singapore, allowing Desay Singapore to minimise manual intervention while leaving a target balance in its accounts for covering intraday payments.

Phase 3: the final step of the project involves linking its overseas subsidiaries in Europe and the Americas (US and Mexico) to the MCNP. After considering various factors including local regulations and its transaction needs, Desay Singapore will keep its local currency accounts with local banks and replicate the multi-bank sweep structure domestically for efficiency and performance.