Physical Pooling

With UniCredit cash management solutions, all accounts of a company held with different banks at home and abroad can be combined into what is known as a cash pool. Balances on the various accounts are pooled automatically. The different value dates are taken into account using specific pooling procedures, and the funds are concentrated in a master account specified by the customer.

The purpose of physical pooling is to bring together the credit and debit balances of your main and subsidiary accounts in order to establish the target balance desired at any given time.

Before these automated processes are set up, however, each country and account will be analysed carefully in order to select the pooling solution which suits your needs and requirements best.

Zero Balancing

Zero balancing is a fully automated procedure whereby, subject to the agreement of the individual banks concerned, the aggregated (credit and debit) balances from predefined sub-accounts will be transferred to a concentration account without loss of the original value dates. The accounts of the participating subsidiaries are set off daily to “zero” and funds are concentrated in one central account (Pool Master Account).

Benefits of Zero Balancing

• Automated physical cash concentration across countries;
• Full transparency, as well as centralization of account information and liquidity;
• Maximization of interest optimization - zero balance on participating accounts at the end of the day;
• No loss of value dates;
• Participating accounts financed through the Master Account;
• Centralized documentation handling and setup;
• Central support from the Master Account holding bank as well as local support;
• Can be set up within accounts held with UniCredit Group and several partner banks;
• Possibility of Trustee Interest Calculation based on the company needs / requirements.

Target Balancing

UniCredit's Target Balancing service is fully automated, nevertheless, at the same time allows you to amend the prepared transfers to your current cash needs. We can offer same day value transfers according to the agreement and capabilities of the partner banks.

You can define the following parameters depending on your needs, for example:

• Frequency of the concentration (daily, weekly, monthly);
• Target balance;
• Minimum transferred amount.

Using our CPE@web online tool provides you with an overview of balances on the participating accounts and allows you to plan your local cash needs and amend the transferred amounts before the transactions are executed.

Benefits of Target Balancing

• Automated physical cash concentration across banks and countries;
• Centralization of account information and liquidity;
• Balance on participating accounts can be defined;
• Highest flexibility by more than 150 parameters;
• CPE@web online tool for reporting and interactive access to the pooling transfers;
• Centralized documentation handling for contracts concerning accounts within UniCredit;
• Centralized setup of the service and support from the Master Account holding bank;
• Possibility of Trustee Interest Calculation.

Contact:

Mr. Markus Straussfeld
Head of Cash Management International Sales
Cashmanagement@unicredit.eu