Cash Management
OTP Bank provides complex and flexible domestic and international cash management services.
Domestic transfers and diverse methods of payment for companies
- One-off transfers (domestically in HUF, abroad in HUF, domestically and abroad in FCY)
- Permanent/regular transfers
- Forward dated transfer orders
- Fixed and variable amount standing orders
- Same-day forint transfers to accounts kept with other banks (VIBER (Real Time Gross Settlement System) transfers)
- Batch transfers
- Collections: (direct debit orders, collection orders based on an authorization)
- Documentary credits
- Postal services
- Foreign currency transfers
- Cash deposits and withdrawal
International payments
OTP Bank has been a member of SWIFT, a key system of international financial telecommunication. The Bank has nearly 30 years' experience in documentary transactions linked to foreign trade operations. It has been a member of the Hungarian Arm of the Paris-based International Chamber of Commerce (ICC).
OTP Bank has established correspondent relationship with close to 800 banks globally and has 35 nostro accounts in the key currencies used in international payment transactions at key financial centres. This network enables it to execute and receive payments in any currency to and from any place in the world and process such payments expeditiously, fully taking individual needs into consideration.
It further enables OTP Bank to conduct documentary transactions linked to foreign trade operations at a high professional standard. As much as reasonably possible, OTP Bank strives to work in co-operation with prime banks that are leading banks in a given area.
OTP Bank offers the following products and services in connection with the financial arrangements of foreign trade operations:
- Documentary transactions
Documentary credit (letter of credit) (L/C)
Receipt and, in the case of deferred payment, discounting of export L/C
Opening and issuance of import L/C
Documentary collection (prompt collection)
Receipt of import prompt collection
Initiation of export prompt collection
Issuance and receipt of foreign currency guarantees
Tender guarantee
Advance repayment guarantee
Good performance guarantee
Payment guarantee, etc. - Foreign currency transfers
Payments for the receipt of the counter value of export deliveries, settlement of import invoices
OTP Bank Nyrt. executes orders for international HUF and FX transfers and FX transfers outside the bank – if they are submitted in a paper-based format until 10:00 hours or electronically until 12:00 hours – on the day of receipt with a spot (2-day) value date; urgent orders are also executed on the day of receipt with a 1-day value date.
Through the salary payment and direct debit orders
- your company can transfer the income of the employees to their retail accounts kept with other financial institutions, by submitting the transfer orders in bulk and
- service providers can submit debit orders from the payment accounts of different partners kept with other financial institutions in a bulk.
Salary payments and batch transfers
The batch transfer service is a suitable and flexible solution if...
- your company intends to transfer wages and other wage-type disbursements to your employees
- pay pension fund and health fund contributions – damages paid by insurance companies for insured events, excess payments transferred back by service providers
- pay utility bills.
Why OTP Bank?
OTP Bank can grant significant discounts to its clients holding a corporate bank account with it, since
- the majority of the beneficiaries of the transfers keep their accounts with us
- OTP Electra Terminal enables your company to provide funds for multiple transfers from the registered office of your company.
Batch direct debit
Direct debit service is suitable solution for service provider companies (eg a public utility company, a telephone company, a cable provider or an insurance company) to collect the income initiating the debit orders through their home banks. The client, (beneficiary) may submit the collection order towards the bankaccounts of its buyers (paying partners) in bulk.
Why choose OTP Bank?
- Because you only need one single bank to initiate your collections.
- The direct debit orders may be submitted electronically via OTP Electra Terminal.
- OTP Bank’s advantages originate from the fact that that most retail accounts are kept with it. In the case of collections initiated at the Bank we can execute the collection instructions within the framework of internal processing which enables your company to save considerable costs.
Cash pool service
OTP Cash pool service supports interest rate optimization and a centralized, automated liquidity management for corporate groups, which can result in a balanced cash flow management and higher profitability.
Main advantages of Cash Pool
- supports the automated daily liquidity management through access to the group liquidity,
- supports automated group interest rate optimization - through the cash-pool services higher interest income and reduced interest expenses can be reached,
- internal group financing can help redeem partially or in whole the additional banking funding,
- provides automated distribution of bank interests (in case of credit line commitment fee) and calculation, booking of internal interests for all participating accounts,
- the actual group balance (the position of the pool group) during the day can be queried by the pool manager via OTPdirekt Electra electronic banking system.
- Cash Pool reports are prepared by the bank which detail among others bank interest distribution and calculation of internal financing.
Types of OTP cash pool service
- Physical cash pool
Automated liquidity management through physical movement of cash („sweeping”) of Cash-pool member accounts (participating accounts). Balances of the participating accounts are credited to or debited from a single central bank account (master account).
Variations of a physical cash pool:- Zero Balancing (ZBA) - end of day balance is zero for all participating account by automatic liquidity Cash pool process. By default the original balances – balances of participating accounts prior to the end of day automatic liquidity Cash Pool process - of each account are set back the next morning to the respective accounts. This default function is optional.
- Target Balancing – end of day balance is a pre-determined target balance for all participating account by automatic liquidity cash-pooling process.
- Notional cash pool
Simplified version of cash pooling in order to optimize interest management where participating accounts operate independently and managing their own credit lines if credit line is needed. There is no physical transfer of cash.
In case of any questions our Cash Management Experts are standing at your disposal. Please feel free to contact them ont he following e-mail address: cms@otpbank.hu
Authorization for cash deposit
If the customer deposits cash on behalf of a company or unincorporated association and due diligence is required due to the amount of the cash deposit, then the customer verifies with the authorization for cash deposit that he is entitled to deposit into the account on behalf of the company/unincorporated association.
