HSBC has been mandated by ebay to deliver automated management and investment of its excess liquidity. Now live in the US, HSBC’s Liquidity Investment Solutions is enabling ebay to benefit from greater yields and increased efficiency in its treasury function.
Before implementing Liquidity Investment Solutions, ebay’s investment of surplus liquidity was a manual and inefficient process, which meant it gained very little return on investment cash. Following an extensive selection process, ebay chose HSBC’s Liquidity Investment Solutions, which proved to have the capabilities that best supported its evolving cash management and short-term investment needs.
ebay’s implementation of Liquidity Investment Solutions took just one month and eBay’s treasury function was quickly able to use this to automate the investment of surplus liquidity into its nominated triple-A rated money market funds.
Anderson Childress, Senior Treasury Analyst at ebay, commented: “It has been a win-win for the business. Not only are we now making our excess liquidity work harder, we have been able to save further costs by reducing our banking fees, and we have also freed up a considerable amount of time in the treasury team, enabling us to focus on more value-add strategic matters.”
Liquidity Investment Solutions has reduced ebay’s effort spent generating analysis reports for senior management or investment policy committee, as these are automatically generated in the system. Moreover, yield pick-up also increased due to the ability to capture the more favourable returns offered by the two money market funds eBay selected.
Jennifer Doherty, Global Head of Commercialisation, Liquidity and Investment Products, HSBC, added: “We developed Liquidity Investment Solutions to address a pain point felt in treasury management functions across all sectors. Complementing a client’s cash management activity with automated off-balance sheet investment abilities can offer tangible business benefits and eBay is a testament to this.”