The company will benefit from a wide range of retail and corporate banking services, including lending, cash management and an employee banking solution, all through a single banking partner.
Employee banking made easy
HSBC Wealth and Personal Banking (WPB) opened personal banking accounts for the company’s drivers and sent banking representatives to set up a dedicated counter service within the client’s headquarters.
Between 75 and 100 accounts are being opened daily, with a target of 6 to 8 weeks to completion, with drivers benefiting from preferential pricing to transfer funds to their home country.
HSBC also streamlined driver salaries and commission payments, moving away from cash and C3 cards to an online Wages Protection Scheme (WPS) and non-WPS methods via HSBCnet file upload.
Centralised treasury solutions
On the treasury front, Al Salaam was looking to move from manual to digital processes, streamlining its receivables cash management needs and facilitating electronic driver and vendor payments. The company also required a fully centralized treasury hub.
HSBC’s centralised treasury solution ensures that full payments and receivables are performed via HSBCnet, an innovative single banking platform.
Receivables have been centralised, moving the company’s current cash management requirement from manual to digital. This matches its diversified collection methods, including cash, point of sale (POS) and incoming wire transfers.
Cash collections are now supported by HSBC’s Smart Cash Deposit Machine (SCDM). One large unit was installed at Al Salaam’s headquarters, eliminating manual handling and human errors of cash transactions.
Together with HSBC’s latest Remote Cheque Printing solution, it provides comprehensive reconciliation through enhanced reporting, and reduces administrative workload in terms of cheque issuances.
HSBC is also providing a real-time payment solution for driver commissions and workshops across the UAE, plus WPS payments to drivers’ bank accounts within HSBC. In addition, business debit cards allow Al Salaam to make digital payments to critical vendors such as the RTA, garages, car cleaning services, the Ministry of Labour and driving schools.
To further reduce friction through screening within the payment cycle, HSBC leveraged its array of artificial intelligence (AI) and machine learning (ML) capabilities for these payments, supplemented by additional whitelisting using payments data post implementation, leading to a sustained positive client experience.
Thanks to HSBC’s payments solution, Al Salaam can now make payments 24/7 – an efficient, highly secure and flexible outcome.
A move from cheques to debit cards has also resulted in a considerable transaction fee reduction, as the number of cheques has shrunk from 1,000 to 300 a month.
“This deal is a great example of an all-inclusive tailor-made solution that matches our products to client needs, showing how we can integrate them to enhance existing client treasury operations,” says Charbel S. Bacha, senior vice president, technology, and the new economies, global payments solutions at HSBC.
Al Salaam is also implementing a new Enterprise Resource Planning (ERP) system, NetSuite. This ERP will be fully integrated with HSBC accounts for real-time balances and simplification of payments. The proposed solution uses Application Programming Interface (API) and is expected to launch in the last quarter of 2024.
Unlock new possibilities with HSBC
With its tailored, flexible and adaptable treasury solutions, HSBC has been working to meet clients’ needs for streamlined and optimised treasury and business operations.
HSBC is well positioned to support business growth plans across multiple countries, thanks to its strong global network and diverse payables and receivables solutions, which Al Salaam will be able to leverage for its future expansion plans in the Gulf Arab region.
Having spent some U.S.$2.3 billion on enhancing its digital solutions over the past 10 years, HSBC is the right partner for companies looking to transform business and treasury operations to fit the future.
The bank’s bespoke solutions, integrated with corporate treasury and payment systems, help unlock new possibilities for businesses, making it easier to manage cash and make more informed daily financial and risk management decisions. They also reduce the risk of fraud and improve overall corporate governance.
Planning to streamline treasury, embark on a sustainability journey or learn more about how our tailor-made solutions can help your business? Talk to our specialist today.