Major firm with processes and compliance pressure, achieves multiple savings
This major financial institution modernised its cash management by partnering with Planixs to implement Realiti, enabling real-time cash flow data, liquidity control, and BCBS 248 compliance. This solution saved millions annually, and improved decision-making as interest rates rose.
Background
This major financial institution, with multiple brands, recognised the need to modernise its cash and liquidity management processes. The group had grown significantly and was facing challenges with optimising cash management across its various entities. Legacy systems were outdated, providing non-accurate funding positions. This made it difficult for the bank to manage its liquidity efficiently.
Challenges
- Inaccurate Cash Flow Data: The bank’s old model, based on legacy systems, failed to provide accurate, real-time data on cash balances, leading to inefficiencies in cash management across its entities.
- Regulatory Compliance: The bank needed to comply with BCBS 248 regulations, which require financial institutions to manage and report their intraday liquidity positions accurately.
- Operational Inefficiencies: Due to the lack of real-time data, the bank was unable to optimise its cash flow, leading to higher costs and increased risk, particularly as interest rates began to rise.
Solution
To address these challenges, the bank formed a strategic partnership with Planixs to deploy the Realiti solution. This provides the bank with the ability to:
- Consolidate millions of cash flows per hour in real-time: The bank can maintain an accurate and up-to-date view of cash balances across its settlement accounts.
- Compare projections to actual balances: This feature enables the bank to identify discrepancies between expected and actual cash positions, allowing for quicker adjustments.
- Real-time liquidity control: The bank can now manage its liquidity requirements and usage in real time, reducing the risks associated with liquidity shortfalls or surpluses.
- Enhanced treasury, risk, and operations insight: Realiti’s intelligent, easy-to-understand insights help the bank’s treasury, risk, and operations departments make more informed decisions.
Benefits
- Direct Access to Real-Time Data for Traders: With Realiti, the bank’s traders now have direct access to real-time cash flow data, enabling them to make more informed trading decisions.
- Cost Savings: The implementation of Realiti, in combination with the bank’s own payment control solution, has resulted in significant cost savings. Specifically, the bank has achieved $millions per year savings due to improved liquidity management and payment control processes.
- Regulatory Compliance: The banks now meets BCBS 248 requirements, avoiding potential regulatory penalties and ensuring that the bank operates within the required regulatory framework.
- Increased Importance of Cash Management: Interest rates have risen since the implementation of Realiti, and the cost of not optimising cash has become increasingly significant. Realiti’s real-time capabilities ensure the bank can minimise these costs by managing cashflow more effectively.
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