In the aftermath of the global financial crisis, treasurers, liquidity managers and regulators awakened to the realization that traditional liquidity management practices were in need of a major overhaul. The emerging consensus is that end-of-day isn’t good enough – liquidity needs to be monitored and managed intraday, and in real-time.

While regulatory pressure is certainly intense, intraday liquidity monitoring and management is not merely a compliance issue, it is also fundamental to understanding and managing a bank’s overall risk profile. Most importantly, banks are beginning to understand that it can help them optimize their flow of funds, generate customer advantage and enhance competitiveness.

However, industry practice lags far behind the vision. Many banks are unable to track and forecast intraday nostro and vostro balances. One business area may know its net outflows but, where multiple entities, systems, departments and product types are involved, there is no single place where the necessary data is aggregated and consolidated.

And the most commonly used liquidity management tool? The offline spreadsheet.

Dovetail’s Intraday Liquidity Management Solution offers a fast-track step change in approach by providing:

  • Treasurers with unparalleled real-time visibility into intraday and end-of-day conditions, available liquidity and forecasts – across all currencies, legal entities, and direct and indirect clearing relationships
  • Operations groups with insight into unexpected cash movements, the status of key transactions and on-demand reporting and cash flow investigation support
  • Correspondent service providers with the ability to create new service offerings based on a deeper understanding of their customers’ behavior
  • Compliance and risk officers with the capability to confidently check off the compliance box – all without crowding out the innovation budget.

The solution features a set of core functions common to all banks needing to support intraday liquidity management, with Dovetail Intraday Liquidity Management Solution Options to meet specific business needs, such as nostro cash flow management or BCBS 248 monitoring. The modular design also ensures that the solution can be easily integrated into a bank’s existing environment without affecting mission-critical transaction processing infrastructure, thus reducing implementation effort and accelerating time to market.

In common with all Dovetail solutions, the Dovetail Intraday Liquidity Management Solution is based on the Dovetail Transaction Architecture.

Intraday Liquidity Management

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