IS IN HOUSE BANKING RIGHT FOR YOUR ORGANIZATION?

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IS IN-HOUSE BA NKING RIGHT FOR YOUR ORG A NIZ ATION? | © K Y RIBA CORP. 2017 | 3
WHAT ARE THE TOP F I V E BENE F I T S
OF I NTRODUC I NG AN I N-HOUSE BANK?
1. Banking fees can be reduced by limiting the
amount of intra-company funds transfers that
subsidiaries are executing, with in-house bank
physical cash transfers reduced significantly.
This will also reduce operational risk by
avoiding unnecessary movements of cash.
2. Higher returns can be earned on investments
by pooling all cash and credit balances instead
of having them lying dormant in subsidiary
accounts.
3. If your organization is global, foreign exchange
and cross-border payments can be minimized,
and transactions can be conducted by the
corporate office, rather than going through local
in-country payment processing.
4. Corporates can negotiate better pricing, service
and flexibility from banking providers through
aggregation of spend into a centralized treasury
function.
5. Instead of subsidiaries going to banks, loans
can be provided to subsidiaries. Lending
internally is much less expensive than paying
interest to a third party.