How Meridian helped a top ten global accountancy firm to streamline global payments and reduce FX costs
The client is a leading global accounting firm, operating in over 100 countries and ranked among the top ten by revenue.
The Challenge
In 2019, the client approached Meridian with a challenge related to the rollout of a new auditing technology platform across its global network. They needed an efficient solution to manage incoming licensing fees and handle foreign exchange (FX) risks associated with the transactions. Their key challenges included:
Processing payments from 100+ countries, including higher-risk jurisdictions
Separating audit licensing fee income from day-to-day banking to streamline reconciliation and ensuring clarity in financial reporting.
Billing and collecting fees in local currencies, (to give flex to member firms) while retaining control over FX conversions and exposure
Minimising FX losses and reduce the level of automatic bank conversions
Converting global revenues into USD cost-effectively, for efficient repatriation of funds to main company bank account
The Solution
Meridian delivered a tailored, multi-currency solution designed for global scale:
Multi-currency accounts
35 named currency accounts, allowing the majority of member firms to pay in their preferred local currencies
Highly competitive FX rates
Typically saving 1–1.5% versus their primary bank
Full control Over Currency Conversions
Eliminating automatic bank FX and thus retaining control over when and how to convert balances into USD
Secure online portal
Allowing them to efficiently manage their account balances and payments, with secure, multi-level payment approvals
Automated reporting and reconciliation
Improving visibility and efficiency
A large forward booking credit line
Supporting cash flow and hedge FX risk
Ongoing FX market insights
Delivered from Meridian’s specialist team
How the
relationship developed
Expansion into FX Services for the Main Entity The success of the initial rollout led to an expanded partnership. Meridian began supporting FX services for the client’s main business, alongside risk management and hedging advice. Support for Clients’ International Operations The client’s outsourcing department quickly recognised that the solutions provided by Meridian could greatly benefit their inward investing clients. Specifically, the ability to quickly offer UK-based GBP accounts helped these clients expedite their operations in both the UK and internationally. This solution added significant value to their clients' global expansion, enhancing our client’s service offering.
Results
Meridian enabled the client to simplify global audit licensing fee payments, reduce FX costs, and strengthen financial control across its international network, while extending the value of these solutions to its own clients.
Seamless licensing fee collection across 130+ countries
Greater control over FX exposure and currency timing
1.0–1.5% FX cost savings versus their primary banking partner
Improved liquidity through large forward booking credit facilities
Enabled international clients to expedite international expansion
