An established trend in the finance industry, real-time liquidity management isn’t an option for banks. Their capability for it is closely monitored by regulators across the globe to ensure the banking system’s resilience and the bank’s compliance with the requirements of the Basel Committee on Banking Supervision (BCBS) 248.
The increased adoption of real-time liquidity management goes hand in hand with the rise of instant and real-time payments, faster cross-border transactions and Open Banking initiatives. What’s more, it’s accelerating these and other trends in the finance industry, becoming a competitive advantage for those banks that go beyond the regulatory requirements.
However, real-time liquidity is also at the root of some challenges banks must grapple with. The definition of real-time liquidity may differ based on jurisdiction, causing a lack of consistency between banks. It also exacerbates obstacles caused by the outdated legacy estate and different conditions across currencies.