Taiwan-based fabless semiconductor company MediaTek has selected JP Morgan to provide cash management services to streamline the company's cross-border payments and collections processes.
According to JP Morgan, through one centralized account in Hong Kong, and linked directly into MediaTek’s financial accounting system, the customized cash management solution will seamlessly enable faster payment and receivables from locations across the US and Asia Pacific, including China, Hong Kong, India, Japan, Korea and Singapore.
The account in Hong Kong will function as the main US dollar payment and collection account and all payments and collections will be centralized via JP Morgan’s global payment platform; PaySource.
The customized solution is expected to expedite the automatic reconciliation of payments and collections, and provide MediaTek with a consolidated, live view of client receivable payments. The resulting benefits of these simplified collection and automated reconciliation processes include greater transparency and improved risk mitigation.
MediaTek plans to extend this integrated payments and collections solution to all of its overseas subsidiaries.
Simon Jones, regional treasury services executive for Asia Pacific at JP Morgan, said: “We are proud to be chosen by MediaTek, one of the world’s fastest-growing technology companies. Through the use of our unique technology along with our deep understanding of the client’s cash management flows, we were able to develop a customized solution that meets the client’s needs and can evolve as the business continues to grow.”