Liquidity Management in Banks: Accelerating in Real Time

From Manual to Automated: ILM as a Lever for Efficiency and Cost Savings

The many changes in the financial landscape have a direct impact on banks’ liquidity management, as they increasingly have to deal with new and often unpredictable incoming and outgoing payments. Intraday Liquidity Management (ILM) is gaining greater importance - not least due to regulatory drivers such as instant payments. These effects will become even more pronounced, especially as transaction amount limits for instant payments are lifted, making the product increasingly attractive for corporate treasury use cases - including treasury payments and other high-value transactions.

ILM is becoming a central operational component for banks, requiring 24/7 consideration, including weekends and public holidays.

Established but often still manual workflows and control mechanisms must now be modernized and accelerated. The degree of automation and the use of modern software solutions are increasingly determining success - and influencing the level of liquidity buffers a bank must maintain. The role of liquidity management and cash positioning is evolving - from manual execution to the monitoring of automated, rule-based processes.

These new requirements also present valuable opportunities: Manual interventions become the exception. Effective intraday-based liquidity steering enables a reduction in liquidity buffers, while maintaining compliance with regulatory and internal liquidity risk management standards. This not only leads to significant cost savings, but also to additional interest income - all while maintaining full regulatory compliance.