The Corporate Banking team was faced with regular intraday mismatches between available funds and large value payments to make, usually to local suppliers of ‘well known brands’. The relationship with the affected large corporates was becoming stressed. This was a particular issue of concern in a number of less liquid non-Euro currencies in Eastern Europe.
Engaged closely with internal client specialists to understand the dimensions of the problem, train & license key personnel on use of the Intraday Liquidity Simulator (ILS) & agree prioritized early actions. Working with a small sample of accounts, Intraday Insights top sliced the payments data in the three critical currencies to identify:
“You can’t solve this problem easily by the creation of rules, changes or expensive systems implementations. We have used the Simulator as a marketing tool, as it allows us to visualise client, by client, the intraday lines and their usage on specific days and in specific currencies. This could be helpful to our sales People In their future discussions if intraday liquidity in less liquid currencies becomes a pricing issue across the sector. This could improve customer behaviour, gives bank relationshipmanagers additional sales tools and reduces both customer funding and bank liquidity costs “