FNA Papers Series: No. 2 | 2023

 

Written by: 

  Jérémie Feuillette (FNA)

|   Dr Kimmo Soramäki (FNA) 

Will Towning

 

Feuillette, J., Soramäki K., Towning W., (2023). Modernizing Intraday Liquidity Optimization for Commercial Banks. FNA Papers, No. 2- 2023, DOI Number: 10.69701/BDZH8309 [Available: https://fna.fi/insights/modernizing-intraday-liquidity-optimization-for-commercial-banks/]

 

Abstract:

Commercial banks are facing a period of exceptionally difficult funding conditions amidst a challenging economic environment. To address this, banks need to optimize their liquidity flows and usage. But existing liquidity optimisation and management methods fall short of materially reducing liquidity costs and can generate large operational risks. This paper describes how advanced analytics and algorithms can be used to optimize liquidity flows and usage in a real-time environment through payment resequencing. This approach can enable banks to significantly and consistently reduce liquidity usage and costs, potentially turning more effective treasuries into profit centers. This paper also describes the fundamental requirements for embarking on a modern liquidity optimization project, as well as some recommendations for best practices in operational and technological infrastructure.

 

https://10.69701/BDZH8309

Download the Paper > 

 

About the Authors:

 

Jérémie Feuillette

FNA  | jeremie@fna.fi

Jeremie Feuillette is the Director of Commercial Bank Solutions at FNA. He has over 15 years of experience delivering finance and liquidity management programmes for large GSIBs, including HSBC and Standard Chartered, focusing on Regulatory Reporting, Stress Testing and Intraday Optimisation. 

LinkedIn >

 

Kimmo Soramäki

FNA | kimmo@fna.fi

Kimmo Soramäki is the Founder and CEO of FNA and the author of “Network Theory and Financial Risk”. He has over 25 years of experience working with Central Banks and Financial Market Infrastructures. In 1997, Kimmo developed the world’s first simulation model for interbank payment systems – and since then, has been regularly invited to lead and contribute to simulation and payment system innovation projects with organisations like Bank of England, CLS, Payments Canada or SWIFT. He is a frequent speaker at industry events and has written over 50 articles that have been cited in more than 2000 academic publications. Kimmo has an MSc in Finance and a DSc in Operations Research, both from Aalto University (Finland).

LinkedIn >

 

Will Towning

Will Towning is the Strategy and Innovation Manager at FNA, where he is responsible for developing and coordinating the company’s go-to-market strategy. Prior to joining FNA, he worked as a journalist at Central Banking Publications, where he covered central banks, regulation and payments systems.

LinkedIn >

 

 

 

 

 

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