THE PROBLEM
Current mechanisms don’t enable efficient intraday management for banks. Unpredictable cash transactions throughout the day, coupled with legacy infrastructure and timing uncertainty, have created a need for better ways of managing intraday liquidity. Managing this risk is a high priority for banks.
THE SOLUTION
Finteum is creating a global financial market for intraday FX swaps on distributed ledger technology (DLT). Most finance DLT applications are replicating existing transactions on-ledger to increase transparency and cut costs, but Finteum uses the power of DLT to create a valuable market for intraday liquidity that was previously impossible.
The Landscape
Intraday liquidity risk is a key liquidity risk for banks and is under increasing scrutiny. Managing intraday liquidity effectively can save a banking organisation tens of millions per year from increased efficiency in the deployment of balance sheet and capital, and optimisation of liquidity buffer assets.
At Finteum, we believe that existing mechanisms available to banks don't adequately allow for efficient balance sheet management, such as:
- Agent bank credit lines
- Central bank intraday borrowing
- Withholding outgoing payments (throttling)
We also understand that banks are implementing solutions to improve intraday liquidity capabilities:
- Measurement and data sourcing
- Monitoring and reporting including BCBS 248
- Governance; stress testing, roles and responsibilities
- Management and optimisation
We are speaking with banks to explain how Finteum complements these ongoing initiatives.
Get in Contact
If you work in a bank in Treasury, ALM, Operations, Risk, Technology or another area and you are interested in Finteum, please get in contact with us. We are meeting with banks in London.