Bank’s spaghetti architecture stress solved, results in £500K savings

One of the UK’s leading banks recognised the need to enhance its Intraday Liquidity Tool (ILT) to overcome existing challenges and improve its liquidity management.

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clear view of a hill

Objectives

The bank had been grappling with an ageing ILT. The existing “spaghetti” architecture, lack of understanding, lengthy change processes, and visibility issues were inhibiting the bank’s ability to accurately assess and manage intraday liquidity. Furthermore, regulatory reporting was highly manual, and funding positions were too convoluted to calculate accurately.

The bank had a clear vision for success – it needed an intraday liquidity management system that included regulatory capabilities and stress modelling.

The Solution

The solution facilitated settlement activity across all its direct and indirect accounts, detailed analytics and forecasts of end-of-day projections for all accounts, and settlement status, providing visibility on unadvised cash movement offered. The capabilities were implemented in three phases using the Planixs hosted environment. This ensured seamless integration with the bank’s existing systems. The bank and Planixs adapted to the challenges of internal delays, ensuring continuous support throughout the implementation.

clear view of a hill
clear view of a hill

Measurable Benefits

The results achieved through the implementation were remarkable.  The implementation of Planixs’ Realiti solution solved the challenge of merging expected flows and fails, providing a comprehensive view of pending transactions at funding cutoffs. 

The bank experienced a significant reduction in manual effort and, subsequently, the risk of errors. Real-time data feeds provided enhanced visibility and accurate forecasting across all currencies. The improved matching logic enabled effective chase-up of fails, while greater control over funding and same-day activity monitoring enhanced accuracy and efficiency.

The project’s performance translated into tangible benefits for the bank including substantial cost reduction (estimated at £500,000 per year), increased business accountability, and a platform for regulatory reporting. The identified risks in their existing funding and cash management processes were successfully mitigated, enhancing overall risk management within the bank.

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