Intraday Liquidity Management
Improve intraday forecasts to identify inefficiencies and reduce risk.
With the use of increasing banking channels, including mobile devices, the production and flow of “daily payment data” and “risk data” is continually growing. The huge amount of continuously updated data is often considered of weak quality, with a lack of metadata standards and poor aggregation. This makes it difficult to analyze in a timely fashion and comply with the regulations for intraday liquidity. Many banks now realize they cannot comply without a renewed focus on data.
Meeting regulatory compliance continues to be the highest concern for bank CEOs. It affects everything, and its cost continues to increase. Banks are, in most cases, keeping pace with compliance, and are investing heavily to do so. However, legacy applications and infrastructures limit their agility when dealing with new regulations. Some banks have not institutionalized intraday liquidity, have excessive positions or tend to self-identify significant data gaps.
Clients need to define, adopt and implement an information strategy driven by their business strategy. Such an approach should include:
- Adoption and implementation of a data governance framework to ensure proper access and use of data and information assets
- Data integration reference architecture to guarantee the quality of data and reconcile source systems
- Provisions for customer and product master data to enable:
- A 360-degree view of their customers and products
- Accurate measurement of customer and product profitability
- Satisfaction of “know-your-customer” (KYC) requirements
- Real-time processing and access to payment data
- Self-service analytics capability for quick and real-time decision making at strategic, tactical and operational levels
CSC’s Intraday Liquidity Management solution — a powerful accelerator and proven with banks and large corporations — can help:
- Identify dormant funds
- Actively manage intraday liquidity risk
- Identify quantifiable opportunities and gaps within shorter time scales
- Highlight key times, days and circumstances where liquidity flows and intraday credit might be particularly high
- Understand the business needs underlying the timing of liquidity flows
- Model key positions frequently during the day and improve intraday forecasts
- Comply with ever-changing regulations on time and on budget
- Obtain and maintain a competitive advantage through efficient capital management
- Optimize business models for greater agility
CSC can provide industry expertise (having worked with 25 of 30 global systemically important banks [G-SIBs], regional regulators and multinationals) to accelerate improvements, revenues, and better risk and compliance as it helps companies increase the effectiveness of debit and credit cash flows, resulting in improved returns.