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Cash Flow Visibility? It’s a Blind Spot for Majority of Corporates



The recent Cashfac EMEA Operational Cash Index survey underlines the lack of understanding of accurate cash flow limits in more than 90% of large corporate businesses in the UK, Europe, Africa and the Middle East. Major contributory factors include inefficient working capital management across multi-bank systems. Experts view this lack of accuracy as injecting undesirable risks and costs. In addition, they believe there is a unique opportunity for banks serving these large organisations to establish long-term connections that in return could increase their own monetary value.


Only recently, there has been a substantial investment in tools for cash management that should begin to coordinate such relationships between corporate and banking networks and eventually lead to increased competition. The survey noted that 9.1% of corporates in the UK have accurate real time cash flow analysis. However, their counterparts in Europe only rate at 7.7%. The result for Africa was 4% and the Middle East was 2.3%. UK corporates were also found to have an increased control over time zone transactions than those in the other regions. However, most corporates expressed an awareness of the necessity to improve their understanding of cash flow management.


Corporates recogised that the risks involved in failing to introduce accuracy in cash flow management were in urgent need of being reduced. They also agreed that real time cash flow management would enable them to gain increased control over all aspects of financial transactions and lessening the risks. Many corporates were dissatisfied with the current situation. Although UK corporates were found to prioritise effective management, they were also the most critical of their own performances. In comparison, European organisations placed greater significance on cash flow estimates.

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