HSBC Introduces Cash Flow Forecasting Tool

Need to Know

• The HSBC Cash Flow Forecasting tool is designed to help businesses streamline balance sheets that have been disrupted by COVID-19.
• The tool automatically loads data from a business’ various accounts and can generate accurate cash flow forecasts for up to three years.
• HSBC commercial clients can access Cash Flow Forecasting via single sign-on; the tool monitors activity across payables, receivables, clearing and foreign currency, and corporate credit cards, among other accounts.
• So far, the tool has launched for Canadian commercial banking clients.

Analysis

HSBC has launched a new cash flow tool, Cash Flow Forecasting, aimed at helping businesses access more accurate forecasting tools — especially now, as COVID-19 has resulted in businesses struggling to anticipate and manage their cash needs.

Cash Flow Forecasting, which is available via single sign-on to HSBC Commercial Banking clients in Canada, automatically loads data from a client’s various accounts, including payables and receivables, foreign currency, and corporate credit cards. Clients can then receive forecasting predictions, which might otherwise have taken weeks of spreadsheet consolidation, in almost an instant.

“Efficient cash flow forecasting is critical to effective liquidity management, allowing clients to budget effectively, and plan the future,” Michael Klopchic, HSBC Canada’s head of global liquidity and cash management, said in a statement. “And the uncertainties and business disruptions of COVID-19 have only made this more important. The HSBC Cash Flow Forecasting tool gives companies actionable insights to help build their business, through an intuitive and interactive user experience.”

The tool can provide accurate cash forecasting of up to three years, and also offers modeling and scenario testing—helpful for clients who may wish to anticipate unexpected disruptions similar to those recently posed by the COVID-19 pandemic.

HSBC joins a number of major banks and fintechs that have recently launched cash flow management tools, in an effort to help their customers better plan and forecast their finances; the lack of economic certainty brought on by the pandemic has led to a greater need for strong, accurate predictive tools. These include Shopify, which introduced a tool called Balance in May. Balance allows customers to pay bills and monitor expenses, in addition to providing cash flow management tools. Intuit QuickBooks launched Cash Flow Planner in July, which provides customers with accurate forecasting using powerful AI.

TD Bank and Scotiabank, too, have launched new cash flow management tools in the past two months; TD’s new cash flow tools are largely targeted towards consumers, while Scotiabank’s tool, Sofia, is more commercial- and retail-oriented.