Medtronic builds a unified global liquidity platform to optimise cash, reduce FX friction and support strategic transformation

Best Cash Pooling Solution

Highly Commended Winner

Medtronic

Photo of Marco Buzzi, Bank of America, Debbie Claesen and Paul Misere, Medtronic.

Paul Misere

Treasury, Sr Director

The Netherlands

Medtronic plc is a global healthcare technology company that develops and manufactures innovative medical devices, therapies and solutions to improve patient outcomes.

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The challenge

Before the transformation, Medtronic operated eight independent single currency notional pools (EUR, DKK, GBP, NOK, PLN, SEK, CHF, USD), each with its own governance model, forecasting routines and banking processes.

As a result, treasury maintained higher operating balances in various currencies than necessary and frequently executed FX transactions to bridge currency and regional funding gaps.

The fragmented structure limited enterprise-wide visibility, created pockets of idle cash and increased operational complexity across treasury processes. As Medtronic continued to expand, both organically and through acquisitions, the legacy setup became increasingly unsustainable.

The solution

Medtronic designed and deployed a fully integrated global liquidity solution that replaced eight fragmented single currency cash pools with a unified, multicurrency notional pooling (MCNP) architecture.

The objective was to simplify liquidity management across more than 60 legal entities, reduce FX exposure, eliminate redundant processes and create a scalable platform capable of supporting major corporate events – including business separations.

Multiple liquidity structures were evaluated, including enhancements to the existing single currency pools and physical cash concentration models. Medtronic selected a multicurrency notional pool because it uniquely provided enterprise-wide visibility, natural FX offsetting, centralised governance and scalability without introducing incremental operational complexity. The treasury appointed a new cash pool leader and built an MCNP encompassing over 20 currencies. All eight legacy pools were decommissioned, and pan European funding activities were consolidated into the MCNP structure. In parallel, Medtronic enhanced its operating model by introducing improved short term forecasting routines and harmonising global processes through cloud based Reval and the Zanders Transfer Pricing Suite. These changes enabled same day visibility and rapid liquidity deployment across all participating entities.

Best practice and innovation

The judges commended Medtronic on a multicurrency notional pooling solution comprising more than 60 legal entities and 20 currencies. The solution also integrates with the company’s forecasting, netting and in-house banking (IHB) processes.

A distinguishing feature of the project was that it was executed concurrently with the separation of Medtronic’s Diabetes business. While redesigning and implementing a global liquidity architecture, the treasury team simultaneously established a complete standalone cash management framework for the future independent company, including banking infrastructure, liquidity management, payment processes, intercompany funding mechanisms and governance controls. Successfully delivering both initiatives in parallel significantly increased project complexity and execution risk. This global cash pooling redesign represents best practice treasury innovation by unifying multicurrency liquidity management, cloud based automation and natural FX optimisation into a single, enterprise wide architecture.

Replacing eight fragmented single currency notional pools with one integrated global structure fundamentally modernised Medtronic’s liquidity model, enabling automated optimisation of balances across currencies and regions with full visibility.

A key differentiator is the solution’s seamless integration with Medtronic’s forecasting, netting and IHB processes. This end-to-end connectivity allows treasury to manage liquidity dynamically, align currency exposures and minimise trapped cash – without manual intervention or repetitive FX transactions.

The outcome is a digitally enabled, globally consistent liquidity platform that enhances transparency, reduces FX exposure, improves working capital efficiency and provides the strategic backbone for major corporate initiatives, including business separations.

Key benefits

Reduced average operating account balances by approximately US$150m during the month.
Decommissioned eight legacy single currency cash pools.
Lowered external banking costs and pool administration fees.
Reduced FX transaction volumes through natural currency offsetting.
Increased availability of centrally deployable liquidity for debt optimisation and strategic funding requirements.
Reduced the number of bank accounts and simplified the bank infrastructure.
Delivered on time while supporting the Diabetes separation.
Increased automation, visibility and system connectivity across treasury processes.
Reduced manual intervention and redirected treasury resources toward higher-value activities.

The solution established a unified, automated and strategically aligned global liquidity structure. Medtronic now benefits from significantly enhanced cash visibility, reduced operational complexity and a future proof model that supports both daily financial operations and long-term strategic growth.

The financial impact has been immediate and measurable. Daily centralisation of cash has reduced average cash in operating accounts during the month by approximately US$150m, unlocking liquidity for reinvestment and debt optimisation.

The retirement of eight legacy single currency notional pools eliminated associated banking fees while removing structural inefficiencies. FX related costs have also decreased through reduced redundant conversions and the ability to fully leverage natural currency offsets. Operationally, the transformation has simplified global processes, strengthened governance and eliminated manual legacy tasks across regions. Treasury teams have already redirected substantial time from administrative work to higher value analytical and strategic activities.

By replacing eight fragmented single currency pools with a single multicurrency liquidity platform spanning more than 60 legal entities and 20 currencies, Medtronic transformed liquidity management from a largely regional operational activity into a globally optimised strategic capability. The platform has improved cash visibility, reduced operational complexity, lowered FX friction and created a scalable foundation to support both day-to-day liquidity needs and major corporate initiatives, including business separations.

Bank of America is pleased to congratulate Medtronic on this outstanding achievement. By redesigning its global liquidity model into a unified multicurrency notional pool, Medtronic has transformed fragmented structures into a streamlined, scalable and highly efficient platform. The initiative enhances visibility, reduces FX exposure and unlocks significant liquidity, while supporting complex strategic priorities. Delivered through strong cross functional collaboration and in-house expertise, this programme exemplifies best in class treasury execution. Bank of America is proud to support Medtronic as it continues to advance its global treasury capabilities.

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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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