SmartStream Technologies released a white paper about the regulatory pressures imposed on intraday liquidity requirements, which explores the benefits that can be realized by financial institutions when they transform intraday discussions from an operational burden into adding true business value.
The financial Transaction Lifecycle Management solutions provider, which titled the white paper ‘Intraday Liquidity Management: From a costs discussion to a revenue opportunity’, also analyzed how institutions can leverage next-generation technologies like Cloud, Artificial Intelligence and Machine Learning to achieve the goals of real-time, active management of global intraday liquidity.
In addition to reviewing regulators’ views and the monitoring tools available, the report found that while meeting regulatory obligations is undoubtedly front and center for most financial institutions, the ability to manage liquidity intraday and to stress test liquidity demands are not simply a matter of regulatory interest. Smartstream concluded that business optimization opportunities can come from having a strengthened intraday liquidity framework.
Nadeem Shamim, Head of Cash and Liquidity Management at SmartStream, commented:
“While this may seem to be another exercise in regulatory compliance, active intraday management offers a competitive advantage in the changing regulatory landscape. It provides added benefits to both banks and their customers. In the past, intraday liquidity management
was a nice to have, but this has moved to a ’must have’ and the trend is to optimise the management of intraday liquidity, from a cost perspective to a potential revenue generating exercise. This typifies the kind of discussions we are currently having with our customers on a daily basis”.
The paper also discusses the current status of where banks are now with their monitoring of intraday liquidity.
In April 2019, SmartStream announced a new client-driven strategic focus in line with the new FSA (now PRA) rules governing liquidity management for the UK and foreign branches. Nadeem Shamim was appointed to lead cash and liquidity management solutions globally in response to
the new regulations. Nadeem’s 30 years of experience in treasury, cash and liquidity management include roles at Standard Chartered Bank as Managing Director and at J.P. Morgan as Head of Financial Institutions Group EMEA, Treasury Services.
Vincent Kilcoyne, Head of Product Management, SmartStream, says: “Nadeem brings with him solid experience of strategic advisory and innovative thinking in bank transformation, treasury risk management, FinTech, and supply chain financing. I am delighted to have such a
strong and committed team with Paul, Richard, and Nadeem – we will see great success in the coming future”.