IS IN HOUSE BANKING RIGHT FOR YOUR ORGANIZATION?

IS IN-HOUSE BA NKING RIGHT FOR YOUR ORG A NIZ ATION?

WHAT SERV I CE S COULD AN I N-HOUSE BANK

PROV I DE TO AN ORGAN I Z AT I ON?

n in-house bank will operate just like a

commercial bank by providing resources and

services to the participants, including payment

processing, collections activities, liquidity

management, FX and servicing funding requests.

In-house Bank

Participants

Typical In-house Bank

Services Provided

External

Banks

In-house

Bank

Source banking services

from external banks

In-house bank provides

banking services to

business unit / IHB

participants

Internal Account:

an IHB

account with interest earned or

paid based on the balance held

at the IHB

Netting:

reduces or eliminates

cash settlement; cash is pooled

across currencies

POBO

– Payment on Behalf of

ROBO

– Receipt on Behalf of

Intercompany payments and

receipts

tracked and recorded

against IHB account

Internal

deals executed

between subsidiary and IHB

An in-house bank effectively in-sources significant amounts of services from the banks

and recaptures a substantial amount of fees and spreads paid to the banks.