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HSBC proves effectiveness of its treasury service via Macmahon Indonesia
HSBC has once again had the honor to be recognized by The Asset magazine when one of its clients was bestowed the Treasuries Client Award: Best Liquidity and Investment Solution.
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s a seasoned global player in treasury services, HSBC proves its strong proposition following another recognition by The Asset. The Asset, a Hong Kong-based magazine, reviews organizations with a stringent methodology, combined with a rigorous approach to selecting the best institutions and deals.
One of HSBC’s clients obtained Treasuries Client Award: Best Liquidity and Investment Solution, part of the Asset’s Triple A Awards, which showcases the bank’s capability in providing competitive solutions in liquidity management to its corporate clients.
The effectiveness of HSBC’s liquidity product is proven through positive results in operations and business performance of one of its prominent clients, Macmahon Indonesia, the Indonesian subsidiary of Australian-based miner Macmahon.
As a mining services company, Macmahon offers services for surface and underground operations, development, engineering, and site rehabilitation. In Indonesia, the company works in the second-largest copper-gold mine in the country, the Batu Hijau mine in Sumbawa, West Nusa Tenggara).
Macmahon needs a game-changing solution to manage its cashflow and working capital in an efficient manner that is accessible on a day-to-day basis. Prior to engaging with HSBC, the company processed its intercompany loan manually, leading to time-consuming fund transfers and cash balance calculations.
At its core, intercompany loans are meant as a time-effective means to fulfill the funds required by a business unit within a company. Unfortunately, manual processing of intercompany loans, more often than not, is time-consuming and hampered what should, and could, have been a seamless process.
Manual processes contributed to scattered account balances, resulting in lower gains from cash balances, and may cause delays in some parts of the overall operations.
Macmahon decided to take steps to solve the issues by looking for an all-in-one automated solution to enhance balance returns. The company requires solutions that can create efficient balance movements, interest calculations, and reporting.
The company picked HSBC’s Global Liquidity Solutions (GLS) due to its automated cash-concentration system. Under the system, funds can be pooled in a central account, offering higher interest rates and, more importantly, simplifying liquidity management.
The system allows Macmahon to minimize manual effort in calculating balance and intercompany interest returns. GLS automatic settlement and fund movements prevent penalties from late payments as well.
Macmahon deems HSBC’s self-service liquidity product to be simple and efficient, with easy login and flexible liquidity adjustments. As a result, Macmahon saw a boost in its profits due to combined balance and higher interest rates.
“HSBC liquidity solutions helped us fully automate and digitalize our intercompany transactions to fully self-fund working capital requirements of the entities under the group,” said Poltak Hutasoit, director at Macmahon Indonesia.
The successful implementation of HSBC’s Global Liquidity Solutions by Macmahon served not just to provide solution to the company, but showcased its pragmatic uses for companies with layers of operational complexities.
The Triple A Awards from the Asset recognizes the excellence of HSBC’s treasury services among its peers. This brings a greater drive for HSBC to strengthen its Global Liquidity Solutions for companies in Indonesia, where the bank has a long history and presence.
HSBC opened its first branch in Indonesia back in 1884, under The Hongkong and Shanghai Banking Corporation Limited. Since then, HSBC has always been present to help businesses manage their cash balances across more than 50 markets globally.
