Understanding regulatory expectations: The role of real-time data in banking

Planixs real-time liquidity management
Pete McIntyre, the liquidity expert

Written by Nick Applebee

June 18, 2024

Expectations from regulators in North America, Europe, and Asia suggest a consistent global approach to enhance the resilience of the banking sector (and in some cases other financial institutions). Whilst the focus of the latest Dear CEO letter from The Prudential Regulation Authority (PRA) is on recovery planning, this is yet another communication from a regulator or industry body that underscores the necessity for real-time data and monitoring across cash and securities. Clearly, some banks still have work to do in this area.

What themes do recent regulatory communications reveal?

Bank regulators emphasise the critical need for real-time data to enhance risk management, improve liquidity management, and support operational resilience. In addition, regulators expect banks to develop thorough and well-detailed recovery plans. These plans should include a variety of realistic strategies to restore financial stability during times of stress.

This implies that banks need to have advanced systems and processes in place to track their financial positions continuously. Overall, the availability of real-time data enhances transparency, boosts market confidence, and contributes to the stability, efficiency, and resilience of the financial system.

For CFOs and Treasurers, achieving pinpoint accuracy when facing an overwhelming volume of data scattered across disparate systems can feel like chasing a moving target.

As Moorad Choudhry, author of The Principles of Banking, states, “It’s about accurate, real-time information presented to me in a way I can understand. Plus, the board of directors and the C-suite need to be able to see that information in a way that is instantly accessible, so they can then make appropriate decisions.”

How do I get this done?

We are seeing a paradigm shift in how financial institutions manage liquidity and navigate the complexities of modern-day transactions. A growing number of bank departments are concluding that they require real-time data to do their jobs more effectively, including those in treasury, front office, risk, and operations. There’s no need to be satisfied with approximations and workarounds anymore.

With the expectations from regulators that we have discussed, real-time monitoring is no longer ‘nice to have.’

As HSBC noted in their 2023 report on treasury transformation trends, “The ability to make use of timely and accurate data sets can support treasurers when managing their cash flow forecasting, payments, and collections. Data can also be leveraged for risk management purposes, making it easier for treasurers to track positions like currency or interest rate exposures.”

The Realiti suite addresses a number of regulatory expectations for banks. It is the only liquidity intelligence solution to deliver real-time, enterprise-wide 360° visibility of a firm’s liquidity landscape, control over treasury activities and value-creating insights. All in one place. 

Real-time reconciled data provides up-to-the-minute insights into a bank’s financial position, enabling rapid responses to emerging risks and opportunities. Banks can continuously assess and manage risks such as credit, market, and operational risks, providing a comprehensive approach to maintaining financial health and stability. Additionally, having real-time reconciled data across cash and securities enables banks to monitor price movements and values effectively, track volatility, and manage liquidity by monitoring transaction data and inflows and outflows, helping to identify what is normal or abnormal.

The outcomes for Realiti’s clients speak volumes – millions in savings on intraday liquidity buffer costs, compliance with the BCBS248 regulatory agenda, plus efficient and effective funding operations.

In summary, Realiti’s features deliver tangible benefits in various critical areas:

Regulator Confidence

  • Prove capability and control of real-time activity.
  • Reduce the size of expensive intraday liquidity buffers.

Cash Management Modernisation

  • Achieve financial efficiency by optimising the use of liquidity.
  • Drive operational efficiency through automation.

Operational Resilience

  • Eliminate manual processing.
  • Enable new business continuity options.

Payment Control

  • Gain insight into the entire life cycle of outgoing payments.
  • Maintain control over payment releases to ensure smooth payment flows and efficient financial management.

Data Visualisation

  • Simplifies complex data into visual formats for quick pattern and trend identification.
  • Enables quick insights for more informed decision-making.

Counterparty Risk

  • Optimise counterparty trading behaviour.
  • Identify and manage counterparty risk in real-time.

Managing Volatile Interest Rates

  • Address the cost of short positions.
  • Leverage overnight returns from freed-up liquidity.

Intraday Stress Management Playbook

  • Identify, model, and execute potential stress events.
  • Mitigate stress events in real-time and perform “what-if” stress analysis.

Intraday Insight into Client Accounts

  • Manage client credit risk.
  • Allocate the cost of client intraday liquidity usage.


Realiti’s clever software can be seamlessly implemented with minimal intrusion into a firm’s infrastructure. The move has completely changed how many firms see and use data, resulting in millions in cost reductions and revenue generation. here’s no need to be satisfied with approximations and workarounds anymore. In short – don’t guess, know.

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