Thought Leadership

Finextra And Montran Paper— Liquidity And Beyond: Building A Future Through Certainty

This Finextra white paper, produced in association with Montran, explores how real-time liquidity management can benefit financial institutions.
January 15, 2021

Creating a strategic advantage.

There is an evolving approach to liquidity management: from merely monitoring, to actively managing and optimizing, to using liquidity for a strategic advantage. Achieving this requires the right tools and technology, and also an open mind about the opportunities that effective real-time liquidity management can bring.

Seconds, minutes or hours— whatever the definition of ‘real-time’ in real-time liquidity management, its speed is definitely increasing. Banks and Corporates are operating in an increasingly dynamic environment: consumers want services on-demand; payments are faster; information travels at warp speed, news is rolling 24/7; and crises can unfold in an instant.

This always-on environment has an impact on liquidity, which has to be managed effectively to ensure an organization can meet its obligations; in times of stress, it can be critical for its survival. Having the right information at their fingertips— in real-time— gives bank and corporate treasurers accuracy and assurance in navigating this changing environment. And if liquidity management is done well, they will do more than keep pace with their environment— they will use it to their advantage.

The right analysis of information in real time brings better understanding of their customer, their business, the potential to reduce costs and hence, greater potential for planning and growth based on new levels of certainty. The possibilities and potential that the business concept of real-time can bring, in conjunction with up-to-the-minute use of advanced technology, is staggering.

Businesses and banks were not built to operate in a 24/7 environment, and it is no mean feat to step up to the plate to meet this challenge and turn it into potential. Real-time automatic payments, settlement, account updates, exception handling and data sharing can eliminate the need for cash buffers— idle cash becomes investment.

Real-time can bolster banks’ credit ratings; real-time analysis predicts behaviors leading to reduced risk; real-time can provide instant forecasting adjustments— further fine tuning an organization’s position. It feeds a 360 view on a client, fostering better relationships, and with agile systems, enables a firm to plan and grow with a certainty hitherto never seen.

Now is the time for banks and corporates to act, redefining their business goals, and crucially, their technology requirements.

Download your copy of this Finextra white paper, produced in association with Montran, to learn more here— Liquidity and Beyond

Read the associated Industry Spotlight here— Real Time Intraday Liquidity Management