IATA Centralises Asia Cash Collection in Singapore with RBS SmartCollect
The International Air Transport Association’s (IATA) collection of fees from its customers across Asia Pacific is being aided by the addition of RBS’ SmartCollect solution, which will provide a virtual account for each travel agent in the region enabling IATA to centralise its operating cash functions into Singapore.
IATA represents some 240 airlines around the world, accounting for 84% of global air traffic and has an Asian shared service centre (SSC) in Singapore where the RBS SmartCollect software platform is being rolled out.
One of the core functions of IATA’s Asia SSC is to centralise its cash functions for the entire region and as part of this it collects fees from IATA-accredited travel agents from across the region. The new software and connectivity will aid this process and help to identify and reconcile each transaction coming into Singapore. The contract award builds on an existing relationship between the bank and association.
RBS’ virtual account module feature in the SmartCollect product suite is intended to help corporates, such as IATA, to improve their local and cross-border reconciliation results. The ‘virtual account’ solution provides users with a way to induce internal cash flow without credit implications to their customers; making it possible to realise their cash-to-conversion process in faster manner.
Commenting on the installation, Manfred Schmoelz, head of transaction services at RBS Asia Pacific, said: “IATA required a flexible solution that will automate its reconciliation for its consumer-to-business and business-to-business collections. This will improve IATA’s working capital liquidity for companies and allow them to effectively manage counterparty risks.”