SunGard Identifies Ten Trends for Corporate Liquidity Management

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SunGard, which provides its AvantGard liquidity management solution for corporations, has identified ten trends impacting how corporations approach liquidity management.

Scott Coffing, president of SunGard’s corporate liquidity business and recently named to Treasury & Risk’s 2011 100 Most Influential People in Finance, said, “Corporations are thinking about key initiatives that will help them optimize liquidity, streamline communications, and lower operational costs. To capitalize on the changes that we’ve seen in our industry, corporations are looking to introduce innovation and efficiency into the management of cash and risk and their surrounding workflow processes. For instance, corporations will look at alternative financing options; in particular they will leverage their trade receivables in their overall capital structure.”

SunGard, which provides its AvantGard liquidity management solution for corporations, has identified ten trends impacting how corporations approach liquidity management. These trends include:

1.    Corporations will increase demand for hosting and managed services of their financial applications

2.    More organizations will utilize statistical modeling for corporate credit risk assessment

3.    There will be a continued increase in trade financing of suppliers

4.    Corporations will more strategically leverage their receivables in their overall capital structure

5.    Organizations will continue to increase their vendor/supplier counterparty risk assessment

6.    Corporations will adopt more advanced modeling for evaluating FX risk

7.    As the SEPA ‘end-date’ nears, corporations will have a renewed focus on compliance

8.    Hub and spoke networks will be adopted to facilitate corporate-bank communications

9.    North American organizations will escalate migration from paper checks to ACH, EFT and card payments

10.    Corporations in emerging markets will increase their adoption of SWIFT messaging

Jeanne Capachin, research vice president, IDC/Financial Insights, said, “To succeed and grow in this post-crisis era, corporations will need to capitalize on change and seize new opportunities to generate cash and optimize liquidity. Atop the priority list of the corporate finance executive is an emphasis on the receivables portfolio as a strategic asset and means to create liquidity. Continued streamlined management of banking relationships and prudent risk management will also be a focus. For many corporations, these initiatives will need to be managed within the context of evolving global business requirements, regional nuances and changing regulation.”

SunGard Podcast:
Scott Coffing: Insights & Trends Around the Private Cloud & Managed Services http://www.sungard.com/Campaigns/FS/Corporations/AcrosstheEcosystem/Forms/WebDownload/ScottCoffingCloud

About SunGard’s AvantGard
SunGard’s AvantGard is a leading liquidity management solution for corporations, insurance companies and the public sector. AvantGard provides chief financial officers and treasurers with real-time visibility into cash flows and increased operational controls around receivables, treasury and payments. AvantGard helps companies drive free cash flow and reduce inefficiencies across the ecosystem of suppliers, buyers, banks and other trading partners. For more information, visit http://www.sungard.com/avantgard.

About SunGard
SunGard is one of the world's leading software and technology services companies. SunGard has more than 20,000 employees and serves 25,000 customers in 70 countries. SunGard provides software and processing solutions for financial services, higher education and the public sector. SunGard also provides disaster recovery services, managed IT services, information availability consulting services and business continuity management software. With annual revenue of about $5 billion, SunGard is ranked 434 on the Fortune 500 and is the largest privately held business software and IT services company. Look for us wherever the mission is critical. For more information, visit http://www.sungard.com.

Trademark Information: SunGard, the SunGard logo and AvantGard are trademarks or registered trademarks of SunGard Data Systems Inc. or its subsidiaries in the U.S. and other countries. All other trade names are trademarks or registered trademarks of their respective holders.

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Adriana Senior
SunGard
718-578-1130
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