Cash concentration has been added to the systems cash management function. This allows cash managers to process all their own balancing transactions by enabling them to set target balance and threshold amounts for designated accounts. IT/2 then automatically sweeps funds from or transfers funds to the accounts being managed. The created inter-company positions are automatically reflected on notional in-house banking accounts. When combined with IT/2's existing operations forecasting capabilities, cash managers are able to perform very efficient cash management without being too dependent on costly products provided by banks.
Other enhancements to IT/2âs cash management functionality include automatic shadow administration of bank run zero-balancing services and extensions to its notional pooling capabilities that include pool benefit analysis and interest reallocation.
IT/2âs new risk scenario analysis tool enables interest rate or foreign exchange risk scenarios to be run from one mouse click. Results are then presented on IT/2âs user-friendly workbench in a matrix form that enables treasurers to drill down to the underlying term structures and deal cash flows that have created the position. The treasurer can define both the risk scenarios as well as the way in which they are reported. Interest rate risks, in varying time periods, can be viewed at a glance.
For the smaller treasuries, of up to 5 users, IT/2 can now facilitate networking without the need for a dedicated server. This reduces the initial cost of the system as well as the amount of technical support required. It is fully upwardly compatible if a treasury grows beyond 5 users and needs a dedicated server.
Other improvements to the system are in the areas of internet banking, hedge accounting and the subsidiary access module. The enhancement to IT/2âs internet banking facility enables direct connection to a treasurerâs bank, via the internet, for a continuous flow of information. For hedge accounting, additional parameters control accrued interest and credit spreads to provide treasurers with greater flexibility in proving hedge effectiveness. Through the IT/2 NET module, subsidiaries can now initiate fund transfers which, following approval by treasury, is automatically processed via EFT and reflected on the inter-company positions.
"Our latest release of IT/2, version 5.1, continues to enhance this already market leading product," says Patrick Coleman, sales and marketing director for SimCorp IT/2. "Some of the enhancements are designed specifically for the smaller treasury that would typically purchase the system through our IT/2 Choice business model, others are more relevant for the larger treasury, making IT/2 ideal for all corporate treasurers, regardless of the size of their operation."
The IT/2 Choice business model enables the system to be available on a free two monthsâ trial and without the charge of an initial license fee. It is the first corporate treasury management solution to be available on this basis. The system is also available in the traditional business model, if required.