This allows Roche to review all current interactions, processes and operations between the current commercial bank and the entities in the respective countries. Inefficiencies were identified and either de-commissioned or streamlined. Processes such as KYC, account opening – and replacement – and payment communication were organised centrally and brought up to the current standard. This included using xml communication for commercial payment instructions (pain.001), bank statements (Camt.53) or credit advices (Camt.54C).
One of the major gains for Roche with this implementation was to have full transparency on all payment and collection processes by providing one banking system to the affiliate in-house.
With this the affiliate has access to the full range of services required locally, but all provided in an efficient way. For example, one daily bank statement, containing all third-party payments, all cash pool movements, intercompany payments/receivables and interest is provided to the affiliate. Instead of relying on an anonymous bank helpdesk, the affiliate can now approach Roche Group treasury for any cash and bank related topics.
Best practice and innovation
Roche’s IHB has reached the next level with the implementation of POBO/COBO in a non-SEPA country.
In contrast to implementations in the SEPA zone, the project in these individually regulated countries has not been a ‘copy/paste’ exercise. Currency specific requirements needed to be understood, considered and adopted across in the IHB.
Despite being a non-resident in these countries Roche’s treasury team has managed to establish all business relevant bank-related processes to fulfil all payment and collection requirements. Hence, the IHB became their only bank partner and serves these Roche affiliates with an increased portfolio of services, such as one electronic statement for all transactions (internal and external), a lean KYC procedure and a globally compliant SOD setup. All this comes with reduced pricing for the affiliate.
This successful model will now be rolled out to Asia with Hong Kong as a pilot. As Windisch explains: “Running subsidiaries without bank accounts has many advantages for the Roche Group with regard to efficiency, transparency, security, standardisation and cost.”
Expanding IHB standards with full POBO/COBO setup to non SEPA currencies.
Consistent cash management model for Roche affiliates.
No local relationship between bank and affiliate.
Better control trough efficient, transparent and lean processes.
Key points to take away are that PoBo/CoBo concepts, with all its advantages, work as well outside of the SEPA zone and in currency countries with individual regulations. It gives opportunities to manage liquidity and bank related processes from outside of these countries, which we at Roche regard as an advantage in terms of efficiency, transparency and compliance, and which might be an advantage for other multinationals as well.