Technology delivers step change for this life insurer
The challenge
AIA was confronted with the daunting challenge of low visibility of cash balances, fragmented banking structures, inconsistent cash management procedures and manual processes to execute daily bank transactions. The result of these challenges were excessive cash being maintained, significant opportunity costs related to cash not being invested on a timely basis and a focus on non-value-adding manual processes.
The solution
AIA’s solution was to leverage existing SAP infrastructure and implement SAP Treasury and SWIFT in their core 14 markets. This allows AIA to gain visibility on cash levels, improve cash forecasting, reduce cash balances, automate bank communications through a secure industry standard and focus on applying consistent procedures for cash management across the group.
Gary Gray, Head of Treasury Operations explains, “We have now focused on standardising our cash management processes by forming a centre of excellence team to prepare high quality cash forecasts for all local business units every day.” This team – Treasury Solutions – drives best practice, enhances system development and applies consistent cash management methodology for each LBU, group-wide.