The importance of real-time
liquidity management
Change for the better with Luxoft, a global leader in digital treasury solutions
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Change for the better with Luxoft, a global leader in digital treasury solutions
Liquidity management enables organizations to meet their short-term financial obligations promptly and without substantial losses. Regulators have identified inadequate liquidity management as a risk to financial stability since the 2008 financial crisis. BCBS 248 requires banks to demonstrate an understanding of intraday positions and identify monthly peak balances.
Regulators focus on compliance reporting, resolution planning and stress testing, closely scrutinizing the intraday aspects of your liquidity strategy. Banks must optimize funding and liquidity, understand the drivers of intraday liquidity usage and gain real-time liquidity control to ensure compliance. However, achieving real-time intraday control is challenging and requires capturing transaction-level data, applying complex analytics and delivering instant results in various formats.
Real-time accuracy reduces funding swing size and frequency (allows cut-off deadlines to be delayed, benefitting upstream business units).
Enables intraday later-closing currency swaps, the set-up of currency-specific, treasury management centers and deferred deadlines.
Proactively managed and smoothed with funding control integrated with the payments function, allowing intraday payments to be staggered.
Dramatically reduce the risk of mishandling a time-sensitive client payment or releasing payments without proper control.
Shows where and how the firm’s legal entities operate accounts and enables more rigorous management of bank relationships and contracts.
An end-to-end process redesign and investment in data insights and automation offset the hefty cost of error-prone manual procedures.
We collaborate with key platforms like Murex, Calypso, Orchestrade, Finastra and Temenos/Connected Bank to help banks manage the complete transaction lifecycle e.g., capturing transactions or creating a unified, global view of balances across currencies and accounts.
Our expertise extends to advanced cash and liquidity management solutions, including Planixs and SmartStream. These cutting-edge tools help consolidate fragmented infrastructures, providing real-time optimization of cash, collateral and liquidity. With intelligent insights (even across vast data volumes) we empower your treasury business to make informed decisions in critical areas like funding, liquidity, compliance and risk.
As a trusted industry advisor, Luxoft harnesses partner capabilities to optimize your liquidity management, whether you require assistance with transaction lifecycle management or advanced bespoke solutions tailored to your unique requirements.
Collaborate with Luxoft to unleash the full potential of your financial operations. Our solutions can be deployed on-premises or on the cloud in Software as-a-Service (SaaS) mode, ensuring flexibility and scalability to meet your evolving needs.
Actively managing intraday liquidity, rather than just focusing on optimising the end-of-day position is now, not only possible given the latest technology available, but essential for banks as well as large corporates.
The opportunity to reduce funding costs significantly and increase operational efficiencies is such that the business case for investment in liquidity management capabilities is compelling and often self-funding – with the platform providing a base for supporting new client services and revenue streams.
