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Cash Management

I. Definition
The ICBC Cash Management is a combination of services backed by NOVA (full-function banking system) and through which ICBC assists the customers in their Cash Management with provision of collection, payment, liquidity management, and the relevant services series for investment and financing activities through powerful R&D capacity. It particularly includes collection services such as Entrusted Collection, Agency Collection, Prompt Link, Check Expressway, Door-to-door Collection, and Agreed Cash Box; payment services such as Letter of Credit, Wire Transfer, Internet Payment, Agency Wage Payment, and Payment through Business Card; account management services such as account receiving and payment, account balance, and payment control; and investment services such as various Deposits, Agency Bond Settlement, Registered Bond OTC Transaction, Open-end Fund, Foreign Currency Investment, and Short-term financing. All are geared towards assisting different corporate body customers in implementing more effective financial control and in achieving higher fund efficiency.

II. Product Introduction
1. Collection Service
It assists the customers' active collections. Through multiple such as counter, Internet Banking, and ATM terminals, the insurance applicants may pay premiums with cash or via account transfer using ICBC national network. The insurance companies open the insurance premium receiving account at ICBC to enable the real-time deposit of the premiums. Meanwhile, ICBC will furnish the detailed electronic premium payment information of applicants to enable the automated information update and internal reconciliation, thereby enhancing the business efficiency and reducing error rate.

The service also enables the premium pooling function to assist the insurance companies in establishing the nationwide general ledger and ledger accounts system for premium management and to realize the real-time internal fund pooling.

2. Payment Service
In order to safeguard a convenient, prompt, and safe payment service for insurance companies, ICBC assists the insurance companies to increase payment efficiency, optimize payment workflow, and to effective control the payment risk exposures.
Insurance Claim Payment Service: In order to provide high quality insurance claim services to the insurance companies, and to ensure the timely and full payment of the compensation to the applicants, ICBC assists the insurance companies for a highly efficient payables management.

Agency Wage Payment and Expense Reimbursement Services: ICBC provides the intra-city and inter-city Agency Wage Payment Service. The insurance companies are able to distribute employee wages and salaries in aggregate. In addition, ICBC provides Peony Business Card, Financial POS Services to support the employees' card consumption and reimbursement of travel and lodging expenses using the Peony Cards. This largely reduces the cash volume and reduces the financial management cost and improves the companies' internal control.

3. Direct System Linkage
ICBC provides the Direct System Linkage for insurance companies, which merges the two business systems as a single system. This ultimately increases the level of automation for business processing, reduces the error rate, and enhances efficiency. Through DDN special line, development and deployment of front-end devices, and information encryption technologies and mechanisms, the Direct System Linkage safely and promptly transforms the electronic instructions from the insurance companies into the instructions understood by the bank's server.

After ICBC completes the business process using the real-time and the batched mode, the electronic replies are automatically fed back to the insurance companies' business processing system, thereby assisting the follow-on processing by the insurance company's business system and realizing the two-way instruction exchange and automated business processing.

III. Target Client
It is suitable for insurance companies with broad business network coverage and with higher requirement for informationalized management.

IV. Features and Strengths
1. ICBC possesses the most abundant fund resources. It sticks to its business philosophy of "Customer First" in its operation and provides resourceful funding support through its abundant fund resources, sound customer resources, and good reputation in the sector.

2. ICBC possesses abounds of Business Offices and sound settlement network. Settlement service is the foundation for cash management service. ICBC owns a large settlement network with wide coverage and reasonable distribution to provide the most concrete service network support for the best quality and most convenient Cash Management Services to customers.

3. Advanced electronic technology application in China: On basis of massive data pooling, ICBC successfully launched NOVA (full-function banking system) in 2003 in addition to the data warehouse as the technological basis for customized services, the real-time clearing system that leads the sector, and Internet Banking system. All provided powerful drives for ICBC Cash Management service.

4. Rich cash management experience: ICBC is the earliest commercial bank among its peers that provided full and yet customized Cash Management Services. With the rich Cash Management experience, ICBC's customer group experienced rapid development. Till today, it has catered Cash Management to over 100 large enterprises and group companies and acted as agent for payment and settlement for over 6000 banking institutions. It acts as fund clearing agent for securities exchanges in Shanghai and Shenzhen, as well as over 100 securities companies and over 100 futures brokerage companies.

5. ICBC adopts the management system with operation under unified corporate body authorization. Under the unified management of HQ first-tier corporate body, HQ grants the business authorizations to the branch institutions and the key banking positions within the statutory business scope so as to ensure the bank-wide unified accounting, standardized operation, and risk prevention, and thereby providing quality and efficient Cash Management Service throughout the bank for customers.

Institutional Banking