[This is a paid article with HSBC.]
You have probably seen Rentokil Initial Malaysia pickup trucks in the city center before and you would easily recognize it as a pest control company and hygiene service provider.
But what you probably don’t know is that Rentokil Initial Malaysia is the same pest control company that treated the soil around the Petronas Twin Towers in 1994. At the time, the monument was still the tallest building in the world. world and Rentokil services kept it termite free.
Rentokil Initial was founded in 1925 by Harold Maxwell-Lefroy, professor of entomology (a study of insects) in the United Kingdom. It began operating in Malaysia in 1967 and has grown into a regional hub for Asia-Pacific with a workforce of 1,400 employees.
The financial challenges that accompany growth
Traditionally, Rentokil Initial Malaysia required customers to pay for its services in cash or by check.
Due to this old, manual payment process, the company struggled to collect payments from customers. Even after you have collected the payment, there are basic risks of cash fraud and human error.
Did you know: Fraud can occur when malicious employees pocket the money themselves or when a customer false refund, citing work not done or providing the company with a bad check.
As the business continued to grow exponentially, the problem of collecting cash became more evident as they attempted to keep up with the growing number of payers for their various services.
To solve its problems, Rentokil Initial Malaysia created a new digital financial ecosystem with HSBC in 2017 to improve business processes.
Banking solutions to monitor and avoid slippages
With the help of HSBC Virtual Account, Rentokil Initial Malaysia was able to identify all their payers precisely without having to match them manually. This financing solution allowed the company to track all of their commercial collections from different payment channels, so that there was minimal leakage.
HSBC’s virtual account also drastically reduced the execution time of their collection cycle and provided greater visibility of its overall cash position. Thanks to this, Rentokil Initial Malaysia has succeeded in streamlining its entire process of collecting money in the various markets in the Asia-Pacific region.
“Speed is the key. With digitization, we have converted a large part of our check collections into a virtual account solution by HSBC. Thanks to this, it saves us a lot of time when closing. With this, our professional collection is reduced from 4 days to just 1 day today.
Soon Mei Fong, CFO of Rentokil Initial Malaysia
With most of its financial operations centralized in Malaysia, Rentokil Initial Malaysia can use HSBCnet, HSBC’s digital banking platform to easily approve payments to its suppliers in Asian markets.
This is a simpler, more efficient and economical solution for the business, compared to having different approvals in different countries using different banks.
Switch to contactless in the new normal
With COVID-19 still present, many businesses are looking to keep their buildings as safe as possible for employees and customers. Thus, Rentokil Initial Malaysia rose to the challenge and diversified to offer disinfection and surface cleaning services to commercial and residential customers.
Given the contagiousness of COVID-19, many people have started to switch to cashless payment, which is safer than cash.
Thus, the partnership between the company and HSBC continues in the field of digital payments.
Using HSBC Mobile collection, Rentokil Initial Malaysia customers can now make contactless payments through e-wallets or DuitNow QR. It’s about ensuring the safety of their customers first as we embrace the new standard of good hygiene.
The story of Rentokil Initial Malaysia highlights the many benefits that digitalization can bring to any regional or global hub. HSBC’s digital solutions can also help your business improve productivity and provide you with new ways to grow your business.
“We are proud to be Rentokil’s regional partner in its digital journey. With HSBC’s Accounts Receivable Management solution available at multiple locations, Rentokil can accurately identify its payors, improving operational efficiency at its regional hub in Malaysia. It also provides greater visibility of its overall cash position in the region. This partnership highlights how HSBC’s digital solutions can support the digital transformation of regional and international businesses.
Vishal Karanwal, Country Manager, International Banking Subsidiaries, HSBC Malaysia
- Equip your business with the right tools to grow through HSBC here.
Featured Image Credit: Rentokil Initial Malaysia