Korean Air has mandated HSBC's global payments and cash management team to centralise surplus funds from 12 Asian countries back to Korea. The appointment is one of the biggest mandate wins for HSBC as it continues to pick up large corporate clients with regional requirements.
The mandate covers payments and collections in 12 countries and territories in Asia using HSBCnet, the bank's internet banking platform for reporting and transacting. The arrangement represents the HSBC Group's first foreign exchange outsourcing deals with the bank handling Korean Air's foreign currency receivables, converting them into US dollars and concentrating the funds back to Seoul on a daily basis.
The solution also includes access to markets@hsbc, an online foreign exchange service via HSBCnet, which also provides HSBC's worldwide research material and market information.
"We are excited about the tailored integrated solution that HSBC is offering to Korean Air," says the airline's vice president, Byung-Chool Min.
A large team of HSBC cash executives worked on the mandate led by Ben Arber, vice president of payments and cash for Asia, and Sam Lim, head of the Korean division. "The collaborative cross-regional efforts between the various teams, combined with our innovative solutions, were key factors to winning this deal," says Lawrence Webb, who heads the bank's cash management efforts in Asia.
Webb says the tangible benefits for Korean Air include foreign exchange savings, reduced transaction costs and improved cash flow and account information management via a single platform.
HSBC has already implemented the solution in Hong Kong, Korea and Singapore, with nine other Asian countries due to come online in October.
