Oracle Banking Liquidity Management

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Overview

Oracle Banking Liquidity Management enables banks to run a single centralized stand-alone liquidity management solution based on contemporary technology with ability to support comprehensive liquidity management techniques. Banks can minimize operational complexities in liquidity management for corporates by automating processes and backend systems.

The solution supports comprehensive liquidity management capabilities such as sweeping, pooling, multi-bank cash concentrations, real-time liquidity management, and intercompany loans, interest optimization, real-time visibility into liquidity positions and management of global liquidity structures.

With Oracle Banking Liquidity Management banks can empower corporates to manage their working capital efficiently and improve accessibility to internal and external funding. Using Oracle’s Liquidity Management solution banks can provide real-time, accurate and consolidated information on liquidity position to facilitate efficient / effective liquidity management for corporate customers. Oracle helps banks enable complete visibility into cash positions for their corporate customers. This results in better utilization of available funds and reduced interest costs through short-term bank borrowings.

Banks can also offer real-time liquidity management facility to corporates to manage funds in real-time and maximize business growth. Corporates can centralize cash and earn interest earnings. Also corporates will now have the facility to invest in high yield instruments and earn additional revenues and compensate trapped liquidity.

Oracle’s Liquidity Management Solution supports a multi-country, multi-branch, multi-currency sweeping and pooling structures. This helps in optimizing liquidity both domestically and across currencies and borders. The solution supports cross-border techniques like follow-the-sun and against-the-sun sweeping to centralize liquidity on a global basis. Banks can also offer corporates the facility to simulate sweeps and pools. Corporates can apply various interests’ allocation and reallocation models to sweeps and pools to maximize their liquidity position, manage their working capital more effectively and minimize borrowing as much as possible.

Oracle Banking Liquidity Management support multi-bank cash concentration through SWIFT allowing banks to automate and concentrate funds across third party bank accounts in different regions for corporate customers. Banks can enable corporates to move funds at end of day, intraday, weekly or monthly and support sweeps such as Zero, Target, Threshold, Collar balancing and Percentage.

The solution allows banks to empower corporates to offer short term, long term and on-demand intercompany loans. Intercompany loans are very helpful for corporates to fund business units with cash shortfalls, aggregate funds for investment purpose, offer loans to subsidiaries at a much lower interest rate and minimize the effect of currency fluctuation while funding business units that use local currency.

Oracle Banking Liquidity Management offers a wide range of intuitive dashboards for bank staff. These intuitive dashboards empowers bank staff to serve customers quickly and offer innovative solutions.

By interfacing with Oracle Banking APIs, the solution offers a vast Open API set across Liquidity Management functions. Additionally with pre-built interfacing with Oracle Banking Digital Experience the solutions allows banks to offer self-service that empower corporates to manage cash efficiently with ease.

Key Features

  • Support for multi-country, multi-branch, multi-currency liquidity management structures
  • Comprehensive liquidity management capabilities such as sweeping, pooling, multi-bank cash concentrations, real-time liquidity management, and intercompany loans, interest optimization, real-time visibility into liquidity positions
  • Live, personalized and intuitive dashboards for bank staff to offer superior services to customers
  • Facility to review, amend and simulate liquidity structures with changing market needs and requirements
  • State-of-the-art of self service capabilities by interfacing with Oracle Banking Digital Experience
  • Vast Open API set for liquidity management functionalities
  • The solution is DDA and virtual accounts system agnostic and can easily bolt on to multiple DDAs and Virtual accounts systems
  • Pre-built interfacing with Oracle FLEXCUBE DDA, Oracle Banking Cash Management, Oracle Banking Virtual Account Management Management, Oracle Banking Digital Experience and Oracle Banking APIs to empower banks to offer a comprehensive cash and liquidity management solution
  • Parameter driven solution with inherent centralization and automation capabilities
  • Built on micro-service architecture and easily extendable to accommodate dynamic business requirements

Key Benefits

For Corporates

  • Corporate customers can manage global liquidity structures and underlying multi-currency accounts and balances in real-time
  • Real-time, accurate and consolidated information on liquidity position enables corporates to better utilize available funds and reduce interest costs through short-term bank borrowings
  • Corporate customers can easily fund cash shortfalls for their subsidiaries, concentrate funds and easily move cash between business units while minimizing the effect of currency fluctuation
  • Corporate customers can offer intercompany loans at a lower interest rates and relaxed repayment terms compared to bank loans
  • Corporate customers can invest in high yield instruments and earn additional revenues and compensate trapped liquidity
  • Multi-country, multi-branch, multi-currency sweeping and pooling structures empowers corporates to manage working capital efficiently and minimize borrowings
  • Multi-bank cash concentration facility enables corporates to manage liquidity distributed across accounts of multiple banks effectively and enhance their liquidity position

For Banks

  • Banks can bootstrap play in the transaction banking with “Purpose-Built” Liquidity Management platform
  • Oracle Banking Liquidity Management provides tools including dash boards, heat maps and simulation techniques to offer superior services to customers
  • Banks can gain a standalone global liquidity platform with contemporary architecture that enables rapid “change programs” and quick wins
  • With data masking and portability functionalities, banks can help customers navigate and control the choices they have on data sharing and privacy
  • By offering multi bank cash concentration, banks can help corporate customers manage their multi-banking relationships and in the process become the primary bank for corporates and undertake a central role in supporting corporate customers manage their finances efficiently
  • Banks can offer customized liquidity management solution and enhance relationship with corporate customers