Photo of Simon Cole, Reval, Jacqueline Cheng, Richard Shaw, and Bonny Ho, Prudential.
This insurance giant decided to partner with a major treasury risk management provider and thirdparty SWIFT service bureau to deliver its solution. The team now process over 1,000 bank statements and monitor exposure against 500+ limits each day.
Director of Treasury
Prudential Corporation Asia is the Asian Regional Division of Prudential plc (United Kingdom) comprising its life insurance operations and its asset management business, Eastspring Investments. It is headquartered in Hong Kong.
in partnership with
Prudential’s treasury team in Hong Kong is responsible for monitoring the working capital of its 34 business units across the region. The team ensures that the cash exposures of its business unit balances do not breach the counterparty limits mandated by the company’s risk management policy. Prudential has over 150 bank counterparties in the region and over 1,000 bank accounts.
The treasury team had been monitoring exposures manually. Whilst the team could monitor balances for a small number of global banks on a daily basis, the rest were monitored on a monthly basis, due to the sheer number of banks and a lack of an automated balance reporting infrastructure.
Richard Shaw, Director of Treasury recalls, “The complexity and diversity of our banking footprint across the region meant that we could not build an in-house solution to deliver the services we needed.”
The Prudential treasury team chose Reval for bank connectivity across the region, leveraging Reval’s STP Community partner Fides, a third-party SWIFT service bureau. As the largest multi-banking service bureau for corporate treasuries, Fides provides connectivity through SWIFT and other networks. Prudential worked closely with Reval and Fides to provide a solution that would deliver a channel for every bank statement. The team now processes over 1,000 bank statements and monitors exposures against over 500 limits on a daily basis.
Prudential implemented Reval to improve:
Enterprise-wide cash visibility and liquidity management.
Exposure and limit monitoring.
Cash flow forecasting – via standardisation across business units and integration with internal systems.
Prudential’s fully automated solution has enabled greater efficiencies, tighter controls and the daily oversight of business unit cash management, short-term investments and cash balances. The solution is also a highly scalable platform that has the capacity to grow with the business. It will be deployed in its country level treasuries, and with expanded functionality as required, including bank reconciliation, cash forecasting, deal workflow management and bank account management.