Bank deposits emerge again in a scenario of positive interest rates

In recent times, we have witnessed a significant change in the financial management of European companies, mainly those in southern Europe, brought about by the exit of the Eurozone from the negative interest rates territory. The transformation process has led to a renewed confidence in bank deposits as a key instrument for managing treasury, shifting other options, such as traditional accounts or money market funds.

This new scenario is associated with the new options offered by these products to obtain higher returns, close to the rates of the ECB or other central banks, depending on the currency, even for relatively short maturities. Acceptable even for treasuries with greater fluctuation in cash-flow positions. Despite the news flooding the media, the interest rate hikes have been strongly passed on to institutions and companies that pressured by inflationary rises have not wanted to bear the high opportunity cost of not obtaining market remuneration for their balances.

In this new scenario, it is imperative that companies not only rely on bank deposits, but also explore new strategies to maximize their potential. One of the key tactics lies in the adoption of cash pooling, a technique that allows companies to consolidate the balances of multiple accounts and optimize how cash flows are managed as a result. Not only does this approach improve operational efficiency, but it also provides a clearer, more centralized view of the company's financial position.

In addition, the use of digital trading platforms is an essential step on this path toward more efficient financial and operational management. Different platforms, such as Bloomberg, 360T, Tradeweb, among others, offer agile, transparent and secure processes to manage financial transactions, making it easier to arrange banking products online, including deposits. This automation approach not only streamlines procedures, but also reduces errors and optimizes workflows, from negotiation to settlement and confirmation of trading transactions.

Adapting to these new tools is not only recommended but a must to ensure that companies reach the full potential of the deposit in an environment as volatile as the current one. The same can be said of the search for sustainable solutions also in this product and others of a transactional nature, which place the financial transactions of companies in line with the corporate sustainable strategy.

To sum up, we are seeing the recovery of confidence in bank deposits among Spanish and European companies. This marks a significant change in their cash-flow management strategy. However, in order to make the most of this instrument, it is essential to adopt new practices, such as cash pooling and e-trading platforms, which are already being implemented with remarkable success by the most advanced treasuries.