Products for non-finacial institutions OptiDep
OptiDep
Most companies face sometimes a situation of a
temporary excess of cash on their current accounts. Due to the fact that
interest rates on current accounts are very low it is beneficial for the
company to deposit such excessive cash into a term deposit until the time when
the particular funds are used to pay for the company expenditures.
Most companies tend to make deposits with a very short
maturity (even though the particular funds need not be used for payment at the
maturity of such deposit). This can be explained by cautiousness as well as by
insufficient time and capacity for regular generation of a term deposits plan (which
is connected with the topic of analysis of expected future cash flows, analysis
of interest rates structure and restrictions specified in internal directives)
which results in a loss of interest income.
Due to the above reasons, Advanced
Risk Management, s.r.o. developed an application called
OptiDep. OptiDep can design a plan of new term deposits based on a plan of cash
flows, balances on current accounts and existing term deposits with the aim to
maximize interest income, but without impairing the liquidity of the company
(e.g. it is possible to consider the requirement for a minimum balance on the
current account). Based on the actual yield curve OptiDep determines an optimal
deposit amount, the start date and proposed maturities.
Who should use OptiDep?
- Companies managing funds of not less than 0.5 million Euros or
an equivalent amount in other currencies.
- Companies that wish to increase their interest income from term deposit contracts.
Functionality of OptiDep
- Calculation of optimized deposit period and amount based on a plan of cash flows, current account balances and existing deposits.
- Consideration of specific conditions of a company for depositing and borrowing funds.
- Consideration of required minimal balance on the current account.
- Possibility to manage simultaneously multiple current accounts.
- Consideration of business days and public holidays.
- Possibility to adjust the application for specific input format of the cash flow plan of a company.
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User-friendly interface.
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Well-arranged graphical outputs.
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Multilingual interface.
Versions of OptiDep
- Standard version contains all the above
functionalities
- Professional version contains all the above functionalities PLUS the functionality of a mapping table that allows to consider prudential principles in the process of cash flow planning. Using the mapping table amounts or due dates of particular types of cash flow plan items can be automatically changed in case when a deviation from the standard plan is expected
Output of OptiDep calculations
- Detailed plan of term deposits including the start date, period and deposited amount
- Well-arranged graphs of development of current account balances and total financial assets of the company
- List of existing term deposits
- Detailed calculation statistics containing e.g. an average balance on the current account or an aliquot interest
Advantages of using OptiDep
- Very short return on investment into the software (a few months).
- Simple and fast installation (a matter of few hours).
- User-friendly and easy-to-use solution.
- Compatibility with internal IS.
- Ready to use outputs.
- High-speed data processing.
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