Will POBO and COBO deliver you to the promised land of single-account banking?
By implementing POBO and COBO where possible today, and continuing to enhance cash visibility and optimize cash concentration and in-house bank structures, you can move your corporation closer and closer to the ideal cash management structure.
The next thing to consider is that running a POBO
or COBO structure will require the company to create an entity that acts on behalf of its other entities.
Companies have been considering POBO structures for the last six or seven years, Citi's Sinha said, but SEPA makes them easier to use because the XML standard provides POBO fields that contain information to help the company identify which customer is paying for what, expediting reconciliation.
But companies need to check first that they are able to use POBO, because in some countries, local tax regulations or commercial laws may not allow it, Sinha said.
Zanders' Knol pointed out that POBO and ROBO structures and virtual accounts all predate SEPA and can be implemented in other parts of the world besides Europe.
While formerly data could be cut or left out; making reconciliation difficult for POBO
and COBO, and meaning SSCs' transporting data on behalf of underlying subsidiaries lacked the information necessary for virtual accounts to operate properly.
In-house banks have been around for decades, while POBO solutions have been around for only about the last 10 years or so," said Drew Arnold, trade finance/cash management corporates global solutions Americas, Global Transaction Banking, at Deutsche Bank.
It is not yet common practice, but we expect it to become much more prevalent for corporations to use POBO in Western Europe within the next two to three years.
Pre-SEPA there was a lack of standardization, limiting the effectiveness of POBO and COBO since groups with one or both of these structures in place had to maintain a multitude of different local bank accounts to handle local payments and/or collections on behalf of their subsidiaries.
As such, ARM can greatly simplify a client's rollout of POBO and COBO structures.
Antes da chegada dos romanos coexistian no noso territorio unha serie de pobos sen unha cultura uniforme, sen una lingua comun, sen cohesion politica e, ademais, defrontados entre si [.