Liquidity Management

Infosys Point of View,

Capabilities & Service Offerings

2011 Infosys Limited

Strictly Confidential

Table of Contents

Overview of Infosys Commercial Banking Practice

Current Industry Trends and Challenges in Liquidity Management
Infosys Point of View, Capabilities and Offerings to meet the challenges
Case Studies
Global Concentration Engine
Cash Liquidity Management Application Development
Global Payment Messaging Hub

Appendix
BA Pool
Key elements of Liquidity Solutions
Managing Liquidity Risk
Features of a Good Liquidity Management Tool
Cash Concentration Services
Global Notional Pool
Global Tax Efficient Liquidity Management Solution
Zero Balancing
Integrated Portal
Mobility portability of liquidity applications

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Overview of Infosys Experience in Commercial Banking

We have an extensive presence across leading banks in US/Europe and the Rest of the world which provide commercial
banking services for Large/Medium and Small size corporations.
Our relationship spans entire commercial banking products and services spectrum covering the fulfillment, servicing
and product value chains. We have delivered transformational programs for leading global banks.
Treasury and Deposit
Services

Process transactions
Generate Statements

Receive, validate and

Process payments
Process Exceptions

Fulfillmen
t

Setup Treasury Products

Create product templates

Wire
Check
ACH
Account Transfer
Foreign Exchange
Drafts
Lockbox
Electronic Commerce
Payroll
Commercial Cards

Products

Information reporting
Pooling
Sweeps
Investments
Cash concentration
Deposit Accounting
Escrow
Account
Reconciliation
Cash Vault

Setup payment services

Establish Risk/Limits
Authorization
Personalization

Common

Service

Payments and Receipts

Sales / Relationship Management Management and Control

Prospect and Contact
Compliance - Legal and
Management
Audit
Performance Measurement
Quality Process and Mgmt
Support

Merchant Services

Trade Finance

Business Lending

Merchant On boarding
Risk Evaluation
Hardware and Software
Deployment
Reporting

Setup LCs
Provide for self service
requests
Agent assisted Support

Loan origination
Underwriting
Booking

Transaction Routing and

Settlement
Fraud Detection and Collections
Process exceptions
Merchant funding
Claims Processing

Initiate Trade
Facilitate presentment
Trade Settlement

Loan Servicing
Monitoring
Performance Analytics

Small Business
Corporate Solutions

Import/Export Letter of
Credit
Stand by letter of Credit
Purchase order to Pay
Trade Collections

Information Management
Client Analytics
Information Security
Identity Mgmt
Workflow

Risk Management
Credit Risk
Operational Risk
Limits Mgmt

Lines of Credit
Revolving Loan
Term Loan
Syndicated Loans
Commercial Real Estate
Lending
Asset Based Lending
Dealer Financial Services
Loan Securitization

Shared Services
Billing Services
Accounting Services
Support utilities
Image Services

Our service offerings in the commercial banking space include:

Business and Architecture consulting, Solution definition and Implementation , Operations Support, Application Support and Validation Services

Systems Integration, Product customization and Support for leading commercial banking products
2011 Infosys Limited

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Infosys credentials in transformational engagements across

commercial banking products
Products

SALES

Payments
Demand Mgmt
Assess Need

Receipts

Trade
Finance

Liquidity

Commercial
Loans

Fraud
Services

Deposits

Check
Processing

Merchant
Services

Consolidate Deal management system for multiple LOBs and geographies replacing legacy systems and thereby provided the banks users
a single access point to consolidate the data for advisory, financing and corporate banking products.
Capture customer interactions and prospect lifecycle on a single platform for all commercial banking products

Qualify
customer
Risk Review

Setup Client
Initiate and
Validate
transaction
Process
transaction

SERVICING

Process Chain

FULFILLMENT

Offer choice

Service and
Support

Exception
Handling

Billing ,Account
Analysis
Risk
management

Consolidated client onboarrding platforms

across multiple products with the aim of Reduce dual entry, manual activities and
source of errors
Improve straight through Processing
Have a consolidated view of customer
exposure and Risk
Next Generation portal for superior customer
experience using Web 2.0 features,
personalization , enhanced productivity and
rich reporting functionality
Next generation
payment hubs for
consolidating
payment
channels,
reducing
transaction costs
and straight thru
processing

ACH
platforms
for reducing
transaction
costs and
Global
Receivable
managemen
t platform
for better
tracking

Global
Liquidity
and Cash
concentra
tion
Platforms

Contact Center Management and Workforce strategy

Integration of Service and Fulfillment platforms across commercial banking products
Secure interface for exchange of documents
Automate on-boarding process

Autonomous
agents to
initiate trade
transactions,
provide end to
end trade
lifecycle
support

Deployment
of end to end
Loan
origination,
Monitoring
and
Fulfillment
platforms

Support
enterprise
wide fraud
detection
and
exception
processing
and
decisioning
systems

Global
Commercial
Deposit
Platforms
with
features for
localizing
for regional
regulatory
and product
needs

Landing
zones for
capturing
items
processed
across
multiple
capture
channels
Creation of
Enterprise
service bus
for
accessing
Image
services

Consolidation of billing platforms across commercial banking products. Modernization of account analysis platforms for
product pricing and analysis
Global Risk Monitoring Platforms for Treasury and Credit products. Enterprise wide data marts and a reporting layer covering
various aspects including Product Reviews, Enterprise and Regulatory Risk , Performance Management and Reporting

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Settlement
processes for
new card
associations
Support of
mission
critical
transaction
processing
systems

Liquidity Management Current Industry

Trends and Challenges

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Current Industry Trends / Challenges in Liquidity Management

Recent EURO financial crisis and new international banking regulations have made
access to finance more difficult and Cash much more dearer for Corporates
Corporates are exploring various options to squeeze cash from operations and working
capital by minimizing idle balances
Need of the hour today is Visibility / Predictability and Optimization of Cash (holistic
cash flow, liquidity and risk management solution)
Real time reporting of account balances
Intraday reports of account balances including third party transactions
Swift major intermediary, others intermediary systems Fides and Gtreasury
Ability to do short term and middle term cash-flow forecasting
Low interest rates make notional pooling less relevant but demand for multicurrency pool is strong
Evolving regulatory framework
Tighter regulation (Dodd-Frank legislation in the US and JsoX in Japan and
Basel III liquidity regulation)
Relaxation (lifting of capital account restrictions in Malaysia and Chinas
movement toward deregulating the renmimbi / Chinese Yuan)
Need for integrated global treasury and liquidity management solution and
local liquidity platform especially for companies in the far east

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Current Industry Trends / Challenges in Liquidity Management

Tactically address day to day liquidity positions and strategically square positions
periodically
Concern on counter party risk leading to shorter time-scale cash management
Trends towards centralization of Treasury operations, consolidation of multiple
gateways, collaboration for cross border payments AND centralization and
rationalization of Accounts Receivables and Account Payables processing
Need of unified integrated portal where user can customize his own alerts, automate
tasks, view real time account balances, view trade finance summary, ability to do cashflow forecasting, view hedging ratio and ability to perform liquidity transactions on a
single platform
Need reconciliation capabilities for multiple accounts across multiple geographies
and time zones
Treasures need technology services to get greater speed and accuracy of
information in accounts payables and account receivables functions
Opportunity exists for providing timely information for product pricing and risk
analytics
Lack of enterprise wide foundation for performance, risk and profitability analytics

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Catalog of Infosys service offerings align to current trends and

challenges (1)
Focus Areas

Liquidity &
Deposits
products

Enterprise
Global
Payment Hub

2011 Infosys Limited

Business Imperatives

Infosys Service Offerings

Integrated offering of multiple products

from different product lines to suit specific
customer needs for example recommended
short term investments or a short term
loans based on customers account payable
and account receivable trend
Tools and reports to generate intelligent
insight for treasurers to make decision on
cash management will in turn generate
revenue for bank at a time when there is a
high pressure on the interest income
Private labeling the products provides an
opportunity to grow more than banks
customer segment

Solution development of liquidity management

system with options for multicurrency
investments and also to create reports to
provide insights on ROI and tax
Design and Developed Global Concentration
Engine for Global Liquidity Management
Integration of deposit account system of two
merged banks
Integration of deposit system with multibank
online portal to create YTD and MTD balances
on each account and at a consolidated customer
level
Implementation of SOX compliance for all
liquidity management products to show the
break down of spread that comes from each
customer account

Multiple Payment Gateways

Lack of single holistic view of corporate
account leading to inaccuracy in risk and
fraud management
Unable to set and track credit limits
Inconsistency and inefficiency in approval
flow

Created payment hub solution to provide

Centralize payments services and operations
functions (e.g. OFAC, exception management,
customer payment profile set up etc)
Architecture definition, Design and build out of
a common Enterprise Service bus layer
System Integration with the 3rd party products
like FundTech GPP
Improved STP rates, with centralize rules based
intelligent exception management.

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Catalog of Infosys service offerings align to current trends and

challenges (2)
Focus Areas

Next-Generation
Corporate Online
Banking
Solutions

Mobility

2011 Infosys Limited

Business Imperatives

Infosys Service Offerings

Consolidate online portal for

commercial banking services across
various products for improved
customer experience
Personalization and self service
Drill down capabilities and reporting
features
Usage of templates for straight
through processing

Integrated and custom payment and liquidity

management solutions aligned to customers
businesses , integrated with their
systems/processes, providing centralize
solutions with support to multi-lingual, multi
currency, multi branches, multi-time zones &
multi regulatory requirements
Reporting tools for providing drill down and
advanced reporting capabilities like cash
forecasting , hedge ratios, graphical
representation of pools.
Personalization, Web 2.0 and Dashboards
Enterprise Service Bus

Improve associate Productivity

Easy and timely access to informationnotification on cash balances , client
contact
Enable faster decision making and
access to critical account information
Enable approvals on the go
Managerial and administrative
activities entitlements and stop pay
decisioning and transactional Payment approvals

Define Mobile strategy

ROI for mobile services
UI Design and Device adaptability
Creation of downloadable applications on cash
and liquidity management functions
Mobile security- Two factor authentication

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Catalog of Infosys service offerings align to current trends and

challenges (3)
Focus Areas

Reporting and
Analytics

Corporate
Electronic Bank
Account
Management

2011 Infosys Limited

Business Imperatives

Infosys Service Offerings

Ability to get real time centralize corporatewide forecasting, reporting of cash situations.
This helps in treasuries making approval
decision faster.
Ability to create intelligent information with
the data available to cross sell or up sell to
meet client needs proactively.
High expectations from clients regarding
banking solutions that allow them to select
communications protocols, data formats, and
security methods to best meet their own
requirements and integration capabilities
with their ERP systems

Implemented Data Exchange workstation

to pull reports in multiple format, in
multiple currency options for multibank
reporting, cash position, cash concentration
and disbursement reporting. Liquidity
management reporting.
Implemented Fundstrac for tracking the
fund flow - an intelligent reporting to
identify where the collected funds flow for
identify and cross sell product to client
needs
Data warehouse Migration to Netezza
Define BI architecture and build of new BI
platform on Micro strategy to cater to
various reporting needs for performance
and profitability analysis, risk
management, trend analysis and market
related research
Account Analysis and Billing support

Faster/Cheaper on-boarding of corporate

customer
Improved Straight through processing
Increased traceability for audit and
regulation requirement
Improved security and risk control
Dematerialized-standardized process flow
Integrate changes with corporate HR
database
No unknown accounts or hidden dollars

Implement portal based and file based ISO

20022 EBAM solution
Enable attachment of multiple supporting
document in the request
Include audit reports for all maintenance
changes on an account
Event triggered reporting in different
format and different media

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CASE STUDIES

2011 Infosys Limited

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Case Study 1: Infosys Designed and Developed Global Concentration

Engine for a leading Global Bank
Client Background
Pre-eminent financial services company, with more than 200 million customers & presence in more than 100
countries offering consumer & commercial banking, global corporate and investment banking, and asset
management operations
Business Drivers

The client embarked on a multi-year program to

achieve the following Project Objectives

With multiple, varied liquidity platforms for different

regions client faced following issues:
Multiple Platforms

Fragmented capabilities
Recurring development and support costs
Customer Experience
Varied customer experience across regions
Differences in functional capabilities
Time to Market
Due to usage of obsolete technologies addition of new
business required longer SDLC
Issues in retaining support resources for obsolete
technologies
Duplicate Costs
Due to heterogeneous environments for each platform
support resources could not be leveraged across
environments resulting in duplicate costs for support
Performance and Scalability issues

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Consolidation of applications providing liquidity

services providing consistent customer experience
across geographies
Standardizing platform and technology
Provide a best of class solution encompassing all the
good capabilities built across varied liquidity platforms
Rules driven architecture to provide flexibility in
incorporating changes to business logic
Integrate operational cash management with liquidity
management and real-time information and analytics
supporting global, single-stream cash efficiency
Increased Cash Velocity - Extract liquidity locked in
working capital
Greater Operational Efficiency - Extract process cost
and fee savings
More Financial Transparency - Better control and risk
mitigation

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Case Study 1: Infosys Role, Solution and Challenges

Infosys Role

Infosys Solution

Infosys is involved in complete life cycle in building of

GCE; right from requirements gathering, analysis,

architecture design, development, global testing and
roll-out.

Designed Flexible architecture to respond to the

changes in regulatory framework and dynamic market
conditions.
Consolidated platform to provide following services

Liquidity structure creation

Intra day Sweeping

End of day Sweeping

Account Posting Services

Reports

Defining Interest Re-allocation parameters

Interfacing with different related systems

A market-leading Liquidity platform that will process data across

all regions and branches to execute intra-day and end-of-day target
balancing transactions. This application will be the standard
solution reducing the number of Liquidity platforms for the client.
After GCEs rollout, standard Target Balancing features will be
consistently offered across all regions. Additionally, sophisticated
features currently utilized in select regions will be available
throughout all regions.
Provided a best-of-all solution bring together the best
capabilities of current systems.
Advanced features that limit the mobilization of cash based on
client specific parameters; customized to unique situations.
Rules driven architecture to provide flexibility in incorporating
business logic.

Highlights

The application is scalable for handling roll out to new countries

and will bring integrate more branches into the global foot print.
GCEs rich suite of features allow the clients to fine tune their
solutions as per local needs and not be constrained by a one size
fits all solution.

Challenges Faced

Multiple technologies, file formats

Maintaining balance between usability and performance
Multiple time zones and currencies
Different regulatory requirements across regions for fund movement
Handling For the Sun and Against the Sun scenarios

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Case Study 1: Benefits to Client, Business Impact & Technology Stack

The Results

Business Impact

Infosys delivered feature packed powerful solution

offering innovative, fully automated end-to-end
capabilities that meet the challenges and aid our
customers in moving, managing and investing their
balances.

The GCE value proposition is to provide a best of all

solution that brings together the cream of the current
capabilities offered by Client across multiple platforms
and offer an enhanced target balancing solution.
After its full roll out, sophisticated features currently
utilized in select regions will be available globally.
Already many customers are enjoying these facilities and
about several accounts participate in the sweep
processing.
Customer delight is achieved through consistent user
experience across geographies.
GCE aims to be the standard solution in clients
application landscape for liquidity management,
reducing the number of Liquidity and Investment
platforms and provide a competitive Liquidity product
set in the market place.

Benefits to Client
Integrate operational Cash Management with
Liquidity management and real time information and
analytics
Supporting Global, Single stream Cash efficiency
Increase Cash Velocity
Extract Liquidity locked in Working Capital
Greater Operating efficiency
Extract process Cost and Fee savings
More Financial Transparency
Better control and Risk Mitigation

Technology
Platform: Unix, Windows
Software: Web Browser (IE 7+), .NET, Visual Studio, Java-J2EE, RAD, Junit, JMOCK, Jrules, TOAD, Oracle,
Clearcase, Quality Center, RAD, SiteMinder, ANT, Jenkins.

2011 Infosys Limited

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Case Study 1: Functional Architecture View

Shared User Interface Services
Portal

Concentration
Services

Interest Calculation
Services

Concentration
Structure and Rule
Validation
Services

Interest
Calculation
Structure and Rule
Validation
Services

Other Product
Services
Analytics & Insight

Debt Service

Interest
Calculation Rule
Execution
Services

Concentration
Rule Execution
Services

Global Credit Limit

Rate
Information Services

Investment

F/X Transaction
Services
Other Reference
Data Services

Shared Services

Reporting Services
Regulatory Reporting

Operational Reports

Fund Transfer & Account Posting Services

Payment
Services

2011 Infosys Limited

Account
Information and
Balances Services

Account
Posting
Services

Fund
investment
instruction
generator

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External Services

Product Services

Reporting Marts

Case Study 1: Functional Architecture View (Contd)

Reporting Services
Online Portal

Interest Services

Rules Engine

Interest Reallocation

Rate
Repository

Customer &
Account
Repository
Real time

DWH
Balance
Repository
(Intra day &
End of day)
EOD Balances

Engine

Liquidity
Structure
Management

Intra Day
Concentration

Product
Management

End of Day
Concentration

Agreement
Management

Recovery
Manager

Reports

Concentration

and BVT
Reports

Concentration
Rules, Int.
Reallocation
Rules,
Validation
Rules etc.

Downstream
Payment
Gateway

DDA & GL

Account Posting Service

Admin

Translation
Engine

Set up

Posting/

Entitlements
Operational
User Interface

Payment
Tracking

Reports

Connectivity

Reference
Data Stores

Billing/Reporting
Data Stores
Liquidity
Reporting Data Store
Billing Systems

2011 Infosys Limited

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Case Study 1: Technical Architecture View

SiteMinder Single Sign on
[Link] UI Application For Structure setup, Concentration engine, Reporting & Admin

Reporting
Service

Structure Services

Admin
Service

Account Posting Service

Rules Engine

Compute Grid
Hibernate

Partner System

WebSphere XD

Interest
Service

Connect:Direct

Enterprise Service Bus

Concentration Engine

UI Services Layer

MQ Manager

GCE
Service

WebSphere MQ

Structure
Service

MQ Manager

WebSphere Application Server 6.1

Billing
Service

Enterprise Service Bus

Oracle 10g RAC
WebSphere MQ

Third Party Banks

ESB

MQ Manager

Partner
System

MQ Manager
Manager
MQ

Partner System

Connect:Direct

DDA

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MQ Manager

Partner System

Partner
System

JDBC Call

MQ Manager

Partner
System

Operations Reporting

MQ Manager

Actuate Reporting

Partner System

Node #2

Node #1

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GL

Strictly Confidential

SWIFT/ Payment
Network

Payment
Processor

Case Study 2: Global Payment Messaging Hub supporting multi region

liquidity platform
Client

Infosys Solution

The client is one of the worlds leading investment

banking and securities firm

Infosys managed and structured the overall program as

multiple project implementations with iterations across
project phases

The client had committed to adhere to the

compliance requirements of the FSA by Q4 2004

Bottom line responsibility for all project phases - Design,

development and implementation of the EAI solution

The problem statement Direct, diverse

communication between multiple internal
applications and external gateways

The project built an integrated financial messaging

infrastructure and solution across the internal client
applications and external financial market gateway

All the financial messages were compliance checked before

they sent out to market or posted in the upstream
applications

A new technology operating model and business process for

consolidating the flow of market-side cash events

The architecture for the solution was made scalable to

integrate larger number of applications maintaining the
high availability and lower maintenance costs for the
solution

Project Scope

Technologies Used

Microsoft BizTalk 2004 Messaging

IBM Web Sphere MQ Series - Transport
Microsoft SQL Server - Database
Microsoft .NET - Platform

EMC SAN - Storage

Veritas Volume Manager - Mirroring
MCS Clusters High Availability
Microsoft MOM - Alert Monitoring

Benefits

Challenges

Multiple stakeholders across different geographies

EAI design and development to meet with continuously

changing business process understanding and requirements

Per transaction savings of $0.06

For a volume of 600,000,000 transactions a year

Aggressive timelines from conception to go-live

On an investment of $ 3 million

Ensuring that the proposed technologies, yet unproven in

the bank, did not break any existing functionality

2011 Infosys Limited

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Case Study 2: Business Benefits from the Global Messaging Hub

included greater visibility, transparency, flexibility and control

Faster payment processing

All messages processed through Global
messaging hub are stored in a tracking
database in logical compartments
User & profile management GUI
State of the art tracking portal as a front end
view with advanced features as Resend &
redistribute
Compliant to FED BCP regulations
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Global Messaging Hub Enables Centralized

Communication With External Gateways
Routing logic shifted from SAA which brings
direct ROI and improves the performance
Resend & Redistribute functionality
Automated Reconciliation
Advanced Reporting options
Ability to change the routing rules dynamically

Strictly Confidential

Case Study 2: Messaging Hub Layer provides the functions based on

standard frameworks that fulfill the solution requirements
Treasury Products Application
Adapter
Layer

FILE

Accelerator
Layer
Automated Deployment Framework

Accelerator
Layer
Adapter
Layer

MQ

SWIFT

Custodian Services Application

SQL

FTP

OMGE
O

BACS

FED

FIX

ACH

Tracking Portal

Tracking Framework

Routing Framework

Persistence Messaging

Logging Framework

Manual Entry/Repair

Rules Framework

Solution Governor

CHIPS

SWIFT

FILE

BACS

FED

MQ

FIX

OMGEO

FTP

Automated Testing Framework

Messaging
Hub Layer

CHIPS

Liquidity Application

ACH

SQL
Infosys

SWIFT

2011 Infosys Limited

CHIPS

FED
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Microsoft

Case Study 3: Cash Liquidity Management Application Development

for a Major UK Bank (1/2)
Client Context
Client is a major global financial services provider, based out of U.K., engaged in retail
banking, credit cards, corporate banking, investment banking, wealth management and
investment management services with an extensive international presence in Europe, the
Americas, Africa and Asia.
Liquidity Management Solution: Client wanted to provide its corporate customers with a liquidity
management system which would offer them multiple product in for cash concentration, zero balancing
and interest enhancement. Since the client was a late entrant into this space, the need was to provide a
cost effective solution achievable in reasonable time frame (less than 6 months).
The client entered into a contract with Infosys to establish the Liquidity Management
program and achieve the following objectives

Resolution for long pending problem records due to low bandwidth available on run side of the application.
Independent Comparison of application with best-in-class available products in market
Utilize the existing investment in application and extend the same to build new Liquidity Management
features / products
Create a framework and solution for enhancing Intraday Cross Border Sweeps
Create a framework and solution for adding the ability of End of Day Sweeps (both domestic and crossborder)
Create a framework and solution for providing Inter Company Lending (ICL) product

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Case Study 3: Infosys Role, Solution and Challenges (2/2)

Infosys Role

Solution

Transition maintenance and development of IT

component from incumbent vendor to Infosys
Provides Application Development & Maintenance
Services and L3 /L4 support services.
Provide domain expertise in Cash Concentration, Sweep
Management, ZBA framework, Inter Company Lending
and interest management for solution development
Requirement Analysis, Functional Requirements and Use
Case Design and Documentation
High Level Design, Detailed Design
Development
Integration Testing / System Testing
Performance Testing Support
User Acceptance Testing Support and Post Production
Support

Infosys was involved in independent study (decomposition) of

application followed by Transition from incumbent vendor.
Use tools like Rational Application Developer for code analysis
& to prepare end to end System Appreciation Document
including performance and maintainability aspects.
Problem Management of reoccurring critical / major issues,
prioritize and perform enhancement of product to fix the
problems
Form a rotational team for regular problem management
Create end to end solution for implementation of End of Day
Sweep for both domestic and cross-border customers keeping in
mind need for real time account updates and service level
agreement for accounting interest processing
Create end to end solution for implementation of Inter
Company Lending addressing varying needs like different
accrual and settlement frequencies, configurable settlement
accounts, ability to only accrue but not settle etc
Provide new reports for sweep statues, EOD sweeps, ICL and
make them user configurable

Challenges

Aligning with different applications / systems which are both home grown and vendor provided
Different applications using very different technology stack.
Supporting different EOD for each country
Supporting Forex currency conversion within the system
Stringent SLA of 30 minutes post which must kick off of interest calculation batch
Supporting features like near end of day for countries have EOD after the current country EOD processing
Support Post EOD transactions for countries whose EOD was before the EOD of current country being processed

2011 Infosys Limited

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APPENDIX 1
Infosys BA POOL for Liquidity Management Solutions

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BA Offerings across the Value Chain

Consulting
and Solutions

High-end
secondary
research,
Publications,
IP Creation and
Patenting

Research and
IP Creation

Business
Process Analysis,
Client Requirement
Analysis and Portfolio
Analysis

2011 Infosys Limited

Defining business
processes, providing business
solutions and identifying
opportunity areas for clients

Requirements
Management

Pre-sales
Support

Training

24

Requirements
elicitation,
analysis and
elaboration,
Feasibility
analysis

Design and delivery

of training on
domain aspects

Strictly Confidential

BA-Skill Set and Competencies

Contribute to the Consulting Stream
Whitepapers, Presentations at International Forums
Blogs, PoV documents

Thought
Leadership

Pre-Sales activities
like developing
proposals
Understand
prospective client
needs and design
solutions to fit their
requirements

Business
Development

80:20 Onsite-Offshore
ratio
Analyze business scenarios
& processes, conduct
impact assessments
Design business and/or
process models
2011 Infosys Limited

Technology
Adoption

Project
Delivery

Service Offering

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Get industry
recognized
trainings and
certifications
Develop consulting reusable components
Study latest trends
and concepts which
can be used in
potential consulting
projects

Design forward-looking
solutions for consulting
use

Activities of BA Pool
Following are the activities which a BA team will be involved across various life cycle
stages of developments

Requirements
elicitation and
documentation
Process flow
documentation
Assisting with
the business
case
Gap Analysis
Data cleansing
exercises
Requirements
change
management,
versioning and
control
Requirement

2011 Infosys Limited

Design

Assisting
development
architect for
HLD
Elaboration of
requirements
Data modeling
Designing and
/ or reviewing
QA test
scenarios

Rollout

SIT/UAT

Tracing the
requirements
during
implementation
(traceability
matrix)
Processing
change
requests
Manage project
scope
LLD and
Coding

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Acceptance
Analysis of
Testing
incidents
Clarification of Facilitating
requirements
incident
Handling
Support
defect triages
triages
Assistance in
creation of
test data
Provide End
User UAT
Support
Production
Support

Strictly Confidential

User
Training
Roll-out
plans
End-user
manuals
System
benefit
analysis
Training
manuals

Productivity Improvement: We will use following approach to achieve

productivity improvements on a continuous basis

People
Competency assessment and
enablement through Infosys
certification program
Integration of continuous enablement
with career management

Process
KM weaved into the project
execution process
Tailored Induction training for all new
team members
Defined governance process to
monitor productivity, set goals and
facilitate improvement initiatives

Knowledge

Higher
Productivity

Use of Infosys proprietary tools for

leveraging organization wide
knowledge repository.
Combined with Banks tools (like
Sharepoint/Wiki) for Program
specific knowledge

Knowledge Management Process for this engagement will be Tailored to leverage best practices from similar
large engagements.

2011 Infosys Limited

27

Strictly Confidential

People : We adopt a process designed to support Competency

Enablement

Domain skill requirements

Process Skill requirements
Soft skills such as oral and
written communication

Development
Plan
Document

Feedback

Development
Plan

On-the-job

Training
Process
Documents

Courseware &
On-the-job
tools

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28

Feedback
Mechanism

Experience based
Learning Forums

Fortnightly meeting of
domain group to share best
practices
Rotation of people across
initiatives and locations to
ensure learning
Documentation of learning
and further process
improvements

Strictly Confidential

.with focus on continuous learning supported by training and

certification through..

Engagement Specific

Domain

Training/Refresher

Industry trends and research

on
Different types of pooling
Multi Bank implementation
Payment Hubs
Real time reporting

Communication Skills
Cross cultural sensitivity
Data collection and
reporting
Development, Maintenance
and Production Support
Processes

Evaluation

Benefits

Enhanced Co-ordination
across service groups
Certifications
Domain

Technical

Process

Improved End User Support

Better Understanding of
Applications

Enhanced Participation in
Initiatives

Measurements
Pre and post-training
measurement of domain &

Faster Incident Response

and Resolutions

functional awareness
Client feedback/C-SAT

Quality Process

Structured Analysis to Issues

Defect Prevention
Configuration Management
Group Review
Statistical Process Control

2011 Infosys Limited

Contribution to developing
solutions for recurring issues
Quantitative feedback of target

audience post training

29

Process Standardization
Improved Productivity
Better Knowledge
Management

Strictly Confidential

..a well designed training plans to cater to specific needs of people and
projects
Technology & Domain Training
8 Weeks of Integrated Training
Business Modeling, Development
Models , Usage of Technical Tools
etc

Customer
Feedback

Performance
Appraisals

160 Middle
Level Programs
8days/annum

Identify
Training
Needs

360 Degree
Feedback

Planned
Courses

On Request
Courses

E-Learning

Classroom
Training

Certifications
Role Based
Competency

Domain

Technical

Quality Process Training

Introduction to CMM
Defect Prevention
Configuration Management
Group Review
Statistical Process Control
Implementing CMM

Program Specific Training

Product, Application Training
Business Process Training
SDLC process standards training

2011 Infosys Limited

30

Strictly Confidential

APPENDIX 2
Infosys Understanding of Key elements and considerations
while designing liquidity platform

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Strictly Confidential

1. Managing Liquidity Risk

Increasing Visibility: Control of enterprise-wide positions; visibility into positions
by currency, counterparty, owner and location / region
Cash Flow Forecasting:
Reliable and timely forecasts are critical to determining how much cash a company actually
needs, to maintaining appropriate cash buffers and to keeping liquidity from getting trapped in
pockets across the enterprise.
Getting a clear picture of how much cash is needed, as well as when and where it is needed,
involves assessing material sources and uses of cash, across countries and currencies, and
mapping them to their respective cash conversion horizons. Internally, having the right
processes and systems in place frees treasury resources to focus on analysis

Liquidity stress testing: Blueprint of actionable responses to various risk scenarios

Developing a complete picture of accessible cash positions and cash flow forecasts under normal
conditions and developing what-if scenarios to assess disruptions
Example Change in business operations owing to unexpected disruptions or change in
circumstances leading to changed in financial market access

Mobilizing liquidity: Having liquidity when and where it is needed

Global liquidity structure allows a company to centralize and deploy cash across the enterprise
as and when needed reducing the level of cash required to run day-to-day operations and
providing much greater funding flexibility
Rationalize back accounts to clear the runway for the free flow of liquidity and then
establishing global pooling structures to automate the flow of funds through the streamlined
account structure in a regulation- and tax-friendly manner

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2. Good Liquidity Planning Tools

Go upstream to get as much intelligence about operational and financial cash flows
Reduce forecast variance through closed-loop analysis
Stress test and analyze liquidity scenarios
Use supply chain financing techniques to optimize medium term liquidity.
Provide real-time visibility into bank cash positions
Facilitate Local/global sweeps for cash mobilization to/from operating bank accounts
Provide Single & multi-currency pools to offset positions
Provide range of investment option including debt & FX
Provide real-time access to market rates and currency rates

Banking partners can automate accounting and reconciliation on their end.

Bank-offered pooling provides the latest possible cut-off times, ensuring the
maximum value i.e., the end-of-day value - is mobilized and no liquidity is left
behind.

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3. Integrated approach to treasury management

Integrated treasury management is needed for

Improving efficiency today and tomorrow:

With a Treasury Platform inclusive of a broader integrated framework for cash and liquidity management, clients can
access strategic and tactical financing tools through a single window. Including enhanced visibility of rates and
inactive trades, planning, foreign exchange (FX) and investment services in one location, allowing corporate clients
to access entire treasury and liquidity services through a single sign-on.

Clients are also able to invest surplus liquidity automatically, with a range of short-term investment options in various
currencies and a selection of money market funds that can fulfill all risk/return profiles.

Clients can achieve asset diversification which is crucial to the long term sustainability of company cash-flow and
commercial cycles and maintain this diversification with true straight-through processing (STP).

Enhanced access to information:

The information and analysis tools offered on the Treasury liquidity management module are presented in an intuitive
graphical format via customizable dashboards. These tools include aggregation across multiple regions and
subsidiaries, allowing treasurers to identify FX exposures, potential liquidity shortfalls, investment opportunities and
information related to credit-line utilization at a glance.

In addition to this is the ability to produce flexible liquidity forecasting across a number of scenarios through the input
of planning data. This will allow treasurers accurately and efficiently to determine liquidity positions that may result
from future transactions.

Quality / Flexibility of Service:

Customization a key feature, data can be uploaded and downloaded in standard formats, bypassing the need for
timely and expensive integration with existing corporate ERP systems.

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4. Cash Concentration Services (Contd)

Notional Pooling Services Involves aggregated credit/debit accounting for interest

calculation

Single Currency Notional Pooling

Multi Currency Notional Pooling
Cross-Border Single Currency Notional Pooling
Cross-Border Multi Currency Notional Pooling

Cash Concentration / Aggregation Services Involves physical movement of money

Single Currency Aggregation

Multi Currency Aggregation
Cross-Border Single Currency Aggregation
Cross-Border Multi Currency Aggregation
Multi-Bank Cash Concentration

Additional Features

Sweeping between own branches / Multi-Bank Sweeping

Currency Conversion
Nostro/Vostro Account Provisions
Inter Company Lending (ICL) Reporting / Accrual / Settlement
Auto Reversals
Back Dated Sweep Execution
One way Two Way Sweeps (Unidirectional / Bi-directional Sweeps)

2011 Infosys Limited

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4a. Cash Concentration Services: Provide Global Notional Pool for

multinationals
Solution

USD Notional Balance

Two step cash concentration

In-Country Cash Concentration

allows localized cash pool to

Currency A Cash Pool Acct

Currency B Cash Pool Acct

make money available where

required locally

Region Treasury Reviews

Daily Cash Flow Forecast

Region Treasury Reviews

Daily Cash Flow Forecast

In-Country Cash Concentration

helps reduce cost of borrowing
by moving liquidity from where

Currency A In-Country
Concentration Account

Currency B In-Country
Concentration Account

it is available to where it is
required
Global Notional Pool providing

the benefit to get interest on

the global position in primary
currency of the organization

Bank Account Bank Account Bank Account

2011 Infosys Limited

Bank Account Bank Account Bank Account

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Strictly Confidential

4b. Cash Concentration Services: Provision for Global Tax Efficient

Liquidity Management Solution
Solution

Master Bank
A/C USD

Domestic and Cross Border

Sweep can be setup in Non-

Surplus Fund
Transfer

Master A/C
EUR

EUR to USD Sweeps can be

Master A/C

Zero Balance
or Target
Balance
Sweep

Surplus Fund
Transfer
with FX

Regulated Markets
Interest
Sharing

USD

done with FX application

Domestic ZBA/Notional Pool can
bet setup in Regulated Markets

Cross
Border
Notional
Aggregation

Master A/C

Cross Border Notional Pool and

Master A/C

Master A/C

LCY

USD

USD

Interest sharing arrangement

Adherence to regulations in
Notional Pool arrangement by

ZBA

ZBA

ZBA or Notional Pool

no physical movement of money

ZBA or Notional Pool

Sub A A/C

Sub B A/C

Sub A A/C

Sub B A/C

Sub A A/C

Sub B A/C

Sub A A/C

Sub B A/C

EUR

EUR

USD

USD

LCY

LCY

USD

USD

Non-Regulated
Markets

2011 Infosys Limited

Regulated Markets

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Cash Concentration Services Key Requirements

Cash Pooling
Requirements

Zero Balancing (ZBA)

Multi Bank Cash
Concentration (MBCC)
Notional Pooling (NP)
Intra Company Loan
Administration (ICLA)
Portal
Billing
MI

2011 Infosys Limited

Zero Balancing will help clients in cash management of multiple

account within a single bank. The Sub account balances will be set
to zero or a pre-defined target and the Master account will contain
the aggregated balance of the pool.
MBCC will enable the client to add accounts from 3rd party banks
also in the cash management pool. This can also be applicable
where the sub accounts are held by branches of the same bank.
Notional pooling offers Interest compensation and optimization
features. Sub accounts credit and debits balances are notionally
offset against each other and treated as aggregated balance. This
is done without any physical transfer of balances
By means of ICLA the client is able to track the loan positions
between its subsidiaries. ICLA will offer only reporting feature to
the client where no automatic sweeps will happen.
Portal will be used by the end customer to post queries and
requests through this portal.
Billing will provide the support for billing the clients based on the
products, fee per sweep, number of accounts etc. This will be a
reporting interface for the cash management engine for the
billable items.
Management reporting is to report the ad-hoc queries to the cash
management functional owner and the business. It will report on
static data, sweep information, contract information, portal usage
by the client etc.

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Cash Concentration Services: Zero Balancing (ZBA) - Features

No fiat/debit authorization
Resident and non-resident accounts

Multiple legal entities

Account types
Multiple account locations
Single currency
Account amendments
Suspend / unsuspended account pairs
Multiple levels
Third party bank account participation
Sweep types
Balance types
Opening balance on Day 0

ZBA sweeps for any of the identified products will take place
without FIAT/debit authorization, i.e. will be executed always.
Even when the process will result in an overdrawn position on
the Master account.
Pool can have a mix of resident and non resident accounts
Combination of different legal entities (banks, corporates,
financial institutions ), as Sub and/or Master account Holder,
in one ZBA cash pool
Accounts can reside in these countries/back offices- FRS (NL),
GA Light (FBN), T24 DE, T24 BE, SAB FR,
T24 UK, T24 SG, T24, US, T24 HK
Accounts can added/deleted to/from a ZBA cash pool structure
at any moment.
An operator can suspend/unsuspended a contra account control account pair from a ZBA cash pool structure at any
moment.
Zero Balancing, Constant Balancing, Target Balancing:
Trigger Balancing and Returns

Sweep frequencies Including Intraday

With / without forward sweeping
ZBA products
Exceptions
Setting up / changing ZBA contracts

2011 Infosys Limited

Value Balance, Value Date Balance, Book Balance types.

To be applied can be configured on pool and sub account level
for those products where: Sweep type is 'Zero Balancing,
Sweep frequency is 'Daily'

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Cash Concentration Services: ZBA - Key Features

Fiat Authorization: All ZBA sweeps for any of the identified products will take place without FIAT or
debit authorization. Hence, sweep will always be executed, even if it results in debit balance on Master
Account. Sweeps will be performed irrespective of credit limits.
Resident and Non Resident accounts: A ZBA pool can have 3 types of Master Sub account
structure:

Pool with only resident accounts

Pool with only non resident accounts

Combination of resident and non resident accounts within a Pool

Multiple Legal Entities: In a ZBA Cash Pool, master and sub account can be held by different legal
entities for e.g.. Bank, Corporate, Financial Institutions etc.
Account Amendments and Suspension and Un-suspension of Contra Accounts and Control
Accounts pair
Addition of new sub account to an existing ZBA pool at any moment
Cancellation of new sub account to an existing ZBA pool at any moment
An operator can suspend / unsuspend a contra account - control account pair from a ZBA cash
pool structure at any moment.
Suspension also possible from a future effective date

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ZBA - Key Features contd.

Multiple account locations: The Sub accounts and Master account of a ZBA pool can be any current account held by
any of the following hosts in any of the following countries:

FRS (NL)

GA Light (FBN)
Amsterdam

T24 DE
(M)

T24 BE

SAB FR
Rotterdam

T24 UK
Brussels (S1)
(S2)

T24 SG

T24 US
Antwerp
Bruges (S1.2)

T24 HK
Utrecht (S2.1)
(S1.1)
*Domestic Sweep:
1. Sweeps from Antwerp, Bruges to Brussels
2. Sweeps from Utrecht to Rotterdam and Rotterdam to Amsterdam
Cross Border Sweep: Brussels to Amsterdam
Balance Types
Book/Ledger Balance: The actual balance at any point in time and is the aggregate of all debits and credits posted to
the account irrespective of the value date of the transactions.
Value Balance/ Available Balance: The balance available in the account which is ready for withdrawal, without
considering the balance in clearing etc.
Value Dated Balance: The balance of an account at a given date in the past. This is used for past date correction
With/Without forward sweeping: Sweeping based on book balances implies forward sweeping. It takes in account
any future date balance and is applicable only for Zero Balancing sweep type with a daily frequency

2011 Infosys Limited

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ZBA/MBCC Sweep Types

Sweep Type

Description

Features

Zero Balancing

Zero balance in sub

accounts

Zero value balance on the sub accounts for daily

sweeps
Zero book balance on the sub accounts for
weekly/monthly sweeps
Past correction of value balance

Constant Balancing

Pre defined minimum

value balance in sub
accounts

Pre defined value balance for daily sweeps

Pre defined book balance for weekly/monthly
sweeps
Past correction not possible

Target Balancing:
Trigger balancing

Pre defined minimum

or maximum value is
reached triggers in a
sweep

Target Balancing:
Returns

A return sweep can be

based on a pre-defined
value balance

Return pre-defined value balance

Return full value balance of previous day

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42

Target value balance for daily sweeps

Target book balance for weekly/monthly sweeps
Target can be zero or some fixed amount
Past correction not possible

Strictly Confidential

CBZB Standalone Deferred Sweep An Example

Suppose Zero balancing is to be performed on all sub

accounts

Account

Value Date

Debit
Amount

Credit
Amount

S 2.1

10th

20

50
50

S 2.2

10th

30
40

NL

SK

S1

S2

10th

S1

10th

30

Debit

Credit

50

S2
S 2.1

S2.1

S 2.2

S2.2

80
70

S2
S1

50
30

At 11th BOD Sweeps will be triggered from sub

accounts to transfer funds to Master M w.e.f 10th
Amounts in S2.1, S2.2, S1 and S2 will become zero
and M will have Balance from 10th -30 Euros

2011 Infosys Limited

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Cash Concentration Services : Target Balancing An Example

Cr.
25,000
35,000

Account
D

Account A is expected to have nil balance

everyday. It is funded by C and debit balance
cleared.

Account B is expected to have nil balance

everyday. To achieve this it sweeps the credit
balance to C.

This is an example of ZERO TARGET

BALANCING and is the most common strategy
used.

A variation of this is where the customer

chooses to have some CONSTANT balance in
the account. The customer requires Cr.
Balance of 10k retained in C. based on the
balance in the account money will be swept of
funded to achieve this balance.

Fund 10,000
Sweep
5,000

Cr.
15,000
20,000
25,000
10,000

Account
C

Account
A
Dr.
ZERO
10,000

2011 Infosys Limited

Account
B
Cr.
ZERO
15,000
5,000

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Strictly Confidential

Cash Concentration Services: Back Value Transaction An Example

Posting
Date

Value
date

Transaction

1-Jan-09

1-Jan-09

Cash Deposit for 10m

2-Jan-09

Closing
Balance

Accrued
Interest

10,000,000

0.00

2-Jan-09

10,000,000

0.00

3-Jan-09

3-Jan-09

10,000,000

0.00

4-Jan-09

4-Jan-09

10,000,000

0.00

5-Jan-09

5-Jan-09

-25,000,000

-6,849.32

6-Jan-09

6-Jan-09

-25,000,000

-6,849.32

7-Jan-09

7-Jan-09

-25,000,000

-6,849.32

8-Jan-09

8-Jan-09

15,000,000

0.00

9-Jan-09

9-Jan-09

15,000,000

0.00

10-Jan-09

8-Jan-09

15,000,000

0.00

Cash Withdrawal 35m

Back value transaction;

credit 40 m as of 8th Jan

Total interest payable

for the 10 days

Remarks
Credit Balance doesnt accrue interest

Interest is payable on the debit balance

Interest for 8th to 10th no longer as system

has given effect to the transaction as of
8th itself.

-20,547.95

The value date of the transaction dictates the interest accrual in the account. Thus the BVT of 15 m
although posted on 10th, has the effect of hitting the account as of 8th itself. The customer gets the
benefit of the amount from 8th itself and the interest payable in the account also gets recalculated

2011 Infosys Limited

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Cash Concentration Services: ZBA Product Matrix

Balance Type

Product

Cross Border ZBA (CBZB)

Transac
tion
Value
Date
Balance

Transac
tion
Value
Balance
as per
EOD

Transac
tion
Value
Date
Balance
as per
EOD

CBZB Standalone Deferred Sweep

CBZB Standalone Deferred Sweep +

Return

CBZB Special Return (Intraday +

Deferred + Return)

CBZB Intraday Return (Intraday +

Return)

CBZB EOD

CBZB Special (Intraday + Deferred)

Domestic ZB Intraday

Ledger
Booked
Balance

Return Week Mo Dai

ly
nthl ly y
TT

Dai
ly BO
D

Sweep Type

Dai
ly TT
&
BO
D

Zer
o
Bal
anci
ng

Con
sta
nt
Bal
anci
ng

Tri Ret
gge urn
r
Bal
anci
ng

Domestic ZB Standalone Deferred

Sweep
Domestic ZBA

Zero Balancing (ZBA)

CBZB Intraday

Transac
tion
Value
Balance

Sweep Frequency

Domestic ZB Standalone Deferred

Sweep + Return

Domestic ZB Special (Intraday +

Deferred)

Domestic ZB Special Return

(Intraday + Deferred + Return)

Domestic ZB Intraday Return

(Intraday + Return)

2011 Infosys Limited

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Strictly Confidential

Multi Bank Cash Concentration (MBCC)

One way MBCC
Two way MBCC
Resident and non-resident accounts
Multiple legal entities
Account types

An MBCC sweep will be executed if the Sub account has

a positive balance, having the Sub account fund the
Master account

Multiple Master account locations

Single currency
Account amendments
Suspend / unsuspend contra account control account pairs
ZBA account participation

An MBCC two way sweep from master to sub or sub to

master account depending upon the balance

Sweep types
Balance types

A sub account can only participate in one pool structure

Sweep frequencies
A Sub account participation
MBCC products
Exceptions
Setting up / changing MBCC
contracts

2011 Infosys Limited

MBCC Intraday, MBCC EOD and its variants

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MBCC - Key Features

One Way MBCC: Sweep is only performed if the Sub account has a
credit balance, funding the Master account. The sweep is not executed if
the sub account has a negative balance, i.e. the Master does not fund
the Sub account

Two Way MBCC: An MBCC sweep will be executed if:

The Sub account has a debit balance, having the Master account
funding the Sub account
The Sub account has a credit balance, having the Sub account
funding the Master account

One way
Sub A/c

Two way
Sub A/c

ZBA Account Participation: The Master account of a MBCC pool

can be linked to a internal account, as such not only participating as a
master in a MBCC pool, but also as a master in a ZBA pool. Setting this
up as two structures where an account is denominated as the master of
a MBCC structure and the master of a separate ZBA structure is
acceptable.

MBCC Product (EOD and Intra day) : EOD sweeps happen once a
day after the branch has closed for business. Intra day sweeps happen
during the course of the day when the bank is still open for business.

48

Master A/c

ZBA A/C Participation

XYZ
Master a/c
MBCC

3rd Party
Bank a/c

Branch A

2011 Infosys Limited

Master A/c

Strictly Confidential

Branch B

ZBA

XYZ
Sub a/c

Branch C

MBCC Product Matrix

Multi bank Cash Concentration (MBCC)

Balance Type

Product

MBCC Intraday

MT942
Transa
ction
Value
Balanc
e

MT942
Transa
ction
booked
Balanc
e

MT940
Availa
ble
Balanc
e

Sweep Frequency
MT940 We
Booke ekl
d
y
Balanc
e

Mo Dai Dai
nth ly - ly ly
intr BO
ada D
y

Dai
ly EO
D

MBCC Intraday
Return

Zer
o
Bal
anc
ing

Con
sta
nt
Bal
anc
ing

Tri Ret One Tw Sin Mul

gge urn way o
gle ti
r
way
Bal
anc
ing

MBCC Intraday One

Way - Multi
Currency

ABT Intraday

Directio Currenc
n
y

Sweep Type

MBCC EOD One

Way - Multi
Currency

ABT EOD

Strictly Confidential

49

MBCC EOD

2011 Infosys Limited

Cash Concentration Services: Notional Pooling

Resident and non-resident accounts

Multiple legal entities

A Cross Currency Interest Compensation pool can be set

up on the basis of sub accounts which are denominated in
different currencies.

Account types
Multiple account locations
Mono currency
Multi currency
Account amendments
Multiple level Notional Pool

The Pool account of one notional pool can participate as a

Sub account in a higher level notional pool. This
structure can be set up at a domestic as well as
international, cross border, level.

Multi level multi type cash pooling

Interest
Transactions Value Balance
Notional Pool products
Setting up / changing NP contracts

2011 Infosys Limited

The Cash Pooling Engine is able to calculate the interest

for the accounts participating in the pool on a daily basis,
taking into account:
- Interest conditions
- Back valuations
- The Allocation Model to be applied

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5. Portal, Billing and Management Reporting

Portal
Access Online
Language
Data segregation

Viewing
Amendments
Present client requests
Approve & authorize ICLA
interest postings

Billing

The static information the client is able to see relates to:

- The pool structure;
- Sweep schedule;
- Sweep information;
- Bank Interest statements, incl. applied allocation
- Intercompany loan administration:
* Loan Positions
* Shadow Administration
The Portal should allow for an interactive interface for the
client.
Billing can take place on a monthly/3-monthly/semi-annual
basis

Billing frequency
Billing reports
Interface with Billing Engine

MI
Management Reporting

2011 Infosys Limited

Billing reports will be generated for the sweep family products,

i.e. ZBA and MBCC.
Note: there will be no separate billing report for Notional
Pooling Products. For Notional Pooling, reports are generated
as referred to under requirement [Link]. These reports will
be used as a reference for Billing purposes.
Ad hoc queries and other Management reporting for the
application.

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5. Portal, Billing and Management Reporting- Key Features

Portal Viewing:

Pool structure

Sweep schedule

Sweep information

Bank Interest statements, incl. applied allocation

Intercompany loan administration

Pool Structure
Sweep schedule
Sweep information
Bank Interest statements
Intercompany Loan Administration

Amendments: The Portal should allow for an interactive interface for the client. Request to change:

Sweep parameters

Triggering sweeps

ICLA parameters

Loan positions
Billing

Billing reports- Billing reports will be generated for the sweep family products, i.e. ZBA and MBCC.

Billing Frequency- Billing can take place on a monthly/3-monthly/semi-annual basis

MIS: The Cash Management Functional Owner and Cash Management Business is able to have ad-hoc queries
executed on the cash pooling data:

On all static data

On the data as generated by executing ZBA/MBCC sweeps, ICLA contracts and Notional Pooling contracts

On the data regarding Portal usage by the client

On the logged insert/update/delete actions performed by the operator

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6. Provide Integrated Treasury Client view on mobile devices

Features

Treasury Client Dashboard view

Process Centric view of

Treasury client user
Widgets for performing
Treasury , trade, Payment,
Investment and inquiry
functions
Robust informational
reporting capabilities
Web 2.0 capabilities
including smart chat and
other features for
interacting with support
groups
Rich charting and graphing
features to provide real time
view of cash flow forecasts,
Fx and Hedging risks, Limit
utilization and Balance
positions

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7. Other Possible Features

Features

Description

Percentage Sweeps

This feature is only applicable if a particular account participates in 2 Cash Pooling structures. In such a
case, a condition at the account level can be setup on Percentage basis. E.g. 40% of the sweep will contribute
to Structure 1 and the rest to Structure 2.

Sweep Counter

Customer can setup a sweep counter where there is a limit of the sweep per month/quarter. This is mainly to
have a control on the cost.

Multiple of / Ranged
Sweeps

Sweep amount can be within a range or in multiples. E.g. actual calculated sweep is for 1340 EUR but for a
multiple of thousand a sweep of 1000 EUR will happen.

Account Posting
restrictions

Adhoc restrictions based on contract or some regulatory restrictions

Loan Position limit

Daily, monthly limits on loan position

Regulatory constraints

Regulatory and legal constraints, SEPA, PSD etc.

Frequency based
constraints

Pre defined sweep frequency constraints at pair level, sub account level. E.g. perform sub sweeps only 10
times a day or only at EOD

Credit or Debit only

sweeps

Perform only credit sweeps or debit sweeps at sub account level or master account. E.g. In case of credit only
sweep, the credit balance of sub account will be swept to Master.

Recovery Scenarios

Handling holidays

Handling currency or Bank Holidays

Simulation of expected
sweep balances

Before an actual sweep, a report is generated for predictive sweep for analysis purposes.

Email Notifications

Auto generated email notifications to clients

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Account / Contract / Branch level

Recovery by creating new sweep
Recovery by reversing the successful sweep
Recovery by re-computing and posting new sweep

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APPENDIX 3
Liquidity Solutions in Industry

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Major Liquidity Management Systems in the Industry

Liquidity Management Systems

They primarily aim to look at ways to provide better visibility into cash needs and cash flows at
any point in time
Provide better balance information and alert on reaching early warning indicators
Highlight any deviation from policies and regulations
Provides multiple options for high value transactions thus increasing efficiency and improve
profitability
By making use of various methods such as reconciliation, help with simplifying the processes
Define clearly laid out automated workflow / process thus implementing necessary regulations
and to eliminate human errors

Some of the well-known tools available in the market include:

Aleri Liquidity Management System

OnePipe Optimal Liquidity Management System
Polaris cash management system
SAP Cash and Liquidity Management module
SmartStream from TLM Cash and Liquidity Management
SmartTrade Liquidity Management system
Most of the Indian financial institutions use their home-grown systems

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Current Liquidity Management Systems from different Banks

Over the past year the cash management banks have continued to invest in their liquidity
management systems, services and personnel.
SEB launched a new cash pool in Russia.
ING Bank extended its integrated liquidity management network to 29 countries.
Citi has been focusing on helping companies improve the optimization of internal
liquidity globally, most recently extending its TreasuryVision global liquidity portal
with a new Intercompany Lending Module.
Commerzbank now includes Poland in its multi-currency notional pools, which are
located in Frankfurt.
Ecobank, the pan-African bank, have just launched Ecobank Omni, a new payments
and receivables and cash management platform to support its liquidity management
services in 32 countries across Africa.
HSBC has expanded its global team of liquidity management advisers and rolled out
multi-currency/cross-border pooling and end-of-day sweeping in 22 markets. Over the
next year, this will be extended to include many more countries, enabling HSBCs
customers to take advantage of its global footprint.

Source Euromoney Liquidity Sept 2011

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