Real-time Intraday Liquidity Management
Optimise intraday liquidity management and reduce funding costs while increasing financial resiliency with real-time visibility and control
Optimise Intraday Liquidity. Improve Financial Resiliency. Reduce Funding Costs.
Lacking real-time data, an understanding of past behaviours, and limited payment release controls, treasury managers often lack the tools required to accurately predict and optimise intraday liquidity management.
Baton’s new capabilities are designed to transform how banks manage intraday liquidity with flexibility, speed, on-demand insight and an advanced level of control, allowing treasury managers to:
- More accurately forecast intraday demand
- Make more informed decisions on funding requirements
- Rapidly reactivate working capital
- Proactively stress and mitigate liquidity risk
- Optimise and swiftly adjust intraday liquidity strategies
Baton’s Intraday Liquidity Management Tools: The Benefits
Reduce Intraday Funding Requirements
Rapidly redeploy recently reconciled assets with a real-time view of all available liquidity, use data-driven insights to identify factors impacting the availability of intraday liquidity and make proactive capital management adjustments. Furthermore, by accurately forecasting intraday activities and by benefiting from the tool’s recommendations for how payments could be optimally sequenced and setting conditions for release, liquidity shortfalls can be minimised.
With the ability to accurately forecast, plan for, and control liquidity demands, banks can stabilise intraday cash flows and proactively reassess the size of the intraday liquidity buffers.
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Increase Financial Resiliency
Reduce the risk of a liquidity shortfall by accurately predicting intraday liquidity demands and using smart sequencing to readjust the order in which payments are released. Be alerted to deviations in counterparty or market behaviour, then instantly access the real-time data-driven insights needed to mitigate risk proactively. Furthermore, with access to extensive stress-testing capabilities, create the wide range of scenarios needed to effectively stress test liquidity and assess how to increase financial resilience.
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Plan for Stress Situations
As events start to unfold, forecast how stressed conditions will impact intraday balances. Then, adjust payment release strategies based on the recommendations generated by Baton’s smart sequencing capabilities to increase your firm’s ability to meet payment obligations as the situation evolves.
Rapidly Reactivate Available Capital
Baton’s Balance Manager provides real-time, enterprise-wide visibility of all balances, credit facilities, exposures, and obligations, by counterparty, currency and legal entity. This allows treasury managers to proactively adjust capital allocations and rapidly reactivate unencumbered capital.
Analyse Counterparty and Business Line Liquidity Consumption
Using Baton’s Balance Manager, analyse time-stamped liquidity profiles across customers, legal entities, products, and funding sources to assess how, for example, individual counterparties impact liquidity availability across business lines.
Understand Factors Influencing Liquidity Availability
Drill down into individual liquidity flows using Baton’s Balance Manager and trace all contributing factors influencing the availability of intraday liquidity. Use this insight to predict cash ladders using Baton’s Exposure Manager or to identify how factors, such as late payments, impact liquidity and better understand client behaviour during market events.
By overlaying historical behaviours with real-time data users can then be alerted when current behaviours deviate from previous trajectories.
Increase Netting Capabilities
Automate and simplify the calculation and affirmation of netted settlement amounts with Baton’s Liquidity Manager, reducing manual intervention and enabling netting across multiple asset classes.
Automatically Split Settlements
Use smart and collaborative workflows to automatically and safely split settlements into agreed shapes defined by the specific rules you mutually agree with your counterparties.
Smart, Automated and Controlled Payment Orchestration
Using Baton’s Liquidity Manager, automatically and intelligently orchestrate the controlled and scheduled release of instructions based on the specific, completely configurable conditions you set, such as time, priority order or dependencies such as the current availability of funds.
Monitor and Maintain Liquidity Throughput
Baton’s Workflow and Rules Manager allows you to monitor and manage throughput in real-time. The tools track counterparty performance, key throughput metrics, and liquidity requirements for actual payments, simulation or scenario analysis.
Enhance Stress Testing Capabilities
Use data-driven insights, predictive analytics and extensive stress testing capabilities powered by Baton’s Optimisation Service to evaluate the impact of different scenarios on intraday liquidity. Assess how adjusting the sequence or priority of outgoing obligations increases resiliency and develop effective contingency plans detailing how liquidity could be accurately stressed.
Robustly Test Optimisation Strategies
Use historical data to effectively test new liquidity optimisation strategies using Baton’s Optimisation Service, allowing strategies to be adjusted accordingly before being executed in the live production environment.
Plan for Stress Situations
As events start to unfold, forecast how stressed conditions will impact intraday balances. Then, adjust payment release strategies based on the recommendations generated by Baton’s smart sequencing capabilities to increase your firm’s ability to meet payment obligations as the situation evolves.
Rapidly Reactivate Available Capital
Baton’s Balance Manager provides real-time, enterprise-wide visibility of all balances, credit facilities, exposures, and obligations, by counterparty, currency and legal entity. This allows treasury managers to proactively adjust capital allocations and rapidly reactivate unencumbered capital.
Analyse Counterparty and Business Line Liquidity Consumption
Using Baton’s Balance Manager, analyse time-stamped liquidity profiles across customers, legal entities, products, and funding sources to assess how, for example, individual counterparties impact liquidity availability across business lines.
Understand Factors Influencing Liquidity Availability
Drill down into individual liquidity flows using Baton’s Balance Manager and trace all contributing factors influencing the availability of intraday liquidity. Use this insight to predict cash ladders using Baton’s Exposure Manager or to identify how factors, such as late payments, impact liquidity and better understand client behaviour during market events.
By overlaying historical behaviours with real-time data users can then be alerted when current behaviours deviate from previous trajectories.
Increase Netting Capabilities
Automate and simplify the calculation and affirmation of netted settlement amounts with Baton’s Liquidity Manager, reducing manual intervention and enabling netting across multiple asset classes.
Automatically Split Settlements
Use smart and collaborative workflows to automatically and safely split settlements into agreed shapes defined by the specific rules you mutually agree with your counterparties.
Smart, Automated and Controlled Payment Orchestration
Using Baton’s Liquidity Manager, automatically and intelligently orchestrate the controlled and scheduled release of instructions based on the specific, completely configurable conditions you set, such as time, priority order or dependencies such as the current availability of funds.
Monitor and Maintain Liquidity Throughput
Baton’s Workflow and Rules Manager allows you to monitor and manage throughput in real-time. The tools track counterparty performance, key throughput metrics, and liquidity requirements for actual payments, simulation or scenario analysis.
Enhance Stress Testing Capabilities
Use data-driven insights, predictive analytics and extensive stress testing capabilities powered by Baton’s Optimisation Service to evaluate the impact of different scenarios on intraday liquidity. Assess how adjusting the sequence or priority of outgoing obligations increases resiliency and develop effective contingency plans detailing how liquidity could be accurately stressed.
Robustly Test Optimisation Strategies
Use historical data to effectively test new liquidity optimisation strategies using Baton’s Optimisation Service, allowing strategies to be adjusted accordingly before being executed in the live production environment.
Benefits of Core-Payments for Treasury & Liquidity Managers
Key Functional Components of Baton-CORE for Effective Intraday Liquidity Management
Announcement: Baton Systems to Transform Bank Treasury Capabilities
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