12 SEPTEMBER, 2017

In today's highly competitive and dynamically changing world, efficient and effective management of cash flow is important for the well-being of any institution. Enabling customers’ business efficiency and integrated cash management solutions has become a key differentiator in the market.

The focus in technology has changed to creating, empowering and strengthening the features and functionalities for the cash management platform as well as the core technical team. Technology has moved beyond being just a facilitator, to being an effective contributor towards overall growth.

A system that offers a perfect blend of technology, banking expertise, constant innovation and a high degree of customization to provide integrated cash management solutions has become a need of the hour. Efficient and integrated cash management solutions will not only support business growth for customers but also help them in diversifying and expanding their business.

Kotak’s Cash Management Services are key components for a company to ensure efficient working capital cycle and best use of cash or liquid resources. They cater to all your cash management requirements under one roof to optimize your cash flow position and to ensure effective management of your business operation. They help you streamline your processes, optimize your funds and automate everyday tasks, that result in cost-effective management of your cash.

Their offerings include a full range of advanced products and services to efficiently process your receivables and payables. They not only enable customers to optimize their operating cycle but also provide the following:-


1. Escrow Services: 
Protection of your business and secure control of your cash assets.

2. Lower Interest Cost: Receive funds in minimum transit time thereby reducing interest cost.

3. Liquidity Management: Improved management of surplus cash through a suite of products.

4. Improve Liquidity: Enhance liquidity and use of liquid cash faster due to saving in transit time for realization of the cheque.

5. Mobile payments: Enable your customers to make fast, simple and safe payments for purchases or donations using their mobile phone.

6. Better Accounting and Reconciliations: Detailed information of cheques banked through regular and customized MIS.

7. Payments and Collections: Supporting your organization with access to an extensive range of products and services for efficiently initiating and receiving payments.

8. Overall Operational Convenience: The presence at multiple locations allows banking convenience at all available locations with a single bank account.

9. Online Banking Services: Supporting your organization in automating your domestic and global cash management by reducing the risk and ensuring the payment security.

10. Centralised Service Desk: Centralised service desks ensure faster and efficient resolution of queries.

11. Interconnectivity: Online facility with your CMS account allows you to check balances, view collection details, cheque status, effect payments and receive payments online.

The underlying objective of cash management in India has not changed strikingly in its entirety. However,
the payment and collection mechanism has taken a steep change in terms of moving
away from age old systems.

Many new product initiatives have been taken in the last few years in e-commerce - acquiring, issuances, liquidity management, UPI, API based solution, over the counter products, Government based initiatives, Aadhar based initiatives and structured receivables solutions. The government of India has been playing a key role in terms of digitization and new initiatives under NPCI which has led banks to innovate at a faster pace compared to what was practiced over the past few years. Partnering with fin-tech companies to offer tailor made solutions if and when required has become a strategy for most banks and would remain a key differentiator in terms of getting wallet share of customers and retaining the same in the long run.

Experienced professionals will make this happen by structuring practical solutions that are customized to your needs. Therefore, strengthening of human capital has been important criteria for Kotak to ensure best-in class offering with a sharper focus to create centre of excellence for product offering to customers. The customer should have a strong recall on product offerings and banks need to strive for the same, bringing in innovative technology and integrated solutions which are customized.

Going forward, quicker integrated product designs and less time to market would be the key to cater to the fast changing product environment as well as customer expectations. A structured service and implementation team that engages with customers for service and specific technological implementation requirements have emerged as a hook in the last few years. Thus, the focus for cash management service offerings will now be on the digitization of the entire ecosystem for product delivery to the customer, rather than focusing only on the end product.

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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.