An efficient, transparent, and cost-effective in-house bank plays a critical role in optimizing corporate financial operations. It centralizes liquidity management, facilitating streamlined cash flow across subsidiaries while reducing external borrowing costs. Key functions include managing intercompany funding, currency risk, and payment processing, ensuring standardized processes and compliance with regulatory frameworks. The in-house bank enhances transparency by providing real-time visibility into cash positions and financial risks. Its emerging role involves leveraging technology like artificial intelligence and blockchain for predictive analytics, fraud detection, and seamless cross-border transactions. By acting as a strategic partner, the in-house bank supports the corporation’s overall financial resilience and long-term growth.
Inter-Company Funding
Best-in-class corporate intercompany funding practices involve creating a systemic funding profile that balances variable and fixed mechanisms to address both immediate and long-term financial needs. This ensures cost-effective resource allocation, reduces reliance on external funding, and minimizes interest costs and credit market exposure. Centralized cash pools and intercompany loans, structured with attention to tax implications and FX risks, optimize funding flows across geographies. Navigating regulatory restrictions in emerging markets requires thorough local tax law compliance and operational efficiency. Integrating funding processes into ERP and TMS systems provides real-time visibility, enabling accurate cash forecasting and proactive FX risk management. Our extensive work with multinational corporations has helped design centralized funding models that enhance working capital efficiency, mitigate risks, and deliver cost-effective liquidity management.
Regional Treasury Centres
We specialize in establishing best-in-class Regional Treasury Centers (RTCs) with 24/7 integration, enabling centralized oversight across cash management, FX risk, debt markets, intercompany funding, and project finance accounting. Our implementation of one of Asia’s first fully integrated RTCs showcases how such systems seamlessly integrate operational and financial ecosystems into a global risk management framework. Leveraging parent credit ratings and real-time ERP/TMS connectivity, these RTCs optimize liquidity, reduce FX conversion costs, and improve funding terms while aligning with regional tax and regulatory nuances.
For companies that wish not to adopt a fully integrated model, we have successfully designed standalone regional treasury solutions that deliver localized benefits while maintaining alignment with global policies. These models ensure compliance, mitigate financial risks, and enhance decision-making, even in volatile markets. Centralizing treasury functions via RTCs creates significant cost efficiencies, operational streamlining, and robust risk management, empowering organizations to meet global and regional challenges effectively.
Resource Management and AI
A robust resource management strategy powered by AI starts with aligning workforce capabilities to organizational goals, using AI to optimize resources and improve cost efficiency. AI transforms resource utilisation and recruitment by automating tasks like resume screening, employing predictive analytics to identify top candidates, and enhancing diversity through unbiased algorithms. For employee retention, AI-driven sentiment analysis tools detect disengagement or attrition risks early, enabling timely interventions to retain critical talent. In learning and development, AI creates personalized training pathways, equipping employees with skills aligned to future business needs. Our collaboration with intellimation.ai, whose expertise has supported globally recognized corporations, has achieved significant cost reductions while retaining essential talent and resources. This partnership has also provided enhanced insights through advanced analytics, enabling better decision-making and strategic alignment. By integrating AI, companies see measurable improvements in productivity, retention rates, and engagement, while fostering a more agile and future-ready workforce.
Shared services: AI and Innovation
AI and innovation are revolutionizing in-house bank constructs, making shared services a critical component of efficient financial management. Shared services streamline operations, reduce costs, and enhance standardization across regional and global perspectives. We have significant experience in establishing both regional and global shared service centers tailored to industry and company-specific needs. AI amplifies these benefits by automating routine tasks, improving decision-making with advanced analytics, and driving innovation through dynamic process enhancements. For example, AI-powered systems optimize intercompany funding flows, enhance regulatory compliance, and enable predictive insights for better cash and liquidity management. Through our partnership with intellimation.ai, companies can leverage AI to meet their objectives, ensuring shared services remain agile, scalable, and future-ready in dynamic financial environments.
Working Capital and Liquidity
In-house bank constructs are critical for all corporations, regardless of industry, as they centralize working capital and liquidity management, improving financial efficiency and resilience. For capital-intensive companies or those with limited liquidity, these constructs ensure optimal allocation of resources, reduce reliance on external funding, and mitigate risks. Effective in-house banks impact key operational and financial KPIs, such as cash flow optimization, reduced interest costs, improved Days Sales Outstanding (DSO), and enhanced Return on Investment (ROI). Proficiency in ERP and TMS systems is essential to integrate real-time data, enabling accurate forecasting, better FX risk management, and seamless execution of funding strategies. Our firm has conducted extensive studies and implemented tailored solutions for leading global companies, addressing their unique challenges and enhancing liquidity efficiency. Partnering with intellimation.ai, a global leader in AI innovation, adds advanced analytics and automation capabilities, ensuring in-house bank constructs remain agile and aligned with future needs. This approach empowers organizations to achieve financial excellence and operational stability
Debt and Capital Markets
The in-house bank plays a pivotal role in managing debt and capital markets, serving as a core function often integrated with treasury and corporate finance. It facilitates cost efficiency by centralizing debt issuance, refinancing, and interest rate management, enabling economies of scale and improved negotiation power. Understanding the methodologies for managing debt in emerging markets versus developed markets is critical, as regulatory, currency, and market liquidity conditions vary significantly. Capturing these activities in a treasury’s TMS system is essential to ensure real-time visibility, accurate reporting, and compliance. The absence of such integration can lead to issues like inefficient cash allocation, missed refinancing opportunities, higher borrowing costs, and regulatory non-compliance. Key components of an efficient debt capital markets process include robust market analysis, clear debt structuring, risk assessment, compliance monitoring, and continuous performance evaluation. By addressing these areas, corporations can optimize their capital structure and achieve long-term financial sustainability.
I am pleased to recommend Erik. During our time working together, Erik expertly transitioned complex projects from planning to successful execution, showing a keen ability to manage both strategic initiatives and detailed financial analyses. His proactive approach in identifying potential risks and developing mitigation strategies greatly benefited our team and our clients.
Joakim Lidbark
Former Global Head of CitiFX Client Solutions
I had the pleasure of working with Erik on several high-level CFO and board projects, spanning capital risk, foreign exchange, global policy, and treasury transformation . His depth of knowledge and keen understanding of corporate priorities are unmatched. Erik’s forward-thinking approach to potential risks, coupled with his adaptability to industry and company-specific nuances, sets him apart. He is also an outstanding communicator, able to connect effectively at all levels of an organization.
Nick Pedersen,
Global Head of Digital – NatWest
I have known and collaborated with Erik Johnson for over 25 years, beginning with our roles as regional treasury heads at Siemens—Erik in Hong Kong and myself in New York. Together, we were responsible for designing, streamlining, and implementing customized processes and protocols aimed at clarifying and managing complex corporate risk profiles across various asset classes, including interest rates, foreign exchange, credit, and commodities. This work ensured alignment with company objectives and risk management practices. Over the years, we have frequently partnered on global hedging strategies for corporate clients. Erik has dedicated his career to advancing the field of treasury risk management, demonstrating an exceptional commitment to deep understanding, integrity, and high professional standards.
Mark Cipollina,
Former CFO Siemens Capital U.S.
I have collaborated with Erik on multiple global risk management C-suite initiatives over many years with several different corporates. His extensive experience as a corporate treasurer provided him with a deep understanding of our needs across various operational areas. Erik delivered a comprehensive policy and risk management framework that aligned with our objectives, while adhering to industry best-in-class practices. His proactive and strategic approach to identifying and addressing risks, combined with his forward-looking insight and ability to embed technology into both current and future needs, sets him apart. I highly recommend him.
Ciaran Fegan, CFA
Senior Director, FX Risk Management & Treasury Strategic Projects at Viatris
I have had the privilege of knowing Erik for nearly 30 years. During this time, and in my previous capacity as the head of foreign exchange trading at leading global financial institutions in the Asia-Pacific region, I have been consistently impressed by Erik’s extensive experience in global risk management and his deep understanding of financial markets across multiple asset classes. Erik displays a disciplined approach to risk management, spanning both emerging and developed markets, and stands out as an industry leader. His strong grasp of macroeconomic themes and expertise in financial risk modeling, allow him to translate complex data into practical, effective risk management solutions that consistently deliver value for his firm and their clients. I am confident in recommending Erik for roles requiring strong leadership, strategic vision, and deep expertise in financial markets and risk management.
Christopher de la Hoyde
Former Head of Foreign Exchange Asia Pacific at RBS
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