Announcement: Fnality Collaboration
18 Sep 2019: Finteum announced a collaboration with Fnality International to develop technology for intraday foreign exchange swaps (FX swaps) that settle using the digital settlement assets known as the Utility Settlement Coin (USC).
Fnality and Finteum are working together to deliver interoperability between the Finteum application, built on R3’s Corda platform, and Fnality’s USC solution.
Download our two page explanation document:
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.
Finteum aims to create a global financial market for intraday borrowing 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.
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.