Bank of America Merrill Lynch Global Transaction Services (GTS) have implemented a tailored collections and payments solution in China for OSI Group (OSI) LLC, a privately-owned U.S.-based food processing corporation. In addition to a full suite of treasury management services to help OSI optimize working capital in China, the customized solution includes dedicated credit facilities to support its new operations in Weihai, Shandong province, China.

Single portal 

OSI will utilize a single portal to manage all its China treasury operations, which uses CashPro Online™ and CashPro Connect™, Bank of America Merrill Lynch’s unified global platform, and their automated information reporting processes.

Integrated collection and payment

The integrated collection and payments solution developed for OSI provides enhanced efficiencies and control of treasury processes for its expanding China operations. Under the solution, OSI maintains local currency operating accounts and USD capital accounts with Bank of America Merrill Lynch, while also integrating existing accounts with local banking partners. Additionally, Bank of America Merrill Lynch’s solution will include various deposit and FX services.

Using Bank of America Merrill Lynch’s unique China UnionPay (CUP) Alliance OSI will be able to:

• use CUP’s card acquiring of all domestic cards and the majority of non-China cards
• make direct debit collection from individual accounts opened with over 100 major local banks
• use point of sale machines provided by CUP to collect debit and credit card payments from their diversified base of local buyers, and 
• automatically centralize funds in their Bank of America Merrill Lynch account, allowing for clear reporting and streamlined reconciliation.

“Bank of America Merrill Lynch’s solution meets our requirements for a comprehensive and scalable banking solution to manage daily treasury management activities, streamline banking arrangements across our entities in China, and build cost efficiencies as we expand in this strategic market,” said Frank Wang, Finance director of OSI China.

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CTMfile take:This is a great example of how cash management in China has become much simpler now the authorities have relaxed the conditions, and how the global network banks have been setting up partnerships with local banks. It almost sounds as if OSI were describing their cash management set up in Europe.