HSBC rolls out On Demand Cash Concentration for better treasury control - Trade Treasury Payments

HSBC has launched its On Demand Cash Concentration Solution through its Global Liquidity Solutions (GLS) platform, providing corporate treasurers the ability to mobilise funds across more than 50 markets worldwide with unprecedented timing control. This new tool eliminates the limitations of pre-scheduled sweeps, providing businesses with greater flexibility and control over their cash resources whenever needed.

The solution addresses the growing demand for treasury flexibility in a business world that now operates on instant payments and 24/7 operations across multiple time zones. By allowing manual sweeps outside traditional scheduling windows, HSBC positions itself ahead in liquidity management innovation.

Market context and treasury challenges

Traditional cash concentration methods, commonly known as sweeping or zero-balancing, have typically operated on strict schedules. This rigid timing has become an increasingly significant problem for treasury departments handling global operations and responding to changing liquidity events.

For multinational treasuries, the inability to move funds outside of set times has often forced them to maintain higher buffer balances or arrange expensive intraday credit facilities. These inefficient practices directly impact financial performance and capital utilisation.

The rise of instant payment systems globally has further highlighted the gap between static sweeping structures and the need for real-time liquidity management. HSBC’s solution directly addresses this problem, combining cash management capabilities with modern business operations.

HSBC’s expanded liquidity management portfolio

HSBC’s treasury toolkit now includes a complete suite of solutions made to meet diverse corporate liquidity needs. At its core, Liquidity Investment Solutions (LIS) helps Corporate and Institutional clients invest excess cash across multiple investment options through their choice of asset managers, including HSBC Global Asset Management, BlackRock, Goldman Sachs Asset Management, and J.P. Morgan Asset Management. 

The platform automatically handles investments based on client-defined risk and liquidity parameters. This capability works alongside HSBC’s established liquidity tools, including i) deposit accounts supporting core cash management activities ii) cash concentration (“sweeping”) that physically moves funds between accounts to bring together balances iii) interest enhancement offering better rates based on combined balances across markets iv) notional pooling that matches account positions without physical fund movements. 

The recent addition of On Demand Cash Concentration further strengthens this system, giving treasurers real-time liquidity control. All solutions are built to address specific business requirements across local, regional and global operations.

How does On Demand Cash Concentration work?

HSBC’s On Demand Cash Concentration works with existing cash concentration structures through the Global Liquidity Solutions self-service platform. Available via HSBCnet through a single sign-on, the system lets treasury teams trigger manual sweeps across established liquidity structures without complex setup requirements.

The solution covers domestic, regional, global, cross-currency and multi-bank cash concentration structures, handling even the most complex treasury organisations. Each on demand sweep receives unique reference identifiers, automatically updating intercompany lending positions with clear audit trails.

The system uses robust maker-checker workflows and comprehensive audit trails, ensuring appropriate governance standards while providing increased operational flexibility. This control framework ensures that while treasurers gain more freedom, oversight and transparency remain intact.

Key benefits beyond scheduling flexibility

The new On-Demand Cash Concentration brings several advantages that go beyond removing time constraints. Treasury teams can now combine cash positions with precision timing, enabling just-in-time funding across accounts that reduces dependence on intraday or overdraft facilities. This feature proves particularly valuable when responding to unexpected market opportunities or addressing sudden liquidity shortfalls.

The solution facilitates reconciliation and enhances financial transparency across complex organisational structures by providing detailed reference data and clear intercompany position tracking. This clarity helps solve a common pain point in treasury operations, particularly for organisations with extensive subsidiary networks.

What will be the market impact?

HSBC’s rollout of on-demand capability is a significant development in the corporate liquidity management space. 

If widely adopted, this approach could accelerate the evolution of liquidity management from scheduled, batch-based processes to more dynamic, real-time capabilities that align with the broader transformation of payment systems and financial operations.

For corporate treasurers, particularly those managing multinational operations, the development offers a significant improvement to their liquidity management toolkit, potentially reducing reliance on external funding while enhancing capital efficiency.