What is CashWise?
CashWise is a cash, liquidity and treasury platform for businesses in Singapore. The platform connects to existing bank/payment and investment accounts to manage and optimize cash for interest earnings. We partner with MAS licensed entities such as Syfe for investments and Airwallex & Wise for payments/banking. In addition, our solution can operate both as standalone instance or integrated with accounting systems like Xero.
How Does the Interest Work?
Our investment platform partner is Syfe. They offer a variety of investment ranging from unit trusts to individual stocks. For businesses, the most common investment vehicle are money markets due to their low volatility and consistent daily interest earnings. Money markets may be considered superior to fixed deposits for 2 reasons:
- Unlike fixed deposits, money markets do not require locking funds for a specific duration, they only need a few days to allow for trade settlement time before funds are released.
- Money markets also tend to have higher interest rates/returns than fixed deposits.
Most importantly, businesses are very different than individual investment accounts for 1 simple reason. The cash invested has a specific timeline (5 days, 1 week, 1.5 months, etc.) and must be returned without loss to support the operations of the business. The CashWise solution seamlessly manages the transition between cash and investments to ensure there's always liquidity (cash) for business operations. This automation guarantees that the maximum amount of cash is always earning interest without impacting business operations.
For context, some customers have experienced increased interest earnings of 130%+, just in their first month of operations using our robo-treasury platform when compared to their manual cash management processes.
Read more: Syfe's Money Market Returns
Setup and Configuration
Initial setup, configuration and training is very quick and can be completed within 1 hour. Steps include the following:
- Connect bank/payment and investment accounts via APIs to the CashWise platform
- Configure policies on cash management for each account
- Provide revenue and spending data either manually or via integrated accounting systems like Xero
Operations
Once configured and activated, CashWise will centralize all cash management into a single point of control. For each currency and account, a daily decision is calculated by combining information from the configured policies and cash flow data. This daily decision can only have 1 of 3 outcomes:
- Need cash - taking into account the time it takes to release and move funds, request cash to be released from the investments and sent to a specific account.
- Too much cash - the balance in the account is more than needed based on upcoming spending data, this cash will be moved to the investments.
- Cash Balance within thresholds - based on the polices, the cash balance is within allowable parameters for cash holdings, no action needed.
Read more: CashWise Cash Movement Process
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