Photo of Hollie Scott, Ben Skipper and Carl Murton, Exponential Technology Group and Rebecca Borst, J.P. Morgan.
Ben Skipper
Vice President of Finance
United Kingdom
Exponential Technology Group (XTG) is a specialist semiconductor and electronics distributor.
in partnership with
The challenge
Due to rapid growth through acquisitions, Exponential Technology Group (XTG) managed over 80 accounts across 29 banks. Its treasury team had limited visibility into and control over global liquidity.
XTG’s value-added distribution model, which includes consultative design and manufacturing of sub-assemblies for customers, further increased operational complexity and the need for agile cash management. Surplus cash sat idle in certain markets, yielding minimal returns, while material FX conversion fees eroded working capital.
XTG’s US headquarters ran a consistent cash deficit. XTG borrowed from its parent, to cover the shortfall, which cost more than US$11m in intercompany interest expense in 2024 alone. Due to parent company policies, XTG could not invest in money market funds or term deposits, make intercompany loans or hedge FX. This left approximately US$65m in overseas cash idle while XTG continued to pay interest on domestic borrowings.
The solution
XTG approached J.P. Morgan Payments looking for a way to generate returns on its idle overseas balances. Through a consultative process, the two teams identified that XTG’s decentralised structure and fragmented banking relationships limited its ability to optimise and deploy cash globally.
Rather than implementing a simple savings account structure, they determined that multi-entity, multi-currency notional pooling was the right solution. The structure would centralise liquidity, enhance returns and enable cross-border access to cash without violating group investment policies.
Drawing on a deep understanding of group policy framework, XTG and J.P. Morgan Payments designed a ‘follow the sun’ liquidity structure built around two notional pools – one in London and one in Singapore – connected through a shared header account.
The team coordinated across 19 entities to obtain board approval, complete the pooling documentation, and transition nearly all global operating accounts to J.P. Morgan Payments. Within eight months of the initial conversation, both pools were live.
Best practice and innovation
The judge’s commended the ‘follow the sun’ liquidity structure. US$65m in deployable cash without the need to borrow from its parent is admirable. The solution is delivering some impressive benefits in interest income and savings.
With notional pooling, XTG was able to earn returns on consolidated balances, access cash cross-border and reduce FX conversion costs. It achieved all of this without intercompany lending or external investments. XTG moved from initial conversation to mandate in two months and had both pools live within eight months.
That pace required tight alignment across internal and external teams rarely seen in a treasury transformation of this scale. XTG’s approach to change management overcame initial hesitancy among entities, particularly around moving banks and centralising cash, through clear communication and process transparency.
Key benefits
Cost savings.
Process efficiencies.
Number of banking partners/bank accounts reduced.
Exceptional implementation (budget/time).
Future-proof solution.
Improved visibility.
Increased automation.
Manual intervention reduced.
XTG now centralises 98% of its liquidity outside the United States through its automated global cash pools, consolidating balances across 19 entities and ten markets into London and Singapore.
The solution will also pave the way for the treasury team to streamline its banking relationships from 29 banks to two, reducing the administrative burden of manual reconciliation, funding and account management. XTG projects to save US$186,000 annually from this rationalisation alone.
Visibility has also improved. XTG’s treasury team now tracks global cash balances in real-time through a single portal, with full transparency by currency. Previously, this required waiting for month-end reporting or manually polling local teams.
Rebecca Borst
Vice President, Liquidity & Account Solutions Specialist, J.P. Morgan
Exponential Technology Group (XTG) undertook a swift global treasury transformation to centralise global liquidity and unlock idle overseas cash. By co-designing a structure that fits XTG’s unique internal policies, the ‘follow the sun’ notional pools delivered real-time cash visibility, cross-border access to liquidity, and lower borrowing and operational costs. Just as impressive was XTG’s innovation and execution – moving from initial discussions to live pools in London and Singapore within eight months. The speed, alignment and ingenuity demonstrated by XTG’s team made this treasury transformation truly exceptional. We are honoured to support XTG’s growth and congratulate them on this well-deserved recognition.
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The Adam Smith Awards are the industry benchmark for best practice and innovation in corporate treasury. The 2026 awards attracted 635 nominations. To find out more please visit treasurytoday.com/adam-smith-awards
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