Ledge, an automated, no-code finance operations platform, announced the launch of its new multi-bank management solution that’s designed “to help finance teams easily and nimbly manage cash balances across multiple bank accounts in real-time as executives put a renewed focus on treasury management.”
Since the closure of several US banks and the ensuing global banking instability, treasury management “has transformed in just a matter of days from a best practice for larger and late-stage companies to a must-have necessity for companies of all sizes.”
Venture capital firms across the world “have urged their portfolio companies to implement treasury management processes and diversify their bank accounts immediately in order to minimize exposure to risk.”
Ledge’s own analysis of current Google Trends shows a 290% increase in searches for the term “diversify bank account” in the past week.
However, managing multiple bank accounts “presents an immense challenge for most businesses.”
As companies expand their banking stack, finance teams “lack a centralized view of current cash balances and lose visibility and control, a limitation that is only exacerbated when it comes to managing burn rate, and projecting cash flows.”
Having to manage multiple accounts across multiple banks also “raises the risk of simple mistakes or even embezzlement.”
Existing solutions for this problem “occupy two ends of a spectrum.”
Many teams track their cash balances “in Excel, a manual, error-prone process that does not provide real-time insights.”
Alternatively, there “are traditional treasury management systems (TMS), but they are designed for enterprises and are therefore costly, complex to implement and manage, and take months to set up and integrate.”
To solve this Goldilocks-type conundrum where treasury management systems are either not enough or too much, Ledge’s new multi-bank management solution is designed to be “just right” for the vast majority of businesses that “need to easily and seamlessly manage their cash – today.”
More robust than spreadsheets, and more nimble than heavy treasury management systems, Ledge radically “simplifies treasury management and empowers finance teams to gain real-time visibility, monitoring, and control over their cash instantly.”
The new solution “has three core capabilities to support businesses” that are newly shifting to a multi-bank strategy or have always struggled to manage it:
- Dashboard view for centralized, multi-bank visibility of cash balances, savings, and credit across all banks accounts and payment service providers
- Monitoring and fully configurable alerts when a balance gets too high or too low, anomalies are detected, or there are high volume transfers
- Fully configurable, automatic fund transfers to ensure balances always stay within insured limits and you have enough cash for payroll and expenses.
Tal Kirschenbaum, Ledge‘s Co-founder and CEO, said:
“Cash is the lifeblood of every business – they must have real-time visibility into their balances to function properly – but managing multiple bank accounts and several different banks is a real burden for finance teams. This only gets worse and more complex with companies that operate with multiple entities and currencies. While we always had multi-bank management on our product roadmap, recent events in the world of banking moved treasury to the top of every CFO’s priority list, and we decided to accelerate our development of the product accordingly.”
Omri Rubinstein, VP Finance at TULU, remarked:
“Finance leaders often spend 6-8 hours per week manually calculating and tracking their cash balances. It’s a very time-consuming and tedious process that involves accessing passwords and credentials to multiple banks, logging in, calculating any currency conversions, recording the balance of each account for a specific day and plugging it into an Excel file with a formula calculating totals, and then rinse and repeat. By the time you’ve done this across all banks and accounts, it’s never real-time, and most people only have the bandwidth to do this once or twice a week at most. Since human error is real, unfortunately, the reports are often not even accurate.”