In response to demands for greater visibility and predictability of cash flows, TLM Cash Management 2.0 captures transaction data from any source, facilitating the calculation and projection of funding, borrowing and lending requirements on an enterprise-wide basis.
âBanks are struggling with error prone manual cash management processes that create poor quality data and as a result can lead firms to make poor decisions. At a time when regulation is threatening to stifle product innovation, solutions such as TLM Cash Management that can deliver greater automation and real or near real-time cash management are an essential step forward in effectively managing liquidity,â said Christine Barry, Research Director, Aite Group.
Equally applicable to corporate or internal cash management, TLM Cash Management 2.0 enables banks to use real-time information and implement proactive cash management practices. As a result, banks can determine the probability of settlement failure, assess the risk of potential losses and eliminate the costs of incurring unnecessary settlement and operational risk exposure in the market.
Tim Martin, Senior Business Development Consultant, SmartStream, said: âThe traditional method of basing decisions on statements is fundamentally flawed, like trying to drive a car by looking in the rear view mirror. With this latest version of TLM Cash Management, banks can deliver more proactive cash management services to nostro accounts and support corporates more effectively through the provision of accurate forecasting.â
TLM Cash Management 2.0 provides visibility into cash exposure for future value dates. This allows the bank or corporate to operate with more efficient liquidity ratios and make better use of collateral and resources. It combines centralised cash management with intra-day reconciliation, enabling banks to build cash ladders for forecasting daily cash flows accurately. As a result, banks can initiate realignments while markets are still open, reducing liquidity risk and managing balances and exposures across accounts and currencies.
Customer self-service is also boosted through integration with TLMÂ® WebConnect, SmartStreamâs thin client user interface, supporting banks to deliver account and liquidity data to customers via a browser. âAs products become increasingly commoditised and margins continue to decrease, customer service, including tools that enable greater self-service, will become a critical differentiator,â said Martin.