Fast-growing MediaTek has selected J.P. Morgan's PaySource solution to improve its cross-border payments and collections process, the latest mandate for the American bank as it seeks to expand its corporate customer base in Asia.
The bank will centralise MediaTek's US dollar payments in a single account in Hong Kong where payables and receivables from across Asia and the US are automatically processed. The solution is integrated with the company's internal accounting system.
"Through the use of our unique technology along with our deep understanding of the client's cash management flows, we were able to develop a customised solution that meets the client's needs and can evolve as the business continues to grow," said Simon Jones, Asia-Pacific regional treasury services executive at J.P. Morgan.
The mandate comes as the institution rolls out its new global corporate bank. The joint venture between the existing investment bank and treasury and securities services businesses has a target of 1,600 multinational and large local corporate clients globally. Asia's emerging multinationals, such as MediaTek, are an important market segment for J.P. Morgan as these companies are proactively expanding both organically and through acquisition around the world. Recent notable outbound deals from Asia include Bhati Airtel's purchase of Zain's African operations for $10.7 billion and Geely's acquisition of Volvo for $1.8 billion.
"Emerging Asian corporates need a bank that can grow with them," said one regional treasury executive recently. This is a role J.P. Morgan hopes to fill.
MediaTek said in a statement that it intends to extend the solution to all of its overseas subsidiaries in the future, but did not release a timeline.
The Taiwan-based company is a leader in wireless communications and digital multimedia solutions. Since 2002, it has seen first-quarter revenues rise more than 6.5 times to NT$32.7 billion ($1.02 billion) in Q1 2010, as it has inked lucrative partnerships with major industry names including China Mobile and Microsoft. MediaTek was named as one of the best managed companies in Taiwan in FinanceAsia's recent poll.
