The challenge

Prior to the financial crisis of 2007, banks were able to deliver strong ROEs in an era of low regulatory expectations on capital, liquidity & leverage. This has since changed substantially, with the Basel Committee on Banking Supervision making significant changes to its minimum capital and liquidity requirements.

However, these regulatory requirements have become constraints for banks attempting to improve their asset and capital positions.

Yet, advanced analytics and simulation offers new opportunities to make substantial intraday liquidity savings by optimizing visibility, management & steering of payments activity.

The solution

FNA’s Intraday Liquidity Optimisation (ILO) solution equips banks with a new operational framework and supporting technology to build an analytics-driven approach to liquidity optimization.

The solution allows clients to reduce funding costs, reduce customer payment delays, increase intragroup efficiency and enable smoother regulatory compliance.

FNA has a strong record of successfully solving the most complex liquidity challenges for global banks and financial market infrastructures. Our clients include Payments Canada and Bank of England.

 

The benefits

FNA’s ILO solution delivers a number of business benefits for banks including:

  • Reduce funding costs by >20%
  • Optimize interfaces for priority payment obligations such as CHIPS and CLS
  • Increase opportunity to utilize liquidity elsewhere
  • Improve mapping and monitoring of liquidity usage
  • Model and simulate system and algorithm changes on real payment data
  • Faster adoption and adherence to Basel III standards

 

Key features

FNA’s ILO solution can be fully configured based on the components required, including:

  • Simulation of liquidity saving mechanisms (LSMs) with the FNA Simulate™ product
  • Forecasting and intraday payment prioritization and management
  • Full monitoring and analytics capability
  • Industry-leading network modeling and visualization
  • Library of liquidity saving algorithms
Payments Canada
“The FNA Platform is unique in the marketplace as it allows us to design, change and monitor a complex system such as our upcoming Lynx interbank payment system”

Related news & events

Payments Modernization - Intraday Liquidity Implications for Canadian Banks
FNA roundtable event summary (18 February 2020) Our Banking Liquidity roundtable series continued last week with our second event, hosted by FNA’s President, Phillip Straley and Planixs’s Financial Services Director, Pete McIntyre. We covered an interesting range of topics including: The development of intraday liquidity systems in banks International developments in intraday liquidity The Canadian […]
Read more >
Optimizing Intraday Liquidity: A Global Banker’s Guide
FNA roundtable event summary (9 December 2020) Our Intraday Liquidity Optimization roundtable series kicked off last week with the inaugural event, hosted by FNA’s President, Phillip Straley. We covered a diverse range of topics including: Recent trends in the industry impacting intraday liquidity Developments in the regulation of intraday liquidity The opportunities and difficulties created […]
Read more >

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