On 18th June 2014, Bank of America Merrill Lynch Global Transaction Services (GTS), announced the implementation of tailored collections and payments solutions in China for OSI Group – a privately owned U.S based food processing corporation.
“This deal highlights the unique ability of Bank of America Merrill Lynch to pair local market experience with global connectivity and solutioning,” stated the head of Global Transaction Services, Asia Pacific, Ivo Distelbrink, in a press release. “As OSI continues to expand in China, we commit ourselves to delivering the full strength of our local presence, global resources and unrivaled universal banking model,” he added.
- The integrated collection and payments solution provides OSI with enhanced efficiencies and control of treasury processes for its expanding China operations.
- With this solution, OSI maintains local currency operating accounts and USD capital accounts with Bank of America Merrill Lynch.
- It also integrates existing accounts with local banking partners.
- Additionally, Bank of America Merrill Lynch’s solution will include various deposit and FX services.
- By implementing CashPro Online and CashPro Connect, Bank of America Merrill Lynch’s unified global platform, OSI will utilize a single portal to manage all its China treasury operations.
- Bank of America Merrill Lynch’s unique China UnionPay (CUP) Alliance also represents an important differentiating component of the larger solution developed for OSI.
- The alliance supports card acquiring from all domestic cards and the majority of non-China cards.
- It also provides direct debit collection from individual accounts opened with over 100 major local banks.
Through this market-first alliance in China, OSI can utilize POS 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, enabling 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,” commented the Finance director of OSI China, Frank Wang, in the same release.
OSI has been operating in China since opening its first factory in Beijing in 1992. In addition to integrated poultry facilities and two existing protein further-processing plants, the company operates four produce plants and a dough operation in this market. Additionally, OSI has facilities in India, Japan, Taiwan, the Philippines and Australia, and employs approximately 10,000 people throughout Asia Pacific.