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 | 9
BENE F I T S OF IMPL EMENT I NG AN
I N-HOUSE BANK PROGR AM
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Improved Operational
Flexibility
By implementing an
in-house bank, there
exists the opportunity
for improved
operational flexibility,
especially when
integrating multina-
tional businesses. The
in-house bank can also
serve as the building
blocks to a corporate
center of excellence,
offering expert banking
transaction-related
customer service to
the subsidiaries/
participants.
Lower External
Borrowing
IHB will lower
subsidiaries’ need to
borrow at high local
rates while others
invest surplus cash at
low rates. In an
in-house bank, they will
borrow from or lend to
each other and go to
the bank only to cover
the net shortfall or
invest the net surplus.
Improve your own
bottom line instead of
the bank’s.
Lower External
FX Transaction
IHB will lower the
volume of external FX
deals. With an in-house
bank you will offset the
trades and pay the
outside dealers only for
the trades you need to
cover the corporation’s
net needs.
Improved
Visibility
With in-house banks
enabling pooling of all
the investable cash or
short-term borrowing,
corporations can
command lower loan
rates or higher
investment rates for
larger parts of the
business. By streamlin-
ing accounts,
corporations often
can reduce mainte-
nance fees and
reconciliation tasks.
Lower Costs and
Bank Independence
Implementing an
in-house bank using a
single technology for
communication with
the banking environ-
ment will result in
lower costs and a
greater degree of bank
independence.