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Liquidity Management

A Technology Industry Pioneer

A full set of core cash and liquidity management products


About

A technology giant that provides automation and industrial solutions to clients in several countries.

At a Glance

  • J.P. Morgan has been the client’s core bank for over 25 years in the U.S. , while in Brazil, the company had a long-term relationship with a large local retail bank
  • The company issued a request for proposal (RFP) aiming to replace its local banking partner with a global core bank. J.P. Morgan won the RFP with an aggressive pricing strategy onshore and offshore alongside its ability to provide wide local coverage
  • A key point of the mandate was integration and coordination among J.P. Morgan teams across the globe

The Challenge

The company launched an RFP in mid 2015 which sought full local and cross-border cash management at the best cost and with best-in-class service. The request encompassed both receivable and payable banking solutions, bank systems support and technology available to improve and standardize process flows.

Brazil Landscape

Brazilian companies are allowed to keep 100% of export proceeds abroad (only restricted segments are allowed to hold foreign currency accounts domestically). Funds can be used to pay offshore obligations, acting therefore as a natural FX hedge. Due to legal and tax restrictions, this account cannot be part of a global multi-currency sweep structure.

  • A Brazil demand deposit account (DDA) contract was incorporated into Global Account Terms (GAT) previously negotiated at headquarter level
  • Local file format (CNAB) with minimum implementation effort for the client was achieved as a client side J.P. Morgan File Mapper solution was used to translate the client’s previous layout to J.P. Morgan’s standard
  • BRL payments/collection files sent directly via J.P. Morgan Host-to-Host connection
  • The Customer using J.P. Morgan Brasil OnlineSM – our local internet banking module customized for Brazilian needs and fully integrated with J.P. Morgan Access® for local cash services with access to accounts details and payment receipts in real time
  • Multibank balance and transaction reporting integrated to J.P. Morgan Access Online
  • New York U.S. dollar and euro account
This deal was a team work experience, demanding commitment from both sides once J.P. Morgan was centralizing full local and offshore cash management services. System stability and premium client service were main demands and client is highly satisfied.

Elisabete Marchesini, Brazil Treasury Services Coverage

The Impact

  • Disciplined implementation project management and dedicated client service
  • Full centralization of core cash and liquidity activities in J.P. Morgan (local banks used for specific retail services, such as payroll and checks)
  • Services were tailored to meet specific local needs: J.P. Morgan developed a new Drawee Portal for Boletos*, so the company’s clients can download copies of existing Boletos without contacting the company, reducing operational activities

 

*Boleto bancário is the main receivables instrument in Brazil. It is a paper slip with a bar code and unique 44-digit ID code, which provides efficiency when reconciling incoming payments.

J.P. Morgan is the marketing name for the Treasury Services business of JPMorgan Chase Bank, N.A. and its affiliates worldwide.

©2018 JPMorgan Chase & Co. All rights reserved. JPMorgan Chase Bank, N.A. Member FDIC.

The products and services described in this document are offered by JPMorgan Chase Bank, N.A. or its affiliates subject to applicable laws and regulations and service terms. Not all products and services are available in all locations. Eligibility for particular products and services will be determined by JPMorgan Chase Bank, N.A. or its affiliates.

JPMorgan Chase Bank, N.A. at its London Branch is authorised by the Office of the Comptroller of the Currency in the jurisdiction of the U.S.A. Authorised by the Prudential Regulation Authority. Subject to regulation by the Financial Conduct Authority and to limited regulation by the Prudential Regulation Authority. Details about the extent of our regulation by the Prudential Regulation Authority are available from us on request (Firm Reference Number: 124491)

JPMorgan Chase Bank, N.A. (Johannesburg Branch) is an Authorized Financial Services Provider (FSP No. 7795). An external company registered in South Africa with the registration number 2001/016069/10.

Registered in South Africa as a branch of a foreign bank, JPMorgan Chase Bank, N.A. and operates under a banking license and is regulated by the South African Reserve Bank.

All complaints must be directed to Compliance on jhb.compliance@jpmchase.com

Details of FAIS Ombud
Office of the FAIS Ombudsman
Name: The Ombud for Financial Services Providers
Postal Address: PO Box 74571, Lynnwood Ridge, 0400
Telephone number: 012 762 5000 / 012 470 9080
Facsimile number: 012 348 3447
Email Address: info@faisombud.co.za
Website: www.faisombud.co.za

For Brazil: Ombudsman J.P. Morgan: 0800-7700847 / ouvidoria.jp.morgan@jpmorgan.com