The bank’s Corporate Fund and Fixed Income & Currencies business units in APAC. GEM strives to link together treasury practices into automated workflows.
The idea is to simplify and streamline complex processes where clients need to move money to, from and across markets with capital restrictions. Deutsche Bank will be able to provide one-stop liquidity and foreign-exchange (FX) management solution by combining any of the various components of GEM. The service will be useful for clients in emerging markets like India, Indonesia, Korea, mainland China, Malaysia, Philippines, Taiwan and Thailand.
It can be used for targeting balance automation to support upstream and downstream cross-border intracompany payments. An account isn’t needed, and the effect will be a streamlining of liquidity or commercial payment objectives.
In addition, it can be used for automated reconciliation of payments and collections against FX hedge contracts, which will expedite cross-border settlements and cut down on hedging costs.
It can also be used to help with execution of onshore payments or receipts with a hedge adjustment, which could cut down on risk for basis or open markets for FX outside time zones in Asia, the release said.
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“By removing manual processes and currency risk in intracompany cross-border transactions involving emerging markets, Deutsche Bank addresses real problems faced by our corporate clients,” said David Lynne, APAC head of Corporate Bank and Fixed Income & Currencies, according to the release. “GEM Connect is a turning point. It will play a key role in helping treasurers to better manage their liquidity both at group and subsidiary levels. We will continue to invest in integrated platform technology in order to provide seamless client solutions.”
Treasury departments are seeing innovations these days, including the use of cryptocurrency — but many are just trying to migrate away from paper checks first. Paul LaRock, managing director of Treasury Strategies, a division of Novantas, said the migrating from checks could potentially go on forever, and the reason being is the stubbornness and the time it takes to convert.
